Navigating the Tax Jungle

By Jeff England

Helping you navigate through the jungle of taxation.... more

· Business

2.1

1818 ratings

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FAQs about Navigating the Tax Jungle:

How many episodes does Navigating the Tax Jungle have?

The podcast currently has 285 episodes available.

Navigating the Tax Jungle episodes:

February 25, 2016 144 Early IRA Distribution Penalty Exceptions
In this episode, the topic is early IRA distribution penalty exceptions. In order to qualify for the penalty exception, you must meet one of the exceptions for the IRA distribution to not be subject to the additional 10% penalty. The exceptions are:
1. Made to a beneficiary or estate on account of the IRA owner's death
2. Made on account of disability
3. Made as part of a series of substantially equal periodic payments for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and your designated beneficiary
4. Qualified first-time homebuyer distributions
5. Not in excess of your qualified higher education expenses
6. Not in excess of certain medical insurance premiums paid while unemployed
7. Not in excess of your unreimbursed medical expenses that are more than a certain percentage of your adjusted gross income
8. Due to an IRS levy, or
9. A qualified reservist distribution
10. Be over the age of 59 ½
Episode 128 was the episode for 128 Traditional and Roth IRAs, SEP Plans, Simple IRA, and Newsletter
The link to the IRS website for early IRA distribution exceptions
I am hoping next week to have my voice back. I have had a cold for the past several weeks.

...more
10min
February 18, 2016 143 Insights to Schedule C
In this episode, I discuss the Schedule C Profit Loss from Business form. Somethings to know about Schedule C are:

1. EIN (Employer Identification Number
      Do you need an EIN?

2. Sole Proprietorship
          Single owner (Not a Single Member LLC)

3. Single Member LLC
          Owner of Limited Liability Company

4.   Home Office Expenses is reported on Form 8829
There are two methods for reporting Home Office Expenses
1. Actual Expense Method
         2. Simplified Method

5. Business Owner's Health Insurance
          Page 1 of Form 1040

6.   Vehicle Expenses
          Actual Expenses (Depreciation)
          Mileage
          Questions on ownership and evidence
          Place in Service Date
          Support Evidence

7.   Wages & Draws
         Owner can't deduct draws as an expense
         Wages paid to other employees
         W-2s

8   Depreciation is taken on assets like
          Furniture
          Fixtures
          Building (If you own the buildings)
          Leasehold Improvements
          Equipment
          Vehicles
Additional depreciation can be taken on assets with
          Bonus Depreciation
Section 179

9.   Amortization is taken on intangible items like:
          Intangible Assets
          Loan Costs
          Goodwill

10. Business Charitable Contributions / Donations
         Business Charitable Donations are Deductible on Schedule A if you itemize

11.   If You have income from Schedule then you need to complete Schedule SE to calculate employment Taxes

12. Hobby income is not Business income on Schedule. Hobby Income is miscellaneous income.
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12min
February 11, 2016 142 Who Gets to Claim the Income and Deduction(s)
When it comes to income, who gets to report the income and deduction. Things to consider when reporting income are:
1. Whose social security number is it reported under on the tax form?
The name and social security number reported on the tax form is who should report the income or deduction.
2. Is the income from a jointly held account(s)?
Dividends, Interest, Partnership Income, Rental Income, and Capital Gains can be reported as a jointly held account.
3. Is there an legal agreement as to who gets to report the income or deduction(s)?
It is written in the divorce decree or settlement which party will get the income or deduction?
4. Are you single, married filing separate, or married filing jointly?
Depending on your filing status, you will report the income / deductions either as single, married filing separate, married filing jointly, qualifying widow(er), or head of household.

5. Who filed first?
If the divorice decree doesn’t specify who gets the dependent deduction, then who files the return first will get the deduction.
6. What is the relationship?
What is the relationship of the dependent to the taxpayer on the return is very important. The income/deduction(s) should be reported by whoever received the income and dividends.

7. Do you have receipts to back up your charitable contributions?
Checks don’t work as receipt when it comes to charitable contributions. You must have a receipt. In additon, whoever made the charitable contribution will receive the charitable contribution deduction.
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10min
February 04, 2016 141 Qualifying Child and Relative Form 2441
In this episode, I discuss who is a “Qualifying Child” or a “Qualifying Relative". Additionally, I discuss what information is needed to complete the Form 2441 “Child & Dependent Care Expense Deduction”.
The IRS defines a “Qualifying Child” as:
1. The child must be your son, daughter, stepchild, foster child, brother, sister, half brother, half sister, stepbrother, stepsister, or a descendant of any of them.
2. The child must be (a) under age 19 at the end of the year and younger than you (or your spouse, if filing jointly), (b) under age 24 at the end of the year, a student, and younger than you (or your spouse, if filing jointly), or © any age if permanently and totally disabled.
3. The child must have lived with you for more than half of the year.2
4. The child must not have provided more than half of his or her own support for the year.
5. The child must not be filing a joint return for the year (unless that return is filed only to get a refund of income tax withheld or estimated tax paid).
The IRS defines “Qualifying Relative” as:

1. The person can not be your qualifying child or the qualifying child of another taxpayer
2. The person must (a) must be related to you in or more ways listed in the “Relatives Who Do Not Live With You” or (b) must live with you as a member of your household (and your relationship must not violate your local laws)
3. The Gross Income for the year must be less than $4,000
4. You must provide more than half of the person’s total support for the year.
To claim the Child and Dependent Care Expense deduction on Form 2441, you need:
1. Name of the care provider
2. Address
3. Employer Identification Number (EIN) or Social Security Number (SSN)
4. Amount paid for the child care to the provider
Click here for the Form 2441 instructions.
Click here for the Form 2441
Click here to apply for an Employer Identification Number (EIN)
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14min
January 28, 2016 140 Choosing Tax Software and IRS Free FIle
Things to consider when choosing tax software to prepare your tax return yourself

1. Which software do you chose? (Preference)

2. Do you want to put your tax information into the cloud or download the software to your computer?

3. Security
           Security is important to consider when preparing your taxes. Last year, Intuit had an issue with some of their customer accounts being hacked. Choose a strong password

4. How complicated is your tax return?

5. Free isn't always best
        When choosing free software, you get bombarded with advertisements.

6. Can you navigate around in the software.

7.   How much does it cost to E-file your tax return?:

Last fall, I went onto the IRS free file site to review some of the tax software partners. I didn't review all the companies involved with the free file. The ones below are just of the software that I tested on the site.

Click here for the The IRS free file website

IRS Free-File Review

Eztaxreturn

Entry is simple - answer questions, fill-in the box

Limitations - can’t move to different parts of the tax return interview process
Can’t import prior year tax information

Adjusted Gross Income: $60,000 or less, and
Live in any of these states: AL, AR, AZ, CA, CO, GA, IL, LA, MA, MD, MI, MS, NC, NJ, NY, OH, PA, VA, and WI for a free Federal tax return

Jackson Hewitt
Entry is simple fill in the information
You are able to move around to different parts of the return and interview process.
State Tax Filing
You can import prior year tax information

Adjusted Gross Income: $60,000 or less, and
Age: 49 or younger, or
Eligible for the Earned Income Tax Credit, and
Live in any state or U.S. Citizens and resident aliens with foreign addresses for a free Federal tax return
Free Extensions

H&R Block Free File

You can import prior year tax information from Tax Act or Turbo Tax....Didn’t see H*R Block tax software program
You are able to move around to different parts of the tax return and interview process after you complete the name, ssn, martial status

Adjusted Gross Income: $53,500 or less, and
Age: 53 or younger, or
Eligible for the Earned Income Tax Credit, and
Live in any state for a free Federal tax return

Tax Simple

Entry is simple - answer questions, fill-in the box
State Income Tax Filing

Limitations - slower, can’t import prior year tax information

Adjusted Gross Income: $60,000 or less, and
Age: 50 or younger, and
Live in any state for a free Federal tax return
Free Extension

Online Taxes at OLT.com

Email verifications

Limitations - Unable go move around between the interview process. Have to enter a phone number.

If you don’t qualify for free filing the fee is $7.95 and $7.95 for state returns

Adjusted Gross Income: between $13,000 and $60,000, and
a U.S. Citizens and resident aliens with foreign addresses for a free Federal tax return
Free Extensions

Tax Act Free File

Adjusted Gross Income: $52,000 or less, and
Age: between 18 and 58, and
Live in any state or U.S. Citizens and resident aliens with foreign addresses for a free Federal tax return
Free Extensions

Tax Slayer

Unable to access the website.

Free 1040 Tax Return

State Returns - $39.95
Require your SSN to register with the website
No menu to move around the website
Answer interview questions

For more information about the IRS Free File Criteria video on the website "Click Here"

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21min
January 22, 2016 139 Tax Return Mistakes and Errors
In this week's episode, I discuss mistakes and errors that are made on tax returns.

1. Verify that your name(s) and social security number(s) matches the Social Security Adminsitration information.

If your social security number or name doesn't match what the Social Security Administration has on file, the iRS will be unable to process your return.

2. Include all your income

If you don't include all your income, you will receive a notice indicating that income was under report on the return and could subject you gross negligence penalties.

3. Include all your deductions

When you don't include all your deductions, your taxable income and liability will be higher that what it would otherwise would be.

4. Verify bank account and routing information

If your bank account and routing information for direct deposit is incorrect, the IRS will send a paper check that could take up to thirty days to reach you.

5. Have receipts for charitable gifts

The IRS doesn't accept checks as receipts for charitable donations. You must have a receipt / letter from the non-profit acknowledging your donation.

6. Keep a copy of your return

Keep a copy of your tax return. Banks and other loan companies may request a copy of your tax return.

7. Attach schedules

Attach all schedules that are required to be attached to your tax return. In the example I give, you have may have several brokerage sale transactions that you don't want to list one line at a time. You can combined the cost and sales proceeds but you must attach a copy of the gain/loss statement.

8. Math Errors

Math errors on a tax return can be common but not as bad as it used to be. Sometime taxpayers and preparers will transposed numbers.

9. Sign the return

Be sure to sign and date the return and E-file authorization.

10. Using the wrong tax form

Taxpayers will use the wrong tax form. In the example, I discuss Schedule E being reported on Schedule D

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13min
January 14, 2016 138 Beware of the Tax Preparer
As the 2015 tax filing season will be soon underway, I thought that in this week's episode, I would discuss a topic called "Beware of the tax preparer who.....

I came up with the topic through some of my experience as a tax professional and meeting with other tax preparers.

So, here is the list of "Beware of the tax preparer who...."

1. Asks "What refund amount do you need to get back?"

2. Over promises on the refund

3. Changes the cost to prepare your return

4. Uses one line for expenses and one line for income on a business return

5. Uses negative numbers for the balance sheet on business tax returns (partnership, S-corp, and Corporate)

6. Who refuses to put his PTIN (preparer tax identification number) on the return after you've paid them

7. Who does not have a PTIN number from the IRS

8. Who refuses to sign the return even through you've paid him

9. Makes up income and deductions without proper documentation

If you would like to add to the list, please send me an email
...more
17min
January 06, 2016 137 Organizing for 2015 Tax Preparation
In this Episode, I discuss organizing your workpaper support documentation for 2015 tax preparation.
1. Income (W-2s, 1099s, K-1s, Schedule C Business Income)
2. Adjustments (Alimony, Health Insurance, Traditional IRAs, SEP Plans, Teacher Education Deduction, Education, etc).

3. Tax Credits (Education, Earned Income, Foreign Credits)

4. Itemized Deductions (Medical, Investment Expense, Mortgage and Property Taxes, Income and Sales Tax, Charitable Contributions, Misc Deductions)

5. Health Insurance Information

6. Capital Gains and Losses (Brokerage Statements)

7. Investment and Medicare Sur-Tax

8. Mileage (charitable, business, and medcial) and documentation

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11min
December 31, 2015 136 Top 7 Tax News Items for 2015

T

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9min
December 24, 2015 135 PATH ACT and Tax Extenders
Episode 135 of the Your Tax Teacher Podcast - Navigating the Tax Jungle
The IRS will begin processing tax returns on January 19, 2016 for the 2015 tax year.
Beginning on January 19, 2016, the IRS will begin processing the 2015 tax returns. You can send your tax return to the IRS before then; but the IRS won’t process the return until January 19, 2016.
The main topic discussed was the tax cut extenders that was passed by Congress and signed by President Obama on December 18, 2015. There were 52 provisions included in the PATH Act (Protecting Americans from Tax Hikes). Some of these business and individual tax provisions were made permanent within the tax code.
These business tax provisions within the PATH Act were made permanent
A. Section 179 deductions ($500,000 and $2 Million Threshold)
B. R&D Credit

C. S-Corp 5 year conversion rules when you convert from a C-Corp to S-Corp
D. Work Opportunity Credit renewed for five years
E. Extends Subpart F exception for active financing income
F. Phases out bonus depreciation over five years (2015 - 2019)
G. Retail and restaurant depreciation improvement provisions
These individual tax provisions within the PATH Act were made permanent
H. $250 Teacher / Education Credit Charitable Deduction of real property for conservation purposes
I. Enhanced Earned Income Tax Credit
J. Mass Transit and Parking Deduction
K. Sales Tax Itemized Deduction
L. $100,000 IRA Charitable Contribution of individuals at least 70 ½
M. Phases out bonus depreciation over five years (2015 - 2019) for Schedule E and Schedule C assets.
N. Suspends the Cadillac healthcare tax for two years
O. Enhanced Child Tax Credit
P. American Opportunity Tax Credit
...more
13min

FAQs about Navigating the Tax Jungle:

How many episodes does Navigating the Tax Jungle have?

The podcast currently has 285 episodes available.