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The American Opportunity Tax Credit (AOTC)

What to know when filing taxes  College is coming up, and qualified students should prepare for joining and registering in the various colleges. Some may have qualified, but they do not have the means for enrollment. Not to worry, the American Opportunity Tax Credit (AOTC) gives you the aid. This credit is only for education

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All You Need to Know About Tax Extensions

The tax day is approaching, and everyone gets busy to file their tax return by the deadline, which is April 15. Some people might need more time for preparing their return, because of personal obligations or many other reasons, so they need to apply for a tax extension. To get an extension of six months,

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A Checklist of What You’ll Need To File Your Taxes

There’s a saying that in life, there are only 2 permanent things- death and taxes. But truth be told, filing your yearly tax doesn’t have to be a life or death situation. You can cut back on considerable time and headaches just by having the right kind of materials within easy reach. The best time

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Check Your Tax Withholding this Summer

Because you do not wish to end up paying the IRS extra money at tax time, figuring out the amount to withhold in your W-4 worksheet is important and can be complicated. You also do not want to receive a substantial tax refund if you are wise, because you are letting the government borrow your

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Child Care And Tax Writeoffs

The IRS requires anyone accepting money from parents for childcare to file childcare tax returns as a business operator or self-employed operator. If you are operating a home daycare business, the federal tax code allows you a number of deductible expenses. Knowing what and how to record and use these expenses gives you enough time

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Five Things Your Tax Pro Wants You to Know

1. Know what you are doing Getting the basics down allows for you to understand how to set things up to make it easier for your tax professional. The internet provides a wealth of information in articles, videos, etc. Get a basic understanding of how the tax system works, as well as key details on

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Moving Exp...Read more

Moving Expenses May Be Deductible! Taxpayers may be able to deduct certain expenses of moving to a new home because they started or changed job locations. Use Form 3903, Moving Expenses, to claim the moving expense deduction when filing a federal tax return. Home means the taxpayer’s main home. It does not include a seasonal home or other homes owned or kept up by the taxpayer or family members. Eligible taxpayers can deduct the reasonable expenses of moving household goods and personal effects and of traveling from the former home to the new home. Reasonable expenses may include the cost of lodging while traveling to the new home. The unreimbursed cost of packing, shipping, storing and insuring household goods in transit may also be deductible. Who Can Deduct Moving Expenses? 1. The move must closely relate to the start of work. Generally, taxpayers can consider moving expenses within one year of the date they start work at a new job location. 2. The distance test. A new main job location must be at least 50 miles farther from the employee’s former home than the previous job location. For example, if the old job was three miles from the old home, the new job must be at least 53 miles from the old home. A first job must be at least 50 miles from the employee’s former home. 3. The time test. After the move, the employee must work full-time at the new job for at least 39 weeks in the first year. Those self-employed must work full-time at least 78 weeks during the first two years at the new job site. Here are a few more moving expense tips from the IRS: • Reimbursed expenses. If an employer reimburses the employee for the cost of a move, that payment may need to be included as income. The employee would report any taxable amount on their tax return in the year of the payment. • Nondeductible expenses. Any part of the purchase price of a new home, the cost of selling a home, the cost of entering into or breaking a lease, meals while in transit, car tags and driver’s license costs are some of the items not deductible. • Recordkeeping. It is important that taxpayers maintain an accurate record of expenses paid to move. Save items such as receipts, bills, canceled checks, credit card statements, and mileage logs. Also, taxpayers should save statements of reimbursement from their employer. • Address Change. After any move, update the address with the IRS and the U.S. Post Office. To notify the IRS file Form 8822, Change of Address. ** We hope this was helpful information. If you have any questions about Moving expenses please contact Franek Tax Services....

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