Some of my most Frequently Asked Questions...
QUESTION #1 I'm self-employed... what types of health insurance plans do you recommend I look into that would afford me the greatest tax advantages?
1. If both you and your wife work in your business, a Section 105 Plan is clearly a first choice of the many plans deserving your attention. Contact me for more information on the preferred way to set this up and helps assure you survive and audit of your plan records.
2. Otherwise, if it's just you working as a self-employed person in your business, the newly improved Health Savings Account (HSA) is my top choice for your serious consideration. Click here for more tax information on the advantages of the HSA.
QUESTION #2 What are the top IRS Tax Publications you recommend?
1. Publ 17 - Your Federal Income Tax for Individuals
2. Publ 334 - Tax Guide for Small Business (for Individuals Who Use Schedule C)
3. Publ 463 - Travel, Enertainment, Gift and Car Expenses
4. Publ 505 - Tax Withholding and Estimated Tax
5. Publ 534 - Depreciating Property Placed in Service Before 1987
6. Publ 946 - How to Depreciate Property
7. Publ 535 - Business Expenses
8. Publ 560 - Retirement Plans for Small Business (SEP, SIMPLE and Qualified Plans)
9. Publ 583 - Starting a Business and Keeping Records
10. Publ 587 - Business Use of Your Home (including Use by Daycare Providers)
11. Publ 590 - Individual Retirement Arrangements (IRAs)
12. Publ 910 - IRS Guide to Free Tax Services
13. Publ 969 - Health Savings Accounts (HSAs) and Other Tax-Favored Health Plans
14. Publ 1518 - IRS Tax Calendar
QUESTION #3 I haven't found the IRS publications very helpful or easy to understand, do you recommend any books that can clearly help me take full advantage of the tax deductions available to me?
1. Try out a subscription to the monthly "Tax Reduction Letter" from the Bradford Tax Institute
Click here for a Free Trial.
QUESTION #4 Should I incorporate?
Click Here for a side-by-side comparison of the Advantages and Disadvantages of four types of businesses: Sole Proprietor, Partnership, Corporation, S-Corporation.
QUESTION #5 Why should I file a tax return? and, What happens if I don't?
- It's required by law for any year for which a filing requirement exists.
- It's the basis for determining federal and state benefits you may be entitlted to.
- You made need it to qualify for loans to buy a home, finance a business or attend an accreditated training program.
- If you don't, the IRS will likely file one for you... and you're sure not going to like that one!!!
- If you don't, and you owe money, there will be penalties of 25% and more, plus interest (yikkes!)
(Click here for more information about those penalties)
- If you don't, and you deserve a refund, you could risk losing it entirely.
- If you don't, and you are be entitled to the Earned Income Tax Credit for as much as $4,716... you could risk losing it entirely.
- If you don't, the IRS is permitted to assess and collect tax for that year at ANY time in the future... there is no Statute of Limitations when a return has not been filed!
QUESTION #6 When can I throw those old tax records away?
Click Here for detailed guidelines for Record Keeping Retention Periods.
QUESTION #7 What software do you recommend?
Answer: Quicken or Quickbooks
I am Certified Quickbooks ProAdvisor for 18 years now...
QUESTION #8 I've always done my own taxes, so why should I use a tax pro?
Click here for a number of reasons why using a tax professional could benefit you.
QUESTION #9 What is a simple yet effective system for organizing and filing all my records and receipts?
Organized System of Filing Folders for Your Paper Tax Records and Receipts
QUESTION #10 What should I be aware of if I'm going to work as contract labor for someone else, or if I'm going to hire a contract labor person?
Click here for a list of Status Questions, Key Distinctions, Things to Avoid, and Things to be Sure to Have.
QUESTION #11 What are the top ten financial
dreams of most Americans?
1. Become a Homeowner, or Buy a New Home
2. Pay-off that Mortgage
3. Pay-off those Credit Cards
4. Reduce Taxes, get more tax deductions!
5. Build Savings
6. Pay for College Education
7. Retire Comfortably
8. Retire Early
9. Support Aging Parents
10. Make a Major Purchase
“I am proud to be paying taxes in the United States.
The only thing is - I could be just as proud for half the money.”