The Most Overlooked Tax Deductions, Part 8

October 5, 2016 Shamsey Oloko Leave a comment Deductions, Expenses Deductions, Home-Related Deductions, Investment-Related Deductions, Job Search Expenses, Moving Expenses, State & Local Taxes

This is the eighth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the first half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!

JOB & MOVING DEDUCTIONS

Job Search Expenses

As long as the position of employment sought is in the same line of work as a current or most recent job, job search expenses may be deducted as miscellaneous expenses if itemized.

Moving Expenses for a First Job

This is a preview of The Most Overlooked Tax Deductions, Part 8. Read the full post (396 words, 1 image, estimated 1:35 mins reading time)

Tax Benefits For Education Part 6

October 4, 2016 Shamsey Oloko Leave a comment Education 529 Plans, Education Tax Credit, Qualified Education Expenses

This is the sixth part of our multi-part series of blogs on tax benefits for education. Any present or former student should utilize the knowledge, experience and expertise of the tax professionals at the Thorgood Law Firm to ensure that they take advantage of all the credits and deductions that the law allows for students of higher education.

Scholarships and Fellowships

This is a preview of Tax Benefits For Education Part 6. Read the full post (356 words, 1 image, estimated 1:25 mins reading time)

Possible Scams And Current Events: IRS Warns Consumers of Possible Scams Relating to Orlando Mass Shooting

October 3, 2016 Shamsey Oloko Leave a comment Charitable Contributions, Tax Scams

The IRS recently issued a consumer alert about fake charity scams that may cultivate from the mass shooting in Orlando, Fla., and encouraged taxpayers to avoid unknown entities and instead seek out recognized charitable organizations. The IRS provides easy to use online tools for taxpayers to check the status of charitable organizations when making a charitable contribution. There are simple steps that taxpayers are recommended to take when making charitable donations like those made to provide relief to victims of the Orlando tragedy.

This is a preview of Possible Scams And Current Events: IRS Warns Consumers of Possible Scams Relating to Orlando Mass Shooting. Read the full post (432 words, 1 image, estimated 1:44 mins reading time)

Tax Benefits For Education Part 5

September 30, 2016 Shamsey Oloko Leave a comment Deductions, Education 529 Plans, Education Tax Credit, Expenses Deductions, Qualified Education Expenses

This is the fifth part of our multi-part series of blogs on tax benefits for education. Any present or former student should utilize the knowledge, experience and expertise of the tax professionals at the Thorgood Law Firm to ensure that they take advantage of all the credits and deductions that the law allows for students of higher education.

Savings Plans

Qualified Tuition Programs (529 plans)

A Qualified Tuition Plan (QTP), also called a 529 Plan, is a program established to allow prospective students to either prepay or contribute to an account established for paying a student’s qualified education expenses at a post secondary institution. States and eligible educational institutions are entities that may establish and maintain programs that allow a student taxpayer to prepay these qualified education expenses.

This is a preview of Tax Benefits For Education Part 5. Read the full post (485 words, estimated 1:56 mins reading time)

Choosing The Right Tax Attorney

September 29, 2016 Shamsey Oloko Leave a comment Tax Attorneys, THORGOOD Law Firm

There are many reasons for choosing a tax attorney. Some reasons are reactive or defensive, others are cost-preventive. It is more than wise to retain a tax attorney when:

Subject to an audit or collection activity;
Filing an appeal of a tax court decision;
Trying to save money on behalf of a business; and
Trying to take advantage of tax credits or deductions.

Choosing a tax attorney involves the assessment of various factors, which include the following:

Expertise:

This is a preview of Choosing The Right Tax Attorney. Read the full post (375 words, 1 image, estimated 1:30 mins reading time)

A Review Of The New Federal Filing Deadlines Under The Surface Transportation and Veterans Health Care Choice Improvement Act

September 28, 2016 Shamsey Oloko Leave a comment Tax Filing Deadlines, Tax Legislation

On its face, the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 (the “Act”) doesn’t sound much like legislation that affects the filing of taxes, because such legislation rarely does. The enactment of this Act promulgates changes to the tax filing process consequently affecting just about every taxpayer. These changes include revised due dates for filing certain tax forms, which potentially further impact the filing of state taxes. Individual and business taxpayers alike should consult a tax professional to conduct a detailed review of the Act in detail to determine which significant deadline changes affect them most.

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A $10,000 Penalty May Await You If You Fail To File Form 5471 Or 5472

September 27, 2016 Shamsey Oloko Leave a comment FATCA, FBAR, Foreign Financial Account

I.R.C. § 6038 requires U.S. taxpayers to file Form 5471 (Information Return of U.S. Persons With Respect to Certain Foreign Corporations) with their tax returns. The reporting requirements of § 6038, as well as § 6046, require Form 5471 to be filed by certain U.S. persons who are officers, directors, or shareholders in certain foreign corporations.

A person required to file Form 5471 who fails to file the form, or files a late or incomplete form, subjects himself to steep monetary penalties. Also, the statute of limitations on assessment for the taxpayer’s entire return remains open until three years after the required information is submitted to the IRS.

This is a preview of A $10,000 Penalty May Await You If You Fail To File Form 5471 Or 5472. Read the full post (432 words, 1 image, estimated 1:44 mins reading time)

Finally! Congress Enacts Tax Extends Part 6

September 26, 2016 Shamsey Oloko Leave a comment Tax Legislation

The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike in past extension legislations, Congress extended many provisions permanently. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.

Energy tax incentives: Provisions for energy expenses extended through 2016 include:

§ 25C, which provides a 10% credit for qualified nonbusiness energy property. The law also updates the Energy Star requirements.

This is a preview of Finally! Congress Enacts Tax Extends Part 6. Read the full post (346 words, 1 image, estimated 1:23 mins reading time)

A Primer on Foreign Tax Credit

September 23, 2016 Shamsey Oloko Leave a comment FATCA, FBAR, Foreign Financial Account, Foreign Tax Credit

U.S. taxpayers that have paid or accrued foreign taxes to a foreign country or U.S. possession, while subject to U.S. tax on the same income, may be able to take either a credit or an itemized deduction for these payments for foreign taxes. The foreign tax credit intends to reduce the double tax burden that would otherwise arise when foreign source income is taxed by both the United States and the foreign country from which the income is derived.

Qualifying Foreign Taxes

Taxpayers may only claim a credit for foreign taxes that are imposed by a foreign country or U.S. possession. The tax must meet four tests to qualify for the credit:

This is a preview of A Primer on Foreign Tax Credit. Read the full post (612 words, 1 image, estimated 2:27 mins reading time)

Finally! Congress Enacts Tax Extends Part 5

September 22, 2016 Shamsey Oloko Leave a comment Business Expenses, Business Tax Credits, Deductions, Income Exclusions, Qualified Education Expenses, Tax Credit

The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike past extension legislation, Congress extended many provisions permanently. In more traditional fashion, some of the others were extended for five years, and many for two years. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.

Here are some provisions for individual taxpayers that were extended by Congress for two years:

This is a preview of Finally! Congress Enacts Tax Extends Part 5. Read the full post (566 words, 1 image, estimated 2:16 mins reading time)

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