High-Income Taxpayers

High-Income Taxpayers

In addition to being subject to higher federal tax rates, taxpayers whose income exceeds certain levels have tax deductions and credits that are reduced or eliminated. The provisions listed may have additional qualifications and restrictions.

Other provisions of the tax code, such as fringe benefit limitations and taxation on the sale of a principal residence, may further restrict a taxpayer’s ability to take deductions or cause the taxpayer to pay additional tax. Ask your tax professional for more details.

Read the entire article here on High-Income Taxpayers

Any accounting, business or tax advice contained in the Tax E Man Blog or http://www.PatTax.net, including attachments, links and enclosures, are not intended as a thorough, in-depth analysis of specific issues, nor a substitute for a formal opinion, nor is it sufficient to avoid tax related penalties.

If desired, Pat Tax, Inc. would be pleased to perform the requisite research and provide you with a detailed written analysis. Such an engagement may be the subject of a separate engagement letter that would define the scope and limits of the desired.

The Tax E Man Blog, along with our website http://www.PatTax.net, are designed to be year round resources for tax consultation, preparation and representation services provided by Pat Tax, Inc. . Please feel free to contact us with any questions or concerns.Services We Provide IncludeIncome Tax Preparation for individuals and small businesses

Electronic filing of all Federal and State returns with direct deposit of refunds
Scheduled electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns
Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”

Go back

Your message has been sent

Don’t Overlook Gift Tax in Financial Planning

Gift Tax

There is no dollar limit on the amount that one person is allowed to give to another. Gift tax rules do not prohibit a donor from making gifts in excess of the annual exclusion ($14,000 for 2014). However, if more than the annual exclusion is given to any one recipient, the amount over the annual exclusion is considered a “taxable gift.” Consequences of making taxable gifts:

Donor is required to file a gift tax return (Form 709) for the year.
Taxable gifts reduce the donor’s $5,340,000 (2014) lifetime gift tax exclusion.
Gift tax is only paid once the exclusion is exhausted.
Taxable gifts are added to the donor’s taxable estate at death.

Donors with small estates can make gifts over the annual exclusion and pay no gift or estate tax.

Read entire article here on Gift Tax

Electronic filing of all Federal and State returns with direct deposit of refunds
Scheduled electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns Amended Tax Returns

Empowering clients thru education, a stress free transaction and an excellent service experience.”

Go back

Your message has been sent

Choosing the Right Filing Status

Single

A taxpayer is unmarried in 2014 if:

• The taxpayer has never married,

• The taxpayer was legally separated, according to

state law, under a decree of divorce or separate

maintenance.

• The taxpayer’s spouse died before January 1, 2014, and

the taxpayer did not remarry in 2014.

If the taxpayer meets the definition of unmarried, file as

Single unless the requirements for one of the following

filing statuses are met.

• Head of Household, or

• Qualifying Widow(er) with Dependent Child.

Married Filing Joint (MFJ)

A taxpayer can file a joint return in 2014 with a spouse if:

• The taxpayer was married at the end of 2014, even if

the taxpayer did not live with the spouse at the end of

2014.

• The taxpayer’s spouse died in 2014, and the taxpayer

did not remarry in 2014.

• The taxpayer was married at the end of 2014, and the

spouse died in 2015 before filing a 2014 return.

• The taxpayer lived with a person in a common-law

marriage recognized in the state where they live or in

the state where the common-law marriage began.

A taxpayer can file MFJ if both spouses agree, otherwise

a married taxpayer may file:

• Married Filing Separately (MFS), or

• Head of Household (HOH) if the taxpayer meets the

requirements to be “Considered Unmarried.” See

Head of Household, later.

Read the entire article here Filing Status.

Services We Provide Include

Income Tax Preparation for individuals and small businesses
Electronic filing of all Federal and State returns with direct deposit of refunds
Scheduled electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns
Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”

Go back

Your message has been sent

Recordkeeping for Tax Purposes

Which records should you keep? You should keep information that you and the IRS need to determine your correct tax. Everyone should keep the following records.

Copies of tax returns. Keep copies of your tax returns as part of your tax records.

• Your tax returns can help you prepare future returns and amended returns.

• After you die, copies of your tax returns and other records can be helpful to your survivors or the executor or administrator of your estate.

Proof of income and expenses. Listed below are examples of income and expense documents you should keep. The list is not all inclusive. Read the article Recordkeeping for Tax Purposes here

Services We Provide Include

Income Tax Preparation for individuals and small businesses
Electronic filing of all Federal and State returns with direct deposit of refunds
Scheduled electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns
Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”

Go back

Your message has been sent

Employee or Independent Contractor?

In order for a business owner to know how to treat payments made to workers for services, he or she must first know the business relationship that exists between the business and the person performing the services. A worker’s status determines what taxes are paid and who is responsible for reporting and paying those taxes. A worker performing services for a business is generally an employee or an independent contractor. If a worker is classified incorrectly, the IRS may assess penalties on the employer for nonpayment of certain taxes.

Read the entire article, Employee or Independent Contractor here.

Services We Provide Include

Income Tax Preparation for individuals and small businesses
Electronic filing of all Federal and State returns with direct deposit of refunds
Scheduled electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns
Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”

Go back

Your message has been sent

Families with Children

Welcome to the Tax E Man Blog, a service provided by Baldwin NY tax preparation, consultation and representation company, Pat Tax Inc. The company founder, Patrick White, is an Enrolled Agent which allows him to represent taxpayers before the Internal Revenue Service.

Tax planning with your tax professional should reflect short and long term goals of you, your family and/or business. Tax payers standing on a tax information base is critical. it was with this in mind that the Tax E Man Blog was created. The blog will provide timely tax information seminal in monitoring plan progress and preparation of tax documents.

Articles are presented as links in PDF format for easier printing and viewing.

Please contact us with any questions or concerns at 917 533-8475 or email PatTaxHelp@gmail.com.

Families With Children

There are numerous tax benefits to Families With Children. Among these are

Child Tax Credit
Additional Child Tax Credit
Child and Dependent Care Credit
Earned Income Tax Credit
Adoption Credit
Lifetime Learning Credit

Various requirements and exclusions may apply. Please read here Families With Children for further information.

Services We Provide
◾Income Tax Preparation for individuals and small businesses
◾Multiple Year Non-filer Income Tax Preparation
◾Electronic Filing of all Federal and State Returns with direct deposit of refunds
◾Scheduled Electronic payment of balance due
◾Income Tax Consulting
◾IRS Tax Representation
◾Unified Tax Returns
◾Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”

Go back

Your message has been sent

Plan Now to Avoid Surprises Next Tax Season

With the start of the New Year, thoughts turn to reflections on the year past, goals for 2015 and the tax season ahead. Part of tax planning should include insuring proper withholding of taxes during 2015 to avoid a tax surprise next filing season.

The article “Still Time to Avoid Surprises at Tax Time” outlines actions that can be initiated now to stave off tax surprises next tax season.

Among the actions are

Adjust your withholdings
Report changes in circumstances
Change taxes with life events
Be accurate on your W-4
Pay estimated tax if required

Read the full article “Still Time to Avoid Surprises at Tax Time” here.

Services We Provide

Income Tax Preparation for individuals and small businesses
Multiple Year Non-filer Income Tax Preparation
Electronic Filing of all Federal and State Returns with direct deposit of refunds
Scheduled Electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns
Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”

Taxpayer Bill of Rights

Happy New Year and welcome to the Tax E Man Blog. As we enter tax preparation season, it is important to know what your rights as a tax payer are. It is for this reason that this issue provides recent revisions to these rights as well as other important updates.

In this issue content from the tax letter “Tax News and Industry Updates” will be provided. Among the subjects covered is the “Taxpayer Bill of Rights”. The Taxpayer Bill of Rights is 10 provisions compiled by the Internal Revenue Service that “take the multiple existing rights embedded in the tax code and groups them into 10 broad categories making them more visible and easier for taxpayers to find.”.

Press 2014 Tax News and Industry Updates to read.

The 10 Taxpayer Rights are

The Right to Be Informed
The Right to Quality Service
The Right to Pay No More than the Correct Amount of Tax
The Right to Challenge the IRS’ Position and Be Heard
The Right to Appeal an IRS Decision in an Independent Forum
The Right to Finality
The Right to Privacy
The Right to Confidentiality
the Right to Retain Representation
The Right to a Fair and Just Tax System

The Taxpayer Bill of Rights has been incorporated into IRS Publication 1, “Your Rights as a Taxpayer”, revised in 2014.

Services We Provide

Income Tax Preparation for individuals and small businesses
Multiple Year Non-filer Income Tax Preparation
Electronic Filing of all Federal and State Returns with direct deposit of refunds
Scheduled Electronic payment of balance due
Income Tax Consulting
IRS Tax Representation
Unified Tax Returns
Amended Tax Returns

“Empowering clients thru education, a stress free transaction and an excellent service experience.”
Continue reading “Taxpayer Bill of Rights” →

Your message has been sent

Share this:

Your message has been sent

Share this:

Your message has been sent

Share this:

Your message has been sent

Share this:

Your message has been sent

Share this:

Your message has been sent

Share this:

Share this:

Share this: