by Lan N. Nguyen

With January nearly over and 1099s and W-2s arriving in the mail, it’s time to get serious about those tax returns. Before you fire up the software or the mobile app or talk to your accountant, Kathy Pickering, executive director of H&R Block’s Tax Institute, offers seven tips to help manage this stressful event:

Prepare Like Always

Tax season is a little strange this year. The deadline for filing tax returns with the Federal government and most states is April 18. However, Montana, Tennessee and Georgia still have due dates of April 15.

In addition, due to the late passage of the tax bill, the IRS says it needs until February 14 to be ready to accept itemized returns.

Still, get everything ready, Pickering told WalletPop in an interview. “Even if you think you might itemize, sometimes the difference between the standard deduction and your itemized deduction is not that much. Get the return queued up and it can be pushed through the minute the IRS says it’s ready. That is the fastest way to insure you get your refund.”

Whatever you do, file that tax return.

Don’t Paper File Unless You Have To

Pickering said that what H&R Block is hearing from the IRS is that they will process electronically-filed returns before paper ones. Don’t inadvertently delay your refund by turning to paper.

Unemployment Monies Are Taxable

Be aware that the first $2,400 is no longer tax-free. In 2010, all unemployment benefits are fully taxable.

But if you’ve been looking for work, tally up all your expenses, like hiring a search firm, traveling for an interview, or getting your resume prepared. If your job search cost is 2% of your adjusted gross income, then you may qualify.

If you’re taking a class to update your job skills, look into education credits like the Lifetime Learning Credit (up to $2,000).

First-Time Homebuyer’s Credit Pitfalls

If you bought your home in 2008 and took advantage of the first-time homebuyer’s credit, it was actually an interest-free loan that you have to start paying back starting this year. “If you took the maximum credit of $7,500, you need to repay it in 15 annual installments of $500,” explained Pickering.

If you purchased your home in 2009-2010, then the first-time homebuyer’s credit is in fact a credit. However, you must stay in that home for three years or you will have to repay that credit.

Sandwich Generation Gets Some Relief

If you’re providing more than 50% of the financial support for your aging parents, you may be eligible to claim them and get about $3,600 of exemptions. If you are doing the same for grown children because they are struggling, you may be able to claim them as well and score up to $3,600 in exemptions.

“There are a lot of rules so look into it and make sure you are getting help to know the rules,” cautioned Pickering.

Perhaps the biggest help came in the health care reform bill, in which children under 27 can go back on their parents’ health insurance if needed.

Education Can Be a Money Saver

The price of higher education is climbing higher and higher each year. Cut that bill down a little bit by taking advantage of the American Opportunity credit, which allows you to request a $2,500 credit for each child who is currently attending college or a degree-granting program.

No Matter What, Don’t Panic

Whatever you do, file that tax return. Even if you don’t have the money to pay the IRS, said Pickering. “You can always work out a payment plan with the IRS. But if you don’t file, they will start assessing penalties and interest and late filing fees. Only in very rare cases do they settle so a lot of those ads [about debt settlement] is sensationalized. The IRS is not going to negotiate with everyone.”

This tax year is a special one for me as well as many of you – it’s our 10 YEAR ANNIVERSARY! Thank you so much for your trust in me and your loyalty! From our start right after 9/11 in Arnaldo’s tiny little office in central Arlington, to my home in south Arlington to where I am now – is just mind boggling! I started with just a very few clients (about 40)– mostly ones that Arnaldo didn’t show up for – to over 500 clients! WITH NO ADVERTISING! Just client referrals – THANK YOU SO MUCH FOR BELIEVING IN ME AND STAYING WITH ME EVEN THOUGH I MOVED TO FLORIDA! I do thank Arnaldo for giving me the job at his office after being “laid off” by American Airlines – though I was hired to set appointments and make coffee…..if it wasn’t for that opportunity, I wouldn’t be where I am today! So, Arnaldo, wherever you are – much thanks! After tax season, I will be coming back to Texas for a Client Appreciation Celebration – details will follow…..

Many things have happened this year both personally and in the TAX WORLD! Some good changes but other changes – not so good.

To catch everyone up, Peter’s Dad, after battling bladder cancer for 3 years, passed away. It was exceptionally hard on me since I have spent so much time with him. He was my biggest “promoter” here in Tarpon Springs – literally gathering up new clients for me and driving them to my office. I will miss the daily coffee & danish he would bring me. His turn for the worst came the end of April – he waited for me to finish the tax season! Nico, you will be missed…..

Business is doing well…..I have this new & beautiful website. Please let me know what you think!
I wanted to create something that was easy to navigate and read. I am not the most computer savvy person out there – as most of you know, so I have a brilliant team of creative genius’ working on this project – Martin Snell & Danielle Devening! They also created a “logo” which I am very excited about as well. Thank you very much! Great job!

There are a lot of new specialized worksheets this year to help you keep track of expenses – Salon/Stylist Worksheet, Massage Therapist, Nursing, Firefighter & Trucker as well as a Farm Income Worksheet & a Small Business Worksheet. The others are here as well – Pilot/ FA, Police /Detective and Real Estate Agent. Please look at these and download, fill out and send to me with your tax package.

Some changes the IRS has mandated – which means more paperwork for you to sign and lots more work for me.
1. Privacy Letters – to advise clients of who in my office may happen to have access to your tax information. This letter must be printed out, signed, dated and return to me. This must be in each clients file.
2. Withhold fee from Refund – a consent form that allows Family Tax & Financial to withhold its tax preparation fee from your refund. This is valid only for previous clients. If you choose to have your tax preparation fee deducted from your refund, you will need to print, sign, date & return that form with your tax package. Please note, that by doing this, there is a convenience fee of $30 in addition to your tax preparation fee.
3. Electronic Filing – All returns this year MUST be filed electronically. The IRS requires this from offices that generate and transmit more the 100 returns. If you refuse to allow electronic filing, a form must be printed, signed, dated and sent to the IRS along with your paper return.
4. First Time Homebuyer Credit – For some of you who claimed the credit TY2008, this year you have to start paying it back out of your tax refund – $500 per year.
5. Business Owners – The IRS has mandated that any person who operates/owns a small business (Sole Prop’s, LLC’s, S-Corp’s, C-Corps or Partnerships) must, at the end of 2011 send out 1099’s to ALL VENDORS. The distinction between a 1099 – nonemployee subcontractor and a W-2 employee has changed significantly. If in the past you have been issuing a 1099 to an “employee” you may in 2011 have to start paying into FICA, Medicare & Social Security for that employee. You can call me and I will go into more detail if this applies to your business.

The IRS has also toughened penalties that can be imposed. Now, not only does the taxpayer pay a penalty but the paid preparer is scrutinized as well. Our fines are alot stiffer then taxpayer penalties. This means that if Family Tax & Financial is going to prepare your business return, you must have accurate books or your monthly books and/or payroll has been prepared through this office. If I do not trust in the fact that your company knows the accounting software sufficiently, and you chose not to have this office do your books, I will not be able to prepare your Business / Corporate return. Fines for an inaccurate business/corporate return to the preparer are $10,000. That is a risk I am not willing to take.

The IRS has also issued strict regulations on all paid tax preparers in regards to education. Beginning in 2011 all paid preparers that are not Enrolled Agents, CPS’s or Attorneys must have continuing education and pass a test to become licensed. Just to reassure my clients, I have ALWAYS taken continuing education and will continue to do so. But the costs of the education and licensing have risen as well as the number of CPE’s needed each year. Unfortunately, this is reflected in the FEE SCHEDULE for TY2010.

Please refer to the Tax Preparation Fee Schedule for new fees and guidelines.

Again, I just want to say “Thank You” for your continued loyalty and keep the referrals coming!
Have a Great New Year!

Joanne D’Angelo

February dates – Monday February 14th thru Saturday February 19th, 2011
Appointments will start at 8AM and the last appointment will be at 8PM. (Mon – Fri) SAT 2/19/11 appointments times will be 8AM and the last appointment will be at 4PM.
As you know, these appointments fill up very quickly so please call the office to make sure you can get in. I will be posting appointments as they are made on the calendar so you will be able to check and see what is still available.

March dates – Monday March 14th thru Saturday March 19th, 2011
Appointments will start at 8AM and the last appointment will be at 8PM Mon – Fri
Saturday March 19th, 2011 appointments will begin at 8AM and the last appointment will be at 4PM.

Again, please call soon to schedule and check the calendar to see what’s available.

Looking forward to seeing everyone again very soon!

Appointments are scheduled every 45 minutes, so please make sure you have all appropriate paperwork and your checkbook. Turn off your cellphones and when we finish with the business at hand, we can either go for a cigarette or catch-up! Thanks so much…. Joanne

Why Stress Over Your Taxes?

When a certified tax professional can do it for you!!

We are a year round office catering to the needs of Small Business owners – providing Bookkeeping & Payroll Services, Quickbooks Certified.

We specialize in itemized returns for self-employed Small Business owners and specialty jobs – such as Real Estate Agents, Truck Drivers, Hospitality Industry Employees, Mechanics, Pilots, Flight Attendants and Uniformed Personnel.

Clients include employees of: American Airlines, Delta Airlines, ASA, Bell Helicopter, United States Postal Service, Dallas Police Department, Northwest Airlines.