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.