Small Office Home Office (SOHO) Tax Tips

Those Hungry Coin Controlled Parking Meters

May 13, 2010 Income Taxes 13 Comments

A US Patent was issued to Dual Parking Meter Company located in Oklahoma City, OK, US on May 24, 1938 for a coin controlled parking meter “for measuring the time of occupancy or use of parking or other space, for the use of which it is desirous an incidental charge be made upon a time basis.”

Anatomy of Form 1040 and Adjusted Gross Income

May 4, 2010 Tax Strategies 18 Comments

We study anatomy to identify parts of the human body. We study physiology to understand how those human parts work together to, for example, find and digest food, procreate, and pay taxes. This simple study approach is the foundation of modern medicine and, for the most part, the basis for most of us living healthy and productive lives. We can apply this same study approach to personal federal income taxes; we need to first classify parts of a federal tax return and then study how parts work together to achieve one end; how much you owe in taxes. With every passing year and the passing of revisions in the income tax code, running your life is increasingly like running a home-based business. There is no valid disagreement that paying our share in taxes is clearly the responsible way to support, at the very least, our great nation but, we similarly want to exercise control over our lives and have the freedom and wherewithal to pursue our own bliss. Careful management of YOUR cash, YOUR credit, and YOUR taxes, now more than ever, are the foundation for maintaining financial health and achieving your life-time goals. Just like sports medicine attempts to optimize speed and strength through knowledge of anatomy and physiology, understanding the interaction of income with deductions and credits can similarly maximize a refund and minimize a tax liability.

Tax season sales are down for tax preparation services

Apr 21, 2010 Tax Changes Leave a comment

According to a Reuters News Release, H&R Block and Jackson Hewitt Tax Service sales dropped this tax season. The largest tax service, H&R Block Inc. (NYSE: HRB) based in Kansas City, MO, US with offices in the US, Canada, Australia, and the United Kingdom, reported a 5% drop in the number of tax returns filed for the 2009 tax year.  The tax service giant and its chief competitor, Jackson Hewitt Tax Service (NYSE: JTX) located in Norfolk, VA, US continue to lose market shares to online software like Turbo Tax.  Jackson Hewitt, with over 5,000 franchises in the US, was founded by John Hewitt, a former Block employee, in 1982.  Turbo Tax is the tax preparation software product of Intuit Inc. (NASDAQ: INTU) headquartered in Mountain View, CA, US.

Last Minute Tips from the IRS…

Apr 9, 2010 Tax Management 4 Comments

A recent list of last minute tips from the IRS includes the following -

• The world has changed. Avoid using paper tax forms. File electronically for free on IRS.gov using their Free File Fillable Forms or Traditional Free File.

Need to verify your $250 Economic Recovery Payment?

Mar 19, 2010 Income Taxes 4 Comments

Have questions about whether or not you received the $250 Economic Recovery Payment (ERP) in May, 2009?   Three different funding agencies are involved; Social Security Administration, Railroad Retirement Benefits or the Veterans Administration.  You will be required, for security reasons, to authenticate who you are.  Have your social security number, your date of birth and zip code (the one you used on your tax return) available.  You can either call 866-234-2942 and select #1 for the ERP question or use a web-based version of the information provided on the phone is available at:

http://www.irs.gov/individuals/article/0,,id=219514,00.html