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3 Tax Refund Scams to Watch Out For

tax fraud scams to watch out forNow that tax season is underway, there are plenty of unscrupulous types hoping to get their hands on your hard-earned cash. As you prepare your taxes (or have someone else prepare them for you), it’s important to be aware of the problems that could arise. Here are three tax refund scams to watch out for:

1. Preparer Charges a Percentage of Your Refund

Most reputable tax professionals charge a flat fee to prepare your return. I use an accountant to prepare my business return and my personal return. The costs […]

February 10th, 2016|Blog Post Categories, Tax Filings|0 Comments

Deductions vs. Credits: What You Need to Know

tax credits vs. tax deductionsAs you prepare your taxes this year, it’s important to understand the key differences between certain tax breaks. Knowing how deductions and credits work can help you make more informed choices about how you fill out your tax return, and help you legally reduce your tax liability as much as legally possible.

What are Deductions?

Deductions reduce your taxable income. When you take a deduction, you are claiming a cost that you can reasonably say reduces the amount of income that you have that should be taxed.

Above the line deductions are those that […]

Watch Out for Child Identity Theft

child identity theftWith tax season underway, many of us are concerned about tax ID theft. With major data breaches in the last year, including Scottrade, Anthem, T-Mobile, and even the IRS, the concern about identity (ID) theft is big. From January 25 – 29, 2016, the FTC is hosting a Tax Identity Theft Awareness Week that aims to educate consumers about what to look for and what to do when they become victims.  It is important to understand child identity theft is real too.

Many parents don’t realize that they also need to watch out for […]

January 25th, 2016|Blog Post Categories, Tax Tips|Comments Off on Watch Out for Child Identity Theft

3 Things You Should Know About the 1099-K

1099-k 2015It’s been a handful of years since the introduction of the 1099-K form from the IRS, and there is still confusion about how it should be handled. Even with the instructions from the IRS, many people don’t understand how to manage it, and that has led to headaches at tax time.

Here are three things you should know about the 1099-K:

1. If You Pay Through PayPal, You May Not Have to Issue a 1099-MISC

The 1099-K is issued by third-party payment processors. This means that if you pay your contractors through PayPal, […]

January 19th, 2016|Blog Post Categories, Tax Filings|0 Comments

Winning the Powerball Jackpot: What You Need to Know About Taxes

power ball and tax implicationsWhen the Powerball prize pot reaches epic proportions (currently, it’s sitting at $1.5 billion), we all start to dream big. Whether you go to the convenience store and buy a ticket, or whether you shake your head at those who do, the reality is that you’ve probably thought about what you’d do if you won all that money.

Before you get too far into your fantasy of winning the Powerball jackpot, though, you need a bit of a reality check. Whenever you end up with money, Uncle Sam wants his cut, […]

January 12th, 2016|Blog Post Categories, Tax Tips|0 Comments