DiSabatino CPA Blog

DiSabatino CPA Blog

A blog by Michael DiSabatino CPA with topics on Tax Savings, Business, Management and more...

Understanding Tax Terms: The Marriage Penalty Couples filing jointly still get the short end of the stick

Marriage Tax

There are a lot of positive things about getting married, but the IRS' marriage penalty isn't one of them.

The marriage penalty occurs when you pay more tax as a married couple than you would as two single filers making the same amount of money. It pops up again and again in the federal tax code.

Continue reading
Rate this blog entry:
0
1027 Hits

Income the IRS Can't Touch

money

Wouldn't it be nice to have a source of nontaxable income? You may be more fortunate than you realize. Listed here are a number of income items that the IRS does not tax.

  1. Tax-free interest. The federal government does not tax municipal bond interest. This includes bonds issued by a state or municipality. The tax-free benefit increases the higher your income, but caution must be taken to ensure the underlying municipality is not in dire financial condition.
  2. Health insurance premiums. For now, most health insurance premiums are tax free. This could change in the future to help pay for health care reform, but for most this benefit can be paid in pre-tax dollars.
  3. Income from Roth IRA and Roth 401(k) accounts. While the amounts contributed into these retirement savings accounts are taxed, any earnings made on the contributions are federal tax free as long as holding period and distribution rules are followed.
  4. Health savings accounts (HSA). Contributions and earnings in health related savings accounts are tax free as long as the proceeds in the account are used to pay for qualified health care expenses.
Continue reading
Rate this blog entry:
0
1885 Hits

File That Final Tax Return

File That Final Tax Return
File That Final Tax Return
Five reasons death and a tax return makes sense

If a parent or loved one died this past year, you may wish to consider filing a final tax return even if not technically required to do so.

Continue reading
Rate this blog entry:
0
164052 Hits

Do You Need to File a Tax Return?

Do You Need to File a Tax Return?
Do You Need to File a Tax Return?
Getting this wrong can cost you

One of the more common tax questions is whether you need to file a tax return this year. The answer is: It all depends. Here are some quick tips to help you determine your answer.

Continue reading
Rate this blog entry:
0
163512 Hits

Understanding Tax Terms: All those 1099's

Understanding Tax Terms: All those 1099's
Understanding Tax Terms: All those 1099's
Be prepared to file your tax return

Most taxpayers receive at least one 1099 each year. Virtually every small business, including sole-proprietors, must issue at least one 1099 each year. Here is a summary of the most common of these informational tax forms that you will need to file your tax return this year.

Continue reading
Rate this blog entry:
0
163794 Hits

Now is the time to make your estimated tax payment

Now is the time to make your estimated tax payment

Now is the time to make your estimated tax payment

If you have not already done so, now is the time to review your tax situation and make an estimated quarterly tax payment using Form 1040-ES. The fourth quarter due date is now here.

Continue reading
Rate this blog entry:
0
137874 Hits

Your Home. A Bundle of Tax Benefits.

Your Home. A Bundle of Tax Benefits.

Your Home. A Bundle of Tax Benefits.

There are many tax benefits built into home ownership. Here is a review of the most common. It may be worth a quick check to ensure you are maximizing your home ownership tax benefits.

Interest deductibility. Mortgage interest is one of the few allowed deductible interest expenses. It is limited to the first $1 million dollars in loans secured by your primary residence. Bonus: You can also deduct interest on a second home (cabin).

Continue reading
Tags:
Rate this blog entry:
5
37867 Hits

Are You Paying too Much?

Are You Paying too Much?
Are You Paying too Much?
Tips to avoid common investment gain mistakes

All too often when you sell an investment there are errors made in recording the taxable gain or loss on the transaction. Here are some ideas to ensure your tax bite is accurate.

Keep good cost documentation. Brokerage firms are now required to keep track of the cost of your purchases and report them to you and the IRS when you sell. Unfortunately, they are not always accurate. The only way to ensure accuracy is to keep personal records of how much an investment cost. Then you can double-check the accuracy of any Form 1099 received.

Continue reading
Tags:
Rate this blog entry:
5
47985 Hits

March 2015 DiSabatino CPA Newsletter

March 2015 DiSabatino CPA Newsletter

news header

In this issue:

  • Is a Reverse Mortgage the Solution?
  • IRS Announces Annual Scams
  • Tax Breaks for Education
  • Common Missing Tax Return Items

This month:

  • March 8th: Daylight Savings Time Begins
  • March 16th: Due Date for 1120, 1120S Corp. Tax Returns

This month's issue outlines the benefits and risks of reverse mortgages, includes a recap of all too common IRS tax scams, reviews some common educational benefits and provides a list of "frequently missing" information that can often hold up filing your tax return.

Continue reading
Rate this blog entry:
1
30907 Hits

Going into business with a franchise

Going into business with a franchise

[block type="rounded" color="#FFF" background="#000000"]Going into business with a franchise[/block]

Have you ever wanted to be your own boss, but didn't want to start a business from scratch? If so, buying a franchise might be the right choice for you.

When you purchase a successful franchise,

Continue reading
Rate this blog entry:
2
27619 Hits

Check the Health Care Check Box

Check the Health Care Check Box
Check the Health Care Check Box
Pay attention to 1040 line 61

Unless you have spent the last twelve months in a bubble,

Continue reading
Rate this blog entry:
1
25954 Hits

Tax Season Reminders

Tax Season Reminders

Tax Season Reminders

  1. Recent law increased Section 179 deduction
    Did you purchase and begin using new or second-hand business equipment during 2014?
Continue reading
Rate this blog entry:
2
27733 Hits

Don't forget about the nanny tax

Don't forget about the nanny tax

Don't forget about the nanny tax!

A good domestic worker can help take care of your children, assist an elderly parent, or keep your household running smoothly. Unfortunately, domestic workers can also make your tax situation more complicated.

Continue reading
Rate this blog entry:
1
23913 Hits

Reasons to File Your Taxes Early

Reasons to File Your Taxes Early

Reasons to File Your Taxes Early

While late changing tax laws make it impossible to file your income tax return prior to January 20th this year, there are a number of reasons to file your return as soon as possible. Here are five of the most common:

Continue reading
Rate this blog entry:
2
26024 Hits

Not all "income" is taxable

Not all "income" is taxable

Not all "income" is taxable

There are several sources of revenue that are not subject to income tax.

Here are the most common sources of money that are not taxed on your federal income tax return:

Continue reading
Rate this blog entry:
2
25911 Hits

2015 Tax Brackets

2015 Tax Brackets
Plan Now: 2015 Tax Brackets
Want to prepare for next year's tax bill?

Here is a quick look at 2015 tax rates and their associated income levels. Use this information to help prepare for your tax situation this year. Using your 2014 tax information, you can plan for your tax obligation next year starting now.

Don't forget that tax payers in the higher income levels are also subject to an additional .9% Medicare surtax as part of the Affordable Care Act. This will impact those with incomes over:

Continue reading
Tags:
Rate this blog entry:
2
25152 Hits

Ideas to Help Audit Proof Your Return

Ideas to Help Audit Proof Your Return

Ideas to Help Audit Proof Your Return

No one likes the stress involved when your tax return is under the audit spotlight. Here are some ideas to avoid some of the more common audit triggers.

  1. Report everything that has an informational tax return. If you are like most Americans, you will receive numerous 1099’s, W-2’s, and 1095-A’s in the mail. The IRS receives them too. If your tax return does not meet or exceed this reported income you can count on receiving a notice from the IRS. Some hints:
    • Make a list of the forms received last year
    • Update the list with any new vendors or employers
Continue reading
Tags:
Rate this blog entry:
2
28925 Hits

IRS issues "nanny tax" reminder

IRS issues "nanny tax" reminder

IRS issues "nanny tax" reminder

The IRS reminds taxpayers not to overlook their responsibilities under the "nanny tax."

Continue reading
Rate this blog entry:
3
29221 Hits

Age matters in the world of taxes

Age matters in the world of taxes

Age matters in the world of taxes

Are you aware of the numerous age-related provisions in the IRS code? They are probably more plentiful and significant than you thought. Here are a few examples of the age-related tax rules that could affect you and your dependents.

Continue reading
Tags:
Rate this blog entry:
1
25370 Hits

Section 179 Update!!

Section 179 Update!!
Sect. 179 Update

The U.S. House of Representatives approved a proposal
Continue reading
Rate this blog entry:
3
26065 Hits
 

Speed Up Your Success!

Contact Us Today: 1-805-389-7300

© 2006-2017 Michael DiSabatino, CPA. All Rights Reserved.