Look for either changes to the Schedule C and/or changes to the Form 1040 later on for more information or through the IRS website.

Las Vegas was a nice 101 to 106 degrees while I was there and I had a good time at the convention. I am not defending or criticizing the IRS but I have to compliment them because the sheer volume of work that they have to get done for a thankless job is pretty impressive so thanks for being there guys (and ladies).

There were a decent number of software vendors and sales reps at the show and some of their products were interesting. If I have the time I will post more later on.

Stay cool and comfortable gang!

Aug 19 2011

Kim Isaac Greenblatt

Upcoming Changes to Sch C for 2011 – 2012

Most couples when they first get married might end up owing taxes because they didn’t plan accordingly. Remember that as of the end of the year – the very last day – Dec 31st, you and your beloved are considered as a couple. That means what is yours is hers and what is yours is his as well. That means that your income is considered combined for income tax purposes.

If you check out my post (look on the side of the page or go to the home page and look on the side there if you are viewing this as a single post) under one of my “Bad Tax Idea, Good Tax Idea” notes, you can see that you should both have changed your W4s from work to reflect that you need to have a little more money possibly withheld for taxes. What has happened in the past is that both couples change their withholdings from Single 1 to Married 4 or stuff like that and they both end up owing at the end of the year.

If you are in doubt, drop me a line or consult with your favorite tax pro. Have a great time as a couple and please make sure that you have your taxes covered so you don’t start planning for divorce several months later!

May 30 2011 Later In the Day

Kim Isaac Greenblatt

Taxes and Your Wedding

If you ended up owing a lot of money and haven’t been able to pay it, please make sure you contact the IRS and any state agencies to set up a payment plan with them. The interest that will be accuring will not go away and if you are between jobs it will only get worse. Once the IRS also hits your credit report that will be a possible showstopper if you are applying to firms that run credit checks (and a lot of them are these days).

If you have too big of a refund, you need to ask yourself if you are comfortable with it or do you want to go ahead and try to just tweak it down a little bit. Be careful because you don’t want to swing it from receiving a refund of $4000 to owing $5000. I have seen it happen and you are playing Russian Roulette when you start tweaking your W-4 at work and realize by Sept that you haven’t had enough money withheld. If that does happen, think about making quarterly tax payments.

Try to save money – with the financial situation being in a state of flux, despite indications that the economy may be better, the economy may not be specifically better for you. Cash is still the monarch of the financial system and the currency to have for day to day living.

The ideal is to have enough to last at least 6 months if you are out of work but the cold hard reality is that most people are paying their bills and living hand to mouth.

Be safe and try to hang onto your money. For more information check out some of my books for sale at
www.kimgreenblatt.com.

May 03 2011

Kim Isaac Greenblatt

Spring Cleaning for your Taxes and Finances

Be safe and if you haven’t filed your income taxes here in the United States the clock is ticking and we are coming down to the last six weeks before April 18, the Federal deadline hits.  Let me know if you want me to do your taxes.

By the way, we are past the deadline for receiving W2s so if you need to generate a substitute W-2 to file your taxes, you can go ahead and file creating one in case your former employer can’t get you a new W2 or went completely out of business (yucho).  Later, gang!

Mar 03 2011

Kim Isaac Greenblatt

New Lower Price For Bad Tax Idea Good Tax Idea Kindle

Be aware that any tax returns that will require a Schedule A for Itemized Deductions cannot be filed until mid February.  The tax forms will be ready than by the IRS. 

 I do all kinds of tax returns including corporate, partnerships, sole proprietorships, farming, investments and foreign income.  I love people and helping them get their taxes done right. 

If you are getting IRS letters and are in the State of California and want me to help you take a look at them, please drop me a line.  Be aware that the clock is generally ticking when you get an IRS letter and you have to respond before the due dates on the returns or else the IRS will assume that their decision is the correct one and take appropriate action at their end. 

Have a great year and keep me in mind.

Kim Isaac Greenblatt, Enrolled Agent

Open for Business for 2011 for Doing 2010 Tax Returns

Kim I. Greenblatt

1099s for Interest and Dividends Are Out

Please relax and don’t worry.  I am available to help you with your tax needs.

Just drop me a line and at the very least we can talk about what is unique in your case.

I have been doing returns for a long time and I have a good idea of where you might be coming from.

Have a Great Weekend!

Kim Isaac Greenblatt

Tax Time, Come on In

1) American Opportunity Tax Credit

§25A

Form 8863

2009 and 2010

The maximum credit has been increased to $2,500 (100% of first $2,000 expenses, 25% of next $2,000 expenses). This applies to the first four years of post-secondary education and is 40% refundable unless claimed by a child subject to kiddie tax. Your phase outs are as follows: Phases out at $80,000-$90,000 MAGI ($160,000-$180,000 MFJ). Other particulars are that students in Midwest Disaster Area may instead claim an enhanced Hope credit of up to $3,600 for 2009. For this and all the other specific changes check out the irs website.

2) AMT patch

§§ 55 and 26

Form 6251

For 2009 only, the AMT exemption increased to $46,700 ($70,950 MFJ). Also you will see that Nonrefundable personal credits allowed for AMT. Thank heaven for small favors, huh?

3) Bicycle commuting fringe benefit

For those of you fortunate enough to be able to bike ride to work and for their employers.

2009 and later years

Qualified tax-exempt transportation fringe benefit; NOT a tax credit-This means that it will help employers specifically.

The allowance is up to $20/month (maximum $240/year) to reimburse employees who regularly commute to work via bicycle. Keep on pedal pushing, people!

§165

Form 4684

Change for 2009 only

The $100 per casualty floor for individual casualty losses is temporarily raised to $500 per casualty. I think that is because there has been too darn many floods, hurricaines, tornadoes, etc.

Forms or Tax Laws Affected:

Form 8812

2009 and 2010

The Additional Child Tax Credit (ACTC) earned income threshold decreased to $3,000 (was $8,500 in 2008). That means you have a better shot for qualifying for it if you hit all the other marks for getting ACTC.

§24

6) COBRA subsidy

§§ 139C and 6432

Beginning with COBRA premiums paid after 2/16/09

COBRA premiums are 65% subsidized for up to 15 months

Jobless taxpayers who were involuntarily terminated 9/1/08 through 2/28/10

Recaptured dollar-for-dollar for taxpayers with MAGI over $125,000 ($250,000 MFJ)

2/18/09-12/31/11

Nonrefundable credit equal to 10% of the cost of converting to a plug-in electric drive motor vehicle. Make sure that the juice is flowing, party people.

Maximum credit is $4,000 and it may be claimed for a vehicle that also qualifies for the hybrid vehicle credit.

Depreciation

179

Form 4562

For property placed in service in 2009, there is a

Generally, any original use machinery used in farming business other than grain bin, cotton ginning asset, or other land improvements qualifies.

§§168(k), 168(e)(3)(b)(vii),50% bonus depreciation extended through 2009. Enhanced §179 deduction up to $250,000 extended through 2009. Qualified farm machinery eligible for 5-year MACRS depreciation – how many of you out there are farmers? Let me see by a show of hands, one, two, three..

One-time payment of $250 for recipients of SS, SSI, VA, or RRB benefits paid directly by the SSA, VA or RRB

Must have received a benefit 11/2008, 12/2008, or 1/2009

Reduces the Making Work Pay Credit

IRS will not provide verification regarding whether a taxpayer received the ERP but will reject return if ERP is missing. Basically a “bad news/good news” scenario for e-filing. The bad news is your return rejected, the good news is when we refile you will be getting back more money! Whoo hoo.

§32

2009 and 2010

Higher EITC for families with three or more children

Additional marriage penalty relief (phaseout threshold for MFJ increased an additional $5,000 over the range for unmarried filers)

§36

Form 5405 plus substantiation

Who must use Schedule L:
You must use Schedule L to figure your standard deduction if you have any of the following:
A net disaster loss you report on Form 4684, line 18 (Form 1040 filers only).
State or local sales or excise taxes (or certain other taxes or fees in a state without a sales tax) paid after February 16,2009, for the purchase of any new motor vehicle(s).

More information can be obtained from the IRS website or your local tax pro. Make sure that you have the form when you file please. You can bet that the IRS will be looking for it too.

Be safe and hope your New Year is going well.

Jan 05 2010
Kim Isaac Greenblatt

Schedule L – The New Kid or One of them On the Tax Block

The deadline is end of February and for the city of LA business people, if you are making less than $100,000 in sales are year you don’t have to pay any city license fee – which is a decent thing. Please be sure not to put this off and remember that the city, county and state taxing authorities cross check information with one another as well as with the Fed.

I am taking on new clients and if you are interested in having me do your tax return, please drop me a post.

Have a great 2010 everybody.

Sincerely,
Kim Isaac Greenblatt

City of LA and State BOE Sites Are up