Please rememeber that if you have filed an extension for your 2009 taxes, your returns must be filed by October 15, 2010.
Are you or someone you know out of school and looking for a summer job? You may not realize this, but you have to pay taxes on your summer income. Make sure that you fill out a W-4 when you start a new job- this form will help employers determine the amount of tax that needs to be withheld from your paycheck in order to cover your total income tax liability. If you are working for tips- remember that all income that you receive is taxable and is subject to federal income tax. If you do baby-sitting or lawn mowing during the summer- you are considered self-employed, which means that if you have net earnings of $400 or more- you will have to pay self-employment tax. Don't worry... Charles can help you determine whether or not your withholding is correct.
Did you know that there is a tax credit available for parents who must arrange for care of their children while they work or are looking for work? The Child and Dependent Care Credit is available for expenses incurred during the summer all the way through the rest of the year. For more information about whether or not you qualify for this deduction, check out Publication 503 Child and Dependent Care Expenses on the IRS website or talk to Charles about ways that you can take advantage of this tax credit.
Are you spending your summer updating your resume and attending job fairs? If you are looking for a job while you are working in your current occupation you may be able to deduct some of your job search expenses on your tax return- employment and outplacement agency fees that you pay while looking for a job, costs for preparing and mailing copies of your resume to prospective employers, and travel expenses during your job search can be deducted from your tax return. For more information, see Publication 529 Miscellaneous Deductions found on the IRS website www.irs.gov
Good news for small business owners! The American Recovery and Reinvestment Act of 2009 (ARRA) offers a variety of tax deductions and credits to small businesses, such as the Work Opportunity Tax Credit, new Health Care Tax Credit, and many more. Ask Charles how you can take advantage of these credits and deductions.
Maximize your income tax deductions throughout the year by keeping track of them as you go. Out-of-pocket charitable contributions' receipts and child-care expenses, for example, should be kept in one place for easier end-of-year tax preparation organization.
Consider consolidating your brokerage accounts with one firm to reduce fees. Make your IRA contributions throughout the year, don't wait until the end of the year. And, if you got a big refund this year, talk to your CPA, Charles Coker, about ways you can put more of that money in your pocket throughout the year.
Where's My Refund? and ¿Dónde está mi reembolso? are interactive tools on the IRS Web site at IRS.gov where you can find out the status of your refund. To get your personalized refund information you must enter:
Your Social Security Number (or Individual Taxpayer Identification Number).
Filing status (Single, Married Filing Joint Return, Married Filing Separate Return, Head of Household, or Qualifying Widow(er)).
Exact refund amount shown on your tax return.
Taxpayers who use direct deposit and e-file can receive their refund in as few as 10 days. That's because with e-file, there's no paper return going to the IRS. And with direct deposit, there's no paper refund going to the taxpayer. So it's all electronic and much faster than paper. We offer FREE electronic filing with direct deposit when we prepare you tax return.
The deadline for tax information provided by brokerage firms (1099-INT interest, 1099-DIV dividends, and 1099-B proceeds) has been extended to February 17, so keep your eye out for those forms.
Charles Coker, CPA One Skyline Place, 5205 Leesburg Pike Suite 213, Baileys Crossroads, VA 22041 Phone: (703) 931-3290 Fax: (703) 931-3690 Email: