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Category Archives: News To Know

IRS Has Announced Dates for Accepting 2017 Tax Returns

The IRS has announced it will begin accepting tax returns on Monday, January 292018. The PATH act of 2015 is still in place which means returns with refunds from the Earned Income Credit & the Additional Child Tax Credit will not be released until mid-February or later. Changes for recently passed legislation, the Tax Cuts and Jobs Act, will actually take effect with the 2018 returns which are filed in 2019, however, new withholding tables for 2018 are supposed to reflect these upcoming changes without most taxpayers needing to adjust their W-4s per the IRS .

Every tax season brings new misinformation amidst tax law changes. The best place to receive accurate information is with a Tax Professional, rather than your neighbor, co-worker, friend, or family member. Heather Worrell, Enrolled Agent and owner of A Tax Haven, has been an active tax professional in the tax industry since 1988. She is also an Endorsed Local Tax Provider (ELP) for financial expert, Dave Ramsey, and has studied and still uses many of his financial principles. She invites you to visit her webpage, www.ataxhaven.com, for posts concerning financial and tax issues.

A Tax Haven is now providing Advance Loans of up to $2500 for those who qualify and choose that option. We strive to keep our fees reasonable. To someone who normally goes to the “tax chains”, we invite them to make an appointment and experience the pleasant difference in services and fees that we provide. A Tax Haven reminds taxpayers that computer software is only as knowledgeable as the one who inputs the information, and we have had to correct many costly mistakes when taxpayers have chosen to file their own returns online. Our goal is to assist our clients in receiving every deduction they are eligible for, to educate them on proper tax record keeping, and to help them keep as much of their hard-earned money in their own pockets as possible.

A Tax Haven offers year-round services for individuals and businesses, bookkeeping, payroll, new business setup, W-2 and 1099 preparation, audit representation, multi-states, prior tax years, and assistance with tax problems. A Tax Haven is located at 929 Airport Road, Suite 202, by the Lock-N-Stor. Regular hours are 9 a.m. to 6 p. m. Monday through Friday, and drop offs and walk ins are welcome. Later hours and Saturday appointments are also available. Rather than spending countless hours trying to figure out the latest rules and forms, call 262-1040, and make an appointment today.

2017 TAX RETURN RATES (returns filed in 2018)

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2018 Tax Highlights Video

2018 Tax Highlights Video – Click Here To See!

Tax Rates & Deductions- 2016 Tax Returns

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Tax Rates & Deductions- 2015 Returns

TAX RATES & DEDUCTIONS FOR 2015 TAX RETURNS/ FILED IN 2016:

TAX RATES:

SINGLE: TAXABLE INCOME
0 to 9225                   X           10%          Minus         0.00                 Equals TAX
9226 to 37450           X           15%          Minus         461.25             Equals TAX
37451 to 90750         X           25%          Minus         4206.25           Equals TAX
90751 to 189300       X           28%          Minus         6928.75           Equals TAX
189301 to 411500     X           33%          Minus         16393.75         Equals TAX
411501 to 413200     X           35%          Minus         24623.75         Equals TAX
413201 and up          X           39.60%     Minus         43630.95         Equals TAX

MFJ/QW:TAXABLE INCOME
0 to 18450                 X           10%          Minus         0.00                 Equals TAX
18451 to 74900         X           15%          Minus         922.50             Equals TAX
74901 to 151200       X           25%          Minus         8412.50           Equals TAX
151201 to 230450     X           28%          Minus         12948.50         Equals TAX
230451 to 411500     X           33%          Minus         24471.50         Equals TAX
411501 to 464850     X           35%          Minus         32701.00         Equals TAX
464851 and up          X           39.60%     Minus         54084.10         Equals TAX

HOH: TAXABLE INCOME
0 to 13150                 X           10%          Minus         0.00                 Equals TAX
13151 to 50200         X           15%          Minus         657.50             Equals TAX
50201 to 129600       X           25%          Minus         5677.50           Equals TAX
129601 to 209850     X           28%          Minus         9565.50           Equals TAX
209851 to 411500     X           33%          Minus         20058.00         Equals TAX
411501 to 439000     X           35%          Minus         28288.00         Equals TAX
439001 and up          X           39.60%     Minus         48482.00         Equals TAX

MFS: TAXABLE INCOME
0 to 9225                   X           10%          Minus         0.00                 Equals TAX
9226 to 37450           X           15%          Minus         461.25             Equals TAX
37451 to 75600         X           25%          Minus         4206.25           Equals TAX
75601 to 115225       X           28%          Minus         6474.25           Equals TAX
115226 to 205750     X           33%          Minus         12235.50         Equals TAX
205751 to 232425     X           35%          Minus         16350.50         Equals TAX
232426 and up          X           39.60%     Minus         27042.05         Equals TAX

STANDARD DEDUCTIONS:

SINGLE/MFS             6300
MFJ/QW                    12600
HOH                           9250

Additional added if 65 or older or blind/per person, per event:
MFJ/QW/MFS            plus 1250
S/HOH                       plus 1550

PERSONAL EXEMPTIONS:      4000 Per Person

STANDARD MILEAGE RATES:

BUSINESS                 57.5 Cents per Mile
CHARITABLE            14 Cents per Mile
MEDICAL                   23 Cents per Mile
MOVING                    23 Cents per Mile

EIC MAXIMUM INCOME LIMITS:
CHILDREN:           NONE              1                 2                  3
MFJ                       20330        44651        49974          53267
S/HOH/QW           14820        39131         44454         47747

A TAX HAVEN 501-262-1040 ataxhaven.com

Tax Pocket App Lends a Helping Hand to Taxpayers

Visit your App Store (Apple App Store and Google Play) and add Tax Pocket to your favorite device!

Tax Pocket combines several powerful features into one solution for fast, accurate, and secure tax record keeping and reporting.

Choose Heather Worrell, Profile ID #58074 / A Tax Haven as your Tax Professional, and your helping hand will be ready to start tracking mileage and  expenses.

It offers a Mileage Tracker, My Tracker– this is customizable and keeps records of business expenses, medical expenses, childcare expenses, charitable donations, travel expenses, business meals, education expenses, etc., Direct Access to contact A Tax Haven, an Event Calendar for tax deadlines, a Notification Tray for tax messages, a Tax Organizer, and a Newsletter. You can even add receipts! Best of all, you can send a detailed report to yourself or to me- Your Tax Professional at A Tax Haven!

What an awesome way to relieve some of that tax time stress!

 

IRS Begins Accepting Returns January 20th, 2015

Despite rumors of the IRS starting tax season later than the previous years, the IRS has now said it will begin accepting tax returns on January 20, 2015. Congress did indeed seem to drag their feet for quite awhile, knowing many Tax-Extenders had expired at the end of 2013, but thankfully, they finally decided to continue with many of the Tax-Extenders, and the legislation was signed into law on Dec. 19, 2014. Unfortunately, they only extended them through Dec. 31, 2014! It would make more sense for them to set a longer extension, instead of having to revisit this topic at the last minute each year. But, oh the politics!

Some of the popular tax breaks that were extended for 2014 include:

Educator Expense- up to $250

Deduction of PMI (Private Mortgage Insurance)

Deduction of State Sales Tax in lieu of State Income Tax

Mortgage Debt Forgiveness

Tax-Free Distributions from an IRA for Charitable Purposes

Increased Section 179 Expense Limits

 

2015 Standard Mileage Rates

2015- Standard Mileage Rates

(cents per mile for 2015 Tax Returns)

Business                      57.5

Medical/Moving         23

Charitable                   14

Tax Rates – 2014 Returns

Federal Tax Rates for Tax Year: 2014

Single Taxpayers:

tax chart

Married Filing Jointly and Surviving Spouses:

 

 

 

 

Head Of Household:

Married Filing Separately:

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Education Credits – Items Needed

Educational Credits – Items Needed

Educational Credits can be confusing. Here is a list to help you gather the information you will need to bring to figure the credit properly:

Students need a 1098T from each school attended. Printing this out from the school’s website is usually best because it often contains more details.

This can also sometimes be printed from 1098t.com for just the form.

Also, it is best to bring a print out of the school account statements showing charges (tuition, fees, room & board, other expenses) and credits (scholarships, grants, payments, adjustments, etc.) for each term/semester attended (Spring, Summer, Fall (current tax year) and Spring (next year)) because sometimes this is included and/or has adjustments needed to calculate the credit properly. This is usually available on the school’s website. Even if you do not receive a 1098T, this statement is still necessary.

Also, the amount spent for book and supplies (calculator, specific software, art supplies, etc.) required for classes during the current tax year are needed. It is best to keep receipts.

Out-of-pocket expenses include those paid for with a student loan or paid by another person for the student, such as by a parent or grandparent.

Note if any of the scholarships or grants received are for a specified use- ex. books, room & board, etc. Scholarships received/used for room & board are taxable to the student.

It is also important to know what years the American Opportunity Credit or Hope Credit have previously been claimed for the student.

Also, bring information for any student loan interest paid or distributions received from an Educational Savings Plan.