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Posts Tagged ‘Tax tips’

Tax Tips for the 2017 Tax Year

December 6th, 2017

Here are a few end of the year tax tips for 2017 before the new year:

  1. Take steps to accelerate your deductions
  2. Maximize your retirement contributions
  3. Bulk up your estimated tax payments
  4. Meet with your tax adviser

If you are needing tax assistance and would like to speak to a tax attorney, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.

Deductible Sex Changes

August 17th, 2017

jenner

One exception to deducting medical expenses for changing one;s appearance is that taxpayers have been allowed a deduction for a sex change operation.

The taxpayer in the O’Donnabhain case was diagnosed with a gender-identity disorder because he felt he was a woman trapped in a male body. The taxpayer tried to deduct $22,000 in out of pocket medical expenses for various surgeries, including hormone therapy, breast augmentation, and sexual reassignment surgeries.

The Tax Court ruled that the taxpayer was able to deduct $14,500 as a qualified medical tax deduction because they felt the surgeries and hormone therapy promoted the proper function of the body or prevented or treated an illness or disease.

However, the Tax Court disallowed the cost of the breast augmentation surgery because they felt that it was strictly for improving the taxpayer’s appearance.

If you are seeking help with some tax issues, give us a call at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Things To Do with Your Income Tax Refund

March 21st, 2017

tax refunds

Each year, around this time, you may be getting a tax refund.  Instead of spending it on a big screen TV or a new IPhone, here are a few other things to spend your refund on:

  1. Start a savings account
  2. Pay down or settle some of your debt
  3. Invest the money into a retirement account
  4. Buy life insurance
  5. Take care of some outstanding legal issues.

If you have any tax problems and would like some help, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Do You Believe in Miracles

February 24th, 2017

olympics

The United States Olympic Committee awards cash prizes for bringing home the gold, and silver and bronze. These prizes are taxable despite complaints from lawmakers that, like the games themselves, roll around every couple of years. However, for most athletes not named Michael Phelps the tax bill for the prize is negligible. This is because the costs incurred for training and travel are deductible under the hobby loss rules for amateur athletes and as business expenses for professional ones.

If you need help with your taxes, contact us at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

No Tax Refunds until February 15, 2017

January 23rd, 2017

tax refund time

Due to a new law, the IRS will not be issuing tax refunds on the Earned Income Tax Credit and the Additional Child Tax Credit until February 15, 2017.  The IRS will hold the entire refund until February 15, 2017.

If you need assistance filing your tax returns, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

End of the Year Tax Tips

December 5th, 2016

tips

According to Xero.com, here are a few end of the year tax tips for everyone to consider:

  1. Determine employee bonus payments and withhold the required tax amounts.
  2. Pay all vendors by year end.
  3. Prepare all payroll records.
  4. Review your profit and loss statement before the year is done.
  5. Analyze your cash flow.
  6. Review your year-end goals to see if you met them or fell short.

If you are needing tax assistance, contact our law office at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Children: All for the Sake of the Tax Breaks

August 25th, 2016

tax scam

Hiring your kids at your business can have many benefits from teaching kids valuable life skills to getting some awesome potential tax breaks. First, payroll and unemployment taxes may not apply. If you run a single-member LLC, a spousal partnership, or a sole proprietorship, the IRS doesn’t require children under the age of 18 to pay Social Security or Medicare and those under 21 don’t require unemployment taxes on their behalf. Wages that you pay your kids are also considered a tax-deductible business expense – lowering your tax liability. Since these tax benefits can be quite substantial, be prepared for potential IRS scrutiny. Make sure to keep adequate documentation and payroll records to prove that your children are participating in the business. Your children, despite potentially being minors, may also have to file a tax return if their earned income exceeds the standard deduction. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.

Ways to Get Paid

August 11th, 2016

tax refunds

While there are many ways to pay the IRS, there are only a few methods to get money out of the IRS.

The first method, direct deposit, is the most popular and most-favored by taxpayers.  It is a free service that automatically deposits the tax refund in your checking account or savings account.  You can even have the IRS split the tax refund up into different accounts instead of having one large deposit.  This method is also the fastest way of getting money from the IRS, with the average wait time of 21 days from the acceptance of an e-filed return.

The second method, U.S. Series I savings bonds, is probably the least-favored method.  It allows a taxpayer to use all or a portion of their tax refund to buy a savings bond for the taxpayer or for anyone else the taxpayer chooses.  The amount of the bonds purchased must be in $50 increments and are made possible by completing Form 8888.

The third method, a paper check, is the slowest method in getting a tax refund.  This option is available to anyone who does not desire or does not qualify for direct deposit or obtaining a savings bond.  Under this method, the taxpayer receives a check from the IRS for the amount of their tax refund.  The disadvantage to this method is that it can take up to 12 weeks to process the refund and the check is mailed to you, which could result in the check being lost in the mail.

If you are have tax trouble, feel free to contact us at 816-524-4949 or visit our website at www.Hoorfarlaw.com.

Your Shopping Habit is NOT Tax Deductible

July 19th, 2016

shopping

While it may seem that the clothes you have to wear to work every day should be allowed as an unreimbursed employee business expense, more than likely the IRS is going to tell you no. There are strict guidelines that the IRS has in place when it comes to deducting work attire for tax purposes. First, the clothing must be required or an essential part of your employment. Next, the clothing must not be suitable for general or day-to-day personal wear. Lastly, the clothing can’t actually be worn for personal use. So unless you happen to be employed as a flight attendant or a clown, your daily outfits are going to continue coming right out of your own pocket. If you have tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.

Protecting Americans from Tax Hikes

July 14th, 2016

tax hike

The IRS will be implementing new plans for processing tax returns for the 2017 filing season. The Protecting Americans from Tax Hike Act will no longer allow the IRS to issue credit or refunds to early filing tax payers if they claim either the Earned Income Tax Credit or the Additional Child Tax Credit. The additional time is to help in the prevention of lost revenue from fraud and identity theft.  If you are having tax trouble, contact our office at 816-524-4949 or check out our website at Hoorfarlaw.com.