The following is a compilation of a number of tax breaks available to self-employed individuals and/or small business owners. Some can be implemented before year’s end, providing benefits for your 2011 return, while others will provide planning opportunities for 2012. (more…)

As the end of the year approaches, there are still things you can do to increase and properly document your charitable contributions for 2011.  Here is a brief rundown:

Non-cash contributions – If you have used clothing or household goods that are in good or better condition that you don’t use any longer, contribute them to a charity thrift shop before the end of the year.  Don’t forget: a receipt from the charity is required to document the gift.  If the gift’s fair market value (FMV) is more than $500, you will also need an itemized list of the items contributed, how and when each was acquired, and the cost.  If the FMV of what you’ve donated is greater than $5,000, or you contributed a vehicle, call this office for additional documentation requirements.  A receipt from the charity is not required if the gift’s value is less than $250 and the donation was made at an unattended drop site.  However, you will need to document the donation yourself. (more…)

If you like to watch game shows and enjoy all the excitement that goes with watching contestants win prizes, then you can add another element to your viewing pleasure by considering how the contestants will handle the IRS Form 1099 they receive for the value of the items they won. You may not have thought much about it, but the contestants must pay federal and applicable state income tax on the cash and the value of the goods they win on game shows. (more…)

If you are a small business owner, whether you hire people as independent contractors or as employees will impact the amount of taxes you withhold from their paychecks, as well as how much and what types of taxes you pay. Furthermore, it will affect how much additional cost your business must bear, what documents and information must be provided to you, and what tax documents must be given to the individuals you are hiring. (more…)

After 2012, the limitation on deductible medical expenses increases for most taxpayers from the current 7.5% of AGI to 10% (it remains at 7.5% for taxpayers age 65 and over through 2016).  So if you need some dental work, laser eye surgery, or other elective but deductible medical procedures, you might consider doing so sooner than later to take advantage of the current lower AGI limit.  (But forget that face lift or other nip and tuck procedure you’ve been thinking about¾cosmetic surgery costs aren’t deductible unless related to a physical injury or disfiguring disease.)  Also, if you are paying for a procedure over time, it might be appropriate to pay it all at once to increase your currently deductible medical expenses. (more…)

Taxpayers with disabilities and parents of children with disabilities may qualify for a number of IRS tax credits and benefits.  Listed below are several benefits which are available if you or someone else listed on your federal tax return is disabled. (more…)