6 Tax Questions Answered Just In Time to File Your Taxes

Getting ready to file your taxes? Here are some great answers to questions that you may have this year when filing your taxes!

  • Can I Deduct Attorney Fees? Yes. This would fall under legal and professional fees. As long as your meetings were business related, they are considered ordinary and necessary business expenses……… read here for the full answer
  • Who Gets an Audit? There are many circumstances surrounding the IRS audit selections. The IRS enters all tax return information into a software shortly after they receive the return and the software performs some calculations to determine reasonableness of the return compared to prior years and other tax returns similar…… read the full answer here
  • Are there Penalties for Withdrawing my IRA? You should be aware there are provisions that exempt you from the 10% penalty. One of them being un-reimbursed medical expenses in excess of 7.5% of your AGI (meaning if you have enough medical expenses to get a deduction on Schedule A, then you can avoid the 10% penalty)……. read the full answer here
  • How Do I Claim Child Care Expenses? Day care is eligible for a credit which is a direct reduction of tax. Much more beneficial than a deduction. As long as taxpayer and spouse have earned income you can deduct the daycare…… read the full answer here
  • Can I Claim My Child’s College Expenses? These amounts are reduced by scholarships, fellowships, grants, employer-provided assistance, or any other benefit. Depending on the situation (i.e. what year of school the expenses are for combined with filing status and the Adjusted Gross Income of the taxpayer will determine if the items will be treated as a deduction or a credit, and to what extent the credit applies…….  read the full answer here
  • Is Your Refund Penalized for Filing Late? You will not be charged if the IRS owes you a refund. They can assess a failure to file, or assess tax based on the information they receive (which is all income from reportable sources & limited deduction info) so the result will be a tax due……   read the full answer here

You should always ask your accountant if you are not sure about certain topics when filing your taxes.

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Ask An Accountant- Deducting Food Cost For a Cooking Blog

Although tax season is over, tax questions arise year round. Momondealz is married to an experienced accountant and will be answering questions sent to him at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE
Question:
I own a cooking blog and blog about recipes and my family meals. Can I deduct the cost of the ingredients needed for the food shown on my site? [Read more…]

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ASk An Accountant – Deduct Attorney Fees

Although tax season is over, tax questions arise year round. Momondealz is married to an experienced accountant and will be answering questions sent to him at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE

Question:

I am a blogger who has recently set my site up to be a “business”. This required seeking advice from lawyers and an accountant. Can I deduct the fees I was charged for this advice?

Answer:

[Read more…]

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Ask An Accountant- Who Gets An Audit?


 GUEST POST FROM MOM ON DEALZ!

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE
Question:
My sister and law, brother in law and my husband all recently got letters from the IRS asking for all of this documentation from previous tax years. For my sister in law they are requesting information for 3 years, for my brother in law 2 years and for my family one year. We all get your taxes done by the same person. They are asking for copies of children’s birth certificates, marriage licenses, etc. How and why does the IRS determine to audit individuals?
Answer:
[Read more…]

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Ask An Accountant- Blogging For Profit

GUEST POST- MOM ON DEALZ

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE

Question:

When should a blogger start considering themselves a business for tax purposes? Is there certain criteria that, once hit, a blogger must start to consider their blog a business instead of a hobby?

Answer:

The blog is considered a business when there becomes a profit motive. Either way, business or hobby, the income needs to be reported. With this in mind, the hobby expenses are limited to the hobby income, meaning you can never take a hobby “loss”. A business can show a loss that may offset other income sources based on the way the business is structured.

*Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

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Ask An Accountant- IRA Withdrawal Penalties

GUEST POST – MOM ON DEALZ!

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE

Question:

I am considering taking an early withdrawal from the Rollover IRA account ($13k out). I recently had surgery and this is needed to clear bills, debt and get the budget back. I know I am looking at a 10% hit on the taxes next year for a penalty ($1,300), but what else am I looking at? How much else should I expect ?

Answer:

[Read more…]

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Ask An Accountant- How Should I Claim DayCare Expenses?

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE
Question:
I have two questions:1. Can I claim the after school program my son is in? He is in Kindergarten and instead of paying for an after school sitter we are paying for an after school program at the school. Is that deductible?
2. Can we claim/deduct our moving expenses?
Answer:
[Read more…]

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Guest Post- Ask An Accountant- 9/9

Each week Mom On Dealz brings us a great question answered by her accountant hubby!

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”.

See previous questions and answers HERE

Question: I am a blogger who works with various affiliate companies and vendors. Is it true that if one of them pays me less than $600 a year then I don’t have to claim that income?

[Read more…]

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Ask An Accountant- 9/2


 Here is a great Guess Post from Mom On Dealz!

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE

Question:
I have an at home business that has started making me a small amount of income. Should I be paying estimated taxes on what I am making?

Answer:
You need to pay in at least 90% of your prior year tax through withholding and estimated payments by January 15th. If your income is expected to be the same as last year and more than $150k, then you need to pay in at least 100% of last year’s tax. If your income is higher than last year and greater than $150k you must pay in 110% of last year’s tax by January 15th. Now is an excellent time to discuss year end taxes with your accountant.

*Please keep in mind this post is for informational purposes only and answers given are very general. Many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

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Ask An Accountant – 8/26

Each week Mom On Dealz brings us a answer to an accounting question! Here is this weeks Ask An Accountant!

Although tax season is over, tax questions arise year round. My husband is an experienced accountant and will be answering questions sent to me at cjwtaxpro@gmail.com with the subject line “Ask an Accountant”. See previous questions and answers HERE.

Question:
I am a blogger and frequently attend conferences. I accept sponsorship from companies for these conferences. How would these sponsorships be taxed?

Answer:

[Read more…]

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