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Posts Tagged ‘tax tips’

Clarifying the Home-Office Deduction

Tuesday, September 5th, 2017

Clarifying the Home-Office Deduction

Deducting Employee Business Expenses

Tuesday, September 5th, 2017

Deductions for Employee Expenses

Amending Your Tax Return

Tuesday, September 5th, 2017

Amending Your Tax Return (2)

Reporting Health Coverage on IRS Tax Forms

Wednesday, April 6th, 2016

While most taxpayers need to simply check a box on their tax return to indicate full health coverage for 2015, there are a few forms and specific lines on Forms 1040, 1040A, and 1040EZ that relate to the health care law.

The help navigate health coverage reporting, you should consider filing your return electronically.  Using tax preparation software is the best and simplest way to file a complete and accurate tax return.  It guides you through the process and does the math for you.  There are a variety of electronic filing options, including free volunteer assistance, IRS Free File for tax payers who qualify, commercial software, and professional assistance.  Here is information about reporting Health Coverage:

Form 8965, Health Coverage Exemptions

  • Complete this form if you need to claim a coverage exemption on your return or report a Marketplace-granted coverage exemption.
  • Use the worksheet in the Form 8965 Instructions if you need to calculate the shared responsibility payment.

Form 8962, Premium Tax Credit

  • Complete this form to claim this credit on your tax return, and to reconcile advance payments of the premium tax credit

Form 1095, Health Care Information Forms

  • If you enrolled in coverage through the Health Insurance Marketplace, you should receive Form 1095-A, Health Insurance Marketplace Statement, which will help complete Form 8692. Wait to file until you receive this form.
  • Your health coverage provider or your employer may furnish you with a Form 1095-B, Health Coverage, or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage. You do not have to wait to receive these forms before you file your tax return.

Form 1040

  • Line 46: Enter advance payments of the premium tax credit that must be repaid
  • Line 61: Report health coverage or enter individual shared responsibility payment
  • Line 69: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf

Form 1040-A

  • Line 29: Enter advance payments of the premium tax credit that must be repaid
  • Line 38: Report health coverage or enter individual shared responsibility payment
  • Line 45: Report net premium tax credit if the allowed premium tax credit is more than advance credit payments paid on your behalf

Form 1040-EZ

  • Line 11: Report health coverage or enter individual shared responsibility payment
  • Form 1040EZ cannot be used to report advance payments or to claim the premium tax credit

Call Aspen Allan and Associates or visit irs.gov/aca for more information about the Affordable Care Act as it relates to you 2015 filing.

How to Get a Copy of Your Prior Tax Year Tax Information

Tuesday, April 5th, 2016

There may be many reasons that you would need a copy of your tax return from the prior year.  Transcripts are free and available for the most current tax year after the IRS has processed the return. You can also get them for the past three tax years.  If you don’t have your copy, the IRS can help.  Here are the types of transcripts to choose from:

  • Tax Return Transcript. A return transcript shows most line items from your tax return just as you filed it. It also includes any forms and schedules you filed with your return. However, it does not reflect changes made to the return after you filed it.  If you’re applying for a mortgage, most mortgage companies require a tax return transcript and participate in the IRS’s Income Verification Express Service program.  If you are applying for financial aid, you can use the IRS Data Retrieval Tool on the FAFSA website to import your tax return information to your financial aid application.  In both of these cases, you won’t have to request a transcript directly from the IRS.
  • Tax Accountant Transcripts. This transcript shows any adjustments made by you or the IRS after you filed your return. It shows basic tax return data, like marital status, type of return, adjusted gross income and taxable income, and other transactions such as payments you made.

Here’s how to get a transcript:

  • Order Online. The fastest way to get a Tax Return or Account transcript is through the Get Transcript tool available on IRS.gov. Although the IRS temporarily stopped the online viewing and printing of transcripts, Get Transcript still allows you to order your transcript online and receive it by mail.  Just click the “Get Transcript by Mail” button to have a paper copy sent to your address of record.
  • Order by phone. You can also order by phone at 800-908-9946 and follow prompts.
  • Order by mail. To order your tax return transcript by mail, complete mail and either

Form 4506-T or Form 4506T-EZ.  Form 4506-T can also be used to request other tax records: tax account transcript, record of account, wage and income and verification of non-filing.

If you need an actual copy of your tax return, they are generally available for the current tax year and as far back as six years.  The fee per copy $50.  Complete and mail Form 4506 to request a copy of your tax return.  Mail your request to the IRS office listed on the form for your area.  If you live in a federally declared disaster area, you can get a free copy of your tax return.  Visit IRS.gov for more disaster relief information.

Plan ahead.  Delivery times for online and phone orders typically take five to 10 days from the time the IRS receives the request.  You should allow 30 days to receive a transcript ordered by mail and 75 days for copies of your tax return.

Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights.  Explore your rights and our obligations to protect them on IRS.gov.

Checklist for Determining if an Employer-Employee Relationship Exists

Tuesday, March 15th, 2016

Checklist for Determining an Employer-Employee Relationship

How to Determine if You Can Claim the Premium Tax Credit

Tuesday, February 16th, 2016

How to Determine if you can claim premium tax credt

Choosing the Correct Filing Status

Tuesday, February 16th, 2016

Choosing the correct filing status affects the amount of tax you owe for the year.  Here is the list of  the five filing statuses with descriptions.

Choosing the Correct Filing Status

 

Hobby vs. Business

Tuesday, February 2nd, 2016

Passion does not automatically equal business.  The way the IRS views a business purpose and what seems to logically make sense don’t always match.

Hobby vs Business

Choose Your Tax Preparer Wisely

Wednesday, January 27th, 2016

Many people get professional assistance with the proper management of their taxes.  The IRS asks that you choose your tax preparer wisely, and for good reason.  You are responsible for the information on your income tax return no matter who is actually preparing the return.  Here are 10 tips to keep in mind when choosing a tax preparer.

Choose Tax Preparer Wisely