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As western Massachusetts accountants, we're pleased to be able to offer use of Information Station. This is a virtual library of information for your tax and financial questions. Just click on this link for the Information Station below. You will find answers to MOST questions you may have. If you don't find what you are looking for, chances are one of us here at the office can help you. We are experts in tax accounting. Call or email. We'll do our best to answer it. If you get the answers you are looking for and need to act right away, give us a call or email us for an appointment. Most problems can be solved in one visit.

Questions:

What's the deal on the carry back period for business losses?
Do I owe a "Nanny Tax?"
Can I still deduct tuition paid?
Can I deduct local sales taxes?
What are the standard mileage rates set by the IRS?
Should I take "above the line" deductions?
Do I make too much money to contribute to a Roth IRA?
What are the tax deadlines for business?
How accurate is the tax information I get on line?
What are "carryforwards" and can they cut my taxes?
Can I get tax breaks just by being older?
Do I have to pay taxes on my hobby?
Is there a silver lining inside this tax cloud if I lose money?
Does the IRS ever contact people by email?
What are the tax obligations for non profits?

Answers:

What's the deal on the carry back period for business losses?
A recent law expanded the carry back period for business net operating losses for companies of all sizes. Previously, just businesses with average annual gross receipts of $15 million or less could carry 2008 losses back for up to five years. If your business suffered an operating loss within the last five years, see us for information. Northampton accountants D.W. Polachek has the answers.
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Do I owe a "Nanny Tax?"
Though it hasn’t made headlines recently, the nanny tax is still around. If you paid a household worker (such as a gardener, housekeeper, or nanny) more than $1,700 or more in the coming year, you may be liable for payroll taxes on the wages paid. Northampton accountants D.W. Polachek have details.
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Can I still deduct tuition paid?
Don’t overlook a deduction for your next tax return for qualified higher education expenses. Right now single filers may deduct up to $4,000 if adjusted gross income (AGI) is $65,000 or less (AGI of $130,000 or less for joint filers). The deduction limit drops to $2,000 for AGI up to $80,000 for single filers and $160,000 for joint filers. No deduction is allowed over these income thresholds. These deductions are all subject to change. For up to date information call D.W. Polachek, accountants in Northampton.
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Can I deduct local sales taxes?
The option of deducting state and local sales taxes in lieu of deducting state and local income taxes is still available. The sales tax deduction may be based on amounts in an IRS table, plus actual amounts paid for certain big-ticket items like cars. Or you can take the deduction based on actual receipts for sales taxes paid in the tax year. D.W. Polachek, accountants in Northampton have answers.
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What are the standard mileage rates set by the IRS?
The IRS has issued the standard mileage rates that taxpayers can use in deducting the cost of driving for business, medical services, and job-related moves. The 2010 rate for business driving is 50¢ a mile, down from the 2009 rate of 55¢ a mile. The rate for medical and moving mileage is 16.5¢ a mile, down from the 2009 rate of 24¢ a mile. The rate for charitable driving remains at 14¢ a mile. D.W. Polachek, Northampton accountants have the answers.
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Should I take "above the line" deductions?
The majority of taxpayers take the standard deduction rather than itemizing deductions on their tax returns. But there are deductions “above the line” that both itemizers and nonitemizers can take. These include the $250 educator’s deduction for buying classroom supplies, student loan interest, tuition expenses, job-related moving costs, self-employment taxes, and alimony. For the answers you are looking for call D.W. Polachek, Northampton, MA accountants.
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Do I make too much money to contribute to a Roth IRA?
Not anymore! Effective January 1, 2010, the option of converting a traditional IRA to a Roth IRA is available to all, even those taxpayers originally shut out by the $100,000 income limit for eligibility. Roth IRAs are popular because qualifying distributions are tax-free and minimum annual distributions aren’t required at age 70½. Northampton accountants D.W. Polachek can help with details.
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What are the tax deadlines for business?
If your business is a corporation, your 2009 tax return filing deadline is generally March 15, 2010. You can file for an extension by that date if you need more time and get until September 15, 2010, to file your return. Partnerships must file 2009 returns by April 15, 2010. Partnerships may request only five additional months to file, making the final deadline for 2009 returns September 15, 2010. D.W. Polachek, Northampton, Mass has the answers.
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How accurate is the tax information I get on line?
If you use the Internet as an information source, heed these two cautions about the tax information you find online. First, check the date carefully. The tax law changes so frequently that information is soon out of date and incorrect. Second, beware of Internet tax scams. For accurate, timely tax information on the Internet, you are in the right place.
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What are "carryforwards" and can they cut my taxes?
The tax law is filled with deduction restrictions and income limits. That may have left you unable to take full advantage of certain losses, deductions, and credits in any given tax year. Be aware that in some cases the unused portion of these items can be carried forward to future years to reduce your tax bill. For assistance in tracking and utilizing tax-saving "carryforwards," give us a call. Northampton accountants D.W. Polachek has the answers.
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Can I get tax breaks just by being older?
When it comes to taxes, growing older has its advantages. Some of the tax breaks available as you reach a certain age include qualifying for a higher standard deduction, being allowed to contribute more to an IRA or HSA (health savings account), and not paying tax on some or all of your social security benefits. To identify all the tax breaks available to you at any age, give us a call. Northampton accountants D.W. Polachek have the answers.
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Do I have to pay taxes on my hobby?
If you engage in a hobby that produces income, you must report that income to the IRS. But can you deduct expenses related to your hobby? That depends on whether you pursue the activity just for fun or for a profit. The IRS has specific criteria to be used to distinguish hobbies from profit-motivated activities. For assistance with this or other tax issues, give us a call. Northampton accountants D.W. Polachek have the answers.
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Is there a silver lining inside this tax cloud if I lose money?
Painful as losses may be, they can have a tax silver lining. Capital losses can absorb gains from other sales of capital assets. Casualty losses can sometimes be deducted on the prior year’s tax return for a quicker tax refund. Losses that exceed deduction limits for the year can be carried forward to cut future tax bills. For planning help that can lower your taxes, contact us. D.W. Polachek, Northampton accountants have the answers.
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Does the IRS ever contact people by email?
Never. During tax filing time, con artists prey on unsuspecting taxpayers with phony e-mails that appear to be from the IRS. The e-mails link to sites that appear genuine, where individuals are asked for bank account numbers and other private information. Be aware that the IRS NEVER sends out unsolicited e-mails and NEVER asks people for PINs, passwords, or other financial information.
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What are the tax obligations for non profits?
If you’re an officer or on the board of a community organization, you may have tax filing responsibilities for your group. Even if your nonprofit organization has annual gross receipts of less than $25,000, you have to file every year with the IRS. Organizations that fail to file can be putting their tax-exempt status at risk. For details and filing assistance, give us a call. Northampton accountants D.W. Polachek have the answers.
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