Diamond Tax Consultants Blog

January 31, 2009

The Tax Poem

Filed under: Tax humor — sempson @ 8:28 pm

 

Tax his land, tax his wage,

Tax his bed in which he lays,

Tax his tractor, tax his mule,

Teach him taxes is the rule.

 

Tax his cow, tax his goat,

Tax his pants, tax his coat.

Tax his ties, tax his shirts,

Tax his work, tax his dirt.

 

Tax his chew, tax his smoke,

Teach him taxes are no joke.

Tax his car, tax his grass,

Tax the roads he must pass.

 

Tax his food, tax his drink,

Tax him if he tries to think.

Tax his sodas, tax his beers,

If he cries, tax his tears.

 

Tax his bills, tax his gas,

Tax his notes, tax his cash.

Tax him good and let him know

That after taxes, he has no dough.

 

If he hollers, tax him more,

Tax him until he’s good and sore.

Tax his coffin, tax his grave,

Tax the sod in which he lays.

 

Put these words upon his tomb,

“Taxes drove me to my doom!”

And when he’s gone, we won’t relax,

We’ll still be after the inheritance tax.

 

 

 

 

 

January 16, 2009

Beefing up your tax deductions in a questionable econony

Filed under: Tax deductions — sempson @ 2:13 pm

So many of your friends are unemployed right now! Between the DotComBombs and 9-11, you can’t be positive of your financial position six months from now. Let’s face it, even if your clients don’t cancel contracts, they are cutting back on any unnecessary expenses.So, what’s the easiest way to raise some quick money? Your tax return. This is the year to get it done early AND to get the refund you’re not used to getting.

How are you going to accomplish this?  

 

First, let’s look at THINGS YOU CANNOT DEDUCT:Your wedding, bar mitzvah, confirmation, etc. IRS knows you would have thrown that party anyway.
Gifts – They are still limited to $25 per PERSON, per YEAR. (Couples in business together count as one person)
Business suits and outfits. And cleaning them. I know, they can be expensive. And they are required by your company/industry, etc. Unless it’s a formally designated uniform … and everyone in your position must wear it … forget it.

Now, here’s the meat you’ve been waiting for – the expenses that will get you that big refund – now!

DEDUCTIONS YOU SHOULD KNOW ABOUT

 

 

1. Medical mileage – You surely didn’t forget to add up your medical expenses, but what about mileage to and from appointments? You can deduct $0.27 per mile for medical trips, and you can also include parking fees and tolls.

2. Educator expenses – Are you a teacher? You can deduct up to $250 of out-of-pocket expenses for books and supplies. And you don’t even have to itemize!! Just put the amount on line 23 of Form 1040.

3. Student loan interest – Most young adults have at least a little school debt. At least you can deduct the interest you pay on those loans. If you paid more than $600 in interest during the year, your lender should send you Form 1098-E, detailing your interest. This is another cool deduction that doesn’t require itemizing.

4. Donations of goods – Did you give some old household items to Goodwill? Be sure to get a receipt, and you can deduct the value of those items. There’s even a cool online program (It’s Deductible) that helps track and value those donations.

5. Jury pay – Nobody likes jury duty, but at least you can deduct the pay! If your employer paid your full salary while you served AND you turned over the jury duty pay to your employer, you’re eligible to deduct it. You can even claim this deduction on Form 1040A!

6. Health insurance premiums – Everyone can add health insurance premiums to their medical expenses deduction. And if you’re self-employed, you can deduct 100% of these premiums without itemizing! You have to love easy deductions like that!

7. Moving expenses – Did you move more than 50 miles for a full-time job? Deduct it! This includes self-employment, as long as you fulfill the “time” test (working enough hours each week).

8. Higher-education – Did you pay college expenses this year? If you earned less than $65,000, you can deduct up to $4,000 of those expenses above-the-line.

9. Job hunting costs – If you’re looking for work in the same field in which you’re currently employed, deduct your expenses. There are some nuances here, but it’s definitely worth accounting for.

10. Tax prep fees – These are typically deductible in the year you pay them. For your 2007 tax return, you can deduct your 2006 tax preparation fees. This includes the cost of your software, accountant, and even e-filing.

Was this helpful?  We would like to hear your thougts.

January 11, 2009

Good News! – from the IRS if you can’t pay your taxes

Filed under: IRS News & Updates — sempson @ 5:03 pm

More than 11 million Americans are out of work, and the IRS is afraid they may have a really hard time collecting taxes this year. 

So they’ve softened some of the rules, such as:

 

 ● IRS agents now have greater authority to hold off on collections in cases where taxpayers simply can’t pay.

 

 ● Those paying off-back taxes under approved Installment Agreements can skip a payment or get their monthly payment amount reduced without automatically voiding their existing installment agreement.

 

 ●, The IRS has set up a special unit to handle cases where the loss in a home’s resale value has kept them from reaching an “offer in compromise” with taxpayers who can’t pay their back taxes and are seeking terms to settle the tax debt for less than what’s owed.

 

 ● For taxpayers whose wages or bank accounts are garnished for delinquent back taxes, the IRS is  speeding up “levy releases.”

 

 In a statement released by the IRS, Commissioner Doug Shulman said, “I’ve instructed all personnel to be sensitive to taxpayers, especially those who have previously been compliant. If they call us or write to us, our people have been instructed to work with taxpayers through these tough economic times.”

 

 What should YOU do if you can’t pay your taxes?

The IRS has just posted a “WHAT IF” page on their web site to show you what options are available under various circumstances: www.irs.gov/newsroom/article/0,,id=201853,00.html?portlet=6 

 

January 9, 2009

Have a Tax Filing Horror Story? Tell me about it.

Filed under: Contests and Events — sempson @ 12:37 am

Welcome to the “Tax Filing Horror Story Contest”. Have a horrible tax filing story? Car break down blocks from the post office? Ran out of paper in the printer? Dog ate your return?

Tell me your worst tax filing story – or simply complain about the thing you hate most about filing taxes – and win a FREE tax return.

Here are the rules:

  1. Post your tax filing horror story in the comments below. It can be as long or as short as you want. Please don’t include any personally identifying information that you don’t want made public (your AGI, address, etc.).
  2. Enter as many times as you like – but you must post a different story or comment each time. Linkbacks, while appreciated, don’t count.
  3. You must leave a valid email address (it will not be made public) so that I can contact you if you are a winner.
  4. Deadline is January 30, 2009, 11:59 pm EST.

In this economy, you don’t get much for free anymore. So what are you waiting for? Share your story – the worst thing that ever happened to you while filing your taxes – or the thing you hate most about filing taxes – and win.

January 7, 2009

8 Tips to Reduce the SRESS of filing your taxes

Filed under: Tax tips — sempson @ 11:22 pm

Can you believe that January 16th is less than 2 weeks away? To help reduce the stress, below are eight tips that can prove helpful:

 

  

1.     For your convenience, you can schedule your appointment directly from our website

 

2.     Many have asked what forms they need to bring to file a tax return.  For your convenience, we have added a link to our website entitled WHAT TO BRING

 

3.     Instructions you must follow to participate in the Free tax return drawing:  

 

The FREE tax return drawing we sponsor each year will no longer be open to non-subscribers of our newsletter. 

·        NOTE: You do not need to be a customer of Diamond Tax Consultants, only a subscriber to participate. To become a subscriber go to http://diamondtaxconsultants.com/newsletter.html   As our client base continue to grow, it is only fair to limit special promotions to those who qualify, thus increasing your chances to benefit.

·        Now that you have subscribed, signup for the FREE TAX RETURN drawing at http://diamondtaxconsultants.com/offers.htm

4.     Save money by downloading a  $25 off tax preparation coupon.

5.     Check the status of your refund loan directly from our website.

6.     Get map friendly directions to our main office by clicking the Our Company Tab

7.      Your taxes are done.  Were they done right?  Get a second opinion on your tax return.

  

P.S    Perhaps you are thinking…. that is only 7 tips. Well tip number 8 is forward this email to anyone you know who can use less stress in filing their taxes.  Hint: You won’t know unless you follow the 8th tip!  

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