2012 Tax News

The New QBI Deduction = Huge Tax Savings

The New QBI Deduction = Huge Tax Savings

by: Mike Ward, EA

The Qualified Business Income (QBI) Deduction is a game changer for small business! In its basic terms the deduction is 20% of business income.  “Wow” is what we should be thinking on this deduction.  It will include most individuals who have income from the following:

  • K1 income from 1120S SCorps & 1065 Partnerships
  • Schedule C Sole Proprietors
  • Schedule E Rental Properties
  • Schedule E Other Rental Activities
  • Statutory Employees
  • Schedule F Farm income

There are details to this deduction and each situation is different. See a tax professional this year so you can take advantage of this once in a generation Tax Deduction.

 

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More than a tax service!

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Loans offered in amounts of $500, $800, $1,200.

Contact one of our Tax Professionals today for details 410-973-2750

 

 

 

Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards. IRS delays may affect the delivery timing of loan proceeds.

The Refund Advance is an optional tax-refund related loan provided by Bank (it is not the actual tax refund) at participating locations. The amount of the advance will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer. Tax returns may be filed electronically without applying for this loan. Loans offered in amounts of $500, $800, or $1,200. Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards. IRS delays may affect the delivery timing of loan proceeds.

A Refund Deposit Account is not a loan – it is an account established by EPS at the Bank in order to facilitate the funding of the two different disbursement methods.

  • The EPS fee charged to the taxpayer ranges from $0-35, depending on which disbursement method is selected
  • Tax preparation fees are deducted from the refund when it is deposited to the Refund Deposit Account
  • The taxpayer can have a State tax refund(s) disbursed the same way as an IRS tax refund through an EPS Bank Product
  • Advise the taxpayer that there are no guarantees that the Department of the Treasury deposits refunds within a specified time or in their entirety. For example, it may delay a refund due to processing problems or, it may offset some or all of the refund. The Department of the Treasury is not liable for any loss suffered by taxpayers, Providers, or financial institutions resulting from reduced refunds or not honored Direct Deposits, causing it to issue refunds by check.
  • Advise taxpayers of all fees and other known deductions to be paid from their refund and the remaining amount the taxpayers will actually receive
  • Tax preparation fees will be deducted from the first tax refund (IRS or State) deposited into the Refund Deposit Account, whether from the IRS or the state
  • It is important that the customer understand that, if for any reason the refund is not received, the customer remains responsible for paying the tax preparation fees by another method
  • A Refund Deposit Account is not to be used for collection of unpaid tax preparation fees for a prior year(s)

 

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Get Your Taxes Done Here and Pay Nothing Today

 

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Nine Tips on Deducting Charitable Contributions

 

Giving to charity may make you feel good and help you lower your tax bill. The IRS offers these nine tips to help ensure your contributions pay off on your tax return.

1. If you want a tax deduction, you must donate to a qualified charitable organization. You cannot deduct contributions you make to either an individual, a political organization or a political candidate

2. You must file Form 1040 and itemize your deductions on Schedule A. If your total deduction for all noncash contributions for the year is more than $500, you must also file Form 8283, Noncash Charitable Contributions, with your tax return.

3. If you receive a benefit of some kind in return for your contribution, you can only deduct the amount that exceeds the fair market value of the benefit you received. Examples of benefits you may receive in return for your contribution include merchandise, tickets to an event or other goods and services.

4. Donations of stock or other non-cash property are usually valued at fair market value. Used clothing and household items generally must be in good condition to be deductible. Special rules apply to vehicle donations.

5. Fair market value is generally the price at which someone can sell the property.

6. You must have a written record about your donation in order to deduct any cash gift, regardless of the amount. Cash contributions include those made by check or other monetary methods. That written record can be a written statement from the organization, a bank record or a payroll deduction record that substantiates your donation. That documentation should include the name of the organization, the date and amount of the contribution. A telephone bill meets this requirement for text donations if it shows this same information.

7. To claim a deduction for gifts of cash or property worth $250 or more, you must have a written statement from the qualified organization. The statement must show the amount of the cash or a description of any property given. It must also state whether the organization provided any goods or services in exchange for the gift.

8. You may use the same document to meet the requirement for a written statement for cash gifts and the requirement for a written acknowledgement for contributions of $250 or more.

9. If you donate one item or a group of similar items that are valued at more than $5,000, you must also complete Section B of Form 8283. This section generally requires an appraisal by a qualified appraiser.

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IRS Has $917 Million for People Who Have Not Filed a 2009 Income Tax Return

WASHINGTON: Refunds totaling just over $917 million may be waiting for an estimated 984,400 taxpayers who did not file a federal income tax return for 2009, the Internal Revenue Service announced today. However, to collect the money, a return for 2009 must be filed with the IRS no later than Monday, April 15, 2013.

 

 

OC Tax Service

10050 Golf Course Rd #18

Ocean City, MD 21842

info@oceancitytaxservice.com

 

 

 

  • More than 25 Years Experience Serving Ocean City Area Businesses and Residents!

 

  • Our team includes only Registered Tax Return Preparers (RTRP), including a Certified Public Accountant

 

 

Berlin, MD Tax Prep

Also serving Ocean City and other Eastern Shore communities

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List of IRS forms that 1040 filers can begin filing in March 2013

The following tax forms will be accepted by the IRS during the first week of March after updating forms and completing programming and testing of its processing systems. A specific date will be announced in the near future.

  • Form 3800 General Business Credit
  • Form 4136 Credit for Federal Tax Paid on Fuels
  • Form 5074 Allocation of Individual Income Tax to Guam or the Commonwealth of the Northern Mariana Islands
  • Form 5471 Information Return of U.S. Persons With Respect to Certain Foreign Corporations
  • Form 5695 Residential Energy Credits
  • Form 5735 American Samoa Economic Development Credit
  • Form 5884 Work Opportunity Credit
  • Form 6478 Credit for Alcohol Used as Fuel
  • Form 6765 Credit for Increasing Research Activities
  • Form 8396 Mortgage Interest Credit
  • Form 8582 Passive Activity Loss Limitations
  • Form 8820 Orphan Drug Credit
  • Form 8834 Qualified Plug-in Electric and Electric Vehicle Credit
  • Form 8839 Qualified Adoption Expenses
  • Form 8844 Empowerment Zone and Renewal Community Employment Credit
  • Form 8845 Indian Employment Credit
  • Form 8859 District of Columbia First-Time Homebuyer Credit
  • Form 8864 Biodiesel and Renewable Diesel Fuels Credit
  • Form 8874 New Markets Credits
  • Form 8900 Qualified Railroad Track Maintenance Credit
  • Form 8903 Domestic Production Activities Deduction
  • Form 8908 Energy Efficient Home Credit
  • Form 8909 Energy Efficient Appliance Credit
  • Form 8910 Alternative Motor Vehicle Credit
  • Form 8911 Alternative Fuel Vehicle Refueling Property Credit
  • Form 8912 Credit to Holders of Tax Credit Bonds
  • Form 8923 Mine Rescue Team Training Credit
  • Form 8932 Credit for Employer Differential Wage Payments
  • Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit

 

 

OC Tax Ocean City, MD,  OC Tax also provides Tax Preparation to Berlin, MD and the Eastern Shore area.

Ocean City Tax Service provides the same individual attention and expert tax advice, based on the 
current tax environment and business climate, to all of our customers, including:

 Business Owners
 Families
 Students
 Children

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