The Tax Preparation Blog

Archive for the ‘Tax Services’ Category

Question: Is any kind of licensing required to be a paid Tax Return Preparer in Missouri?

The federal government does not require licensing, but some states (notably California) do require you to be registered in order to prepare tax returns for others.

Does anyone know or have a link to information specific to the state of Missouri?

Thanks

Answer: No, nothing here in MO. I’ve seen bait shops and “buy here, pay here” car dealers who prepare tax returns as a sideline. Pretty crazy here.

Tax preparer sentenced for filing false returns

A Kenansville tax preparer was sentenced in federal court Friday to more than three years in prison and ordered to pay more than $32,000 in restitution after pleading guilty to aiding and abetting tax fraud, officials say. Angela Fay Williams, 45,…

Protect Yourself From Bad Tax Preparers

Question: Do I have to claim my services on my taxes?

Suppose I started my own little county-wide computer repair business and I go to the customer’s home to install wireless networks, repair computers, etc. Would I need to claim these services and the money made from them on my taxes? It’s not really even a business. I don’t own a building or anything. I made my own little flyers and business cards and I just use my own computer experience and knowledge as a self-aid. I recently considered putting the paypal option on my website to give customers the option to pay with credit instead of cash/check. Let me know. I don’t see it any different than running my own little lawn cutting business as a child or even babysitting. Someone please shine some light on my situation.

Answer: Income is income. You probably didn’t declare the income from babysitting or lawn cutting because it wasn’t enough to require filing. The IRS is also a little shy about the publicity auditing a 12-year old kid would generate.

Not only is the income taxable, but since you are now self employed you have to pay income tax and self-employment tax of about 15%.

Now for some good news. You have flyers, business cards, a web site, etc. You are a business. If you don’t make money this year, at least you have demonstrated that your intention is to make money. Under the “hobby-loss” rules, you are presumed to be in business only if you make a profit in three out of five years. If you lose money too often, the IRS will disallow the losses unless you demonstrate that there is a profit motive and that you are taking steps to run the business properly.

Keep good records of everything you spend on your business. That includes records on the miles you drive to each home. Also record your odometer at the beginning and end of the year so that you can keep track of your business portion of your car expenses. If you start making a significant amount of money, you may need to pay estimated taxes on a quarterly basis. This is a good time for you to meet with a CPA for tax and general business advice.

I hope this helps.
Gary

I hope this helps.
Gary

Current developments in employee benefits. (part 2): An article from: The Tax Adviser $5.95 This digital document is an article from The Tax Adviser, published by American Institute of CPA’s on December 1, 1996. The length of the article is 8329 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.From the supplier:…

The Pulse: Election-night blog

Follow all the action from tonight’s crucial count here.

America’s Next Lady Liberty – Whitney Johnson

Liberty pursues technology plan

The City of Liberty is putting together a long-term technology plan in order formalize its goals for the future.

“War On Economic Freedom” San Antonio Tea Party April 15 2009

Question: How can I file my taxes for the year of 2005? Online?

Can I file my 2005 taxes online or do I have to do it old school?

Answer: Old school You should file 2005 before 2006 though.

Impuestos/Income Tax Feather Banner Flag (11.5 x 2.5 Feet) $33.77 This is a large 11 foot advertising banner that will really get you noticed. Made of knitted polyester it is designed to last and give you bright colors. Let people know what you are selling! Check out our other designs.Pole and mount sold separately. …

Impuestos/Income Tax Feather Banner Flag Kit (Flag, Pole, and Ground Mount) $68.77 This is a large 11.5 foot advertising banner that will really get you noticed. The flag is made of knitted polyester so it is designed to last and give you bright colors. The pole is over 15 feet tall when assembled, and made of heavy gauge aluminum. Let people know what you are selling! Check out our other designs.Mount sold separately. …

Income Tax e-file Feather Banner Flag Kit (Flag & Pole) $58.77 Make sure your potential customers can find you and know what you sell. These 11.5 foot banners are designed to draw attention to you. They really work! This price is for One Pole and Flag set. ONE Income Tax e-file feather banner (swooper or tall flag), ONE 16 foot aluminum pole set. MOUNT SOLD SEPARATELY The banner is made of knit polyester for long life and bright c…

Property taxes due Monday for Oahu residents

A reminder for all Oahu residents. Monday is the deadline to pay your property taxes. Bills were mailed out…

How to file your taxes online using onions and electrolytes

Question: Is Financial Aid considered income for taxes in Michigan?

I’m curious if I have to report my financial aid as income on my taxes when filing taxes at the end of the year. I’m 19 and attending Baker College Online and live in Michigan, if that has anything to do with it.

BAKER COLLEGE GRANT 375.00
EST MI COMPETITIVE SCH 1750.00
MICHIGAN PROMISE 1000.00
PELL GRANT 3068.00
TUITION INCENTIVE PROGRAM 2688.00
Jess, I’m not asking about filing FOR my financial aid. I’m talking about filing taxes and whether I need to report my financial aid that I already received as income. Thank you for trying to help though.

Answer: Neh, Jess, that’s not correct.

The tax treatment of financial aid depends on two things – the form of the aid, and how the aid is spent.

Any aid that represents payment for work – and I’m talking here about things like the Federal Work-Study program or the stipends that are paid to graduate students (or advanced undergrads) for working as a teaching assistant or a research assistant – those forms of aid are always taxable, because they’re considered a form of “earned income”.

If you are a degree-seeking student and you receive a scholarship or a fellowship and use the money for:

Tuition
Fees
Books
Supplies or
Equipment

the scholarship or fellowship is tax-free, and need not be reported to the IRS.

On the other hand, if any scholarship or fellowship money is used to pay for:

Room
Board or
Travel

those funds are taxable, and must be reported.

Pell Grants are treated as scholarships for the purpose of IRS regulations. So, again – if the money is used exclusively to pay for tuition, books, fees and equipment, it is non-taxed, and does not need to be reported.

So – long story short – so long as you did not use any of that $8281 to pay for room, board or travel expenses, all of it is non-taxed, and you don’t need to report it. If you used any part of it for a non-allowable expense, you must report the amount that was paid.

Good luck! I hope that helped. For more info – you can review the rules in IRS Publication 970, which I’ve linked to, below.

Wales will Adopt Policy on Employee Sick Days

The Wales Town Board will be codifying the town policy on unused sick time for public employees. In July, Supervisor Rickey A. Venditti told the board that state law requires local municipalities to allow public employees to garner unused sick time throughout their working careers and to use it to enhance their public pensions for retirement purposes. Venditti said that such a measure was …

SEN KIRK WATSON & Others Create Double Tax Tolls!