Friday Four: Important Tax Deadlines

Many people may lose out on their tax refund simply because they did not file a federal income tax return. I hope you aren’t one of them.

you were granted an extension to file your 2021 tax return, now’s the time to send that return to the IRS. The due date for extended returns is October 17. For those who received an extension, October 17 is also the last date for (1) self-employed people to contribute to a solo 401(k) or a simplified employee pension (SEP) plan for 2021, or (2) withdrawing excess IRA contributions made in 2021. Here are four more reminders to ponder below!

1. Does the tax extension deadline apply to me?

• If you filed IRS Form 4868 on or before the tax deadline, the tax extension deadline gives you until October 17, 2022, to file your tax return.
• If you didn’t file IRS Form 4868 on or before the April 18 deadline, and you didn’t file your tax return either, your taxes are likely going to be very, very late in the eyes of the IRS. The IRS can assess interest on your outstanding tax bill, as well as failure-to-file penalties and failure-to-pay penalties.
• Some people automatically get more time to file. This often includes military personnel or persons affected by a qualifying disaster.

» MORE: How to make an IRS payment

2. What happens if I miss the October tax extension deadline?

• You’ll owe more interest. A tax extension gives you more time to file your return, not more time to pay.
• You may owe a higher late-payment penalty. The IRS’s late-payment penalty normally is 0.5% per month of the outstanding tax not paid by the filing deadline. The maximum penalty is 25%. You’re supposed to pay at least 90% of your tax liability by the regular filing deadline.
• You may owe a late-filing penalty. The IRS can also sock you with a late-filing penalty of 5% of the amount due for every month or partial month your tax return is late. The maximum penalty is 25% of the amount due.

3. How can I get an extension for my next tax return?

If you already know you’ll need more time to do your 2022 taxes, be sure to file IRS Form 4868 on or before next year’s tax-filing deadline.

• Again, getting an extension does not give you more time to pay the taxes you owe — it only gives you more time to file your tax return. When you file for an extension, you can estimate what you owe and send some or all of that with your extension request. If the estimated payment ends up being less than what you actually owe, you’ll likely need to pay interest on the difference. The longer that’s outstanding, the more interest you may rack up.
• Don’t neglect to file just because you can’t pay the bill. The IRS offers installment plans if you can’t pay your taxes.

4. Where to get tax help from:

No matter where you are if you have wifi, you have a tax professional!

KP Tax has been serving tax filers and their families since 2010. We would love to handle all of your tax filing needs. Not only do we have affordable rates, but our service is outstanding too! Contact us from the comfort of your home or we can come to you! Here’s the number (803) 915 – 3210 You can also email us at kptaxinternational@gmail.com.

Kelle Pressley Certifed Tax Professional since 2005

Summer 2022- Write The Entire Season Off! Here’s How

Friday Four came and left. Sorry guys. I totally forgot. But I’m gonna make it up to you right now. Today, I’m giving you 4 (four) ways to write off a huge chunk of your summer. Yes, I said what I said—- Write a huge chunk of your summer off by identifying really smart tax saving strategies!

Without any delay, follow these tips right now!

1. Write off Camp. Each summer my four little guys go to the following four camps: Who Got Game, B.A.M., Ish Smith Development , and Impact Camp (at JCSU) Here’s how to use it- If your child is under 13. Hold onto your recipes. Use that time as childcare expenses while you work. Hmmmmm– Sleep away camp doesn’t count. -Sorry!
2. Hit The Road With Jack & the kids! Go on a family trip Rent the Car and pile them in! While you’re away – Talk About Your Business! Heck, take pictures of you sharing your business! The main purpose for the trip must be business! You’ll get not only the mileage deduction, but also a generous deduction on all of your business related cost. Hmmmmm. Hire your family for larger deductions .

3.

1. Hire Your Kids. Well, I kinda mentioned it earlier, I’ll go a bit more in depth here. If your kids are gonna be out of school for the summer. Hire them. Give them paid training, and actually put them to work. You can deduct their wages on your tax return! Why not get an employee that won’t complain about lunch. They either take it or leave it. Talk about parent perks! I had my sons help create content for my budding tax business . Hmmmmm. Shifting income to your child is genius! They tend to have a lower tax bracket!!! And if they are under 18 years old, pat yourself on the back and kiss those FICA taxes goodbye!
2. Cancel The Entire Summer! If you bought timeshare like did thinking that you’d be a beach bum this summer, let me hit the alarm for you! As tempting as it maybe; don’t do it! Become the ginger bread man and walk away as fast as you can! Now if you got purchased the timeshare, and realized that your children have a sports calendar that leaves no time for weekend getaways to your cozy spot, here’s what you should do with it…….rent it out! Get your coins for that time. Go off season and save BIG! Hmmmmm . Look, no one like a deal more than I do! Iam 100% open to share my time withyou, as well as other deals. Just follow me over on QC Supermom .

Okay, so – that’s four! Whatcha think? You love it? If so, share it. Tag it. Use it! Time to go now. See ya’ll Monday! – Kelle, QC Supermom

KP Tax Service is IRS CERTIFIED!

I CERTIFIED as a Tax Expert with the IRS folks!!!!! After completing so many bootleg returns over the last two decades, I have gone legit! I’ve also brought my older kids on board as well! So wait no longer- bring them tax forms on over! The timing is perfect!

You’ve probably seen it all over the news that Congress just approved a new $1.9 Trillion (yes, that’s with a “T”!) COVID-19 stimulus package. But the biggest question is what exactly is in this new relief package and how is it different from the ones passed in 2020? And more importantly, how can this provide additional relief and assistance to small businesses in the wedding industry?

While we are still waiting on full details of the new stimulus package to be released, here are some of the key items for so many folks need to be aware of:

KP Tax Service (980) 247- 2072 WWW.KPTax.Webs.Com

Help for Businesses

• Restaurants: Restaurants get some much needed relief in the new law, which establishes a $28.6 billion “revitalization fund” for them. The Small Business Administration (SBA) will provide grants of up to $5 million each to reimburse restaurants for revenue lost due to COVID-19. Stay tuned and check the SBA and Treasury websites as more details are released about the application program and eligibility for these grants.
• Live Venues: The new stimulus package also provides $1.25 billion earmarked for grants to certain live event venues (like theatres, live performing arts organizations, and museums). This adds on to the higher amount allocated in the December 2020 relief package, which still hasn’t opened applications yet. Like the restaurant relief, details on how to apply for these grants will likely be released by the SBA in the coming weeks.
• Additional PPP Funds: Adds $7.25 billion to be used for the Paycheck Protection Program (PPP), though it does not extend the program past the existing end date of March 31, 2021. If you think you want to apply for the PPP before that date, contact your lender ASAP to learn how to apply. If you already took out a PPP loan, don’t forget that you will need to provide documentation to apply to have it forgiven.
• Forgivable Economic Injury & Disaster Loans (EIDL) for Low-Income Communities: The new law also adds an additional $15 billion in EIDL funding to be distributed in forgivable $10,000 grants, specifically targeted to communities in certain income brackets. Visit the SBA website for more information on how to apply.

Help for Individuals and Families

• New, Bigger Stimulus Checks: The new stimulus package includes up to $1,400 direct payments to people making under $80,000 individually (or $160,000 as a married couple). Above $75,000 individual income (or $150,000 for married couples), that amount decreases gradually. Those with dependent children will also get up to another $1,400 per child.
• Extended Unemployment Benefits: State unemployment benefit checks will keep being $300 per week more than usual until September, a measure that was first introduced in the December stimulus package. The new law also waives federal income taxes on the first $10,200 in unemployment benefits received in 2020 by individuals who made under $150,000/year.
• Significant Tax Relief for Certain Households: The law includes some major tax relief provisions for families up to certain income levels, including:
  • Higher Child Tax Credits: This stimulus package will temporarily increase the existing child tax credit. Right now, eligible people with children under 17 get up to a $2,000 credit per child when they file their federal income taxes. For 2021, they’ll get as much as $3,600 for children under 6, and $3,000 for children 6 to 17. This added amount phases out above $75,000 individual income ($150,000 for married couples). 
  • Direct Payments of Child Tax Credits: Not only is the child tax credit higher, you now also won’t need to wait until you file your taxes to get the money. Beginning in the second half of 2021, the IRS will advance this credit through direct payments to eligible people in installments.
  • Other Tax Relief: The stimulus package also increases the child and dependent care tax credit and the earned-income tax credit for workers without children for 2021. If eligible, these credits get paid out to you when you file your taxes.

We recommend you consult with your tax advisor (<— I’m free 🙂 ) to see how these tax relief measures could help you and your family.

• Healthcare Relief for Unemployed: For those who’ve lost their jobs during the pandemic and were eligible to apply for the federal health insurance program COBRA, the federal government will fully cover COBRA premiums until September 2021.This helps people pay for much needed healthcare coverage during this time.

Information on COVID-19 relief measures is changing rapidly, and full details of the new law are still being released. Check the U.S. Treasury and SBA websites, and with your legal, financial and tax advisors regularly for the most up-to-date information.

Friday Four: Tax Expert Offers Advice To Moms. Here’s Where The Money Reside!

True happiness involves the full use of one’s power and talents. After almost two decades of doing taxes under the table, I’ve been de-liv-ered! I just certified with the IRS as a Tax Expert and have landed a contract with Intuit! It’s one of the top tax preparation service providers in the the nation! With that being said, I’m here for you! I want to file your taxes and get you the biggest refund possible. Now if you’re wondering if I know anything, well here’s just a snippet of how I look out for moms.

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If you noticed the cupcake in the slide show, just know that India love me! It has beets, and turtles in there! And it was delicious!

Filing Tips For Single Moms:

1. File as Head Of Household. It the best bang for your return. It gives you a lower tax rate.
2. File your dependents. Don’t let anyone trick you into using their number for a fraction of the credit. (But that’s not my business.}
3. Claim Everything! Specifically the Dependent care and Dependent Exception.
4. Make sure you claim the Child Tax Credit!

Did you hear about President Biden’s proposed COVID-19 stimulus relief package?

Bonus

A. Deduct Child Care Expenses! .Some parents in my local learning pod are capturing big money by filing child care expenses to recoup the money they pay me for hosting their students through out the week.

B. Hire your 8 year old! Mamas, they can sweep your office floor. Just hire and pay them. You don’t have to give them the money, Use it for their college fund or buy a new mini van to cart them around town. (That’s what I did.)

C. Child Support……… maybe taxable. (( So pour more into your 401k))

Child support is not taxable income. And if a parent paid child support, those payments are not considered deductible.

Alimony, on the other hand, counts as income. The spouse accepting alimony must report all the payments as income when completing tax filing. He can, however, increase his employer tax withholding to avoid a surprise tax bill at the end of the year. The ex-spouse paying the alimony may claim a tax deduction.

D. The American Opportunity Tax Credit and the Lifetime Learning Credit help defray the cost of post-secondary education, Kornblatt said. Qualifying single parents who are paying for college or other post-secondary education for their children might be able to claim these credits. The American Opportunity Tax Credit offers a maximum annual credit of $2,500 per student; the Lifetime Learning Credit offers a refund of up to $2,000 per tax return.

In addition to other rules specific to each credit, three basic criteria must be met in order to qualify for these education credits:

1. The parent, the dependent or a third party must pay qualified education expenses for higher education.
2. An eligible student must be enrolled at an eligible educational institution.
3. The eligible student must be a dependent listed on the filer’s tax return.

A couple of options are available as tax breaks for parents saving for their children’s futures. “A single parent planning to pay for college in the future can start saving now using an education savings account or 529 plan — both provide tax-related advantages,” Kornblatt said.

Qualified tuition plans — also known as 529 plans — vary from state to state, but the main tax advantage is the same: The earnings are exempt from federal tax when used for qualified education expenses of the designated beneficiary. And generally, this exemption applies to state tax as well. Tuition, fees, books, room and board all fall under the category of qualified expenses. But contributions to a 529 plan are not tax-deductible.

The Coverdell education savings account can be used to pay qualified expenses for elementary, secondary and higher education. Contributions to a Coverdell savings account are not considered deductible, but amounts deposited in the account grow tax-free.

E. Determine Your Eligibility for the Earned Income Tax Credit

Some single custodial parents qualify for the earned income tax credit. Those with earned income below certain levels who file as single or as head of household can earn credits ranging from $3,400 for one qualifying child to $6,318 for three or more qualifying children.

F. Deduct Adoption Expenses

A parent who adopts a child can claim an adoption credit for the fees, legal costs and travel expenses associated with a legal adoption. In addition, adoptive parents don’t have to pay tax on income they get from adoption assistance provided by their employers.

When taking on taxes as a single parent, the complex IRS rules can be confusing, but you deserve to maximize your savings and possibly get some money back. Take advantage of these tips to help you, but seek the advice of a tax professional if you need it. I’m here sis’!

So yeah, I’ll be working off two different pc’s my desk looks funny to my babies. lol

Tax Deductions for Network Marketers

The 2016 tax deadline* is just days away! April 18th will be here in no time!

Are you ready? For some small business owners it’s a big nope! But I got you! No worries.

Wearing many hats require me to know about as many tax deductions as possible. If you are in any MLM, Self Employed, you know exactly what I’m talking about.

 

Use this tax information as a Deduction Organizational Guide

Home Business Expenses

  Set aside a space in your home that is 100% business use.  Never used for anything else, and regularly used for business.  This is where you keep your business records, your business computer or laptop, make your sales calls from and meet clients.  The tax term is regular and exclusive business use.  If you do this, you deduct a percentage of the household expenses – rent, interest, taxes, utilities, insurance, repairs, etc, based on the square footage of the office ratioed to the home square footage.  Expenses directly related to the office, such as a dedicated phone line; do not have to be ratioed.  You can also take a small depreciation deduction for the home losing value.  -K.P. KP Tax Servive kptax.webs.com

• Business cards
• Brochures
• flyers
• stickers
• cd’s
• copying
• printing
• letterhead
• advertising- Newspaper, magazine, radio, TV, internet
• business checking account

Office Supplies

• Envelopes
• Postage
• shipping
• printer paper
• printer ink
• pencils , pens, markers, highlighters
• notebooks
• post-it notes

“The easiest mileage log is a notebook where you right the date, the trip purpose and the miles driven. ” K.P. -KPTax Service, kptax.webs.com Charlotte NC

Office Equipment

• Computers and repairs
• printers
• fax
• copy machine
• answering machine
• furniture
• office space
• file cabinets

Communication Expenses

• Cell phone, phone bills
• PDA
• camera
• video recorder
• voice recorder

Travel Expenses

Go on trips that are going to increase your money-making potential.  Stay away from any others.  For legitimate travel, you get airfare, rental car, tips, taxis, laundry, internet and phone, as well as 50% of meals and any other reasonable and necessary expenses. K.P KP Tax Service  kptax.webs.com

• Mileage- trains, subways, bus
• toll , parking fees
• airfare
• lodging
• meals
• conferences
• conventions
• seminars
• entertainment
• Business gifts

Internet Expenses

• Website hosting
• domain names
• web design
• blogging expenses
• podcasting – ipod, software
• accounting software
• tax software
• internet service
• classes
• webinars
• marketing

Business Related Education

• literature- books, journals
• magazine subscriptions
• educational cd’s and dvd’s

Trade Show Expenses

• booth fee
• travel
• meals

There are so many more to add to this list. I intended to give you a mental rolling start. . I’m a tax expert. Contact KPTax.webs.Com  to discuss your particular tax situation. Also get  more guidance. Please buy my book. It’s a easy read and loaded with tips for Direct Sales professionals. Message me —> QCSupermominfo@GMail.com

Friday Four: Baby Sitter Money Tips

 

One of my  daughters is a private baby sitter.  She is CPR certified and has taken many continued education classes so she may remain in high demand. She’s a natural! As a big sister to five younger siblings, she’s able to baby sit for moms groups, business meetings, private parties, and now she now assistant other doulas while at the hospital serving laboring mothers.

Having a quality, trusted, babysitter is very rare. The process of finding one is a headache alone. But when you find one, many wonder, how will they pay for her.

And guess what? It’s only getting higher! While I don’t agree with that, I do believe that a great baby sitter is worth a good penny.

It costs to learn new skills,training, certifications, transportation to and from service locations and it’s also a symbol of  proper expectation.

My daughter charges up to  $12.00.per hour.  Her clients LOVE her. She brings toys, books, loads of energy , experience in autistic, multiples, and newborns. She also hires other teens like her to help as needed. Most people like her prices, everyone don’t. It’s usually the ones that want her, but can’t afford the rate. The comfort and well being of your child will always be your number one priority, but quality childcare doesn’t have to cost an arm and a leg. Follow these tips and find an option that works for your family.

1. Share Your Sitter- If you are planing on hanging out with your friends, why not share the baby sitting cost. It does a couple of things. It gives the kids an instant play date, and saves each parent money.
2. Barter- My daughter loves getting her nails done, nice shoes, and great food. If you have any of these things, ask to trade instead of using money. Teens like my daughter will accept. Just ask  first to verify it’s acceptable. With both the teen sitter  and her parents.

According to UrbanSitter’s 2014 Childcare Rate Survey of nine large metro areas, the average babysitter wage paid in New York City is$15.34 per hour while in Denver it’s $10.84 per hour

3. Join a progressive mom group. – Queen City Stay At Home Moms offers discount child

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care rates to their premium members.

4.Take The Credit.     If you use registered child care or pay a babysitter to care for your children, you can deduct at least a portion of your expenses for income tax purposes.

1. • Expenses are deductible for the care of dependent children, under the age of 16.
   • Babysitters may be related to you (but not a parent to your child) and must be over 17 years of age.
   • The child care deduction is limited to two-thirds of earned income, or $4,000 a year per child aged seven to 16; $7,000 a year per child under seven years; and up to $10,000 a year for each disabled child.
   • For details of child care options in your area, contact your province’s child care licensing agency.

Bonus- Sign up for a Flexible Spending Account
If your employer offers this option, use your Flexible Spending Account (FSA) to set aside money for child care. You can include up to $5,000 before taxes

In closing , be strategic! At The Big Sister, most families look for care during the summer. The more affordable and experienced caregivers get grabbed early and day care slots fill up quickly. Start your search soon and don’t wait until the last minute.Well, there you have it! You have no reason to avoid date night away from the house, a business meeting at home ,or a fun Moms Night Out! You can afford it!

PLEASE READ- From Care.Com- Great Area- Fee based Information! 

Taxes Smaxes! My Tips for SBO

It’s coming. Are you ready? If you are like me and own a small business, this time of the year can be a headache if not organized! Yes, you have until the 15th of April, but why wait? Here’s some tips to get you on the road to a low stress tax filing season!  The goal  is to pay the lowest tax you are legally required to pay.  This will help! This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business adviser or tax adviser with respect to matters referenced in this post.

 

Small Business Owner Check List

✔ A copy of the last three year’s Federal and State tax return

✔ Articles of Incorporation, Partnership Agreement, Operating Agreement, etc.

✔ Copy of current period balance sheet, income statement, trial balance and general ledger

✔ Prior year financial statements

✔ List of all business owners including: ✔ Name, ✔ social security numbers, ✔ address, ✔ percent of ownership, ✔ date ownership acquired and ✔ detail of distributions

✔ Schedule of owner fringe benefits received

✔ Schedule of loans to/from owners including loan agreements

✔ Details of any related party transactions

✔ Copies of all payroll forms and 1099 forms for the year

✔ Amounts of any estimated tax payments

✔ Listing of interest and dividend income

✔ Vehicle information and use, including vehicle leases

✔ Information on any employee benefit plans including retirement plans, health insurance, etc.

✔ Details of meals and entertainment expense

✔ Any Internal Revenue Service and Department of Revenue correspondence received during the year

✔ List of any activities in other states

✔ Details of fixed assets and depreciation schedules

Schedule C, Self-employed Checklist

Income 

List of bank deposits 

All 1099s 

Other income (interest etc.) Cost of good sold 

Beginning inventory 

Purchases of goods sold 

Materials & supplies 

Ending inventory Auto expense 

Lease payments 

Auto insurance 

Interest of auto loan 

Repairs & maintenance 

Total miles driven 

Business miles driven 

Total gas purchases 

Date car purchased 

Model and make of auto Salaries & wages 

Total gross wages paid 

Company paid FICA 

Federal unemployment paid 

State unemployment paid 

Worker’s compensation paid Expenses 

Advertising 

Commissions paid 

Liability insurance 

Interest paid 

Legal & professional fees paid 

Office supplies 

Rent paid 

Dues & subscriptions 

Travel expense 

Meals & entertainment 

Utilities 

Bank charges 

List of assets (cost & date acquired) 

Health insurance premiums Office in home 

Total square feet of home 

Total square feet of office 

Mortgage interest 

Real estate taxes 

Utilities paid 

Home repairs 

Home insurance [1040 General; Schedule E, Rental property checklist

Ready to do your taxes? Get a 50% of code. Request your Turbo Tax code here!

Wednesday Wow! Hey WFHM, that babysitter is deductible!

“I’m a work from home mom and I hire a babysitter for meetings at home and away.I want to know if those expenses are deductible.”

Short ANSWER: YES! Keep your receipts and file them for ChildCare  at tax time. In fact, you may qualify for $3,000 in tax credits for one dependent, and a maximum of $6,000 for two dependents or more.

I have been asked this numerous times during tax season and by mothers that have decided to work from home. So I figured if I placed it here, moms could verify it against what the IRS says, save me time from repeating myself and I bring more traffic to my humble blog.  (Yes, who doesn’t love them THREE’fers)

Okay, so how to get the credit: 

The credit has a number of technical rules. For instance, in cases involving divorce, the custodial parent can take the credit, while noncustodial parents can’t, even if they would otherwise qualify to treat the child as a dependent.

Requirements 

In Charlotte and looking for a certified sitter? Contact The Big Sister! CLICK HERE!

 

To claim the child and dependent care credit, you must meet these requirements:

• You and your spouse must usually file as married filing jointly. (See Filing Exceptions below.)
• You must provide the care so you (and your spouse, if married) can work or look for work.
• You must have some earned income. If you’re married and living together, both you and your spouse must have earned income. However, one spouse might be disabled or a full-time student at least five months of the year.

Even if you’re not married filing jointly, you and your spouse might be able to claim the credit. You must meet both of these requirements:

• You paid more than half the cost of maintaining a household for the year. Both you and the qualifying person must have used the home as your main residence for more than half the tax year.
• Your spouse wasn’t a member of the household during the last six months of the tax year.

You must provide the name, address and Taxpayer Identification Number (TIN) of the person who provided the care. The taxpayer ID number is either a Social Security number (SSN) or an Employer Identification Number (EIN). Ask your care provider for the number.- KP Tax Service

Qualifying persons

To claim a credit for qualified expenses, you must provide care for one or more qualifying persons. (See Qualified Expenses below.) Qualifying persons include:

• Dependent who’s a qualifying child and under age 13 when you provide the care. Usually, you must be able to claim the child as a dependent to receive a credit. However, an exception applies for children of divorced or separated parents. In those situations, the child is the qualifying child of the custodial parent for purposes of this credit. This applies even if the noncustodial parent claims the child as a dependent.
• Spouse or dependent of any age who’s both of these:
  • Physically or mentally incapable of self-care
  • Has the same main home as you do when you provide the care

Qualified expenses 

 Don’t forget those expenses that cover household services, such as housekeeping, while you work or search for work, also count toward the credit if the services were necessary in part for child care.-KP Tax Service

Qualified child- or dependent-care expenses are those you incur while you work or look for work. The main purpose of the expenses must be for the well-being and protection of a qualifying person.

Qualified expenses include:

• Expenses for care provided outside the home. This applies if the qualifying person regularly spends at least eight hours each day in your home.

If the qualifying person receives the care in a dependent-care center, the center must comply with all relevant state and local laws. A dependent-care center is one that cares for more than six people for a fee.

• Expenses for in-home care. This includes expenses for:
  • Cooking
  • Light housework related to the qualifying individual’s care
  • The care itself
• Gross wages paid for qualified services, plus your portion of:
  • Social Security
  • Medicare
  • Federal unemployment taxes
  • Other payroll taxes paid on the wages
  • Meals and lodging for the employee providing the services

These expenses don’t qualify for the child and dependent care credit:

• Transportation costs to and from the childcare facility
• Overnight camp expenses
• Expenses for the education of a child in kindergarten or higher
• Expenses for chauffeur or gardening services

The cost of before- or after-school programs might qualify if the program is for the care of the child. Education costs below kindergarten qualify if you can’t separate those costs from the cost of care. This includes nursery school.

  Calculating the credit

The credit is equal to 20%-35% of qualified expenses. The percentage you can deduct depends on your adjusted gross income (AGI). The maximum amount of qualified expenses you’re allowed to calculate the credit is:

• $3,000 for one qualifying person
• $6,000 for two or more qualifying persons

Complete Form 2441: Child and Dependent Care Expenses and attach it to your Form 1040 to claim the credit. For more details,  check out KP Tax Service. It’s mom owned and ran. With over a decade of experience.

FOR BABYSITTER/NANNYS HOUSEKEEPERS I’ll share more details on how to file your taxes and keep your business legal next week. In the mean time, here’s HOW to file your taxes-> READ THIS- HERE

www.bankrate.com/finance/taxes/avoi…

www.4nannytaxes.com/faq/

Hope this helps!

Kelle, QC Supermom

Friday Four: Selecting a Tax Preparer

Recently I hosted a Turbo Tax Party. I was able to offer discount codes, tax tips , a spiffy -information infused folder and a healthy snack. It was a pretty nice HouseParty*.  Because we had friends and family out of town that wanted the information, we did a Periscope and created an online party on FaceBook. (You can still join in for great tips and tax jokes) Whether you use a family friend/non certified or a CPA, Enrolled agent, etc., you should know what to look for.

EA is a tax professional licensed by the IRS through a special enrollment exam or after working for the IRS for five years.They’re required to take continuing education courses in taxes every three years, and, generally speaking, may charge less than CPAs.

There are several good signs for a good tax preparer, but not many for a bad one. For example, Good tax preparers will ask for all your W-2, 1099 and 1098 forms as well as other records and receipts to verify income, expenses and credits.  Preparers who are willing to e-file returns using paystubs in place of W-2s are in direct violation of IRS rules and regulations. Did you know that? Well here’s 4 more tips to use to keep you from being audited.

1. Ask The Big Question                                                                                                                Ask for referrals. Easy one right, but you’d be surprise at the number of people that don’t do that. Some of the biggest brands in the industry have shaky branch offices and preparers.  So don’t let the name and office space fool you.

Note that you don’t have to go to a tax preparer’s office to do your return. Tax return preparation can be handled completely online by email. There are no laws preventing you from using an accountant online. Thus, you can use a preparer in another city or even another state.

2. They Do NOT have to be licensed.                                                                                                           “The court ruled that Congress never gave the IRS the authority to license tax preparers, and the IRS can’t give itself that power.”Only a few states – such as California, Oregon, Maryland and New York – have licensing or registration requirements for paid tax preparers. In all other states, practically anyone can prepare your federal tax return and charge a fee. See theRegistered Tax Return Preparers (RTRP) program required preparers to obtain a Preparer Tax Identification Number (PTIN), pass a competency test, pay an annual application fee, and complete fifteen hours of continuing education annually. Not everyone wants or must do that. It doesn’t automatically rule them as incompetent, scammers or, out right abusers.

3.Client Security

Unfortunately, the tax preparer industry has not remained immune from the ever-increasing problem of security breaches.  Never hesitate to ask a preparer how they safeguard client confidentiality in the form of physical and electronic security of their clients’ information and records.  If the answer is not to your satisfaction then walk away.

4.PTINS and E-filing

A paid preparer must have a Preparer Tax Identification Number (PTIN) and if they prepare and file more than 10 returns for clients they must file electronically.  The client copy of the tax return should show the preparer’s name and PTIN in the signature area of page two of the Form 1040.  Never agree to do business with a tax preparer who refuses to provide their clients with copies of their tax returns.

Look for someone with at least seven years’ experience. You want someone who’s handled a variety of tax situations, in both good and bad economic times.

Often, the best way to find a tax pro is to get referrals from friends or business associates. If this doesn’t work, there are a number of professional organizations that have online databases of tax preparers.

 

Oh, and please don’t overlook this IRS page and this one.too!

The reality is, taxes can be hard, and it’s getting harder. The Tax Code is becoming increasingly complicated. And tax preparers make it easier to navigate. Tax time alone can be a stressful. That’s why many taxpayers hire someone to do their taxes for them. It’s important to choose the right preparer, otherwise you may find yourself in the precise legal trouble you were trying to avoid in the first place!

Keep It Right- Keep It Tight!

Jabela