IN July of each year, the Franchise Tax Board of the State of California mails Questionnaire Form 4803 to taxpayers who claimed Head of Household status the previous year.  Do…

HERE are 10 tips for students with summer jobs: 1.  Fill out Form W-4 (Employee’s Withholding Allowance Certificate). This form is used by employers to determine the amount of tax…

WHILE there are no guarantees to avoid an audit, there are creative ways to attract one. Below are 12 easy ways to increase your audit profile. Try any combination to…

IF YOU run your own business, consider employing your children this summer vacation. Employing your children gives you a triple benefit: 1.  It teaches your children the virtue of work…

Background A LIMITED Liability Company is referred to as “LLC.” A husband and wife can form an LLC for their real estate properties. You can choose the type of entity…

A LIMITED Liability Company (LLC) is a new form of hybrid business association that combines the advantages of a corporation with the flexibility of a partnership. Let’s explore the advantages…

1. E-FILE. When you e-file, your chance of getting an error notice from the IRS is significantly reduced. Besides, it’s faster. Your refunds arrive sooner. 2. Check your occupation. Your…

LET’S enjoy some of Murphy’s Laws as we recover from tax season stress. Law of the alibi If you tell the boss you were late for work because of a…

1. CALIFORNIA State Income Taxes in box 24 of your W2 are deductible. So are quarterly estimates paid by self-employed and subcontractor taxpayers. TIP: Time the payment of your estimates…

FOR those of you who itemize, the table below should be of special interest. For those of you who play the odds (you know what I mean), this table should…

MOST of us take medical expenses for granted because we have to spend more than 7 ½ % for 2012 (10% for 2013 if you are under 65) of our…

1. YOU may deduct donations to qualified organizations.  Qualified organizations include corporations or foundations organized in the US for religious, charitable, educational, scientific, literary, or prevention of cruelty to children…

THIS fiscal cliff legislation includes lots of tax changes; accordingly, I summarized the provisions for simple reading. Last week’s Part A dealt with individuals while this week’s Part B deals…

THE AMERICAN TAXPAYER RELIEF ACT OF 2012 Tax breaks for education expenses American Opportunity Higher Education Tax Credit extended The American Opportunity Credit, which can be worth up to $2,500…

THE AMERICAN TAXPAYER RELIEF ACT OF 2012 THIS fiscal cliff legislation includes lots of tax changes that could turn into a novel; accordingly, I summarized the provisions for simple reading….

YOU have just received an invitation to the offices of the Internal Revenue Service. They want to examine your return. Don’t panic. All these years, you have stashed funds for…

YOU should have received Form W-2 (Wage and Tax Statement) from your employer by now. If you did not, here are 10 tips to help you file: 1. Employers have…

Part B: Driving and motor vehicles Cell phones and texting while driving: ASSEMBLY Bill 1536 clarifies existing law by allowing drivers to dictate, send, or listen to text-based communications while…

NEW Income Tax and Sales Tax Laws Income tax California’s maximum income tax rate increases from 9.3% to 12.3% for taxpayers with taxable income of more than $250,000. The rate…

1. FORGETTING to sign and date the return: An unsigned tax return is considered unfiled. 2. Missing or wrong Social Security Numbers: When entering SSNs for anyone listed on your…

1. DON’T ignore the IRS. 2. Don’t mess with the IRS. 3. Don’t go to your appointment unprepared. 4. Don’t be late for the appointment. 5. Don’t volunteer information. 6….

ANY individual who has worked and contributed to the FICA/Social Security System for 10 years (40 quarters) can start receiving Social Security Retirement benefits at age 67. You may elect…

YOU have worked for about 10 years and have paid to the Social Security (SS) administration through FICA deductions from your paycheck. Do you ever wonder if you are indeed…

HOW long should you retain records? I have some clients who throw away everything instantly. Can’t stand records. I also have clients who keep records forever. Rat packs. There must…

WHY would single or separated taxpayers file as Heads of Household?  Let us count the ways: 1. You have a lower tax rate than a single or married person filing…

1. GAMBLING winnings are always taxable and must be reported on your tax return – with or without form W-2G. 2. Gambling income includes winnings from lotteries, raffles, horse and…

THE name of the game is keeping a low audit profile. It means getting lost in the crowd. It reduces the risk of an audit. Here are 12 tips to…

YOU are still upset from losing an IRS audit. You have two choices: pay or fight. If you choose to fight, go to appeals. Let me give you 10 tips…

WHILE IRS audits decreased from the mid-90s, the Service reorganized, retrenched, and retrained its personnel during years of inactivity. They are back. I have personally handled more audit defense cases…