Author Archives: John D

2016 ITIN Renewal Individual Tax Identification Number

Some taxpayers will need to receive new ITIN numbers in 2016. The new law will mean ITINs that have not been used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return unless renewed by the taxpayer.   ITIN Law Changes… Read More »

2017 HSA Health Savings Account Information

A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses you incur. You must be an eligible individual to qualify for an HSA. Health savings accounts are tax-advantaged medical savings accounts that you can draw money from for certain… Read More »

Residential Energy Efficient Property Credit

There are residential energy effiency tax credits. A credit of 30 percent of the expenditures made by a taxpayer during the taxable year for: qualified solar electric systems; qualified solar water heaters; qualified fuel cell property; qualified small wind energy property; and qualified geothermal heat pumps. The credit for expenditures made for qualified fuel cell… Read More »

Plug-In Electric Drive Vehicle Credit

Internal Revenue Code Section 30D provides a credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. You may be eligible for a credit under Section 30D(a), if you purchased a car or truck with at least four wheels and a gross vehicle weight of less than 14,000 pounds that draws energy… Read More »

How to Get Tax Transcript Online

The IRS recently enhanced its e-authentication procedures required to register and use certain self-help tools on IRS.gov. This is a more rigorous e-authentication process than IRS has used in the past. It is in line with federal information security standards and the latest industry practices used by major financial institutions as well as many other… Read More »

2017 Adoption Tax Credit

A nonrefundable tax credit for qualified adoption expenses paid to adopt an eligible child. The credit may be allowed for the adoption of a child with special needs, even if you do not have any qualified expenses. The credit is reduced if your modified adjusted gross income (MAGI) falls between $201,010 and $241,010; and is… Read More »

When can I file taxes in 2017?

The IRS still has not announced the first day they will begin accepted 2016 tax returns in January 2017. Normally, the first filing day of a tax return is toward the end of January.   The first day you can file taxes in 2017 will usually be announced in Novermber 2016. Check back for more… Read More »

Filing a Business Tax Return

Information about Filing a Business Tax Return Filing a tax return and reporting taxable income is more than just checking a few boxes and signing your name to a form. This may seem obvious, but you must report all taxable income on your tax return. Do you know what types of income are considered taxable… Read More »

Choosing a Business Tax Return Preparer

When it comes to preparing the tax return for your business, you may want to choose a professional to help you. Here are some tips. Go to the Directory of Federal Tax Return Preparers on www.IRS.gov to start your search on the preparer’s qualifications. Avoid businesses which delegate the work to someone with less experience… Read More »

Is it a business or a hobby for IRS Purposes?

What is a business for tax purposes? Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit. In order to make this determination, taxpayers should consider the following factors: Does the time and effort put into the activity indicate an intention to make a profit?… Read More »