Last updated 7 months ago
When you’re owed a refund from the IRS, you want to know how much you’re going to get as soon as possible. If you filed during the 2012 tax extension period or want to prepare for next April, you might find this iPhone app useful.
IRS2Go is a government-developed app that allows you to track your tax return and get updates form the IRS. With so many changes made each year in tax codes, these updates can end up saving you money now and in the future.
If you want the maximum deduction on your latest taxes, seek help from the experts at San Diego Tax Pro. With more than three decades of experience, we understand taxes and offer you top professional tax return service. Call (888) 690-9245 for help from an experience tax preparer.
Last updated 7 months ago
When you get a new job, your employer gives you a W-4 form. For most people, the W-4 is complicated and difficult to fill out. But without filling out the form correctly, you could end up having the wrong amount of income taxes withheld. If you are unsure about your withholding rate, talk to a San Diego tax preparer before your taxes are due to ensure you’re getting the right tax return. In the meantime, here is an overview of what you need to know about tax withholding:
Choosing the Right Withholding Rate: Your employer uses information about your earnings and the information you disclose on your W-4 to determine your correct withholding rate. The factors that affect this rate include your income, marriage status, withholding allowances, and whether or not you claim any exemptions or additional withholdings on your W-4.
Consequences of Withholding the Wrong Amount: Unfortunately, there’s no way for employer to determine your withholding amount perfectly. Withholding the wrong amount may result in you owing taxes and not getting a tax return, which is a difficult situation for most people. On the other side, if you withhold too much, you will get significantly lower paychecks throughout the year. This can hurt you if you are struggling to pay mortgage, provide for your family, or put extra money away. To determine the correct amount to withhold, seek the services of a knowledgeable tax preparer.
Changing How Much You Withhold: Due to many circumstances, taxpayers often need to adjust the amount they choose to withhold. In order to do this, you need to fill out an entirely new W-4 form for your employer. Adjusting the amount you withhold could occur due to a change in your marital status, income, or result in unforeseen expenses from medical bills, lost wages in the family, or other situations.
If you’re not sure how much you should be withholding on your income taxes, talk to a San Diego tax preparer for advice. At San Diego Tax Pro, we have been helping people save money and get maximum returns since opening our doors more than 30 years ago. Call our friendly and knowledgeable tax preparers today at (888) 690-9245 for an appointment.
Last updated 7 months ago
In July the Supreme Court said Congress' 2010 Health Reform Act is
not unconstitutional. What will you and I see as a result?
Two Cautions. First, this is not a popular law. Many feel it may still
be repealed. Wait and see. Second, the law is massive, with rule
changes scheduled every year from 2010 through 2018. Every single
rule has its pros and cons. This law may be as large as 1939's Social
Security Act - we still love to argue about that one! Expect change -
lots of change. For now, I can only describe what's "on the books".
Health Insurance For All is the goal of the law. A noble concept, but
the cost is staggering. Congress will leave health care itself to the private
sector, but will insist we all have insurance coverage.
As many as 20% of Americans do not have health insurance. That's
around 60 million of us. Imagine the cost of their premiums! The law
will force all of us to share the costs. As always, a bigger burden will
fall on those more able to pay.
Expect Changes! The law is huge! If it survives, we can expect lots
of fine tuning. For many years to come.
Most discussion looks at whether the law is "good" or "bad". The
answer is - - - YES! Lots of both. The Supreme Court didn't say the law
is "good". They simply said forcing us to have health insurance is not a
violation of our Constitution.
Republicans have vowed to repeal the whole thing. In order to do this
they probably need to win the Senate and the Presidency, plus keep businesses, insurance companies and health care providers. Low income
Americans will pay the least. High income folks will pay more than their
share. This is much like our "graduated" income tax rates.
Revenue Raisers. Mandatory coverage won't start until 2014, but
raising money for the increased costs starts next year, in 2013.
Higher Medicare Tax. As part of the social security system,
workers pay a 1.45% Medicare tax on all their wages. Starting in 2013,
earnings over $200,000 ($250,000 if you're married) will face another
0.9% on the extra wages. Same for self-'employed folks. IRS already
worked out rules to police this using your tax return. After all, some
folks change jobs, some file as married, but withhold as if single.
Medicare Surtax. Starting in 2013 an extra 3.8% income tax will
apply to any "investment" income if your income exceeds $200,000
($250,000 for couples). This will apply to your income from interest,
dividends, capital gains, annuities, rentals, and a few other things.
Higher Medical "Floor". If you itemize deductions instead of
using the "standard" deduction, your medical deductions have a special
rule. You may only deduct costs in excess of 7.5% of your income. This
"floor" will jump to 10% beginning in 2013. Folks over 65 won't face
the higher "floor" until 2017.
Other Revenue Raisers. Workers with "flexible spending
accounts" for medical costs will have a "cap" of $2,500 on their pay-.ins.
Retired folks paying for Medicare Part D drug coverage may not deduct
their premiums. A 2.3% excise tax will apply to all "medical devices".
In 2014 health insurance companies must share an extra $8 billion tax.
This extra tax is set to rise to $11.3 billion by 2018. Drug makers paid a
similar $2.5 billion tax in 2011. This will eventually rise to $2.8 billion.
Clearly the extra taxes will be passed on to you and me, the consumers.
Insurance or Fines. Starting in 2014, individuals who remain
uninsured will face penalties. These "fines" start as low as $95 per year,
but increase as your income climbs. By 2016, the top penalty is set to be
$2,085 each year.
Help For Same. At the same time, there will be "subsidies" for
lower income folks, in the form of tax credits to help pay for coverage.
At present, these credits are set to follow a sliding scale based on
income. They will go to single folks with income as high as $43,320.
For families, income can be as high as $88,200 for a family of four. IRS
is just now starting to work out details. They say subsidies could
eventually be more than $5,000 per year for some families.
Large Businesses that don't provide health plans for their
employees will also face penalties. Firms that hire 50 or more full-.time
employees could face a penalty as high as $2,000 for each uninsured
Small Businesses already get special tax breaks if they pay for
insurance. This began in 2010. This tax "credit" applies to firms with
fewer than 25 employees. The rules have many complex steps. IRS
estimated late last year that only one-third of the businesses that qualified
for the tax rebates in 2010 claimed them! No word yet on 2011 claims.
Insurance "Exchanges" Each state must set up its own "state
health insurance exchange". Exchanges will oversee rates, pass out
government "credits" to assist low income folks, and more.
As of July only three states have exchanges in place. Ten more states passed laws to form them, but no details yet. 35 states have yet to act. New Jersey
and New Mexico passed laws and promptly vetoed them. Wait and see.
Summary Only. I have described only the major parts of this law.
There are far more details. One large publisher of tax-related material
put out a book on the law with more than 950 pages! The news media
has produced many hours and thousands of pages of discussion.
As more details are hammered out I'll have more to say.
Last updated 8 months ago
Navigating through the rules and regulations of the IRS can be tricky. But understanding IRS procedures can make a difference in how large your refund is, and is an important part of avoiding penalties and fees. To learn more about IRS procedures and regulation, check out these links.
Cornell University Law School provides information on Tax Fraud and Evasion as defined by the IRS.
If you would like to learn more about tax liens and levies, the IRS is your best source for information.
Check out this article from the Huffington Post to learn about the upcoming changes to the 2013 IRS tax code.
Forbes has some great information for business owners and everyday citizens alike on how to avoid penalties from the IRS.
If you are a business owner looking to provide a retirement plan for your employees, read this information from the IRS on the steps you need to take.
For more information on the IRS tax code, rules, procedures, and regulations, call The San Diego Tax Pro at (888) 690-9245. The San Diego Tax Pro provides tax return services, tax preparation, and tax counseling to individuals and businesses.
Last updated 8 months ago
Finding a reputable tax preparer is great way to maximize your refund. It is also a great way to avoid the stress of preparing your own income tax return. Knowing how to find a tax preparer that is honest and reliable is essential. Fortunately, the IRS offers some straightforward advice on what to look for.
Tax preparers that refuse to sign your return or offer to deposit your refund into their own account are almost certainly dishonest. For more information on what to watch out for and how to find the tax preparer that is right for you, watch this video.
For a dependable, honest, and reliable tax preparer in the San Diego area, contact The San Diego Tax Pro at (888) 690-9245. Terry Smith, the Tax Pro himself, has been working with taxes for over 30 years and can provide you with a return service that you can count on.