Dear Valued Client,
The New Year is here and we are ramping up for a busy tax season! Okay, so I’ve heard I can get quite verbose on these monthly newsletters…so I’m going to try and keep this one short and sweet. I just get too excited about the topics at hand!
Spotlight on Service
Yes, we prepare your tax returns for you during tax season…but did you know we can also review and provide information on all of your other financial needs. During your tax meeting you can ask us about anything financial (education planning, retirement planning, insurance planning, investment planning, estate planning).
Most recently we’ve helped a client cobble together a retirement paycheck from various sources (IRA’s, Social Security, and Annuities) using the most tax efficient strategy possible. Yes, if done incorrectly you could be costing yourself thousands of extra dollars a year in over paid taxes and lost retirement benefits. There is a method to the madness!
Did You Know?
- We now offer Life Insurance, Long-Term Care Insurance and Annuities. We are more than willing to provide a FREE review of your current policies to look for gaps in coverage (or see if you are over covered). Call today for your free review!
- We’ve published a new article on our website discussing the difference between a “Wealth Manager” and an “Investment Advisor”. Check it out at www.allentaxes.com/id21.html.
- Get rid of your old tax documents now! - We will scan your old tax returns & associated source documents, mortgage refinance papers, or anything you want to a CD ROM for you to keep in your safe deposit box. In addition we will take your old documents and shred them using our secure shredding service (after you review the CD ROM, of course).
About this Letter
As we enter the new year, there are many challenges that lie ahead. With the economic crisis still in full swing and financial rescue plans being put in place, there are many changes yet to come.
Rest-assured that you will be notified of any changes that may affect your taxes. Please call our office if you need help in preparing for your tax appointment.
We look forward to helping you with your tax needs this season. Enjoy the new year.
Sincerely,
Noelle, Mark, Callie, & May
Allen & Allen, LLP
IRS Expects the Rebate Amount on 2008 Returns |
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The Stimulus Rebate payment that was issued by the Treasury Department earlier this year was actually an advance payment of a new credit called the Recovery Rebate Credit on your 2008 tax return. This credit can be as much as $600 for single taxpayers and $1,200 for joint return filers plus $300 for each qualifying child. Congress required the IRS to use a taxpayer’s 2007 tax return information to estimate the credit and issue the advance payment to stimulate the economy.
Paying Off Debt the Smart Way |
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Being in debt isn't necessarily a terrible thing. Most people are, between mortgages, car loans, credit cards and student loans. Being debt-free should always be a goal, but you should focus on the management of it, not the presence of it. It will likely be there for most of your life, and if you handle it wisely, it won't feel so much like an albatross around your neck.
Required Minimum Distributions Suspended for 2009 |
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A new law passed late in 2008 allows taxpayers age 70-½ and over and those who have inherited IRAs (beneficiaries) to forego their required minimum distribution (RMD) from 401(k) plans, IRAs, and similar retirement arrangements for 2009.
IRS Announces 2009 Standard Mileage Rates |
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The IRS has issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
How the Financial Rescue Plan May Affect You |
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The financial rescue plans and bail-out measure being taken by the government will have far-reaching effects on everyone. The underlying financial situation that prompted these rescues will have even more of an impact.
Business Changes for 2009 |
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Over the past several months, Congress has been enacting legislation to stabilize the economy. At the urging of the incoming administration, Congress is working on yet another stimulus plan. As they make temporary changes to the tax code and extend expiring provisions, and with the phase-in phase-out provisions of earlier legislation, it becomes more difficult to keep track of what does and does not apply for the 2009 year.
Personal Use of Employer-Provided Vehicles |
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One of the most common fringe benefits provided to employees is the use of a company-owned or leased vehicle. The personal use of an employer-provided vehicle by law is designated as a fringe benefit and, generally, fringe benefits are taxable unless specifically excluded by law. As such, taxable fringe benefits are subject to employment taxes and are includible in the employee’s Form W-2, Wage and Tax Statement. There are special rules to withhold, deposit and report the employment taxes on these benefits.
Non-Itemizers Get a Real Property Tax Deduction |
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New for 2008 and 2009, taxpayers who do not itemize can add to their standard deduction the cost of their real property taxes, not to exceed $500 ($1,000 for joint filing taxpayers).
Smart Ways to Raise Cash in an Emergency |
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Even the most cautious people can encounter a financial emergency and will need cash fast to deal with it. Unexpected auto and home repairs, health emergencies, and work layoffs are common situations that can occur.
7 Ways to Use QuickBooks to Manage Collections |
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In these trying economic times, it’s more important than ever to keep a close rein on your accounts receivable. Seemingly no one is immune to sudden changes in financial circumstances, so be sure to monitor your outstanding invoices closely.
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