(US citizens, US green card holders and Resident
Aliens living in the
You are a resident alien of the United States for
tax purposes if you meet either the green card test or
the substantial presence test for the calendar
year (January 1–December 31). Even if you do not meet either of these tests,
you may be able to choose to be treated as a U.S. resident for part of the
year.
You are a resident for tax purposes if you are a
lawful permanent resident of the United States at any
time during the calendar year. This is known as the “Green
Card” test. You are a lawful permanent resident of the United States at
any time if you have been given the privilege, according to the immigration
laws, of residing permanently in the United States as an immigrant. You
continue to have resident status under this test unless the status is taken
away from you or is administratively or judicially determined to have been
abandoned.
Resident status taken
away. Resident
status is considered to have been taken away from you if the U.S. government
issues you a final administrative or judicial order of exclusion or
deportation. A final judicial order is an order
that you may no longer appeal to a higher court of competent jurisdiction.
Resident status
abandoned. An
administrative or judicial determination of abandonment of resident status may
be initiated by you, the USCIS, or a U.S. consular officer.
If you initiate the
determination, your resident status is considered to be abandoned when you file
either of the following with the USCIS or U.S.
consular officer.
1. Your application for abandonment.
2. Your Alien Registration Receipt Card attached to a letter
stating your intent to abandon your resident status.
You must file the
letter by certified mail, return receipt requested. You must keep a copy of the
letter and proof that it was mailed and received.
If the USCIS or U.S.
consular officer initiates this determination, your resident status will be
considered to be abandoned when the final administrative order of abandonment
is issued. If you are granted an appeal to a federal court of competent jurisdiction,
a final judicial order is required
You will be considered a U.S. resident for tax
purposes if you meet the substantial presence test for the calendar year. To
meet this test, you must be physically present in the United States on at
least:
1. 31 days during the current year, and
2. 183 days during the 3-year period that includes the
current year and the 2 years immediately before that, counting:
a. All the days you were present in the current year, and
b. 1/3 of the days you were present in the first year before
the current year, and
c. 1/6 of the days you were present in the second year
before the current year.
Example.
You were physically present in the United States on
120 days in each of the years 2002, 2003, and 2004. To determine if you meet
the substantial presence test for 2004, count the full 120 days of presence in
2004, 40 days in 2003 (⅓ of 120), and 20 days in 2002 (1/6 of 120). Since
the total for the 3-year period is 180 days, you are not considered a resident
under the substantial presence test for 2004.
The term United States includes
the following areas.
1. All 50 states and the District of Columbia.
2. The territorial waters of the United States.
3. The seabed and subsoil of those submarine areas that are
adjacent to U.S. territorial waters and over which the United States has
exclusive rights under international law to explore and exploit natural
resources.
The term does not include U.S. possessions and
territories or U.S. airspace.
This image is too
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Figure 1-A Nonresident Alien or Resident Alien?
You are treated as present in the United States on
any day you are physically present in the country at any time during the day.
However, there are exceptions to this rule. Do not count the following as days
of presence in the United States for the substantial presence test.
·
Days you
commute to work in the United States from a residence in Canada or Mexico if
you regularly commute from Canada or Mexico.
·
Days you are
in the United States for less than 24 hours when you are in transit between two
places outside the United States.
·
Days you are
in the United States as a crew member of a foreign vessel.
·
Days you are
unable to leave the United States because of a medical condition that develops
while you are in the United States.
·
Days you are
an exempt individual.
Regular commuters
from Canada or Mexico.
Do not count the days on which you commute to work in the United
States from your residence in Canada or Mexico if you regularly commute from
Canada or Mexico. You are considered to commute regularly if you commute to
work in the United States on more than 75% of the workdays during your working
period.
For this purpose, “commute” means to travel to work and return to your
residence within a 24-hour period. “Workdays” are the
days on which you work in the United States or Canada or Mexico. “Working period” means the period beginning with the first
day in the current year on which you are physically present in the United
States to work and ending on the last day in the current year on which you are
physically present in the United States to work. If your work requires you to
be present in the United States only on a seasonal or cyclical basis, your
working period begins on the first day of the season or cycle on which you are
present in the United States to work and ends on the last day of the season or
cycle on which you are present in the United States to work. You can have more
than one working period in a calendar year, and your working period can begin
in one calendar year and end in the following calendar year.
Days in transit. Do not count the days you are in
the United States for less than 24 hours and you are in transit between two
places outside the United States. You are considered to be in transit if you
engage in activities that are substantially related to completing travel to
your foreign destination. For example, if you travel between airports in the
United States to change planes en route to your foreign destination, you are
considered to be in transit. However, you are not considered
to be in transit if you attend a business meeting while in the United States.
This is true even if the meeting is held at the airport.
Crew members. Do not count the days you are
temporarily present in the United States as a regular crew member of a foreign
vessel engaged in transportation between the United States and a foreign
country or a U.S. possession. However, this exception does not apply if you
otherwise engage in any trade or business in the United States on those days.
Medical condition. Do not count the days you
intended to leave, but could not leave the United States because of a medical
condition or problem that developed while you were in the United States.
Whether you intended to leave the United States on a particular day is
determined based on all the facts and circumstances. For example, you may be
able to establish that you intended to leave if your purpose for visiting the
United States could be accomplished during a period that is not long enough to
qualify you for the substantial presence test. However, if you need an extended
period of time to accomplish the purpose of your visit and that period would
qualify you for the substantial presence test, you would not be able to
establish intent to leave the United States before the end of that extended
period.
You cannot exclude
any days of presence in the United States under the following circumstances.
1. You were initially prevented from leaving, were then able
to leave, but remained in the United States beyond a reasonable period for making
arrangements to leave.
2. You returned to the United States for treatment of a
medical condition that developed during a prior stay.
3. The condition existed before your arrival in the United
States and you were aware of the condition. It does not matter whether you
needed treatment for the condition when you entered the United States.
Exempt individual. Do not count days for which you
are an exempt individual. The term “exempt individual”
does not refer to someone exempt from U.S. tax, but to anyone in the following
categories.
1. An individual temporarily present in the United States as
a foreign government-related individual.
2. A teacher or trainee temporarily present in the United
States under a “J” or “Q”
visa, who substantially complies with the requirements of the visa.
3. A student temporarily present in the United States under
an “F,” “J,” “M,” or “Q” visa, who substantially
complies with the requirements of the visa.
4. A professional athlete temporarily in the United States
to compete in a charitable sports event.
Personal
Guide to Compiling and Organizing Your Tax Documents.
Have you got EVERYTHING to do your
taxes?
What you really need to
do?
While the tax laws may change from year to year, the
basic information you need to do your return or take to your tax preparer
doesn't change that much from year-to-year. What may change is what you can DO
with the information. So, here's a reference of all the data you might need and
who should have it or keep track of it.
Personal data
-
Social Security numbers
(including spouse and children). These are required to qualify for exemptions.
-
Your child care
provider's tax I.D. or Social Security number. This is critical to qualify for
child care credits.
Employment & income data
-
W-2 forms for this year.
These come from your employer.
-
Partnership and trust
income. Data for these should come from an accountant or financial institution
-
.Pensions and annuities.
Data should come from the financial institution, insurance company selling the
annuity or pension fund.
-
Alimony received. Tax
information should come from your ex-spouse or his representative. The former
spouse will want your Social Security number to be able to deduct any alimony
payments.
-
Jury duty pay. Data should
come from the court clerk.
-
Gambling and lottery
winnings. This data should come from the casino or lottery authority. Form W-2G
-
Prizes and awards. Data
should come from the award givers. Form 1099-MISC.
-
Scholarships and
fellowships. Data should come from the administrators of these programs. Form
1099-MISC.
-
State and local income
tax refunds. Data should come from the taxing authorities.
Homeowner/renter data
-
Residential address(es)
for this year. This is your responsibility.
-
Mortgage interest: Form
1098. Your lender will send you this data.
-
-
Second mortgage interest
paid. Your lender should send you this data.
-
Real estate taxes paid.
Your county clerk or lender should send you this data.
-
Rent paid during tax
year. You need to generate this data.
-
Moving expenses. If your
expenses are reimbursed by an employer, the employer will furnish you with data
on the moving costs.
Financial assets
-
Interest income statements:
Form 1099-INT & 1099-OID. Financial institutions will provide this data.
-
Dividend income
statements: Form 1099-DIV. This will come from this company paying the
dividends.
-
Proceeds from broker
transactions: Form 1099-B. Your brokers should furnish this data.
-
Tax refunds &
unemployment compensation: Form 1099-G. The issuing agencies should send this
information.
-
Miscellaneous income
including rent: Form 1099-MISC. This should come from whoever distributes the
income.
-
Retirement plan
distribution: Form 1099-R. Whoever sends out your pension checks should send
you this data on Form 1099-R.
Financial liabilities
-
Auto loans and leases
(account numbers and car value) if vehicle used for business. You can get this
data from the lender or leasing company.
-
Student loan interest
paid. The lender should furnish this data.
-
Early withdrawal
penalties on CDs and other time deposits. This data should come from the
financial institution.
Automobiles
-
Personal property tax
information. This data should come from the taxing authority.
Deductible expenses
-
Gifts to charity
(receipts for any single donations of $250 or more). This should come from the
charity.
-
Unreimbursed expenses
related to volunteer work. You will need to keep your own records for this.
-
Unreimbursed expenses
related to your job (travel expenses, entertainment, uniforms, union dues,
subscriptions). You will need to keep this data.
-
Investment expenses. Your
broker will furnish some data. Travel, phone and other relates expenses are
your responsibility to track.
-
Job-hunting expenses. You
will need to keep this data.
-
Education expenses. You
will need to keep this data. But if you qualify for Hope or Lifetime credits or
other college deductions, the college involved will send you the data on the
qualifying expenses you've paid.
-
Child care expenses. You
will need to keep this data.
-
Medical Savings Accounts.
The institution handling the account will be able to generate any data.
-
Adoption expenses. You
will need to track this data.
-
Alimony paid. You or the
authority dispersing funds will need to keep this data. To deduct this expense,
you will need the recipient's Social Security number.
-
Tax return preparation
expenses and fees. Your preparer can furnish this data to you.
Self-employment data
-
K-1s on all partnerships.
The partnership management should generate this data.
-
Receipts or documentation
for business-related expenses. This is data you should keep and track.
-
Farm income. You or an
accountant should tack this information. (Schedule F).
Deduction documents
-
Federal, state &
local estimated income tax paid for current year: Estimated tax vouchers,
cancelled checks & other payment records. You must keep copies of this data
and track it.
-
IRA, Keogh & other
retirement plan contributions. You can get this information from your financial
institutions.
-
Medical expenses. You
must track this data.
Casualty or theft losses
-
Other miscellaneous deductions. You will
need to file Form 4684.
Q. What are my Filing Status options?
A. Following are definitions of each filing status and
some general rules:
Single
You fall in the "singles" category if you
aren’t married at year-end and don’t qualify to use the lower surviving-spouse
or head-of-household rates.
Married Filing a Joint
Return
If you are married on the last day of the year, you
can file a joint return. This applies even if you are separated from your
spouse and pursuing a divorce. Unless the divorce is final by the end of the
year, the IRS considers you married, and you can’t file a return as a single
taxpayer. If you were married for any part of the year but were widowed at
year-end you file a joint return for yourself and your deceased spouse.
Surviving Spouse
For up to two years after the year in which your
spouse dies you may be able to continue using the joint-return rates rather
than moving immediately into higher brackets. Not every widow and widower
qualifies, though. Most, in fact, do not.
To be a qualifying surviving spouse - sometimes called
a qualified widow or widower - you must meet four tests:
-
You
must have been eligible to file a joint return for the year your spouse died.
-
You
must not have remarried. (But if you did, you can use the joint-return rates by
filing with your new spouse.)
-
You
must have a child, stepchild or foster child who qualifies as your dependent.
-
You
must have paid more than half the cost of maintaining your home, which is the
principal residence of the child for the entire year (except for temporary
absences).
Head of Household
This category causes lot confusion, particularly among
young people starting out on their own. Generally, head-of-household status is
used by divorced women with small children at home. But it can also pay off for
divorced or widowed parents whose grown children return to the nest after
college or following a divorce. To earn the head-of-household title and the
right to use the lower-than-single tax rates, you basically have to be
providing a home for a child or other relative. To qualify:
You must be unmarried at the end of the year. (Even if
you’re legally married at year-end you can pass this test under a special
"abandoned spouse" rule if your spouse didn’t live with you during
the last six months of the year.)
You must pay more than half the cost of keeping up the
principal home for yourself and a child or other relative you can claim as a
dependent. If the child (including a grandchild, stepchild or adopted child) is
unmarried, he or she doesn’t have to qualify as your dependent to earn you
head-of-household status. Any other relative living with you, however, must
pass the dependency tests.
Since the dependency test doesn’t apply when single
children are involved, you can claim this tax-saving status regardless of how
much money the boomerang child makes — as long as you meet the other
tests.
In most cases, you and the child or other relative
must share the same house for more than six months of the year. There is an exception,
however, if you are paying more than half the cost of maintaining a home for
your dependent mother or father for the entire year. In that case, he or she
does not have to live with you for you to qualify for head-of-household tax
status. If you are paying more than half the cost of a nursing home for your
dependent parent, for example, you can qualify. When figuring whether you pay
more than half the cost of maintaining a home, count such expenses as rent or
mortgage interest, taxes, insurance on the home, repairs, utilities, domestic
help and food eaten at home. Don’t count the cost of clothing, education,
medical treatment, vacations, life insurance or transportation.
Note: If you qualify as a surviving spouse, you may be
able to meet the head-of-household test once your two-year use of the joint
rates runs out. Head-of-household rates are lower than those that apply to
singles.
Married Filing Separately
This filing status almost never makes sense. The rare
circumstances in which it can pay off usually involve a husband and wife with
similar incomes who by splitting the income on separate returns can claim
deductions that would elude them on a joint return. One often-cited reason for
filing separate returns, for example, is if one spouse has significant medical
bills. Such expenses are deductible only to the extent that they exceed 7.5% of
adjusted gross income. Splitting income on separate returns might squeeze out a
bigger medical deduction for one spouse, but only in very special circumstances
would the tax savings offset the cost of skipping the advantages that come by
filing a joint return. There are many factors to consider, some costly, before
filing separately:
-
One
spouse can’t claim the standard deduction if the other itemizes. If one
itemizes, both must.
-
On
separate returns, you can’t claim the child-care credit.
The $25,000 passive-loss allowance for active rental
real estate investors is not allowed on separate returns.
Q. What is the benefit of using the filing status
"head of household?"
A. If you can file as head of household, your tax rate
generally is lower than the rates for single people or people who are married
filing separately. You also receive a higher standard deduction
Head of household is one of five filing statuses you
can use when you file your tax return. Your tax bracket, your standard
deduction, and certain deductions and credits you're allowed to take depend on
your filing status.
To file as head of household, you must be unmarried
(or considered) on the last day of the year. You also must have paid more than
half the cost of keeping up a home for you and someone else for more than half
a year.
Q. My mom lives with us. Can we claim her as a
dependent?
A. Your mother is your dependent if she meets all five
of the dependency tests explained in what are the dependency tests?
If she meets all five dependency tests but she files
her own tax return anyway, you can still take an exemption for your mother, but
she can't claim her own personal exemption on her return.
Even if she doesn't quite qualify as your dependent,
you might be able to deduct her medical expenses that you pay for.
Q. What's the advantage to having dependents?
A. How does claiming a dependent give you a tax
advantage? You can take one exemption for each person you can claim as a
dependent. Exemptions reduce your taxable income, because you can deduct
specific amounts, per person, from your taxable income.
Q. What are the dependency tests?
A. Anyone you want to claim as your dependent must
meet all of the following dependency tests:
·
Relationship.
Your dependent must have a certain family relationship to you or to your
spouse, OR be a member of your household for the entire year. Your dependent
doesn't have to be both related to you and live with you the entire year.
·
No
joint tax return. If your dependent is married, except in certain
circumstances, your dependent and his or her spouse may not file a joint income
tax return.
·
Citizen
or resident. Your dependent must be a citizen or resident of the
·
Income.
Except for dependent children under 19, or a dependent child who is a full-time
student under the age of 24, your dependent's income must be less than the
amount allowed for a dependency deduction. In 2003, this amount is $3,050.
·
Support.
You must provide more than half of your dependent's support during the year, in
most cases. The main exception is if you are part of a multiple support
agreement team where no one person pays more than half the support of your
dependent, you may be able to claim a dependency exemption if you and the other
supporters agree to give the exemption to you. If you are a single parent,
there are other special rules that may be in your favor.
Q. How much do I get to deduct for a dependent?
A. In 2003, the amount you can deduct (called an
"exemption") for a dependent on your tax return is $3,050. This
amount usually increases each year.
If you have two dependents, you can deduct $3,050 per
dependent, for a total deduction of $6,100. If you have three dependents, the
total deduction is $9,150, and so on.
There is a limit, though. If you're a high-income
taxpayer, your deductions for exemptions may be phased out. This means that at
a certain income, you can't take the full deduction of $3,050 per dependent in
2003. At even higher incomes, the deduction amount for your dependents is zero.
Q. Can we still claim our 21-year-old daughter as a
dependent?
A. The rule is that you can claim your daughter as a
dependent as long as she is either under 19 or a full-time student age 24 or
under, and you provide at least half of her support.
Q. Who is considered a student?
A. To qualify as a student, your daughter must have
been, during some part of each of five calendar months (not necessarily
consecutive) during 2003:
·
A
full-time student at a school that has a regular teaching staff, a regular
course of study, and a regularly enrolled student body in attendance; or
·
A
student taking a full-time, agricultural-related training course on a farm,
given either by a school like that just described or by a state, county, or
local government.
A full-time student is someone who is enrolled for the
number of hours or courses the particular school considers to be full-time
attendance.
The term "school" includes elementary
schools; junior and senior high schools; colleges; universities; and technical,
trade, and vocational schools. It does not include on-the-job training courses,
correspondence schools, or night schools.
Q. What is considered support?
A. To figure out if you provided more than half of her
support, you must first determine the total support provided. Total support
includes amounts spent to provide food, lodging, clothing, education, medical
and dental care, recreation, transportation, and similar necessities.
None of these expenses is tax deductible, but they all
count toward support in determining whether you can claim her as a dependent.
If your daughter received any tax-free scholarships or
grants while she was a full-time student, they are considered part of her
income. You may be able to ignore these amounts when you consider whether you
provided more than half of her support.
Q. My child is a student attending college and working
part-time. Does he have to file a tax return?
A. Whether he has to file a tax return depends on his
filing status, age, and gross income. Assuming he is a
Q. My daughter is my dependent and receives dividend
income. Does she need to file a federal income tax return?
A. A federal income tax return usually must be filed
for a child whose income included investment income, such as interest and
dividends, and totals more than $750. There are special rules that affect the
tax on certain investment income of a child under age 14.
INVESTMENT
Q. I own stock which became worthless last year. Can I
take a bad debt deduction on my tax return?
A. If you own securities and they become totally
worthless, you can take a deduction for a loss, but not for a bad debt.
The worthless securities are treated as though they
were capital assets sold on the last day of the tax year if they were capital
assets in your hands.
Q. How Are Interest & Dividends Taxed?
A. You are taxed on interest or dividends paid or
credited to you during the year. The amounts reportable on your tax return will
usually be shown on Form 1099-INT or Form 1099-DIV you receive from the payer during
the year. However, this income is reportable even if you did not receive such a
document.
Q. How Do I Determine My Gain or Loss on Stock or
Mutual Funds?
A. If you sell shares in a mutual fund, even if you
"reinvest" the proceeds in another fund, the transaction is
considered the sale of stock and reportable on Form 1040, Schedule D.
The mutual fund should issue you Form 1099-B showing
the gross proceeds of the shares you sold. Some companies will also include an
"average cost basis" statement, which saves you the trouble of
calculating the cost basis of the shares you sold.
Other Income and Adjustment
Q. I received a Form 1099-G, for my state tax refund.
Do I have to include this amount as income on my return?
A. If you itemized deductions on your federal tax
return for 2002 or a prior year, and received a refund of state or local taxes
in 2003, you may have to include all or part of the refund as income on your
2003 tax return.
If you did not itemize your deductions on your federal
tax return for the same year as the refund, do not report any of the refund as
income.
Q. I received an academic scholarship that is
designated to be used for tuition and books. Is this taxable?
A. Qualified scholarships and fellowships are treated
as tax-free amounts if all of the following conditions are met:
You are a candidate for a degree at an educational
institution,
Amounts you receive as a scholarship or fellowship are
used for tuition and fees required for enrollment or attendance at the
educational institution, or for books, supplies, and equipment required for
courses of instruction, and
The amounts received are not a payment for your
services.
Q. Are child support payments considered taxable
income?
A. No. Some types of income taxpayers receive are not taxable
and child support is one of them. When you total your gross income to see if
you are required to file a tax return, do not include your nontaxable income.
Q. Are gifts, bequests, or inheritances taxable?
A. Generally, property you receive as a gift, bequest,
or inheritance is not included in your income. However, if property you receive
this way later produces income such as interest, dividends, or rentals, that
income is taxable to you.
Q. Is the money received from my settlement taxable?
A. For court awards and damages, to determine if
settlement amounts you receive by compromise or judgment must be included in
your income, you must consider the item which the settlement replaces. Include
the following as ordinary income:
-
Interest
on any award.
-
Compensation
for lost wages or lost profits in most cases.
-
Punitive
damages.
-
Amounts
received in settlement of pension rights (if you did not contribute to the
plan).
Damages for:
-
Patent
or copyright infringement.
-
Breach
of contract.
-
Interference
with business operations.
-
Any
recovery under the Age Discrimination in Employment Act.
Do not include in your income compensatory damages for
the following: Personal physical injury or physical sickness (whether received
in a lump-sum or installments).
Special rules apply for amounts received after
-
Damages
to your character.
-
Alienation
of affection.
-
Surrender
of custody of a minor child.
Q. I want to establish an individual retirement
arrangement (IRA) for me and my spouse but I need additional information. What
is the most I can contribute during the tax year?
A. Both you and your spouse can contribute up to
$3,000. Individuals age 50 and over can make an additional $500 contribution,
raising their maximum contribution limit for 2003 to $3,500.
Q. Can I deduct alimony paid to my former spouse?
A. If you are divorced or separated, you may be able
to deduct the alimony or separate maintenance payments that you are required to
make to your spouse or former spouse, or on behalf of that spouse.
Q. I moved to a different state to accept a new job.
Will I be able to deduct all of my moving expenses?
A. If you moved because of a change in your job
location or because you started a new job, you may be able to deduct your
moving expenses. To qualify for the moving expense deduction, you must meet two
tests. The first test is distance. The second test concerns time. You can only
deduct certain moving expenses that were not reimbursed by your employer.
Q. Can I take a deduction for the interest I paid on
my student loan?
A. Taxpayers who have taken loans to pay the cost of
attending an eligible educational institution for themselves, their spouse, or
their dependent generally may subtract from income the interest they pay on
these student loans.
Q. What Income Is Tax Free?
A. Interest on municipal obligations is generally
tax-free, though it has to be listed on Form 1040. Some municipal interest may
be subject to the Alternative Minimum Tax.
Other tax-free income generally includes life
insurance payments received on death of the insured, compensatory settlements
for physical injuries (such as in a car accident), gifts, health or accident
insurance proceeds (unless you deducted the expenses on a previous return and
received a tax benefit), child support, scholarships and grants used for
educational expenses (not board), veteran's benefits, welfare benefits, food
stamps, workmen's compensation benefits, rebates on purchases of personal
property, most inheritances.
Q. Are Lawsuit or Accident Settlements Taxable?
A. Settlements to compensate you for physical injuries
or sickness suffered in an accident are tax-free. So is the amount paid to
compensate you for loss of your car, or medical expenses, except to the extent
that those expenses were deducted in an earlier year and provided a tax
benefit.
Punitive damages awarded in a lawsuit, and any damages
award for non-physical injuries, are generally taxable.
Your legal expenses in obtaining a judgment in your
favor can be deducted only in the same proportion as the resulting damages are
taxable to you. For example, if your attorney won damages for your physical
injury that were 80% compensatory (not taxable) and 20% punitive (taxable),
only 20% of the fee paid to him can be claimed as a miscellaneous itemized
deduction, subject to the 2% of AGI limitation.
Q. What Moving Expenses Are Deductible?
A. If you incur moving expenses in connection with a
change in work location, some of your expenses may be deductible, whether or
not you can itemize deductions.
In order to qualify for any deduction, your new
principal work place must have increased your potential commute by 50 or more
miles. That is, the distance from your new work place to your old home is at
least 50 miles more than the distance from your old workplace to your old home.
Also, you must be employed at your new location for at
least 39 weeks during the 12 months following your move. If you are self-
employed, you must work full time in that general area for at least 39 of the
12 months following the move, and 78 weeks during the first two years. (These
rules do not apply if you retire due to disability, or you are laid off or
terminated for a reason other than misconduct.)
Form 3903 lists the deductible expenses, which are:
-
Transportation
and storage of household goods and personal effects during the move, and
-
Travel
and lodging (but not meals) of moving you, your spouse and dependents, from
your old to your new residence. If you use your personal vehicle, you can
deduct either the actual expenses involved for gas and oil (but not
maintenance, insurance or depreciation), or a flat 9 cents per mile.
You may NOT deduct:
-
pre-move
house-hunting trips
-
temporary
living expenses
-
costs
of selling/renting/buying your old or new home.
If you are reimbursed by your employer for deductible
moving expenses, the total of those reimbursements will be listed as a
"memo entry" on Form W-2, but will NOT be included in your taxable
wages. No deduction is allowed or necessary.
However, if your employer paid other expenses for your
relocation that are not allowed as deductible moving expenses, these are taxed
to you as additional wages.
Itemized Deductions
Q. Should I itemize?
A. Itemize your deductions if they total more than
your standard deduction.
You can either itemize (or deduct) the
expenses or take the standard deduction. Choose the one that benefits you the
most -- you can't do both.
Q. What is the standard deduction?
A. You can take either the standard deduction or you
can itemize your tax-deductible expenses.
The standard deduction for 2003 depends on
your marital status, as follows:
Filing
status Standard
Deduction
-
Single $4,750
-
Unmarried
head of Household $7,000
-
Married
filling joint or $9,500
-
Qualifying
widow(er) $9,500
-
Married
filing separate $4,750
Additional standard deduction
You are also allowed an additional standard
deduction of $1,150 for a single taxpayer ($900 per spouse if filing jointly)
if one of the following circumstances is true:
·
You
are age 65 or older by the end of the year (you are considered to be 65 on the
day before your 65th birthday).
·
You
are blind as of the last day of the year (you are blind if either: you cannot
see better than 20/200 in your better eye with glasses, or your field of vision
is not more than 20 degrees).
Q. What types of itemized
deductions can I take?
A. There are six main categories of itemized expenses
that you can deduct on your taxes:
·
Medical
and dental expenses
·
Taxes
·
Interest
expense
·
Charitable
contributions
·
Casualty
and theft losses.
·
Miscellaneous
Deductions
Q. Are there any limits
to the itemized amounts I can deduct?
A. You can deduct only certain amounts of some types
of itemized deductions. The amount you can deduct is based on different limits,
depending on the type of itemized deduction.
Floors
Most of the limits are figured using a
percentage of your adjusted gross income (AGI).
Your actual deduction will be calculated by
taking your total expense, for that type of deduction, and then subtracting the
appropriate percentage of your AGI.
For example, your miscellaneous itemized
deductions must be greater than 2% of your adjusted gross income before you get
a tax benefit for any of those expenses.
This type of percentage limit is called a
floor, because you have to come up to the floor before you can start deducting
any of the expenses.
Itemized deductions
Here are some of the expenses you can
deduct and their limitations:
Medical and dental expenses
As a general rule, you can deduct any
expense you pay for the prevention, diagnosis, or medical treatment of physical
or mental illness, and any amounts you pay to treat or modify any structure or
function of the body for health purposes (but not for cosmetic reasons). You
can also deduct transportation costs for getting to where you can receive this
kind of medical care, your health insurance premiums, and your costs for
prescription drugs and insulin.
Your medical expenses must equal at least
7.5% of your adjusted gross income before they give you a tax benefit. This
means that the medical expenses needed to meet the 7.5% floor don't give you a
tax benefit.
Interest expense
Interest on both your primary residence and
one other residence is deductible.
The limits on deductible home mortgage
interest expense are:
·
You
can deduct interest on up to $1,000,000 in acquisition debt (which usually is
your original mortgage).
·
You
can deduct interest on up to $100,000 in home-equity debt.
Personal interest (such as credit card
debt) is not deductible. However, the Taxpayer Relief Act of 1997 gave us new
law that might allow you to deduct interest paid on student loans beginning in
1998. The best part about the new law is that you can take the deduction even
if you don’t itemize deductions.
Charitable contributions
Deduct your charitable contributions in the
year you make them. For most contributions, the maximum you can deduct in one
year is 50% of your adjusted gross income. However, there are certain types of
contributions that have a limit of 20% or 30% of your adjusted gross income.
If your contributions go over the limit,
you can carry the unused deduction forward to the next tax year. However, be
sure to enter all of your contributions on this year’s return, or the IRS won’t
know why you are claiming a carryover deduction next year.
Casualty and theft losses
For most personal casualties and thefts,
deduct the loss in the year it happened. If you have a loss in a federally
declared disaster area, you might be able to deduct the loss in another year.
The limit on casualty and theft loss
deductions, for non-business property, is:
·
The
total of your casualty and theft losses must be more than 10% of your adjusted
gross income (AGI), plus $100, before you will receive a tax benefit.
Miscellaneous deductions
Miscellaneous deductions are usually
unreimbursed employee expenses or business and investment expenses.
The total of your miscellaneous deductions
must be more than 2% of your adjusted gross income before you can start
deducting anything.
The floor on miscellaneous deductions is 2%
of your adjusted gross income.
Let’s say your adjusted gross income is
$10,000, so 2% of $10,000 is $200. This means that to meet the 2% floor, you
must have at least $200 in miscellaneous expenses.
However, only the amount over the $200
actually reduces your taxable income.
Now let’s say that you have $500 in
miscellaneous expenses. The first $200 meets the 2% floor limit, leaving you
with $300 that you can deduct from your taxable income.
Q. May I deduct my home improvements and repairs to my
home?
A. Home improvements add to the value of your home,
prolong its useful life, or adapt it to new uses. You add the cost of
improvements to the basis of your property.
Examples of improvements include putting a recreation
room in your unfinished basement, adding another bathroom, or bedroom, putting
up a fence, putting in new plumbing or wiring, putting on a new roof, or paving
your driveway.
Q. I took an accounting course in order to keep my
salary on my current job. My employer did not reimburse me for the expenses.
Can I take a deduction on my tax return for the cost of the course?
A. You may be able to deduct work-related educational
expenses as an itemized deduction on Form 1040, Schedule A. To be deductible,
your expenses must be for education that:
Maintains or improves skills required in your present
job, or
Serves a business purpose and is required by your
employer, or by law or regulations, to keep your salary, status, or job.
Your expenses are not deductible if the education is
required to meet the minimum educational requirements of your job or is part of
a program that will lead to qualifying you in a new trade or business.
Q. How do I deduct and substantiate my gambling
losses?
A. You can deduct gambling losses only if you itemize
deductions. Claim your gambling losses as a miscellaneous deduction on Schedule
A, Form 1040. However, the amount of losses you deduct cannot total more than
the amount of gambling income you have reported on your return. It is important
to keep an accurate diary or similar record of your gambling winnings and
losses.
Q. I just bought a home. What can I deduct from the
settlement statement?
A. If you bought your home, you probably paid settlement
or closing costs in addition to the contract price. These costs are divided
between you and the seller according to the sales contract, local custom, or
understanding of the parties. If you built your home, you probably paid these
costs when you bought the land or settled on your mortgage.
The only settlement or closing costs you can deduct
are home mortgage interest and certain real estate taxes. You deduct them in
the year you buy your home if you itemize your deductions. You can add certain
other settlement or closing costs to the basis of your home. There is some
settlement or closing costs that you cannot deduct or add to the basis.
Real estate taxes are usually divided so that you and
the seller each pay taxes for the part of the property tax year that each owned
the home.
Q. My spouse and I are filing separate returns. How
can we split our itemized deductions?
A. If you and your spouse file separate returns and
one of you itemizes deductions, the other spouse will not qualify for the
standard deduction and should also itemize deductions.
You may be able to claim itemized deductions on a
separate return for certain expenses that you paid separately or jointly with
your spouse. Deductible expenses that are paid out of separate funds, such as
medical expenses, are deductible by the spouse who pays them. If these expenses
are paid from community funds, the deduction may depend on whether or not you
live in a community property state. In a community property state, the
deduction is divided equally between you and your spouse.
Q. What is "Itemizing" and is it beneficial
to me?
A. "Itemizing" is listing on the Schedule A
of Form 1040 all amounts you paid during the year for certain items such as
medical and dental care, state and local income taxes, real estate taxes, home
mortgage interest, and gifts to charity.
When you complete your list, you total the amount
spent and compare the total with your standard deduction. The larger of the two
deductions, standard or itemized, will be the deduction to choose, since it
will lower the amount of federal income tax you will owe.
Q. I refinanced my home last year and paid points. Are
they all deductible this year?
A. No. Points paid solely to refinance your home
mortgage cannot be deducted in the year paid. Instead, they must be deducted
over the life of the loan.
Q. What Taxes Are Deductible?
A. You can deduct, on Schedule A as an itemized
deduction, certain taxes that were imposed on you that you paid during the
year. You cannot deduct taxes paid for another party, if you are not also
liable for payment of the tax.
Deductible taxes include:
·
State
and local income tax.
·
Payments
to certain state benefit funds (including
·
Foreign
income taxes (unless you elect to claim the credit on Form 1116).
·
Real
estate taxes on property you own (but not just amounts impounded by the
mortgage company, until the taxes are actually remitted to the taxing
authority).
·
Your
share of real estate taxes on a co-op apartment.
·
Personal
property taxes.
You CANNOT deduct:
·
Federal
income taxes.
·
FICA
tax withheld.
·
Charges
imposed by taxing districts for improvements or services, such as garbage
collection or sewers.
·
Sales
taxes.
·
Federal
and state excise taxes.
·
Fees
for drivers licenses, dog licenses, hunting or fishing licenses.
Q. What Interest Is Deductible?
A. You can deduct on Schedule A interest that
qualifies as home mortgage interest. This includes two categories:
·
Interest
on loans used to buy or improve your primary or second residence, and secured
by either of those properties. The total debt cannot exceed one million
dollars.
·
Interest
on a loan secured by your primary or second residence that does NOT qualify
under the previous heading. This would be considered home equity debt, and such
loans cannot exceed an additional $100,000.
A "second home" can include a house, cabin,
boat, travel trailer or motor-home, as long as it contains sleeping, toilet and
kitchen facilities. Interest on loans that are for boats, trailers or
motor-homes are not deductible for purposes of calculating the Alternative
Minimum Tax.
You can also deduct "Points" paid on loans
used for the purchase, refinancing or improvement of your primary or second
home, but pro- rata over the life of the loan. [For example, if you refinanced
your 30 loan in August, you can deduct 5/360ths of the Points paid in that
year.] The Points paid must be expressed (as a loan origination fee or loan
discount) on the closing settlement statement, and must not be excessive for
such loans.
There is an exception for Points paid on the original
purchase of a primary residence. You can deduct the points paid, by you OR the
seller, in full, in the year of purchase.
If you pay off or refinance a loan on which you have
been writing off Points over a period of months, you can deduct any unamortized
points in full when that loan is paid off.
You can also deduct interest incurred on loans to
carry investment property, including margin loan interest and loans to invest
in a partnership or corporation business. The deduction is limited to
investment income received during the year, and is computed on Form 4952.
Q. What Are Deductible "Investment"
Expenses?
A. In general, expenses related to the production of
taxable investment income are deductible as miscellaneous itemized deductions
subject to the 2% of AGI limitation.
These would include investment advice fees,
publications, brokerage fees (if for purchase or sale of securities, these are
instead considered part of the tax basis of the security), software for
investment tracking, pro-rated costs of a computer used for investments
purposes (See separate FAQ regarding computers), online service charges
incurred for investment advice access, postage and telephone charges regarding
investments, etc.
You may not deduct travel as an investment expense.
Q. What Are Employee Business Expense?
A.
·
If
you travel on business, either in-town or out-of-town, and your employer does
not reimburse your expenses, you may deduct many of them on your income tax
return.
·
If
you entertain a business associate at a restaurant, you can deduct 50% of the
business-related meal. Be sure to keep the receipts and a record of the
business purpose.
·
Your
professional library can also be a source of tax deductions. Books, magazines
and journals related to your field can be deducted.
·
The
uniform your company requires you to wear may also be a deduction. If the
uniform is not suitable for everyday wear, the cost of the uniform and the
upkeep may be deductible.
·
Education
expenses related to your work may also be deductible. Courses designed to help
maintain your skills in your present job are generally deductible. Plus, the
mileage from work to school, usually one way only, is deductible.
·
If
you are looking for a job in your same field, expenses such as employment
agency fees and resume preparation are deductible. So are the miles driving to
and from the interview? The expenses for an out-of-town interview are
deductible if you are paying for them.
·
Out-of-town
conventions can also be deducted if not paid for by your company, so save
receipts for your lodging and meals. If the convention was in town, your
mileage to and from the convention location may be deductible.
Credits
Q. Is any of the money I pay for daycare tax
deductible?
A. You may be able to deduct 20% to 30% of your
daycare expenses directly from your tax bill, as long as your expenses are to
enable you to work or look for work. The best part of this is that you don't
have to itemize your deductions to claim this credit.
Q. Can I get the earned income credit?
A. You may be able to take this credit if a child
didn't live with you and you earned less than $11,230 (12,030 for MFJ)). You
may also be able to take this credit if a child lived with you and you earned
less than $29,666 (with one qualifying child). Other rules apply.
Q. Can I claim the child and dependent care credit?
A. If you paid someone to care for your dependent
under age 13 or your disabled dependent or spouse so that you could work or
look for work, you may be able to claim the credit for child and dependent care
expenses.
Q. What is Child Care Credit or Reimbursement?
A. If you have a child under the age of 13, or a
dependent or spouse who is physically or mentally incapable of caring for
him/her, you are allowed a tax credit based on the expenses you incur for their
care while you work or attend school. In general, you can claim the credit up
to $3,000 worth of qualifying expenses for one child or dependent, and $6,000 if
the care is for two or more. The minimum credit percentage is 35%, with the
calculation made on Form 2441. The amount of qualifying expenses cannot exceed
your income from your work.
If your employer provides day care, or a plan that
reimburses you for day care expenses, you can exclude this from your income up
to $5,000 per year. It is required that you meet the criteria above, and that
you file Form 2441 with your return for that year, to elect the exclusion.
Child care expenses for which you were reimbursed do not qualify for the credit
explained above. And if your reimbursements exceed the $3,000/$6,000 maximums
explained above, any additional costs you pay directly will not qualify for the
credit.
In order to claim the tax credit or employer
reimbursement exclusion, you must file Form 2441 with your tax return for that
year. On it, you provide the name, address, Social Security number (Employer ID
number, if a commercial business or child care center) of EACH child care
provider, and the amounts paid to them.
Q. What is Earned Income Credit?
A. For 2003, if you have earned income, and have a modified
AGI of not more than...
·
$11,230
(12,230 for MFJ) if you have NO qualifying children
·
$29,666
(30,666 for MFJ) if you have ONE qualifying child
·
$33,692
(34,692 for MFJ) if you have TWO OR MORE qualifying children
You may qualify for the Earned Income Credit. This
credit is calculated based on the instructions and tables provided in your tax
form instructions, and is a refundable credit.. meaning you can receive it back
even if you had no taxes withheld and didn't need to file a return! The AGI
limits are the same for unmarried individuals or married couples filing
jointly; the credit is not available if you are married and filing separately.
A "qualifying child" is generally your son,
daughter, grandchild, stepchild or foster child, who was under age 19 at year
end (under 24 if a full-time student for at least part of five months of the
year). He or she must have lived with you in your home for at least six months
of the year, counting temporary absences for school or vacation. If a foster
child, he or she must have lived with you all year. A child who is permanently
and totally disabled also qualifies, regardless of age.
Q. What is Child Tax Credit?
A. There is a new CHILD TAX CREDIT for taxpayers who
have one of more qualifying dependent children under age 17 at the end of the
tax year. (Note: If filing separately or divorced, only the parent who claims
the child as a dependent qualifies for this credit.)
The credit is $1000 per child for 2003.
The basic Child Tax Credit can directly reduce a tax
liability, dollar for dollar, but is not refundable if it exceeds your tax
liability.
Q. What are Hope & Lifetime Learning Credits?
A. The 1997 tax act established two distinct new
higher education, the Hope Scholarship Credit, and the Lifetime Learning
Credit. These are available for qualifying expenses paid (and for courses
started) after
Both credits are based on "qualified higher
education expenses" which include tuition and course fees, but NOT books,
board, meals, transportation or other "fees" assessed by the
educational institution. Elective courses (no degree credit) involving sports,
games or hobbies do not qualify. Also excluded are tuition and fees paid
through employer reimbursement plans, scholarships and fellowships, courses
deducted as a business expense, courses paid through a distribution from an
Educational IRA, or excluded interest from a series "EE"
Amounts paid with gifts from private individuals do
qualify for the credit. The qualifying expenses must be paid during the tax
year for courses that begin during that same tax year (or within three months
of the start of the following year).
The expenses must be paid for the taxpayer, his
spouse, or someone who is the taxpayer's dependent for the tax year. (Dependent
filers can not claim the credit. Only the parent claiming the child can claim
the credit, even if the child paid the expenses with his own money.)
The basic difference between the two credits:
The HOPE credit
covers only the first TWO years of post-secondary education, while the Lifetime
Learning credit can apply all the way through grad school (and even for
qualifying courses that do not lead to any kind of a degree or certificate).
The HOPE credit
requires that the student attend at least "half time" (as defined by
the school) and is studying toward a degree or recognized certification. (There
are no such restrictions in the Lifetime Learning credit. Elective courses to
improve one's job skills will qualify.)
The HOPE credit
limitations apply per STUDENT, while the Lifetime Learning credit limits apply
per TAXPAYER.
The HOPE scholarship credit permits a maximum credit
of two years $1,500 for the first of post credit is -secondary education. The
calculated as 100% of the first $1,000 in qualifying expenses, and 50% of the
next $1,000. The HOPE credit is not allowed for students who are convicted,
before the end of the tax year, of federal or state felony possession of a
controlled substance.
The Lifetime Learning credit is 20% of the first
$10,000 in qualified educational expenses that you paid for eligible students.
Business Income and Expenses
Q. I have a home office. Should I take the deduction?
A. Home office deductions can save you money on your
taxes, but you can take these deductions only if you have a legitimate business
at home and you use a space in your home strictly for business purposes.
A home office deduction often attracts the attention
of IRS auditors, so be sure your office space qualifies before you take the
deduction.
Q. I am a sole proprietor. Can I write off my medical
insurance premiums?
A. If you pay medical insurance premiums to cover your
employees, you can deduct that amount as an ordinary business expense right on
your Schedule C.
However, the premiums you pay for you and your family
get special tax treatment. Deduct a portion of these premiums right on the
first page of your Form 1040, and deduct the balance on Schedule A as an
itemized deduction.
Special break for you and your family
If you meet the requirements, you can deduct up to the
following percentages of your medical insurance premiums, right on the first
page of your Form 1040, whether or not you itemize your deductions:
|
Year |
Up to |
|
1998-2002 |
45% of
the cost |
|
2003 |
50% of
the cost |
|
2004 |
60% of
the cost |
|
2005 |
70% of
the cost |
|
2006 |
80% of
the cost |
Deduct the rest of the cost on Schedule A, just as
non-self-employed individuals do.
To deduct a percentage of your premiums on your Form
1040, you must meet the following requirements:
·
You
have sufficient net income from your self-employment business, and
·
Neither
you nor your spouse has medical insurance through your employment with someone
else.
Q. Are any of my business travel expenses deductible?
A. If you are employed by someone else, your best bet,
tax-wise, is to have your employer reimburse your travel expenses.
However, in general, deductible travel expenses are
those expenses you incur while you’re away from your main place of business.
They include the following:
·
Hotel,
motel, and other lodging expenses.
·
50%
of the cost of your meals and business entertainment.
·
The
cost of local transportation services while you’re at your travel destination.
·
The
cost of getting to and from your travel destination.
Tax Home
It is important to note that according to the IRS,
your expenses become "travel expenses" only when you’re traveling
away from your "tax home." This means that you are traveling away
from the area of your main place of business and you are away substantially
longer than an ordinary day’s work. The idea is that you are away so long that
you need to sleep or rest so you can do your job.
Transportation expenses
If you’re not traveling away from your tax home, your
expenses aren’t travel expenses. If you’re driving from job to job, or
traveling to meet clients or customers in your regular area of business, the
IRS calls these kinds of travel expenses "transportation" expenses.
Lavish or extravagant
If your travel expenses are "lavish or
extravagant," or beyond a reasonable amount, you won't be able to deduct
some of your travel costs.
Q. I use part of my living room as an office. Can I
take a deduction for business use of my home?
A. In general, if you use a part of your home for both
personal and business purposes, no expenses for business use of that part are
deductible. Exceptions apply for qualified day-care providers and for the
storage of inventory or product samples used in the business.
Q. I use my home for business. Can I deduct the
expenses?
A. If you use part of your home exclusively and
regularly as the principal place of business or as a place where you meet or
deal with customers, you may deduct expenses for use of part of your home.
Q. What are the standard mileage rates for 2003?
A. For 2003, the standard mileage rate is 36 cents a
mile for all business miles.
Q. For business travel, are there limits on the
amounts deductible for meals?
A. Meal expenses are deductible only if your trip is
overnight or long enough that you need to stop for sleep or rest to properly
perform your duties. Generally, the deduction for unreimbursed business meals
is limited to 50% of the cost.
Instead of keeping records of your meal expenses and
deducting the actual cost, you can generally deduct a standard meal allowance
ranging from $30 to $42 depending on where and when you travel.
Q. Are business gifts deductible?
A. If you give business gifts in the course of your trade
or business, you can deduct the cost subject to special limits and rules. In
general, you can deduct no more than $25 for business gifts you give directly
or indirectly to any one person during your tax year. Exceptions may apply.
Q. What kinds of property can be depreciated for tax
purposes?
A. Only property used in a trade or business or to
produce income can be depreciated. The kinds of property that can be
depreciated include machinery, equipment, buildings, vehicles, and furniture.
Depreciation is a very complex subject.
Rental Income and Expenses
Q. What is considered rental income?
A. Some examples are:
·
Payments
made by an occupant for the use of property
·
Payment
to cancel a lease
·
Advance
rent
·
Any
security deposit kept because a tenant did not fulfill their part of the rental
agreement
Q. What not to include?
A.
·
Security
deposit you are holding with the intent of returning it to the tenant at the
end of the lease
·
Income
received from renting your home for fewer than 15 days per year
Q. What deductions can you take as an owner of rental
property?
A.
·
Advertising
in the newspaper for tenants and cost of signs
·
Cleaning
supplies
·
Real
estate taxes in year paid
·
Mortgage
and other interest paid for the rental use
·
Cost
of insurance-hazard, flood, fire, liability
·
Payments
for janitorial, pest control and trash collection services
·
Payments
to people who maintain the property
·
Tax
advice and preparation fees for the part of the tax return dealing with rental
property
·
Cost
of new locks and keys
·
Commissions
paid for finding tenants
·
Cost
of necessary transportation to and from the rental property for the purpose of
maintenance, management, rent collection, picking up supplies, or checking the
property. If you use your personal vehicle, either keep track of actual
expenses or the miles traveled.
·
Cost
of repairs and maintenance (not improvements) to keep your property in good
condition. This includes items such as repainting and fixing floors and
windows.
·
Cost
of renting equipment used for rental property
·
Depreciation
of the property (not including the land)
·
Depreciation
of appliances purchased as replacements
·
Any
long distance calls associated with your rental
·
The
court costs and attorney fee for evicting a tenant
·
Property
expenses incurred between rental periods as long as you are actively trying to
rent the property, even if you are renting it for the first time
Q. What can you not deduct?
A.
·
Rent
lost due to vacancy
·
The
cost of improvements which increase the value and extend the life of the property
or modify it for a new use. This includes such things as a room addition,
fencing or a new roof. These items can generally be depreciated.
Q. What should I know?
A.
·
If
you rent only part of your property, certain expenses must be divided between
the part used as rental property and the part used for personal purposes
·
When
a rental property is sold, ordinary income and capital gain may be recognized
Payment and Filling Options
Q. What is electronic filing (e-filing)?
A. Electronic filing means you
transmit your return to the IRS by computer instead of you mailing it to them
by
Q. What is the advantage of electronic filing?
A. The advantage is that you
receive your refund in about two weeks instead of the usual ten weeks. Another advantage
is there are fewer IRS errors because human data entry is eliminated.
Q. How long does the whole electronic
filing/refund process take?
A. Your refund should arrive
within 8 to 11 days of being e-filed. Average total time - about one to two weeks.
Q. How much does it cost to electronic file?
A. Electronic filing adds $35 to
your return preparation fee.
How much does it cost?
Prices for Tax Year 2004:
-
Basic
Return Package - $45.00
(Includes: Federal form 1040 with Unlimited W-2’s & NY or NJ State Return)
-
Itemized
Deduction, None Cash Contribution and Moving Expenses add $10.00
-
Earned
Income Credit, Child Care Credit and Education Tax Credit add $10.00
-
Business
Owners & Self Employment Tax add $10.00
-
Sales
of Stocks & Bonds add $15.00
-
For
any additional State Tax Return - add
$20.00
-
Electronic
Filing: for Federal add $20.00, for State add $15.00
-
Federal
and State Extension of Time to file $15.00
Please call us
today at (917) 826-6832 for new client discount & free consultation.
