The National Society of Accountants recently posted the results of a survey regarding the cost of tax preparation. They found the national average for a federal 1040 with itemized deductions and one State return was $246. Based on that, I can tell that the fees at our firm, Vander Lugt, Mulder, DeVries & Elders, are […]

So, did everyone hear that a judge told the IRS that their plan to license tax preparers was flawed? In the past few years the IRS (presumably with the blessing of elected officials) has taken to steps to require that anyone signing a tax return as a paid preparer be licensed. Practically speaking, this “licensing” […]

So, this morning we can all take a step back from the cliff we were on. The Senate and House have passed a bill that the president is expected to sign. Highlights of the bill are: Tax rates will stay the same unless your income is over $450,000 for joint filers, $400,000 for single filers. […]

So… Just received an email letting me know that I can buy Turbo Tax and get my maximum refund! Just a reminder that your “maximum refund” is not based on what tax software you use; it’s based on what you enter into that software! And, of course, everyone should be interested in the maximum legal […]

It’s not unusual these days for people to take an “early distribution” from their retirement plan (early meaning before they reach the age of 59 1/2). If any taxpayer takes an early withdrawal from a “qualified retirement plan”, the taxpayer will pay income tax on the amount taken AND a 10% penalty. A “qualified retirement plan” is: […]

This is a good summary of things to remember about charitable giving http://www.irs.gov/uac/Newsroom/IRS-Offers-Tips-for-Year-End-Giving-2012 That website includes a link to another website that you can use to make sure the charity you’re thinking of giving to actually qualifies as a charity. Regarding non-cash donations – the “value” of something is, of course, not a specific amount, […]

I get a lot of questions from clients regarding deducting vehicle expenses. They want to know: What can I deduct? How do I get this deduction? The answer, of course, is…it depends. If you’re talking about non-business purposes: Charitable miles – 14 cents per mile. As with all vehicle deductions, upon audit you would be […]

One of the most common questions any accountant gets asked by business owners is “what can I deduct from my income?” The answer to that question is literally….nothing, unless the tax code specifically allows it! That’s kind of a funny way to say it, but that’s what the law says (and remember, the IRS doesn’t […]