Phoenix Arizona CPA | Arizona Tax Accountant | Arizona Income Tax

As you know, the income you earn is taxed by the government. Alas, not all income is treated the same. In fact, some is considered off limits and is not taxed at all.

The federal income tax is perhaps the most abused, misunderstood and chaotic financial subject there is. Much of the problem can be traced to the use of terms that seem to mean one thing, but are treated as though they mean something else. Income is one such term. One would think anything you earn is income. While the IRS is happy to agree, it is important to realize there are some types of income that are not taxed. While this is good news, it can be a bit confusing. Read the rest of this entry »

Are you looking for some REAL information about taxes when you’re self employed, or have your own small business? Would you like to find Real tax help when you need it?

Even the most experienced small business person needs a little help when it’s tax time. If you are self employed or own your own small business you must pay 15 percent tax on your net profit. Which means… After you have subtracted your total business expenses from your total business income you must pay 15 tax on the leftover amount. Read the rest of this entry »

A charitable tax deduction seems like a pretty straightforward proposition. It can definitely lend itself to a pretty good size deduction if you carefully itemize your deductions. There are also some things you should know about before trying to qualify for a charitable tax reduction. Following are a few tips in regards to a charitable tax deduction. Read the rest of this entry »

When it comes to taxes, we all want to reduce the amount we have to pay in. There are three basic ways to minimize your taxes: reduce your income, increase your deductions and take advantage of tax credits.

Your Adjusted Gross Income is a key in determining your taxes. Your tax rate and tax credits depend upon your AGI. In fact, your AGI is a powerful number. Lenders will want to to know your AGI when you apply for a large loan or mortgage. If your child is to qualify for a college financial aid program, it depends upon your AGI. Your AGI is considered your true income level. Read the rest of this entry »

When it comes to selling your home, you want to make a profit. Many homeowners don’t fully understand the tax implications of selling a home. It is important to know when profit turns into taxable income.

Individuals can exclude up to $250,000 in profit from the sale of a main home. Married couples get to combine that exclusion for a total of $500,000. You simply have to own the home and lived in the home for at least two years. The two years do not need to be consecutive. In the five years before the sale of the home, you must have lived in the home for at least 24 months. Read the rest of this entry »

So how do you get started claiming a daycare tax deduction? You have your own children to take care of, but for some reason you’ve decided to help other parent’s out and take care of theirs too. You’ve decided to run a daycare out of your home. There is some good news in this, because of this you can apply for a daycare tax deduction on your taxes. Following are a few suggestions that should help you get started. Read the rest of this entry »

With 2006 winding up, there are a few people that are beginning to consider their tax situation. I know that a lot of people wait until March to even consider their taxes, but the wise are prepared well in advance. I advise that you use the month of December to gather and organize your receipts and other financial documents. That way, when you receive your W-2’s and other tax documents, you will be ready to file your taxes.

It doesn’t matter if you prepare your own federal and state taxes or if you use a professional, you will still need the same documentation. One thing that we often wait on is our W-2’s and 1099MISC’s. Be especially sure that you report and attach all of this information. If you don’t, you will face late fees and penalties. You should receive your forms before February 15. If you don’t, contact your employer.

Americans lose millions of dollars each year from tax deductions that they were entitled to but did not claim. I recently had someone tell me that their tax preparer was excellent, despite the fact that he wouldn’t let her claim one of the most basic and easiest deductions. A professional tax preparer and tax software will prompt a taxpayer to claim tax deductions that they qualify for. However, many people miss these deductions. You should take the time to research the most frequently overlooked tax deductions and credits to determine what you qualify for.

Do you know what to do if you can’t pay the total amount of taxes you owe? Most people make the mistake of not filing a tax return at all. They think that this will stall the payment of the taxes. But all it really does is make the situation worse. You should file an extension deadline. You will still owe the estimated amount of taxes on the tax deadline. You will be charged late fees and penalties on tax payments not received in time. The longer you ignore the due date, the larger the penalties and fees.

It is important to keep current with changes in the tax law. The IRS and federal and state governments change tax laws every year. You should do a bit of research to find out if any of the tax law changes affect your tax returns. For example, several popular tax breaks expired last year and probably won’t be available for this year. Keep up to date on changes in tax law.

Start your preparations early. If you take it step by step over a few months, the whole process won’t be such a large task. By starting to gather your receipts this month, you will be prepared for your taxes in April. You will also be able to complete any transactions that are necessary before December, such as charitable donations and business transactions.

Staying organized throughout the year will make your tax time a breeze. Use accordion folders to organize receipts and documents. I find that accounting software, such as Quicken or Microsoft Money, makes tax time quite easy. You can designate your spending to tax categories and then just pull a report. Or you could keep a log book that you write your tax deductible spending in throughout the year. If you do, you won’t be sifting through receipts at the end of the year. You just total things up and move on to the next task. But remember to keep those receipts.

If you stay on top of your tax situation all year long, you will find that you can avoid that midnight rush in April. You are ready to file weeks ahead of everyone else.

Martin Lukac http://www.MartinLukac.com , represents http://www.RateEmpire.com , an Internet
consumer banking marketplace. RateEmpire.com is a destination site of personal
finance, investing, taxes and mortgage rates. RateEmpire.com provides mortgage
guides and financial rates and information. RateEmpire.com also operates a
financial portal #1 American Financial, found at http://www.1AmericanFinancial.com

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If you ask a volunteer to help you prepare your tax return, you are risking errors in your return.

According to the Treasury Inspector General for Tax Administration, volunteers run a 6 in 10 chance of errors, only a slight improvement over last year. Read the rest of this entry »

As you probably know by now, courts have ruled the IRS incorrectly collected a certain long-distance telephone tax. The IRS has implemented a refund program for people to recover the tax.

To make things simple, the IRS has created a standard refund deduction where most people can mark a button to get a $30 or $60 refund for the previous taxes. Alternatively, taxpayers can go through and figure out the amount of tax they actually paid from March Read the rest of this entry »

Would you like to prepare your Federal taxes online this year? When it comes to Federal tax preparation, you now have the option of filing and preparing your taxes online. Doing your taxes online is faster, easier, and more convenient than ever before.

Get your taxes done in record time. You’ll be amazed at how quick and easy, tax preparation online can be. When you prepare your taxes online, you get the knowledge of tax professionals at your fingertips. Today’s tax software is specially designed for an accurate and easy return. Read the rest of this entry »