FAQs & Links
Resource Links
Taxes
Find up-to-date information on Federal, New York, and New Jersey tax laws, tax forms and publications, and more.
IRS
New York State Tax Department
New Jersey Division of Taxation
New York City Finance Department
Retirement
Official Website of the U.S. Social Security Administration: view your most recent social security statement, recent developments, and more.
U.S. Social Security Administration
Seniors
Find useful information for retirement-minded individuals.
Senior.com
Guide to Retirement Living
BNI
One of the largest business referral organizations in the world.
Business Network International Hudson Valley
FAQ’s
1) I received a notice from the IRS/State saying that I owe money, what should I do?
Fax or email me a copy of the notice for review.
The IRS/State is probably looking for an unpaid balance of tax and/or penalties and interest on a late-filed tax return, underpayment of estimated taxes, late-paid taxes, etc. Often, with my intervention, I can get penalties and interest reduced.
2) Where do I mail my tax return?
In today’s electronic age, most tax returns are now E-filed (filed electronically with the IRS/State). You will still receive a copy of your tax returns (either paper or digitally), which you should retain indefinitely.
If you choose to paper file your tax return, instructions on where to file the return will be provided with the return.
Electronic filing is safe, fast, and allows for greater accuracy.
3) Why do I have to pay estimated taxes?
In general:
For 2011, you expect to owe $1,000 or more to the IRS, after deducting withholding payments and credits or
A) You expect your 2011 withholding and credits to be less than 90% of your expected tax due for 2011 or less than 100% of your 2010 tax (110% if you’re a high-income taxpayer).
Or,
B) Last year you owed the government more than a prescribed amount and you anticipate the same happening for the current year. Because of that, they want the money throughout the current year.
4) My business took a loss this year; do I still need to file a tax return?
YES! In order to claim the loss and potential refund of any withholding or estimated taxes paid, you need to file your business and personal tax returns in a timely manner. There may be other issues, such as lack of basis, which can affect future tax returns; you must therefore file every year.
5) I don’t have enough money to pay my taxes this year. What should I do?
You basically have two options:
A) The IRS now accepts credit card payments through several third party providers (a list of approved providers can be found on the IRS website). You will need to pay a processing fee from 2 to 6% of the payment amount, but it allows you time to pay off your balance; you’ll also get credit card “points” if your card provides that benefit.
B) The IRS also offers payment plans. Be prepared to have penalties and interest tacked onto your balance and possibly divulge additional personal and financial information.
6) Can I deduct medical expenses and what kinds qualify?
In General:
Medical expenses are available to all taxpayers who itemize their deductions and the amount of expenses in a given year is greater than 7.5% of their AGI (adjusted gross income) for that year.
Medical expenses are deductible in the year paid (or charged on a credit card), regardless of when the expenses were incurred, and include expenses for the taxpayer, spouse, and all dependents.
Examples of deductible medical expenses are: visits at your primary care doctor, dentist, eye doctor, podiatrist, chiropractor, physical therapist, installation of special equipment in the home that provide a medical benefit and prescribed by a physician, legal fees paid to authorize treatment for a mental illness, guide dog costs for the visually or hearing impaired, medical aids (i.e. wheelchairs, hearing aids, braces), in-home nursing care, medical and dental insurance premiums.
7) Is the interest on a mortgage for a 2nd home (i.e. a vacation home or timeshare) tax deductible?
In General:
Yes. The mortgage must be used to acquire, construct, or improve this 2nd home (owned by the taxpayer) and must be secured by the 2nd home. You cannot deduct interest on a third home, unless it is business or investment property.
8) How can I deduct donations to charity?
In general:
Any charitable contribution must be made to an IRS-recognized organization.
For non-cash contributions (i.e. clothing, furniture, household goods, toys), you MUST have a signed and dated receipt from the charity. The receipt must have your name on it, along with the charity’s name, address, and ID#, as well as a description and condition of the goods donated.
For monetary contributions (cash, check, credit card), you also need written substantiation from the charity, as noted above, with the dollar amount. A canceled check is not sufficient.
9) Can I deduct home improvements made to my principal residence on my tax return?
If you make improvements to your home, you may be entitled to credits, but that will depend on the energy efficiency rating and other factors of the improvement (i.e. insulation, windows, heat pump, etc) or appliance. Your contractor should be able to advise you on the rating values to see if you’ll qualify for energy efficient tax credit.
You cannot deduct the actual cost of the improvements. However, they add to the basis of your home, which reduces any potential capital gain when you sell it. So keep all records relating to home improvements.
10) How do I track my income and expenses?
I can instruct you in the use of accounting software, such as QuickBooks, which will allow you to track your income, expenses, customers, vendors, high and low-volume sales and expense periods, etc. If QuickBooks isn’t your thing, I can provide you with a customized excel spreadsheet that will still allow you to keep tabs on your income and expenses. Tracking your income and expenses is a necessity for budgeting and many other purposes, but it also enables me to get the year-end totals that I’ll need to prepare your tax returns, in the most efficient manner.
