Monday, January 31, 2011
Colonial Income Tax Service Located in Historic New Castle Delaware 19720: Colonial Income Tax Service A Delaware Tax Prepara...
Colonial Income Tax Service Located in Historic New Castle Delaware 19720: Colonial Income Tax Service A Delaware Tax Prepara...: "Colonial Income Tax Service A Delaware Tax Preparation Company Update: IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check ..."
Colonial Income Tax Service A Delaware Tax Preparation Company Update: IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check Refunds, Get Tax Information
Colonial Income Tax Service A Delaware Tax Preparation Company Update: IRS Launches the IRS2Go App for iPhone, Android; Taxpayers Can Check Refunds, Get Tax Information
IRS Launches the IRS2Go App for iPhone, Android; Taxpayers can Get Tax Information
WASHINGTON — The Internal Revenue Service today unveiled IRS2Go, its first smartphone application that lets taxpayers check on their status of their tax refund and obtain helpful tax information.
“This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it,” said IRS Commissioner Doug Shulman. “As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information.”
The IRS2Go phone app gives people a convenient way of checking on their federal refund. It also gives people a quick way of obtaining easy-to-understand tax tips.
Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.
“This phone app is a first step for us,” Shulman said. “We will look for additional ways to expand and refine our use of smartphones and other new technologies to help meet the needs of taxpayers.”
The mobile app, among a handful in the federal government, offers a number of safe and secure ways to help taxpayers. Features of the first release of the IRS2Go app include:
Get Your Refund Status
Taxpayers can check the status of their federal refund through the new phone app with a few basic pieces of information. First, taxpayers enter a Social Security number, which is masked and encrypted for security purposes. Next, taxpayers pick the filing status they used on their tax return. Finally, taxpayers enter the amount of the refund they expect from their 2010 tax return.
For people who e-file, the refund function of the phone app will work within about 72 hours after taxpayers receive an e-mail acknowledgement saying the IRS received their tax return.
For people filing paper tax returns, longer processing times mean they will need to wait three to four weeks before they can check their refund status.
About 70 percent of the 142 million individual tax returns were filed electronically last year.
Get Tax Updates
Phone app users enter their e-mail address to automatically get daily tax tips. Tax Tips are simple, straightforward tips and reminders to help with tax planning and preparation. Tax Tips are issued daily during the tax filing season and periodically during the rest of the year. The plain English updates cover topics such as free tax help, child tax credits, the Earned Income Tax Credit.
Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide. The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Preparation Service.
700 Delaware Street
Historic New Castle Delaware
19720
302-322-1135
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
WASHINGTON — The Internal Revenue Service today unveiled IRS2Go, its first smartphone application that lets taxpayers check on their status of their tax refund and obtain helpful tax information.
“This new smart phone app reflects our commitment to modernizing the agency and engaging taxpayers where they want when they want it,” said IRS Commissioner Doug Shulman. “As technology evolves and younger taxpayers get their information in new ways, we will keep innovating to make it easy for all taxpayers to access helpful information.”
The IRS2Go phone app gives people a convenient way of checking on their federal refund. It also gives people a quick way of obtaining easy-to-understand tax tips.
Apple users can download the free IRS2Go application by visiting the Apple App Store. Android users can visit the Android Marketplace to download the free IRS2Go app.
“This phone app is a first step for us,” Shulman said. “We will look for additional ways to expand and refine our use of smartphones and other new technologies to help meet the needs of taxpayers.”
The mobile app, among a handful in the federal government, offers a number of safe and secure ways to help taxpayers. Features of the first release of the IRS2Go app include:
Get Your Refund Status
Taxpayers can check the status of their federal refund through the new phone app with a few basic pieces of information. First, taxpayers enter a Social Security number, which is masked and encrypted for security purposes. Next, taxpayers pick the filing status they used on their tax return. Finally, taxpayers enter the amount of the refund they expect from their 2010 tax return.
For people who e-file, the refund function of the phone app will work within about 72 hours after taxpayers receive an e-mail acknowledgement saying the IRS received their tax return.
For people filing paper tax returns, longer processing times mean they will need to wait three to four weeks before they can check their refund status.
About 70 percent of the 142 million individual tax returns were filed electronically last year.
Get Tax Updates
Phone app users enter their e-mail address to automatically get daily tax tips. Tax Tips are simple, straightforward tips and reminders to help with tax planning and preparation. Tax Tips are issued daily during the tax filing season and periodically during the rest of the year. The plain English updates cover topics such as free tax help, child tax credits, the Earned Income Tax Credit.
Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide. The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Preparation Service.
700 Delaware Street
Historic New Castle Delaware
19720
302-322-1135
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
Wednesday, January 26, 2011
Colonial Income Tax Preparation Service: 7 Tax-Saving Year-End Tax Planning Tips
Colonial Income Tax Preparation Service: 7 Tax-Saving Year-End Tax Planning Tips
Colonial Income Tax Preparation Service: 7 Tax-Saving Year-End Tax Planning Tips
— Despite confusion created by recent and probable year-end tax legislation changes, the 2010 federal income tax environment is still quite favorable, noted Robin Christian, senior tax analyst for the Tax & Accounting Business of Thomson Reuters. “However, we may not be able to say that after 2010, therefore, tax planning actions taken between now and year-end may be more important than ever. Be careful though—Congress could change the ball game before the end of the year.”
Following are seven planning ideas to consider while there is still time to act before the end of the year.
1. Accelerate Itemized Deductions into this Year. If your Adjusted Gross Income (AGI) will be more than $170,000 ($85,000 if you are married and file separately) next year, you may want to accelerate into 2010 your state and local tax payments that are due early next year. You may also want to prepay in 2010 some charitable donations that you would normally make in 2011. Why? Because for 2010, the phase-out rule that previously reduced write-offs for the most popular itemized deduction items (including home mortgage interest, state and local taxes, and charitable donations) is gone, but is scheduled to come back in 2011, unless Congress takes action to prevent it, which looks increasingly unlikely.
If the phase-out rule comes back as expected, it will wipe out $3 of affected itemized deductions for every $100 of AGI above the applicable threshold. For 2011, the AGI threshold will probably be around $170,000, or about $85,000 for married individuals who file separate returns. Individuals with very high AGI may have up to 80% of their affected deductions wiped out.
2. Think Twice Before Deferring Income into 2011. This strategy makes sense if you are confident you will be in the same or lower tax bracket next year, but the tax picture for 2011 is blurry. With just weeks left in 2010, the fate of many tax provisions for 2011 and beyond is still unknown. The top two rates have widely been expected to increase in 2011 from the current 33% and 35% to 36% and 39.6%, respectively—at least for taxpayers earning $250,000 or more ($200,000 or more if single). Therefore, if you fall into this group, you might want to consider reversing the traditional strategy and accelerating income into 2010 to take advantage of this year’s presumably lower rates. However, legislators could still vote to delay any tax increase to after 2011. “It may be wise to start now to identify ways you could accelerate some of your 2011 income into 2010, but wait to pull the trigger on them until later in the year when, hopefully, we will know more,” said Christian.
3. Time Your Investment Gains and Losses and Consider Being Bold. As you evaluate investments held in your taxable brokerage firm accounts, consider the impact of selling appreciated securities this year instead of next year. The maximum federal income tax rate on long-term capital gains from 2010 sales is 15%. However, that low rate only applies to gains from securities that have been held for at least a year and a day. In 2011, the maximum rate on long-term capital gains is scheduled to increase to 20%. That will happen automatically unless Congress takes action, which currently seems unlikely.
To the extent you have capital losses from earlier this year or a capital loss carryover from pre-2010 years (most likely from the 2008 stock market meltdown), selling appreciated securities this year will be tax-free because the losses will shelter your gains. Using capital losses to shelter short-term capital gains is especially helpful because short-term gains will be taxed at your regular rate (which could be as high as 35%) if they are left unsheltered.
What if you have some poor performing securities (currently worth less than you paid for them) that you would like to dump? Biting the bullet and selling them this year would trigger capital losses that you can use to shelter capital gains, including high-taxed short-term gains, from other sales this year. If you think your investments that are currently underwater are poised for a comeback, you can buy them back after taking a loss as long as you do not reacquire them within 30 days before or after the sale.
If selling many poor performing securities would cause your capital losses for this year to exceed your capital gains, no problem. You will have a net capital loss for 2010. You can then use that net capital loss to shelter up to $3,000 of this year’s high-taxed ordinary income from salaries, bonuses, self-employment, etc. ($1,500 if you are married and file separately). Any excess net capital loss gets carried forward to next year.
Selling enough poor performing securities to create a big net capital loss that exceeds what you can use this year might turn out to be a good idea. You can carry forward the excess net capital loss to 2011 and beyond and use it to shelter both short-term gains and long-term gains recognized in those years, plus up to $3,000 of ordinary income each year—all of which may well be taxed at higher rates after 2010. This can also give you extra investing flexibility in future years because you will not necessarily have to hold appreciated securities for more than a year to get better tax results.
4. Maximize Contributions to 401(k) Plans. If you have a 401(k) plan at work, you can tell your company how much you want to set aside on a tax-free basis for next year. Contribute as much as you reasonably can, especially if your employer makes matching contributions. You turn down “free money” when you fail to participate to the maximum match.
5. Take Advantage of Flexible Spending Accounts (FSAs). If your company has heath or child care FSAs, before year-end you must specify how much of your 2011 salary to convert into tax-free plan contributions. You can then take tax-free withdrawals next year to reimburse yourself for out-of-pocket medical and dental expenses and qualifying child care costs (depending on the type of plan). Watch out, though, FSAs are “use-it-or-lose-it” accounts—you do not want to set aside more than what you will likely have in qualifying expenses for the year. And, starting in 2011, over-the-counter drugs (e.g., aspirin and antacids) will no longer qualify for reimbursement by health FSAs, so you may need to consider that when determining your 2011 contribution amount.
If you currently have an FSA, make sure you drain it by incurring eligible expenses before the deadline for this year. Otherwise, you will lose the remaining balance. For health FSAs, it is not difficult to drum up some items such as: new glasses or contacts, dental work you may have been putting off, or prescriptions that can be filled early. Also, for 2010, over-the-counter drugs still apply.
6. Adjust Your Federal Income Tax Withholding. If it looks like you are going to owe income taxes for 2010, consider bumping up the federal income taxes withheld from your paychecks now through the end of the year. When you file your return, you will still have to pay any taxes due less the amount paid in. However, as long as your total tax payments (estimated payments plus withholdings) equal at least 90% of your 2010 liability or if smaller, 100% of your 2009 liability (110% if your 2009 adjusted gross income exceeded $150,000; $75,000 for married individuals who filed separate returns), penalties will be minimized, if not eliminated.
7. Make Energy Efficiency Improvements to Your Home. A great way to cut energy costs and save up to $1,500 in federal income taxes this year is to make energy efficiency improvements to your principal residence. Basically, if you install energy efficient insulation, windows, doors, roofs, heat pumps, furnaces, central A/C units, hot water heaters or boilers, or advanced main air circulating fans to your home during 2010, you may be entitled to a tax credit of 30% of the purchase price. However, the maximum total credit you can claim for 2009 and 2010 combined is limited to $1,500. Without Congressional action, the credit will not be available after 2010.
Taxpayers should consult with a personal tax advisor before applying these or other tax strategies
Colonial Income Tax Service,LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide. The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
— Despite confusion created by recent and probable year-end tax legislation changes, the 2010 federal income tax environment is still quite favorable, noted Robin Christian, senior tax analyst for the Tax & Accounting Business of Thomson Reuters. “However, we may not be able to say that after 2010, therefore, tax planning actions taken between now and year-end may be more important than ever. Be careful though—Congress could change the ball game before the end of the year.”
Following are seven planning ideas to consider while there is still time to act before the end of the year.
1. Accelerate Itemized Deductions into this Year. If your Adjusted Gross Income (AGI) will be more than $170,000 ($85,000 if you are married and file separately) next year, you may want to accelerate into 2010 your state and local tax payments that are due early next year. You may also want to prepay in 2010 some charitable donations that you would normally make in 2011. Why? Because for 2010, the phase-out rule that previously reduced write-offs for the most popular itemized deduction items (including home mortgage interest, state and local taxes, and charitable donations) is gone, but is scheduled to come back in 2011, unless Congress takes action to prevent it, which looks increasingly unlikely.
If the phase-out rule comes back as expected, it will wipe out $3 of affected itemized deductions for every $100 of AGI above the applicable threshold. For 2011, the AGI threshold will probably be around $170,000, or about $85,000 for married individuals who file separate returns. Individuals with very high AGI may have up to 80% of their affected deductions wiped out.
2. Think Twice Before Deferring Income into 2011. This strategy makes sense if you are confident you will be in the same or lower tax bracket next year, but the tax picture for 2011 is blurry. With just weeks left in 2010, the fate of many tax provisions for 2011 and beyond is still unknown. The top two rates have widely been expected to increase in 2011 from the current 33% and 35% to 36% and 39.6%, respectively—at least for taxpayers earning $250,000 or more ($200,000 or more if single). Therefore, if you fall into this group, you might want to consider reversing the traditional strategy and accelerating income into 2010 to take advantage of this year’s presumably lower rates. However, legislators could still vote to delay any tax increase to after 2011. “It may be wise to start now to identify ways you could accelerate some of your 2011 income into 2010, but wait to pull the trigger on them until later in the year when, hopefully, we will know more,” said Christian.
3. Time Your Investment Gains and Losses and Consider Being Bold. As you evaluate investments held in your taxable brokerage firm accounts, consider the impact of selling appreciated securities this year instead of next year. The maximum federal income tax rate on long-term capital gains from 2010 sales is 15%. However, that low rate only applies to gains from securities that have been held for at least a year and a day. In 2011, the maximum rate on long-term capital gains is scheduled to increase to 20%. That will happen automatically unless Congress takes action, which currently seems unlikely.
To the extent you have capital losses from earlier this year or a capital loss carryover from pre-2010 years (most likely from the 2008 stock market meltdown), selling appreciated securities this year will be tax-free because the losses will shelter your gains. Using capital losses to shelter short-term capital gains is especially helpful because short-term gains will be taxed at your regular rate (which could be as high as 35%) if they are left unsheltered.
What if you have some poor performing securities (currently worth less than you paid for them) that you would like to dump? Biting the bullet and selling them this year would trigger capital losses that you can use to shelter capital gains, including high-taxed short-term gains, from other sales this year. If you think your investments that are currently underwater are poised for a comeback, you can buy them back after taking a loss as long as you do not reacquire them within 30 days before or after the sale.
If selling many poor performing securities would cause your capital losses for this year to exceed your capital gains, no problem. You will have a net capital loss for 2010. You can then use that net capital loss to shelter up to $3,000 of this year’s high-taxed ordinary income from salaries, bonuses, self-employment, etc. ($1,500 if you are married and file separately). Any excess net capital loss gets carried forward to next year.
Selling enough poor performing securities to create a big net capital loss that exceeds what you can use this year might turn out to be a good idea. You can carry forward the excess net capital loss to 2011 and beyond and use it to shelter both short-term gains and long-term gains recognized in those years, plus up to $3,000 of ordinary income each year—all of which may well be taxed at higher rates after 2010. This can also give you extra investing flexibility in future years because you will not necessarily have to hold appreciated securities for more than a year to get better tax results.
4. Maximize Contributions to 401(k) Plans. If you have a 401(k) plan at work, you can tell your company how much you want to set aside on a tax-free basis for next year. Contribute as much as you reasonably can, especially if your employer makes matching contributions. You turn down “free money” when you fail to participate to the maximum match.
5. Take Advantage of Flexible Spending Accounts (FSAs). If your company has heath or child care FSAs, before year-end you must specify how much of your 2011 salary to convert into tax-free plan contributions. You can then take tax-free withdrawals next year to reimburse yourself for out-of-pocket medical and dental expenses and qualifying child care costs (depending on the type of plan). Watch out, though, FSAs are “use-it-or-lose-it” accounts—you do not want to set aside more than what you will likely have in qualifying expenses for the year. And, starting in 2011, over-the-counter drugs (e.g., aspirin and antacids) will no longer qualify for reimbursement by health FSAs, so you may need to consider that when determining your 2011 contribution amount.
If you currently have an FSA, make sure you drain it by incurring eligible expenses before the deadline for this year. Otherwise, you will lose the remaining balance. For health FSAs, it is not difficult to drum up some items such as: new glasses or contacts, dental work you may have been putting off, or prescriptions that can be filled early. Also, for 2010, over-the-counter drugs still apply.
6. Adjust Your Federal Income Tax Withholding. If it looks like you are going to owe income taxes for 2010, consider bumping up the federal income taxes withheld from your paychecks now through the end of the year. When you file your return, you will still have to pay any taxes due less the amount paid in. However, as long as your total tax payments (estimated payments plus withholdings) equal at least 90% of your 2010 liability or if smaller, 100% of your 2009 liability (110% if your 2009 adjusted gross income exceeded $150,000; $75,000 for married individuals who filed separate returns), penalties will be minimized, if not eliminated.
7. Make Energy Efficiency Improvements to Your Home. A great way to cut energy costs and save up to $1,500 in federal income taxes this year is to make energy efficiency improvements to your principal residence. Basically, if you install energy efficient insulation, windows, doors, roofs, heat pumps, furnaces, central A/C units, hot water heaters or boilers, or advanced main air circulating fans to your home during 2010, you may be entitled to a tax credit of 30% of the purchase price. However, the maximum total credit you can claim for 2009 and 2010 combined is limited to $1,500. Without Congressional action, the credit will not be available after 2010.
Taxpayers should consult with a personal tax advisor before applying these or other tax strategies
Colonial Income Tax Service,LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide. The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Tuesday, January 25, 2011
Health Coverage for Older Children Colonial Income Tax Service LLC 700 Delaware Street New Castle, DE 19720
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Health Coverage for Older Children
Health coverage for an employee's children under 27 years of age is now generally tax-free to the employee. This expanded health care tax benefit applies to various work place and retiree health plans. These changes immediately allow employers with cafeteria plans –– plans that allow employees to choose from a menu of tax-free benefit options and cash or taxable benefits –– to permit employees to begin making pre-tax contributions to pay for this expanded benefit. This also applies to self-employed individuals who qualify for the self-employed health insurance deduction on their federal income tax return. Learn more contacting Colonial Income Tax Preparation Service at 302-322-1135 or e-mail Info@ColonialIncomeTaxcom.Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Saturday, January 22, 2011
Colonial Income Tax Service Update: Tax Changes You Need to Know for 2011!!
Colonial Income Tax Service Update: Tax Changes You Need to Know for 2011!!
Tax Changes You Need to Know for 2011
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
302-322-1135
Info@ColonialIncomeTax.com
With tax season 2010 already in full swing, it’s easy to overlook some important tax changes for 2011. Here’s some of what you can look forward to with respect to personal income taxes during the year:
• Payroll Tax Holiday. As we reported earlier, there’s a one-year payroll tax holiday in effect for 2011. This means that taxpayers subject to FICA (Social Security and Medicare) taxes will see a tax break of 2% in their paychecks during the year. The break is tied to Social Security payroll taxes, which means the benefit ends when you hit the Social Security cap during the year, which is $106,800 for 2011. Taxpayers who don’t pay into the Social Security system during the year will not receive a benefit.
• Standard Deductions. The standard deduction rates — or the amount that you can claim if you don’t itemize your deductions — stay largely the same for 2011. They are $5,800 for single taxpayers or those married taxpayers filing separately, $11,600 for married taxpayers filing jointly and $8,500 for taxpayers filing as head of household. The additional standard deduction allowed for senior citizens and taxpayers who are legally blind is $1,150 for married taxpayers filing jointly and $1,450 for single taxpayers.
• Personal Exemptions. The personal exemption amount for 2011 is $3,700, an increase from $3,650 in 2010.
• Income tax rates. Tax rates for 2011 remain relatively close to those for 2010. The tax deal — which extended existing breaks — means that tax rate cuts remain in place with a few adjustments to account for inflation. The tax brackets for 2011 are:
Single
$0-$8,500 10%
$8,500-$34,500 15%
$34,500-$83,600 25%
$83,600-$174,400 28%
$174,400-$379,150 33%
$379,150+ 35%
Married Filing Jointly
$0-$17,000 10%
$17,000-$69,000 15%
$69,000-$139,350 25%
$139,350-$212,300 28%
$212,300-$379,150 33%
$379,150+ 35%
Head of Household
$0-$12,150 10%
$12,150-$46,250 15%
$46,250-$119,400 25%
$119,400-$193,350 28%
$193,350-$379,150 33%
$379,150+ 35%
Married Filing Separately
$0-$8,500 10%
$8,500-$34,500 15%
$34,500-$69,675 25%
$69,675-$106,150 28%
$106,150-$189,575 33%
$189,575+ 35%
• Alternative Minimum Tax (AMT). The AMT exemption for 2011 is $74,450 for taxpayers filing jointly, $48,450 for single taxpayers and those filing as head of households, and $37,225 for married couples filing separately.
• Pease and PEP limitations. High-income taxpayers benefit from a temporary repeal of the PEP (personal exemption phase-out) and “Pease” limitations. Under PEP, personal exemptions (which start at $3,700) for high-income taxpayers were reduced as adjusted gross income (AGI) increased, while the Pease provision reduced itemized deductions by 3% at the top of the brackets. With the temporary repeal, high-income taxpayers hold onto their exemptions and the full value of their itemized deductions for two more years.
• Capital Gains and Dividends. Lower rates for capital gains and dividends are extended through 2011.
• Flexible Spending Accounts (FSAs). In 2011, over the counter (OTC) medications are generally no longer eligible as FSA expenses unless a doctor writes a prescription for the medications (insulin is a significant exception to this rule). The new rule also affects HRA (health reimbursement accounts), HSA (health savings accounts) and Archer MSA (medical savings account) plans.
• Health Care Benefits Reporting. As part of the new health care law, beginning in 2011, employers must report health care benefits for employees. This amount will appear on your form W-2 in 2012 as a report, but it will not affect your taxable income.
• Foreign Account Reporting. On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law. The new law imposes additional reporting and disclosure requirements on your income tax return for U.S. taxpayers with any interest in certain foreign assets worth more than $50,000. This doesn’t replace the existing FBAR (Report of Foreign Bank and Financial Accounts) requirements; those still apply.
These are the basics for 2011. It’s important to remember that tax laws — and changes to them — can be very fact and circumstance specific. If you have questions about how the laws for 2011 affect you, check with your tax professional.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
302-322-1135
Info@ColonialIncomeTax.com
With tax season 2010 already in full swing, it’s easy to overlook some important tax changes for 2011. Here’s some of what you can look forward to with respect to personal income taxes during the year:
• Payroll Tax Holiday. As we reported earlier, there’s a one-year payroll tax holiday in effect for 2011. This means that taxpayers subject to FICA (Social Security and Medicare) taxes will see a tax break of 2% in their paychecks during the year. The break is tied to Social Security payroll taxes, which means the benefit ends when you hit the Social Security cap during the year, which is $106,800 for 2011. Taxpayers who don’t pay into the Social Security system during the year will not receive a benefit.
• Standard Deductions. The standard deduction rates — or the amount that you can claim if you don’t itemize your deductions — stay largely the same for 2011. They are $5,800 for single taxpayers or those married taxpayers filing separately, $11,600 for married taxpayers filing jointly and $8,500 for taxpayers filing as head of household. The additional standard deduction allowed for senior citizens and taxpayers who are legally blind is $1,150 for married taxpayers filing jointly and $1,450 for single taxpayers.
• Personal Exemptions. The personal exemption amount for 2011 is $3,700, an increase from $3,650 in 2010.
• Income tax rates. Tax rates for 2011 remain relatively close to those for 2010. The tax deal — which extended existing breaks — means that tax rate cuts remain in place with a few adjustments to account for inflation. The tax brackets for 2011 are:
Single
$0-$8,500 10%
$8,500-$34,500 15%
$34,500-$83,600 25%
$83,600-$174,400 28%
$174,400-$379,150 33%
$379,150+ 35%
Married Filing Jointly
$0-$17,000 10%
$17,000-$69,000 15%
$69,000-$139,350 25%
$139,350-$212,300 28%
$212,300-$379,150 33%
$379,150+ 35%
Head of Household
$0-$12,150 10%
$12,150-$46,250 15%
$46,250-$119,400 25%
$119,400-$193,350 28%
$193,350-$379,150 33%
$379,150+ 35%
Married Filing Separately
$0-$8,500 10%
$8,500-$34,500 15%
$34,500-$69,675 25%
$69,675-$106,150 28%
$106,150-$189,575 33%
$189,575+ 35%
• Alternative Minimum Tax (AMT). The AMT exemption for 2011 is $74,450 for taxpayers filing jointly, $48,450 for single taxpayers and those filing as head of households, and $37,225 for married couples filing separately.
• Pease and PEP limitations. High-income taxpayers benefit from a temporary repeal of the PEP (personal exemption phase-out) and “Pease” limitations. Under PEP, personal exemptions (which start at $3,700) for high-income taxpayers were reduced as adjusted gross income (AGI) increased, while the Pease provision reduced itemized deductions by 3% at the top of the brackets. With the temporary repeal, high-income taxpayers hold onto their exemptions and the full value of their itemized deductions for two more years.
• Capital Gains and Dividends. Lower rates for capital gains and dividends are extended through 2011.
• Flexible Spending Accounts (FSAs). In 2011, over the counter (OTC) medications are generally no longer eligible as FSA expenses unless a doctor writes a prescription for the medications (insulin is a significant exception to this rule). The new rule also affects HRA (health reimbursement accounts), HSA (health savings accounts) and Archer MSA (medical savings account) plans.
• Health Care Benefits Reporting. As part of the new health care law, beginning in 2011, employers must report health care benefits for employees. This amount will appear on your form W-2 in 2012 as a report, but it will not affect your taxable income.
• Foreign Account Reporting. On March 18, 2010, President Obama signed the Hiring Incentives to Restore Employment (HIRE) Act into law. The new law imposes additional reporting and disclosure requirements on your income tax return for U.S. taxpayers with any interest in certain foreign assets worth more than $50,000. This doesn’t replace the existing FBAR (Report of Foreign Bank and Financial Accounts) requirements; those still apply.
These are the basics for 2011. It’s important to remember that tax laws — and changes to them — can be very fact and circumstance specific. If you have questions about how the laws for 2011 affect you, check with your tax professional.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Friday, January 21, 2011
Colonial Income Tax Service Why You Should Wait Until February to File Your Taxes!!!
IRS Kicks Off 2011 Tax Season with Deadline Extended to April 18; Taxpayers Impacted by Recent Tax Breaks Can File Starting in Mid- to Late February
Although the IRS is not accepting some tax returns until mid-February because of recent tax law changes.
WASHINGTON — The Internal Revenue Service today opened the 2011 tax filing season by announcing that taxpayers have until April 18 to file their tax returns. The IRS reminded taxpayers impacted by recent tax law changes.
Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.
The IRS expects to receive more than 140 million individual tax returns this year, with most of those being filed by the April 18 deadline.
For more information, contact Colonial Income Tax Service, LLC. We can help you with a full range of tax services. Our professional staff includes a Certified Public Accountant and several tax preparers with many years of experience. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
The IRS also cautioned taxpayers with foreign accounts to properly report income from these accounts and file the appropriate forms on time to avoid stiff penalties.
“The IRS has made important strides at stopping tax avoidance using offshore accounts,” said IRS Commissioner Doug Shulman. “We continue to focus on offshore tax compliance and people with offshore accounts need to pay taxes on income from those accounts.”
The IRS also reminded tax professionals preparing returns for a fee that this is the first year that they must have a Preparer Tax Identification Number.
Who Must Wait to File
For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until mid- to late February to file their tax returns in order to give the IRS time to reprogram its processing systems.
Some taxpayers – including those who itemize deductions on Form 1040 Schedule A – will need to wait to file. This includes taxpayers impacted by any of three tax provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those who need to wait to file include:
Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction that was also extended and which primarily benefits people living in areas without state and local income taxes. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.
Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit extended last month and the Lifetime Learning Credit.
Taxpayers Claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23 and Form 1040A, Line 16.
In addition to extending those tax deductions for 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act also extended those deductions for 2011 and a number of other tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season.
The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the recent tax law changes. In the interim, taxpayers affected by these tax law changes can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes. Additional information will be available at www.IRS.gov.
For taxpayers who must wait before filing, the delay affects both paper filers and electronic filers. The IRS urges taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax law changes and ensure accurate tax returns.
Except for those facing a delay, the IRS will begin accepting e-file and Free File returns on Jan. 14. Additional details about e-file and Free File will be announced later this month.
Many Ways to Get Assistance
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Although the IRS is not accepting some tax returns until mid-February because of recent tax law changes.
WASHINGTON — The Internal Revenue Service today opened the 2011 tax filing season by announcing that taxpayers have until April 18 to file their tax returns. The IRS reminded taxpayers impacted by recent tax law changes.
Taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any tax due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.
The IRS expects to receive more than 140 million individual tax returns this year, with most of those being filed by the April 18 deadline.
For more information, contact Colonial Income Tax Service, LLC. We can help you with a full range of tax services. Our professional staff includes a Certified Public Accountant and several tax preparers with many years of experience. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
The IRS also cautioned taxpayers with foreign accounts to properly report income from these accounts and file the appropriate forms on time to avoid stiff penalties.
“The IRS has made important strides at stopping tax avoidance using offshore accounts,” said IRS Commissioner Doug Shulman. “We continue to focus on offshore tax compliance and people with offshore accounts need to pay taxes on income from those accounts.”
The IRS also reminded tax professionals preparing returns for a fee that this is the first year that they must have a Preparer Tax Identification Number.
Who Must Wait to File
For most taxpayers, the 2011 tax filing season starts on schedule. However, tax law changes enacted by Congress and signed by President Obama in December mean some people need to wait until mid- to late February to file their tax returns in order to give the IRS time to reprogram its processing systems.
Some taxpayers – including those who itemize deductions on Form 1040 Schedule A – will need to wait to file. This includes taxpayers impacted by any of three tax provisions that expired at the end of 2009 and were renewed by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act Of 2010 enacted Dec. 17. Those who need to wait to file include:
Taxpayers Claiming Itemized Deductions on Schedule A. Itemized deductions include mortgage interest, charitable deductions, medical and dental expenses as well as state and local taxes. In addition, itemized deductions include the state and local general sales tax deduction that was also extended and which primarily benefits people living in areas without state and local income taxes. Because of late Congressional action to enact tax law changes, anyone who itemizes and files a Schedule A will need to wait to file until mid- to late February.
Taxpayers Claiming the Higher Education Tuition and Fees Deduction. This deduction for parents and students – covering up to $4,000 of tuition and fees paid to a post-secondary institution – is claimed on Form 8917. However, the IRS emphasized that there will be no delays for millions of parents and students who claim other education credits, including the American Opportunity Tax Credit extended last month and the Lifetime Learning Credit.
Taxpayers Claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250. The educator expense deduction is claimed on Form 1040, Line 23 and Form 1040A, Line 16.
In addition to extending those tax deductions for 2010, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act also extended those deductions for 2011 and a number of other tax deductions and credits for 2011 and 2012 such as the American Opportunity Tax Credit and the modified Child Tax Credit, which help families pay for college and other child-related expenses. The Act also provides various job creation and investment incentives including 100 percent expensing and a two-percent payroll tax reduction for 2011. Those changes have no effect on the 2011 filing season.
The IRS will announce a specific date in the near future when it can start processing tax returns impacted by the recent tax law changes. In the interim, taxpayers affected by these tax law changes can start working on their tax returns, but they should not submit their returns until IRS systems are ready to process the new tax law changes. Additional information will be available at www.IRS.gov.
For taxpayers who must wait before filing, the delay affects both paper filers and electronic filers. The IRS urges taxpayers to use e-file instead of paper tax forms to minimize confusion over the recent tax law changes and ensure accurate tax returns.
Except for those facing a delay, the IRS will begin accepting e-file and Free File returns on Jan. 14. Additional details about e-file and Free File will be announced later this month.
Many Ways to Get Assistance
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Colonial Income Tax Service Five Important Facts about the Making Work Pay Credit
Five Important Facts about the Making Work Pay Credit
Many working taxpayers are eligible for the Making Work Pay Tax Credit in 2010. The credit is based on earned income and is claimed on your 2010 tax return when you file your taxes in 2011.
Here are five things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible.
1. The Making Work Pay Credit provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
2. Most workers received the benefit of the Making Work Pay Credit through larger paychecks, reflecting reduced federal income tax withholding during 2010.
3. Taxpayers who file Form 1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit.
4. Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Credit.
5. You cannot take the credit if your modified adjusted gross income is $95,000 for individuals or $190,000 if married filing jointly or more, you can be claimed as a dependent on someone else return, you do not have a valid social security number or you are a nonresident alien.
Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
Many working taxpayers are eligible for the Making Work Pay Tax Credit in 2010. The credit is based on earned income and is claimed on your 2010 tax return when you file your taxes in 2011.
Here are five things the IRS wants you to know about this tax credit to ensure you receive the entire amount for which you are eligible.
1. The Making Work Pay Credit provides a refundable tax credit of up to $400 for individuals and up to $800 for married taxpayers filing joint returns.
2. Most workers received the benefit of the Making Work Pay Credit through larger paychecks, reflecting reduced federal income tax withholding during 2010.
3. Taxpayers who file Form 1040 or 1040A will use Schedule M to figure the Making Work Pay Tax Credit. Completing Schedule M will help taxpayers determine whether they have already received the full credit in their paycheck or are due more money as a result of the credit.
4. Taxpayers who file Form 1040-EZ should use the worksheet for Line 8 on the back of the 1040-EZ to figure their Making Work Pay Credit.
5. You cannot take the credit if your modified adjusted gross income is $95,000 for individuals or $190,000 if married filing jointly or more, you can be claimed as a dependent on someone else return, you do not have a valid social security number or you are a nonresident alien.
Colonial Income Tax Service, LLC can help you with a full range of tax services. Our services include preparing your Federal and state income tax returns, and assisting you with tax planning opportunities. We also do business returns, including corporations, partnerships, LLC’S and trusts. The fees we charge vary depending on the complexity of the tax preparation or planning services you need. We believe our fees are both reasonable and competitive for the professional services we provide.The fee range for our service begins at $100 for Form 1040 with standard deduction, and $250 for a Form 1040, with schedule A – itemizing your deductions, and schedule B – listing your interest and dividends and, state return. Additional forms will increase our time and fee charges. We offer a $20 discount for new clients and our initial meeting to discuss your needs is FREE.
To begin our service we will interview you using our tax data organizer which lists a host of questions and documents we will need to prepare your return. Based on the interview we can prepare an estimate of our fee charges. You decide whether we proceed with your tax return preparation.
In payment we accept cash, checks, money orders, VISA and MasterCard.
Call us today, 302-322-1135, to arrange a FREE initial consultation.
Colonial Income Tax Service LLC
700 Delaware Street
New Castle, DE 19720
Website: www.ColonialIncomeTax.Com
E-Mail: Info@ColonialIncomeTax.com
Twitter: http://twitter.com/ColonialTax
LinkedIn: http://www.linkedin.com/in/colonialtax
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