To contact us Click HERE Irecently posted a “summer” rerun on dependents and income tax withholding.Here is some related advice - Ifyour son or daughter has a summer job you should consider opening up a Roth IRAaccount for him or her. Toqualify for an IRA your child must have “earned income” — wages or “netearnings from self-employment.” Money you give your child for doing choresaround the house doesn’t count, but earnings from babysitting or mowing lawnsmay qualify. Youcan contribute 100% of your child’s earnings to the account, up to a maximum of$5,000. If your son earns $2,400 for the summer you can contribute $2,400 to aRoth IRA for him. If he earns $6,500 you can contribute $5,000. There isnothing in the tax code that says that the money deposited in an IRA for yourson or daughter has to come from the child’s funds. Thereis no tax deduction for contributing to a Roth IRA, but most teenagers don’tneed the deduction. Qualified distributions from a Roth will be exempt from federal,and probably state, income tax (assuming the idiots in Congress don’t changethe law in the future). Youcan use a Roth IRA to encourage your children to work or to save. If your sonearns $5,000 in a part-time job, open a Roth IRA for him.Or, if your daughter agrees to put $2,500 ofher salary from a summer job in a Roth, match it and put in another $2,500. Ifyou put the maximum into a Roth each year for your 16-year-old from 2012through 2017, when he/she will turn 21, and no other contributions are evermade, the account could grow to a truly tidy sum (in 6 figures) by the time thechild turns 65. Onecaveat - there exists a potential problem with opening a Roth account for achild. Once the child reaches the “age of majority,” usually 18, he/she willhave full access to all the funds and can “take the money and run.” TTFN
To contact us Click HERE {Continuing the theme of summer jobs fordependents, here is another “summer” rerun, slightly updated - rdf} Employingyour kids is a great deduction for parents of minor children who have a netincome-generating Schedule C business. For2012 a dependent can earn up to $5,950 in wages (or a combination of wagesand up to $300 in “unearned income” – i.e. interest, dividends, capital gains)and pay no federal, and probably no state, income taxes. Contributions to atraditional IRA can add another $4,000.00 to that figure (however, in the longrun, it is probably better to contribute to a ROTH IRA in such a situation). Plus,if the child is under age 18 you do not have to withhold or pay FICA (SocialSecurity and Medicare) taxes, and probably state unemployment and disabilitycontributions, on the payments. Wages paid by a parent’s unincorporatedbusiness to a dependent child under age 21 are also exempt from FUTA (federalunemployment) tax. Theparent gets a deduction on his/her Schedule C for the wages paid, which willreduce income tax, self-employment tax, and Adjusted Gross Income. However,to be deductible the wages must be for actual legitimate services to thebusiness as an employee, the child must actually be paid the wages, and theamount of wages paid must be reasonable for the type of services provided.Routine family chores (see the Court’s discussion below) will not qualify, youcannot just claim a deduction and not actually give the money to the child (ordeposit the money in the child’s IRA account), and you are not allowed to payyour 10 year old son $50 an hour for sweeping up your office. InMichael D and Christine Alexander vs Commissioner (TC Summary Opinion 2006-127)the parents had three home-based businesses – a tree farm, a tailoringbusiness, and a beagle-breeding business. Theirson, a 21-year old college student, helped with his mother’s tailoring businessduring summer break. His jobs included getting supplies at a fabric store,general cleaning and shampooing the rug in the sewing room, and accompanyinghis mother to the store. Theirtwo minor daughters worked in the beagle-breeding business walking the dogs,cleaning and cutting the grass in the beagle yard, hauling garbage, bleachingdog bowls, treating dogs for fleas, clipping nails and hosing kennels. Noneof the children received an actual pay check. The son received $4,000 over thecourse of the year, most before he actually began work. A type of “drawing account”was kept for each of the daughters. Earnings were accumulated, and the girlswere given money as they needed it, or the parents would purchase items for thegirls and deduct the amount from their “account”. No quarterly (941) or annual(940, W-3, W-2) payroll tax returns were prepared for any of the wages claimedas a deduction. TheCourt felt that “many of the tasks [the son] performed were in the nature ofroutine family chores such as cleaning, vacuuming, taking out garbage, andaccompanying [his mother] on shopping trips. Such chores are part of parentaltraining and discipline rather than the services rendered by an employee for anemployer.” This, plus the fact that the son’s wages were not paid as earned andthere were no payroll tax returns filed, caused the Court to conclude that thepayments made to the son were not deductible as wages. WhileI agree with the Court on the son, I felt that the daughters could havequalified as true employees. However, the Court disallowed the deduction for theirwages as well. Itis very important that you “cross your t’s and dot your i’s” when it comes todocumenting a deduction for dependent wages. You must make sure you pass the“duck test” (if it waddles like a duck and quacks like a duck…). Forget that theseare your kids and treat them as you would any other employee. ·Create a written job description for each “position” outlining the duties andresponsibilities involved. ·Pay the kids on an hourly basis. ·Use a time card to document hours worked and work performed. ·Write a company check as payment each week or every-other week. ·Even though the wages are not subject to FICA and FUTA tax and probably alsostate unemployment and disability contributions, file all appropriate quarterlypayroll tax returns, such as the federal Form 941 (you can indicate that thewages are exempt from FICA on the form), submit an annual federal Form 940 or940EZ indicating the amounts paid as “exempt”, and issue a W-2 in January toreport the wages paid. ·If you have other employees make sure the kids’ wages are included on thequarterly and annual payroll tax returns. {FYI - this is the type of information discussed in my "The Schedule C Notebook" - rdf} TTFN
To contact us Click HERE Tocelebrate the beginning of summer I want to make a very special offer to taxprofessionals. Asyou probably know, I have been preparing 1040s since 1972. Over the years Ihave developed a collection of forms, schedules and worksheets that have provenvery helpful in my practice. Someof my “homemade” forms are given to clients to help them provide me with theinformation I need to properly prepare their returns. Some are used as “memos”to the client’s copy and my office file copy to back-up items reported on thereturns. Others are used as attachments to the returns. Igenerally offer this compilation for $6.00.As a special summer offer you canhave this forms package for only $3.00 if your order is postmarked by July 31,2012! Thepackage will be sent as a “word document” email attachment, so you may edit andrevise them as you see fit to personalize them to your firm, customize them bemore relevant to your particular practice or clients or specific professions,or update them for annual COLAs or tax law changes. Hereis a listing of what is included in the package. SCHEDULEA – 1.Supplementto Schedule A2.MedicalExpense Worksheet3.MedicalExpenses – Out of Pocket Anaylsis 4.CharitableContribution Listing – for non-cash contributions5.CharitableContribution Record – for cash contributions (2 pages)6.CharitableMileage Record7.ContributionWorksheet8.EmployeeBusiness Expenses – generic format, can be customized9.EmployeeBusiness Expenses – Police Officer – example of customized10.Conventions,Conference and Education11.MiscellaneousExpenses #112.MiscellaneousExpenses #213.Summaryof Casino Gambling Activity Log SCHEDULEC – (some of these forms can also be used for employee expenses) 1.Allocationof Expenses 2.AutomobileExpense Worksheet 3.AutoMileage Log4.BusinessExpenses of a Freelance Writer5.BusinessTravel Record 6.ComputerUse Log7.Electionto Deduct Organization Expenses8.EmployeeExpense Report9. Employee Time Card 10.Home Office Deduction Worksheet11.Cell Phone Log - in “landscape” format - sent separately. SCHEDULED – 1. Cost Basis Worksheet SCHEDULEE – 1.Owner-Occupied Multi-Unit Rental Property Expense2.Statement of Rental Income and3.Statement of Rental Income and Expenses – Vacation Property4.Multi Family Building GENERAL– 1.Alternative Minimum Tax Worksheet2.Does Not Have To File3.Statement of Dividend Income4.Statement of Pension Income – in “landscape” format- sent separately Pleasebe aware that these forms, schedules, and worksheets are copyrighted material,and are for your internal use only – and cannot be “shared” with other tax prosor firms. Sendyour check or money order, payable to TAXPRO SERVICES CORPORATION, for $3.00 andyour email address to – TAXPROFORMS TAXPROSERVICES CORPORATIONPMB30472VAN REIPEN AVENUEJERSEYCITY NJ 07306-2806 Hey,for $3.00 you can’t go wrong! TTFN
To contact us Click HERE Justthought I would repeat some commentary from my publication THE SCHEDULE C NOTEBOOK - Ibelieve it is bad advice to tell ALL taxpayers who have a Schedule C businessto incorporate. There is no tax advicethat applies to all businesses in all situations (except don’t cheat). Thedecision to incorporate a business requires careful review of all the specificfacts and circumstances of the individual situation. And taxes are not the onlyconsideration. In a majority of cases it is not financially beneficial, eitherin the short or long term, to incorporate. Whileincorporating will certainly reduce one's 1040 audit risk, it is very often notthe best idea for the average sole proprietorship. Incorporation can generatemuch more paperwork, recordkeeping, federal and state tax filings, costs, andgeneral all-round "agita" than it is worth. Forone thing, like a marriage, it may be relatively cheap to "get into"a corporation, but it can be very expensive to "get out of". Thereare indeed times when it is better financially to incorporate a one-personbusiness, especially when excessive health insurance and other employee benefit costs are involved. Butcertainly not in all cases. Somesay the decision to incorporate is a “no-brainer”.There is very little, if anything, about taxlaw that is a no-brainer – especially when it comes to business taxes. That iswhy tax professionals exist.Thedecision to incorporate is by no means a “no-brainer”. It involves a lot ofbrain work! TTFN
Most all tax preparers understand how income levels and filing requirements are contingent upon filing status, age and the type of income clients receive. What is often overlooked, however, even when clients aren't required to file with Uncle Sam, is the fact that it may indeed advantage them to do so.
Not surprisingly, the Irs provides definitive instructions on the requirements for filing Forms 1040, 1040A, or 1040Ez. With all of the new prestige tax revisions and exceptions, some tax preparers are turning to Tax Cpe procedure materials or Ea Cpe curriculum to brush up on how these new revisions stand to advantage clients. Some continuing instruction tax courses are even focused exclusively on these new tax laws, showing tax preparers how to clients who fit into this scenario to get the greatest bang out of their tax returns.
Form 1040 Instructions
Quick Tips on Non-Required Filing Benefits
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!
Homebuyer Credit
First time homebuyers are eligible for a maximum 00 or 00 if filing married status separately. To qualify, a someone must have entered into a compact on or before April 30th 2010 and have accomplished by September 30th 2010.
Tax Withheld
For taxpayers who have estimated their tax payments, had a former years overpayment, or had income tax withheld, they may be eligible for a refund.
Child Tax Credit
If a taxpayer has at least one child that qualifies and they didn't receive the full estimate of the current Child Tax prestige originally, they could get a refundable credit.
American occasion Credit
Given the newly renamed and vast Hope credit, taxpayers can claim this prestige for tuition and positive fees for undergraduate and post-secondary education. The maximum prestige per student is ,500.
Earned income Tax Credit
For those individuals who worked but earned dinky in 2010, this tax prestige may prove beneficial in considering to file because it may qualify them for a refund.
Health Coverage Tax Credit
This prestige is primarily for individuals who have received Adjustment aid (either Trade or Reemployment Trade). Further, those receiving Pbgc pension payments may also qualify and receive a credit.
Quick Tips of Non-Required Filing for Losses
Two Scenarios
When taxpayers have suffered an whole loss because of an speculation losses:
Only if filed in 2010 can they carry that loss transmit and offset dutible capital gains in future years
They can carry these losses as far back as 2008 and perhaps ask a reimbursement of carry forward, but, again, only if they filed in 2010.
When taxpayers have company losses that experienced a net operating loss (Nol) for 2010:
There are a plethora of resources ready that cover these details and the types of taxpayers that fall into this unique category. The key for enrolled agents, certified collective accounts and other tax professionals is to do the research, sign up for an enrolled agent class or look on the tax Cpe sites that showcase this information.
Irs Circular 230 Disclosure
Pursuant to the requirements of the Internal income aid Circular 230, we forewarn you that, to the extent any guidance relating to a Federal tax issue is contained in this communication, together with in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax connected penalties that may be imposed on you or any other someone under the Internal income Code, or (b) promoting, marketing or recommending to another someone any transaction or matter addressed in this communication.
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!Is the IRS lying and defrauding the American people? Hear from the man who beat Video Clips. Duration : 45.58 Mins.
Robert Lawrence challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh Keywords: googlevideo
To contact us Click HERE
IRS Form 1040, 1040-A, 1040-EZ - (www.BenLowrey.com) Tube. Duration : 11.30 Mins.
www.benlowrey.comcreditors in commerce winston shrout jack smith gordon hall brandon adams robert menard accepted for value A4v john harris commercial redemption free man on the land ben lowrey bashar john demartini tony robbins zeitgeist fractional reserve modern money mechanics money as debt fiat alex jones prison planet info wars project camelot TPUC Tim Turner Sam Davis Douglas Riddle jerry kane george tran Tags: http://www.benlowrey.com, creditors, in, commerce, winston, shrout, jack, smith, gordon, hall, brandon, adams, robert, menard, accepted, for, value, A4v, john, harris, commercial, redemption, free, man, on, the, land, ben, lowrey, bashar, demartini, tony, robbins, zeitgeist, fractional, reserve, modern, money, mechanics, as, debt, fiat, alex, jones, prison, planet, info, wars, project, camelot, TPUC, Tim, Turner, Sam, Davis, Douglas, Riddle, jerry, kane, george, tran, benlowreyhimself
To contact us Click HERE
Is the IRS lying and defrauding the American people? Hear from the man who.. Tube. Duration : 63.50 Mins.
Is the IRS lying and defrauding the American people? Hear from the man who beat the IRS Beast: Robert Lawrence. Robert challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh Tags: googlevideo
To contact us Click HERE
How to Complete a 1040EZ Tax Form : Completing a 1040EZ Tax Form Video Clips. Duration : 0.90 Mins.
Tax help! How to fill out and complete a1040EZ tax form in this free video on tax help and personal finance. Expert: Tom Noah Bio: Tom Noah has been a Certified Public Accountant (CPA) for over 27 years. In that time he has held positions at several companies as an accountant and a director of financial planning. Filmmaker: Drew Noah Keywords: online, form, aid, instruction, help, income, taxes, 1040a, 1040ez, irs, tax, booklet
Most all tax preparers understand how income levels and filing requirements are contingent upon filing status, age and the type of income clients receive. What is often overlooked, however, even when clients aren't required to file with Uncle Sam, is the fact that it may indeed advantage them to do so.
Not surprisingly, the Irs provides definitive instructions on the requirements for filing Forms 1040, 1040A, or 1040Ez. With all of the new prestige tax revisions and exceptions, some tax preparers are turning to Tax Cpe procedure materials or Ea Cpe curriculum to brush up on how these new revisions stand to advantage clients. Some continuing instruction tax courses are even focused exclusively on these new tax laws, showing tax preparers how to clients who fit into this scenario to get the greatest bang out of their tax returns.
Form 1040 Instructions
Quick Tips on Non-Required Filing Benefits
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!
Homebuyer Credit
First time homebuyers are eligible for a maximum 00 or 00 if filing married status separately. To qualify, a someone must have entered into a compact on or before April 30th 2010 and have accomplished by September 30th 2010.
Tax Withheld
For taxpayers who have estimated their tax payments, had a former years overpayment, or had income tax withheld, they may be eligible for a refund.
Child Tax Credit
If a taxpayer has at least one child that qualifies and they didn't receive the full estimate of the current Child Tax prestige originally, they could get a refundable credit.
American occasion Credit
Given the newly renamed and vast Hope credit, taxpayers can claim this prestige for tuition and positive fees for undergraduate and post-secondary education. The maximum prestige per student is ,500.
Earned income Tax Credit
For those individuals who worked but earned dinky in 2010, this tax prestige may prove beneficial in considering to file because it may qualify them for a refund.
Health Coverage Tax Credit
This prestige is primarily for individuals who have received Adjustment aid (either Trade or Reemployment Trade). Further, those receiving Pbgc pension payments may also qualify and receive a credit.
Quick Tips of Non-Required Filing for Losses
Two Scenarios
When taxpayers have suffered an whole loss because of an speculation losses:
Only if filed in 2010 can they carry that loss transmit and offset dutible capital gains in future years
They can carry these losses as far back as 2008 and perhaps ask a reimbursement of carry forward, but, again, only if they filed in 2010.
When taxpayers have company losses that experienced a net operating loss (Nol) for 2010:
There are a plethora of resources ready that cover these details and the types of taxpayers that fall into this unique category. The key for enrolled agents, certified collective accounts and other tax professionals is to do the research, sign up for an enrolled agent class or look on the tax Cpe sites that showcase this information.
Irs Circular 230 Disclosure
Pursuant to the requirements of the Internal income aid Circular 230, we forewarn you that, to the extent any guidance relating to a Federal tax issue is contained in this communication, together with in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax connected penalties that may be imposed on you or any other someone under the Internal income Code, or (b) promoting, marketing or recommending to another someone any transaction or matter addressed in this communication.
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!Is the IRS lying and defrauding the American people? Hear from the man who beat Video Clips. Duration : 45.58 Mins.
Robert Lawrence challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh Keywords: googlevideo
To contact us Click HERE
"1040 Tax Booklet" Get Tax Booklet Information On IRS 1040 Form! Tube. Duration : 5.72 Mins.
Click here: www.taxproblem.org Get tax booklet instructions on how to handle IRS form 1040 and other tax problems! Get valuable free IRS and tax information on our site! Or call Joe Mastriano CPA at 713-774-4467 for professional IRS representation and tax problem solutions. END Resident.... Tags: unfiled corporate tax, unfiled corporate tax returns, unfiled corporate taxes, unfiled corporation returns, unfiled form 1040, unfiled form 1065, unfiled form 1120, unfiled IRS reports, unfiled IRS returns, unfiled IRS tax, unfiled IRS tax returns, unfiled IRS tax returns Texas, unfiled IRS taxes
To contact us Click HERE
What Do I Need to Attach To My Amended Tax Return? Tube. Duration : 0.45 Mins.
When you amend your tax return, go back to TurboTax and click on amend a return from the first screen. Then, follow through the instructions and fix or amend your errors or information. Once youre done, just print your 1040x form and mail it. If there are any special instructions, it will be included in the print instructions. For more information, visit: turbotax.intuit.com Keywords: turbotax, turbo, tax, taxes, amend, amended, return
To contact us Click HERE
US Income Tax Form 1040 Overview Tube. Duration : 2.40 Mins.
A brief overview of the US Income Tax Form 1040. Based on feedback I may cover a variety in income tax topics. I have been preparing US individual income tax returns for many, many years. I have passed the CPA (Certified Public Accountant) examination. I do not do corporate returns. This is my first video and I am testing the waters and getting used to the editing software so please excuse any technical issues. IRS website: www.irs.gov 2009 Form 1040: www.irs.gov IRS Publication 17 Your Federal Income Tax guide / instructions (For Individuals) 2009: www.irs.gov So if you like this please subscribe, thumb-ups and favorite. I would greatly appreciate your support. If you would like to see a particular topic or form reviewed please comment. Thanks for watching! :) Keywords: Income, Tax, Return, 1040, decuctions, credits, refund, adjusted, gross, w-2, 1099, 1098, itemized, deductions, standard, preparing, taxes
IRS Publication 17. This publication covers the general rules for filing a Federal income tax return. It supplements the information contained in the tax form instruction booklet. It explains the tax law to make sure filers pay only the tax they owe and no more.
Complete 1040 Tax Forms and Instructions. Both 1040 EZ and 1040 Instructions and Forms.
PDF download forms (fill in and send)
Tax Year 2011 236 pages
1040 Tax Forms and Instructions 2011 Specifications
IRS Publication 17. This publication covers the general rules for filing a Federal income tax return. It supplements the information contained in the tax form instruction booklet. It explains the tax law to make sure filers pay only the tax they owe and no more.
Complete 1040 Tax Forms and Instructions. Both 1040 EZ and 1040 Instructions and Forms.
PDF download forms (fill in and send)
Tax Year 2011 236 pages
Customer Reviews
*** Product Information and Prices Stored: Jan 30, 2012 06:55:21
Most all tax preparers understand how income levels and filing requirements are contingent upon filing status, age and the type of income clients receive. What is often overlooked, however, even when clients aren't required to file with Uncle Sam, is the fact that it may indeed advantage them to do so.
Not surprisingly, the Irs provides definitive instructions on the requirements for filing Forms 1040, 1040A, or 1040Ez. With all of the new prestige tax revisions and exceptions, some tax preparers are turning to Tax Cpe procedure materials or Ea Cpe curriculum to brush up on how these new revisions stand to advantage clients. Some continuing instruction tax courses are even focused exclusively on these new tax laws, showing tax preparers how to clients who fit into this scenario to get the greatest bang out of their tax returns.
Form 1040 Instructions
Quick Tips on Non-Required Filing Benefits
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!
Homebuyer Credit
First time homebuyers are eligible for a maximum 00 or 00 if filing married status separately. To qualify, a someone must have entered into a compact on or before April 30th 2010 and have accomplished by September 30th 2010.
Tax Withheld
For taxpayers who have estimated their tax payments, had a former years overpayment, or had income tax withheld, they may be eligible for a refund.
Child Tax Credit
If a taxpayer has at least one child that qualifies and they didn't receive the full estimate of the current Child Tax prestige originally, they could get a refundable credit.
American occasion Credit
Given the newly renamed and vast Hope credit, taxpayers can claim this prestige for tuition and positive fees for undergraduate and post-secondary education. The maximum prestige per student is ,500.
Earned income Tax Credit
For those individuals who worked but earned dinky in 2010, this tax prestige may prove beneficial in considering to file because it may qualify them for a refund.
Health Coverage Tax Credit
This prestige is primarily for individuals who have received Adjustment aid (either Trade or Reemployment Trade). Further, those receiving Pbgc pension payments may also qualify and receive a credit.
Quick Tips of Non-Required Filing for Losses
Two Scenarios
When taxpayers have suffered an whole loss because of an speculation losses:
Only if filed in 2010 can they carry that loss transmit and offset dutible capital gains in future years
They can carry these losses as far back as 2008 and perhaps ask a reimbursement of carry forward, but, again, only if they filed in 2010.
When taxpayers have company losses that experienced a net operating loss (Nol) for 2010: There are a plethora of resources ready that cover these details and the types of taxpayers that fall into this unique category. The key for enrolled agents, certified collective accounts and other tax professionals is to do the research, sign up for an enrolled agent class or look on the tax Cpe sites that showcase this information.
Irs Circular 230 Disclosure
Pursuant to the requirements of the Internal income aid Circular 230, we forewarn you that, to the extent any guidance relating to a Federal tax issue is contained in this communication, together with in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax connected penalties that may be imposed on you or any other someone under the Internal income Code, or (b) promoting, marketing or recommending to another someone any transaction or matter addressed in this communication.
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!Is the IRS lying and defrauding the American people? Hear from the man who beat Video Clips. Duration : 45.58 Mins.
Robert Lawrence challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh Keywords: googlevideo
Most all tax preparers understand how income levels and filing requirements are contingent upon filing status, age and the type of income clients receive. What is often overlooked, however, even when clients aren't required to file with Uncle Sam, is the fact that it may indeed advantage them to do so.
Not surprisingly, the Irs provides definitive instructions on the requirements for filing Forms 1040, 1040A, or 1040Ez. With all of the new prestige tax revisions and exceptions, some tax preparers are turning to Tax Cpe procedure materials or Ea Cpe curriculum to brush up on how these new revisions stand to advantage clients. Some continuing instruction tax courses are even focused exclusively on these new tax laws, showing tax preparers how to clients who fit into this scenario to get the greatest bang out of their tax returns.
Form 1040 Instructions
Quick Tips on Non-Required Filing Benefits
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!
Homebuyer Credit
First time homebuyers are eligible for a maximum 00 or 00 if filing married status separately. To qualify, a someone must have entered into a compact on or before April 30th 2010 and have accomplished by September 30th 2010.
Tax Withheld
For taxpayers who have estimated their tax payments, had a former years overpayment, or had income tax withheld, they may be eligible for a refund.
Child Tax Credit
If a taxpayer has at least one child that qualifies and they didn't receive the full estimate of the current Child Tax prestige originally, they could get a refundable credit.
American occasion Credit
Given the newly renamed and vast Hope credit, taxpayers can claim this prestige for tuition and positive fees for undergraduate and post-secondary education. The maximum prestige per student is ,500.
Earned income Tax Credit
For those individuals who worked but earned dinky in 2010, this tax prestige may prove beneficial in considering to file because it may qualify them for a refund.
Health Coverage Tax Credit
This prestige is primarily for individuals who have received Adjustment aid (either Trade or Reemployment Trade). Further, those receiving Pbgc pension payments may also qualify and receive a credit.
Quick Tips of Non-Required Filing for Losses
Two Scenarios
When taxpayers have suffered an whole loss because of an speculation losses:
Only if filed in 2010 can they carry that loss transmit and offset dutible capital gains in future years
They can carry these losses as far back as 2008 and perhaps ask a reimbursement of carry forward, but, again, only if they filed in 2010.
When taxpayers have company losses that experienced a net operating loss (Nol) for 2010: There are a plethora of resources ready that cover these details and the types of taxpayers that fall into this unique category. The key for enrolled agents, certified collective accounts and other tax professionals is to do the research, sign up for an enrolled agent class or look on the tax Cpe sites that showcase this information.
Irs Circular 230 Disclosure
Pursuant to the requirements of the Internal income aid Circular 230, we forewarn you that, to the extent any guidance relating to a Federal tax issue is contained in this communication, together with in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax connected penalties that may be imposed on you or any other someone under the Internal income Code, or (b) promoting, marketing or recommending to another someone any transaction or matter addressed in this communication.
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!Is the IRS lying and defrauding the American people? Hear from the man who beat Video Clips. Duration : 45.58 Mins.
Robert Lawrence challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh Keywords: googlevideo
Now that we've looked at the last decade's worth of data for both Greece and Spain, two nations whose deteriorating debt situations could well blow apart the European Union, we thought we'd turn our attention across the Atlantic Ocean and look at what has happened to both government spending and tax collections per capita with respect to GDP per capita in the United States in the years from 2000 through 2011. Our results are presented in the chart below:
There's a lot going on in the chart, so let's start at the beginning. In the year 2000, the U.S. government ran a budget surplus, as the nation benefitted from outsize tax collections resulting from the peaking of the Dot Com stock market bubble, which reached its maximum inflation in August of that year.
That situation reversed after the bubble burst in the following month and entered its deflation phase as the U.S. economy entered into recession. The deflation phase of the Dot Com Bubble would last until June 2003.
Without the stock market bubble to sustain them, the U.S. government's tax collections fell during this period of time, even as the U.S. government's spending increased at a steady rate. The result of this situation was to swing the government from running annual budget surpluses to running annual budget deficits instead, as the federal government's revenues from its taxes on investor capital gains plummeted.
With the end of the Dot Com Bubble's deflation phase in 2003, the U.S. economy began to grow again and the U.S. government's tax collections began to rise. This increase in tax collections occurred despite the implementation of large tax cuts in 2003.
Under those tax cuts, the U.S. government effectively taxes its economy at a tax rate of 28.1%, which we've shown with the tax revenue trendline shown in the chart for the years of 2003 through 2008. In addition, the federal government would appear to provide the nation's economy the equivalent of a $4,661 per capita tax credit.
In 2008, the U.S. economy entered into a deep recession that bottomed in 2009, which we can observe in the chart with the decline in the nation's GDP per Capita coinciding with that year. During the time since, which corresponds with President Obama's entire presidency, we see that the federal government's spending has skyrocketed while its tax collections have fallen far below where they were for the same level of GDP per Capita in the years from 2003 through 2008, opening up a wide gap between the two.
That's significant because both observed changes are directly due to policies implemented by President Obama during his term in office. In addition to significantly boosting the federal government's spending, the President has also implemented tax cuts that have contributed to the widening of the gap between the federal government's spending per capita and tax collections per capita - putting the nation onto an unsustainable fiscal path.
But you don't have to take our word for it. Here is what President Obama's re-election campaign has to say of their achievement in reducing the federal government's tax collections (or at least, what they said on their web site as recently as 2 June 2012):
President Obama has cut taxes for middle-class families and small businesses. One of the first things he did in office was cut taxes for 95 percent of working families. He has also signed 18 tax cuts for small businesses and extended the payroll tax cut for all American workers and their families, putting an extra $1,000 in the typical middle-class family’s pocket.
Since the income tax rates established in the U.S. in 2003 are still in effect, we can assume that the federal government is still capable of collecting the same 28.1% of GDP in taxes, less $4,661 per capita, that it did in each year from 2003 through 2008. However, the federal government is taking in approximately $1,339 per capita less now than it did under the nation's effective rate of taxation of its GDP that applied before President Obama's time in office, as the federal government has boosted its effective "tax credit" to the U.S. economy of $6,000 per capita.
Put more simply, the only reason the federal government is not collecting an amount of taxes equal to what it would have for the same GDP per Capita in the years from 2003 to 2008 are the tax policies specifically implemented by the Obama administration.
We find then that President Obama's claim of putting an extra $1,000 in the typical middle-class family's pocket is both a bit understated and also ignores the true cost of the impact of his policies upon the nation's fiscal situation. By shifting the burden of taxation away from where the most income is to be found in the United States in favor of forcing a much smaller number of GDP generators to bear an increasingly disproportionate share of the tax burden in the U.S., President Obama has seriously degraded the fiscal health of the United States government during his time in office, far beyond the impact of just his spending increases alone.
We appreciate your daily visits, as you continue your ongoing efforts to closely monitor the U.S. gasoline price situation. We have, after all, tailored our top-of-the-page "Good Morning, White House Staffer" feature specifically to assist you in your daily task.
But we're afraid that we'll soon be taking down our feature, as the average retail price of a gallon of unleaded gasoline in the United States has fallen below $3.55 per gallon. Given the potential for volatility in that average price, we'll keep it going until it firmly drops below $3.50 per gallon, as this will help ensure that we don't discontinue our feature too early, should there be any unexpected supply disruptions in the next several weeks that might boost it back over the $3.55 per gallon mark.
That's good news for you, in the short term sense, as we expect that U.S. employers will react positively to falling fuel and transportation prices, which if our previous observations hold, will mean that the pace of weekly layoffs in the United States will change for the better within 2-3 weeks of the national average gasoline price dropping below $3.50 per gallon, which we would measure by the number of seasonally-adjusted new unemployment insurance benefit claims filed each week.
As we remarked on 31 May 2012:
If we're lucky in the short term, we'll see if the rate of layoffs that prompt new unemployment insurance claim filings shifts to a new, more positive trajectory if gasoline prices fall back below the $3.50 per gallon mark in the weeks ahead.
But then, we'll be unlucky in the longer term because that will mean that the world demand for oil will have dropped enough to make that possible, as much of the world appears headed for recession. That of course will have consequences for the U.S. economy.
In the meantime though, we continue to expect the U.S. economy will rebound a bit in the third and fourth quarters of 2012, after passing through the equivalent of a microrecession during the current second quarter. The story for 2013 will be very different, we're afraid....
That said, our previous advice to you to keep your résumé up to date still holds. We would also suggest that this summer will perhaps present the best opportunity you will have to sell your metropolitan Washington D.C. home before that real estate market changes.
And now you can't say that you weren't warned when it mattered most - when you still had time to do something about your situation!
Previously on Political Calculations
New Jobless Claims: Thunderdome Edition!
Visualizing the Actual Price of Gasoline Across the U.S.
Gasoline Prices and the Unemployment Rate
How High Gas Prices Affect the Number of Layoffs
Questions from Our Inbox: Why Are Gasoline Prices Rising So Much?
Scheduling the Next U.S. Recession
How Much Might Producing More (or Less) Oil Change Its Price?
Surprising Impotence
Who's Behind the Drop in Gas Prices?
Changing the Outlook for Oil Prices
Holy Gas Prices Batman! It's the New Batmobile!...
Using Gas Prices to Forecast the Unemployment Trend
Correlating the Price of Gas and the Unemployment Rate
Why Are Americans Driving Less?
How Much Does Your Commute Cost You?
Should You Move Closer to Work to Save Commuting Costs?
How to Save Money on Gas, Without Driving Less
How Much Are Higher Gas Prices Really Hurting You?
How big of a problem do plastic shopping bags pose to the environment?
Since the elected supervisors of Los Angeles' City Council recently voted to ban plastic shopping bags at the city's retailers, largely in response to "clean-water" advocates, who argue that the bags "pollute the ocean and the city's waterways", we thought we'd get a sense of just how big that problem really is.
Our chart below presents the answer, which refers to data that those who support bans on plastic shopping bags frequently cite in advancing their agenda:
The values shown in the chart above were originally reported in 2004. There are a number of points to note about the results for the first-ever worldwide cleanup of the coastal areas of the United States and 100 other countries:
The use of plastic shopping bags really began taking off worldwide in the 1980s.
By 2003, "environmental groups" estimate that anywhere from 500 billion to 1 trillion plastic shopping bags were being used annually.
Despite never having been done before, meaning that about as many bags as could be found would be found during the Ocean Conservancy's one-day long campaign to clean up the world's coastal areas in September 2003, just 354,000 bags were collected. Most, but not all, were made of plastic.
More fascinating to us however, we've discovered that so-called "green" advocates are incredibly fond of recycling the Ocean Conservancy's 354,000 bag cleanup figure from September 2003, citing it as being a valid figure that applies year, after year, after year. We're nearly at the decade anniversary and apparently, only 354,000 bags ever get cleaned up from the world's coastal areas each year!
Either that means the problem is not getting any worse despite a great deal of economic and population growth worldwide in the intervening years, which would have greatly increased the world's consumption of plastic shopping bags, or that these environmental activists just don't care enough about the environment to bother with picking up more than 354,000 mostly plastic bags from the world's coastal areas in any given year.
The alternative possibility is that a large number of environmental activists recycle the data because updating it would take actual effort on their part. Plus, there's the little matter of how foolish they might look if they ever fail to collect at least as many as their apparent annual quota of 354,000 bags!
If only these people cared more about the environment!...
Data Reference
Lowy, Joan. Plastic left holding the bag as environmental plague. Scripps Howard News Service. Seattle Post-Intelligencer. 20 July 2004.
Previously on Political Calculations
Paper, Plastic or Cloth: Which Bag Is Best for the Environment?
Why does the following chart, which spans 50 years of data for the United States in the post World War 2 era, look the way it does?
In this chart, we observe that the ratio of the U.S. National Average Wage Index starts off at a level 127.3% of the U.S.' GDP per Capita in 1951, slowly rises to peak at 137.8% of GDP per Capita ten years later in 1961, then falls steadily for the next three decades until 1994 when it flattened out at around 88.3% of the U.S.' GDP per Capita.
Since then, it has been as high as 91.3% of GDP per Capita in 2001, and as low as 86.2% of GDP per Capita in 2006. In 2010, the ratio of the U.S. National Average Wage Index to GDP per Capita is 88.6%.
What we can't explain is why these patterns exist. How can the average wage earned by individuals in the U.S. go from being as much as 37.8% higher than the U.S.' GDP per Capita over forty years ago to being steadily 11.4% below that quantity three decades later. What factors caused this ratio to first rise, then fall, then stabilize?
Our next two charts visualize the source data behind our ratio calculation. The first shows the National Average Wage Index, as reported by the U.S. Social Security Administration, which at this writing, only covers the years from 1951 through 2010 (they will add the data for 2011 sometime in October 2012):
The second shows our calculation of the U.S.' GDP per Capita, where we've extracted the data for the years of 1951 through 2010 from our tool, The U.S. Economy at Your Fingertips:
For us, the best part is that we have absolutely no idea what the answer(s) are. We have some hypotheses based upon other patterns or trends that have taken place over the years, but need to put together the data to put them to the test.
In the meantime, you're more than welcome to beat us to the punch - we don't have a timetable for coming up with a coherent explanation that accounts for all that's going on in that first chart. Just drop us a line with a link to what you find and can back with hard data, and we'll be happy to point our readers in your direction!
Most all tax preparers understand how income levels and filing requirements are contingent upon filing status, age and the type of income clients receive. What is often overlooked, however, even when clients aren't required to file with Uncle Sam, is the fact that it may indeed advantage them to do so.
Not surprisingly, the Irs provides definitive instructions on the requirements for filing Forms 1040, 1040A, or 1040Ez. With all of the new prestige tax revisions and exceptions, some tax preparers are turning to Tax Cpe procedure materials or Ea Cpe curriculum to brush up on how these new revisions stand to advantage clients. Some continuing instruction tax courses are even focused exclusively on these new tax laws, showing tax preparers how to clients who fit into this scenario to get the greatest bang out of their tax returns.
Form 1040 Instructions
Quick Tips on Non-Required Filing Benefits
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!
Homebuyer Credit
First time homebuyers are eligible for a maximum 00 or 00 if filing married status separately. To qualify, a someone must have entered into a compact on or before April 30th 2010 and have accomplished by September 30th 2010.
Tax Withheld
For taxpayers who have estimated their tax payments, had a former years overpayment, or had income tax withheld, they may be eligible for a refund.
Child Tax Credit
If a taxpayer has at least one child that qualifies and they didn't receive the full estimate of the current Child Tax prestige originally, they could get a refundable credit.
American occasion Credit
Given the newly renamed and vast Hope credit, taxpayers can claim this prestige for tuition and positive fees for undergraduate and post-secondary education. The maximum prestige per student is ,500.
Earned income Tax Credit
For those individuals who worked but earned dinky in 2010, this tax prestige may prove beneficial in considering to file because it may qualify them for a refund.
Health Coverage Tax Credit
This prestige is primarily for individuals who have received Adjustment aid (either Trade or Reemployment Trade). Further, those receiving Pbgc pension payments may also qualify and receive a credit.
Quick Tips of Non-Required Filing for Losses
Two Scenarios
When taxpayers have suffered an whole loss because of an speculation losses:
Only if filed in 2010 can they carry that loss transmit and offset dutible capital gains in future years
They can carry these losses as far back as 2008 and perhaps ask a reimbursement of carry forward, but, again, only if they filed in 2010.
When taxpayers have company losses that experienced a net operating loss (Nol) for 2010: There are a plethora of resources ready that cover these details and the types of taxpayers that fall into this unique category. The key for enrolled agents, certified collective accounts and other tax professionals is to do the research, sign up for an enrolled agent class or look on the tax Cpe sites that showcase this information.
Irs Circular 230 Disclosure
Pursuant to the requirements of the Internal income aid Circular 230, we forewarn you that, to the extent any guidance relating to a Federal tax issue is contained in this communication, together with in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax connected penalties that may be imposed on you or any other someone under the Internal income Code, or (b) promoting, marketing or recommending to another someone any transaction or matter addressed in this communication.
Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!Is the IRS lying and defrauding the American people? Hear from the man who beat Video Clips. Duration : 45.58 Mins.
Robert Lawrence challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh Keywords: googlevideo
To contact us Click HERE Thetop 400 1040 filers reported an average of $202.4 Million of AGI in 2009 -- a25% drop from 2008, according to the latest report from the IRS Statistics ofIncome Division.The average federal incometax liability for these 400 was about $41 Million, about $8 Million down fromnearly $49 million the year before. Theaverage effective tax rate – total tax liability divided by AGI – on the top400 was 19.9% (up from 18.1% for 2008). About40% paid an effective rate of more than 25%, and about one-third paid aneffective rate below 15. Arethe rich not paying their fair share of taxes?Is the answer to all our problems, quoting from the Democrat’s script,to tax the rich? Whatcontributes to a relatively low effective tax rate for the wealthy? Oneof the reasons is the fact that many higher income taxpayers make a lot oftheir money from investing in the stock market. Long-term capital gains and qualifieddividends are taxed at a maximum rate of 15%, as opposed to 35% for “ordinaryincome” such as wages.BTW, lower incometaxpayers pay a tax rate of 0% on capital gains and qualified dividends. Investing in the stock market helps the economy, doesn't it? Andhigh income taxpayers claim far more itemized deductions for charitable contributions,which is allowable under both AMT and “regular” tax, than those in the middleclasses. In 2010 Mitt and Ann Romneydonated nearly $3 Million to church and charity (actually $2,983,974).That is 13.8% of their 2010 AGI.For 2011 their charitable deduction onSchedule A was 19.24% of their AGI ($4,020,572/$20,901,075).Most of my clients are average, middle andupper middle class taxpayers, and, however charitable they may be, except for avery few unique situations I never see charitable contributions anywhere near thesepercentages on their returns.More like 2%or 3%. TheIRS statistical report also indicated that 6 of the richest Americans owed noincome tax.In total, 42 percent of allfilers (or 58.6 million taxpayers, or 1 in 2.4 taxpayers) paid no U.S. incometax in 2009, and did so by taking advantage of the deductions, credits andloopholes in the Tax Code.Obviously themajority of these “tax non-payers” are on the lower end of the income scale.Many lower income taxpayers actually make aprofit by filing a tax return, thanks to refundable credits.Yet there is minimal outcry about this fact. Ifit is ok for a person with $50,000 of income to take full advantage of theexisting tax laws so as to avoid paying taxes, why is it not equally ok for aperson with $1 Million of income to do the exact same thing? Thetop 1% of taxpayers, based on AGI, paid 36.73% of federal individual income taxfor 2009.The top 5% paid 58.66% and thetop 10% paid 70.47%. Theanswer to our financial situation is not to increase tax rates on the rich –but to substantially reduce the “tax expenditures” that make our Tax Code themucking fess it is.By doing so we canactually have lower tax rates.Under thedreaded AMT many deductions that are allowed under “regular” income tax are notpermitted – and the top AMT rate is 28%, less than the top “regular” tax rateof 35%. And my final question - why should higher income individuals pay a higher % of their income in tax than the rest of us just because they can? TTFN
To contact us Click HERE * I am quotedextensively in the item “Can You Afford to Wait?: Weighing the Merits of Postponing the RTRP Exam” by Jeff Stimson over at TAX PRO TODAY.The article also quotes Trish McIntire of OURTAXING TIMES. * TAX PRO TODAYalso reports about a Los Angeles tax preparer who faces 150 years in prison in “Tax Preparer Pleads Guilty in Identity Theft Scheme”. If only he had attendeda required 2 hour CPE course in ethics this never would have happened! * We have alreadycelebrated Tax Freedom Day in the US and the UK.Now Market Watch at THE WALL STREET JOURNALprovides the word about Canada’s celebration in “The Fraser Institute: Tax Freedom Day is June 11, One Day Later Than Last Year as Canadians Work Longer to Pay Taxes”. The article tellsus – “In 2012, the average Canadian family (withtwo or more individuals) will earn $94,259 and pay a total of $41,627 in taxes,for a total tax bill amounting to 44.2 per cent of income.” The taxes includedin the above figure are “all the taxesthey owe to all levels of government”. “Of the many taxes Canadian families pay, thelargest increase in 2012 comes in the form of social security, pension,medical, and hospital taxes-up $507 for the average Canadian family. Othernotable increases: sales taxes ($297), income taxes ($283), and property taxes($142).” *Over at CNN MONEY Joseph Thorndike discusses “Taxing the Rich: What's Fair?” He provides us with an interesting quote – “Scottisheconomist J.R. McCullough made this point centuries ago: ‘The moment you abandon. . . the cardinal principle of exacting from all individuals the sameproportion of their income or their property, you are at sea without rudder orcompass, and there is no amount of injustice or folly you may not commit.’" *Bruce, the MISSOURI TAXGUY, posts a worthy appeal for help for a local animalshelter in “Fox 4 Helping Me, Helping…..”.Join me in helping out Bruce’s neighbor. *Great advice from Trish McIntire in “Dear Client, Please Talk to Me Before...”at OUR TAXING times. *Have you ever seen this before – the first Form 1040?Check it out! TTFN
Good morning, White House Staffer! 
