Tax Questions You Should Ask
It is that time of year again when most Americans wonder where all the money they made went after looking at their various year-end income statements! And they are wondering how to best save on taxes. Here are a few of the many questions that have been asked by our clients:
1. Can fees paid to a debt resolution company be deducted on my return?
2. I had credit card debt cancelled in the past year – is this taxable?
3. I had sold my home in a short sale – is the mortgage forgiven taxable?
4. Can mileage be deducted for medical expenses and charitable purposes?
5. Do I need receipts for charitable donations or will a check be sufficient to verify the donation?
6. Can I deduct the use of my home office for my business?
7. What is the income limitation for medical expenses? Is it different if I am 65 or older?
8. What business mileage can I deduct?
9. I own rental property – am I able to take a loss on my tax return? Is the loss passive or active? Does my income limit my deduction for a rental property?
10. How does a H.S.A. affect my taxable income? Are the distributions from a H.S.A. taxable? Is this a good way to reduce my taxable income?
11. Can I contribute to an IRA if neither my spouse nor I belong to a pension plan at work? Can a non-covered spouse contribute to an IRA if the other spouse has a pension plan? What are the tax implications of contributing to a Traditional vs. a ROTH IRA? Am I better to maximum my pension contributions to reduce my taxable income?
12. I am a widow (or) – can I still file married joint in the year my spouse had died?
13. I am divorced – what is the best way to verify with the IRS that I can claim my child on my return? Is a divorce decree sufficient? What happens if both I and my ex-spouse unintentionally claim our child in the same year?
14. I own a small business – should those who work for me be treated as employees or subcontractors? What filing requirements do I have?
Some of the answers to these questions may surprise you! Some of these potential saving ideas are good in 2013, but may not be valid in 2014.
For answers to these and any tax questions you may have, please contact us. We look forward to serving you and your tax needs.
Cvach Financial Services, PA
Your Community Tax & Accounting Firm
2977 4H Park Road Ste 201
Centreville, MD 21617