Robert C Olivieri, Jr. - Call Bob now at 215.550.3636 for Solutions

Bob says if you paid someone to care for a child, spouse, or dependent, you may be able to reduce your tax by claiming the Child and Dependent Care Credit on your federal income tax return. Below are the top ten facts you should know about claiming a credit for child and dependent care expenses.

 

The care must have been provided for one or more qualifying persons. A qualifying person is your dependent child under age 13. Additionally, your spouse and certain other individuals who are physically or mentally incapable of self-care may also be qualifying persons. You must identify each qualifying person on your tax return.

 

The care must have been provided so you and your spouse, if you are married, are both able to work or look for work.

 

You and your spouse, if you are married, must have earned income from wages, salaries, and tips, other taxable employee compensation or net earnings from self employment. One spouse may be considered as having earned income if they were a full time student or they were physically or mentally unable to care for themselves.

 

The payments for care cannot be paid to your spouse; to someone you can claim as your dependent on your return, or to your child who is under age 19, even if he or she is not your dependent. You must identify the care provider on your tax return.

 

Your filing status must be single, married filing jointly, head of household or qualifying widow or widower with a dependent child.

 

The qualifying person must have lived with you for more than half of 2008.

 

The credit can be up to 35 percent of your qualifying expenses, depending upon your income.

 

For 2008, you may use up to $3,000 of the expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals.

 

The qualifying expenses must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from your income.  This one is tricky, so call Bob now at 215.943.3296 with any questions.

 

If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer. If you are a household employer, you may have to withhold and pay social security and Medicare tax and pay federal unemployment tax.

 

Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds. 

 

Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

 

With the Child Tax Credit, you may be able to reduce the federal income tax you owe by up to $1,000 for each qualifying child under the age of 17.

A qualifying child for this credit is someone who meets the following criteria:

• Age - Was under age 17 at the end of 2008
• Relationship - Is your son, daughter, adopted child, stepchild or eligible foster child, brother, sister, stepbrother, stepsister, or a descendant of any of these individuals or other eligible person who lived with you all year as a member of your household
• Citizenship - Is a
  U.S. citizen, U.S. national or resident of the U.S.
• Support - Did not provide over half of his or her own support
• Lived with you - Must have lived with you for more than half of 2008 (note that some exceptions to this criteria exist)

The credit is limited if your modified adjusted gross income is above a certain amount. The amount at which this phase-out begins varies depending on your filing status:

• Married Filing Jointly   $110,000
• Married Filing Separately  $  55,000
• All others     $  75,000

In addition, the Child Tax Credit is generally limited by the amount of the income tax you owe as well as any alternative minimum tax you owe.

If the amount of your Child Tax Credit is greater than the amount of income tax you owe, you may be able to claim some or all of the difference as an “Additional” Child Tax Credit. The Additional Child Tax Credit may give you a refund even if you do not owe any tax.  The total amount of the Child Tax Credit and any Additional Child Tax Credit cannot exceed the maximum of $1,000 for each qualifying child.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared. 

 

Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds. 

 

Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

 

If your mortgage debt is partly or entirely forgiven during tax years 2007 through 2012, you may be able to claim special tax relief and exclude the debt forgiveness income.

Normally, debt forgiveness results in taxable income. However, under the Mortgage Forgiveness Debt Relief Act of 2007, you may be able to exclude up to $2 million of debt forgiven on your principal residence. The limit is $1 million for a married person filing a separate return.

Taxpayers may exclude debt reduced through mortgage restructuring, as well as mortgage debt forgiven in a foreclosure. To qualify, the debt must have been used to buy, build or substantially improve your principal residence and be secured by that residence. Refinanced debt proceeds used for the purpose of substantially improving your principal residence also qualify for the exclusion.

However, proceeds of refinanced debt used for other purposes (for example, to pay off credit card debt) do not qualify for the exclusion.

Call Bob now at 215.943.3296 if you believe you qualify for this special exclusion and let our firm assist you with this relief.

Debt forgiven on second homes, rental property, business property, credit cards or car loans does not qualify for the new tax relief provision. In some cases, however, other tax relief provisions, (for example, insolvency), may be available. Call Bob now for more details.

If your debt is reduced or eliminated you will receive a year-end statement, Form 1099C, from your lender. By law, this form must show the amount of debt forgiven and the fair market value of any property foreclosed.

Bob urges borrowers to examine the receipt of any Form 1099C’s carefully. Notify the lender immediately if any of the information shown appears to be incorrect. You should pay particular attention to the amount of debt forgiven (Box 2) and the value listed for your home (Box 7).  Call Bob now at 215.943.3296 for solutions to these issues.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies. 

Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have. 

Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

Bob says check this out! You might be eligible for a tax credit. A tax credit is a dollar for dollar reduction of taxes owed. Some credits are even refundable. That means you might receive a refund rather than owe any taxes.

Here are five popular credits you should consider before filing your 2008 Federal Income Tax Return:

1. The Earned Income Tax Credit is a refundable credit for low income working individuals and families.  Income and family size determine the amount of the credit.  For more information call Bob now at 215.943.3296. 

2. The Child and Dependent Care Credit is for expenses paid for the care of your qualifying children under age 13, or for a disabled spouse or dependent, to enable you to work or look for work.

3. The Child Tax Credit is for people who have a qualifying child. The maximum amount of the credit is $1,000 for each qualifying child. This credit can be claimed in addition to the credit for child and dependent care expenses.

4. The Retirement Savings Contributions Credit, also known as the Saver’s Credit, is designed to help low and moderate income workers save for retirement. You may qualify if your income is below a certain limit and you contribute to an IRA or workplace retirement plan, such as a 401(k) plan. The Saver’s Credit is available in addition to any other tax savings that apply.  Bob finds that most individuals do not understand this credit.  Call me now to find out if you have qualified for this credit over the past three years and if so, we may be able to amend your personal tax returns and request a refund.

5. Health Coverage Tax Credit Certain individuals, who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit when you file your 2008 tax return.

There are other credits available to eligible taxpayers. Since many qualifications and limitations apply to the various tax credits, taxpayers should call Bob now at 215.943.3296 to see if they qualify for any credits when filing their personal income tax returns. 

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared. 

Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have. 

Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

Unclaimed refunds totaling approximately $1.3 billion are awaiting over a million people who did not file a federal income tax return for 2005, according to the Internal Revenue Service.  However, to collect your part of these refund monies, a return for 2005 must be filed with the IRS no later than April 15, 2009 or by October 15, 2009 if you filed for a six month extension.  You have three years to file for the tax refund or the IRS keeps your money forever.  Call Bob now at 215.943.3296 if you have not filed your personal tax return for 2005 and believe you are due a tax refund.

Some individuals may not have filed because they had too little income to require filing a tax return even though they had taxes withheld from their wages or made quarterly estimated payments.  The law requires that the return be properly addressed, postmarked and mailed by that date. There is no penalty assessed by the IRS for filing a late return qualifying for a refund.  Penalties and interest are only assessed if you owe any tax liabilities to the IRS.

Now for the bad news; the IRS reminds taxpayers seeking a 2005 refund that their checks will be held if they have not filed tax returns for 2006 or 2007. In addition, the refund will be applied to any amounts still owed to the IRS and may be used to satisfy unpaid child support or past due federal debts such as student loans.  Call Bob now at 215.943.3296 for answers to your questions and solutions for obtaining a 2005 tax refund if you believe you owe the IRS for 2006 and 2007.

By failing to file a return, individuals stand to lose more than refunds of taxes withheld or paid during 2005. Many low income workers may not have claimed the Earned Income Tax Credit (EITC).  Generally, unmarried individuals qualified for the EITC if in 2005 they earned less than $35,263 and had more than one qualifying child living with them, earned less than $31,030 with one qualifying child, or earned less than $11,750 and had no qualifying child. Limits are slightly higher for married individuals filing jointly.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

The U.S. Internal Revenue Service has issued temporary guidance about tax return preparer penalties until the agency completes an overhaul of the regulations later this year.

The notice, issued by the IRS, provides guidance about the standards of conduct that must be met by a tax return preparer to avoid a penalty for an understatement of tax that may result from a position taken on a tax return.

The IRS guidance applies to large companies such as Jackson Hewitt Tax Service and H&R Block Inc as well as to private attorneys and accountants who prepare tax returns.

A tax preparer may rely in good faith upon information furnished by the taxpayer or another adviser or third party, and is not required to independently verify or review the items reported on tax returns to determine if they are likely to be upheld if challenged by the IRS. However, the tax return preparer must make “reasonable inquiries” if the information appears to be incorrect or incomplete.

One of the biggest issues, in our opinion, are the unlicensed, Super Hero tax preparers, working out of their garage or basement.  These are the ones who buy the $ 79 tax software, advertise $ 50 to prepare any tax return, never sign their name on the tax return, get you a big refund and only accept cash for payment.  These tax preparers need to be turned  in to the IRS as they are the ones taking large, excessive, tax deductions, filing for bogus earned income tax credits, not reporting all of a taxpayers income, etc.  Call us and we will let you know how serious of an issue this is and how it does affect you, their customer.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies. 

Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have. 

Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?