Child and Dependent Care Expenses for the Working Parent

Childcare is a challenge for a lot of parents around the country, especially when both parents work. Knowing how to take advantage of the tax provisions for child and dependent care can help at tax time. The Child and Dependent Care Tax Credit (CDCTC) allows a credit for child and dependent care expenses, as long …

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Understanding Your 5071C Letter: Identity Verification

If you’ve received a 5071C letter, the IRS needs more information to verify your identity in order to process your tax return accurately. The IRS will continue processing your tax return once your identity is verified. Follow the identity verification steps below in order to provide the IRS with necessary information. The steps are as …

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Form 1099 Reporting Requirements

It is necessary to file form 1099-MISC, Miscellaneous Income for each person to whom you have paid during the year: At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest $600 or more in rents, crop insurance proceeds, payments to an accountant and attorney $600 or more for medical health …

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We’re from the Government and We’re Here to Help Finance Your Education

President Obama’s recent proposal to offer two free years of community college tuition has garnered a lot of attention. But like my favorite finance guru Dave Ramsey likes to say, “When the government says ‘free’, pull out your wallet.” Along with the idea of ‘free’ college tuition, the President’s proposal includes some tax hikes. One …

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Do You Know and Trust Your Accountant?

What do you look for in a CPA? Knowledge of tax codes? Professionalism? Business advice? Personality? Wait, what? Did that last one throw you for a loop? It may seem odd to include personality on the list, but it is actually important. Think about it. People like doing business with people they like. Do you …

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Identity theft: how to protect yourself

With tax season underway and scams running rampant, here are some tips to help you avoid becoming a victim of identity theft: The IRS does not initiate contact with taxpayers by email or social media tools to request personal or financial information. If someone contacts you claiming to be from the IRS and threatens police …

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California’s New College Access Tax Credit

California recently passed a new personal and corporate California tax credit called the College Access Tax Credit (CATC). If you donate to the College Access Tax Credit Fund, you can offset your California taxes by 60% (for 2014) of the amount of the donation. In addition, the donation qualifies as a charitable deduction on your …

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Business Use of a Vacation Home

Recently, a client came to me with a question. My clients’ primary residence is in Arizona, but they also own a beach house in California. The office of an important business connection is just blocks away from the beach house. The clients and their family visit the beach house often. While there, they meet with …

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When Happily Ever After Isn’t: Innocent Spouse Relief

The union of two people in life generally comes with optimism for the future; a hope for the life that will be “happily ever after”. Reality however, can sometimes have a different agenda. There are situations where one spouse or ex-spouse finds themselves on the wrong side of the IRS for a jointly filed tax …

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UPDATE: 2015 Change to Exemption for Arizona Retail Sales to Out-of-State Buyers

The Arizona Department of Revenue has released additional information on the effective 1/1/2015 change to the retail sales tax exemption for sales to out of state buyers after the amendment of Arizona Revised Statutes (A.R.S.) § 42-5061.A.14. Under prior law, the exemption for sales to out of state buyers included language that made tangible personal …

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