I am going to start a series of general tax deductions everyone should be aware of in the next few weeks. I plan to start in itemized deductions and then work into business deductions as an independent contractor. Today I am going to start at the top and over the next couple of days work through medical deductions.Always remember that all medical deductions are subject to an adjustment based on 7.5% of your adjusted gross income.for 2011. This means that you add up all of your medical deductions, then reduce them by 7.5% of AGI; the balance you can deduct as an itemized deduction. Tomorrow I am going to talk about medical insurance deductions, both for individuals and the self employed.Call me at 818-317-6035 or email me at bstonercpa@sbcglobal.net if you have any questions.You can count on us to count for you!
Brian’s Tax Musings
Well it is time to get ready for doing taxes. Remember if you are self employed or have unreimbursed auto mileage and expenses you want to try to deduct, YOU NEED TO HAVE AN AUTO LOG FOR THE IRS TO ALLOW THE DEDUCTION. I can’t stress enough that this is the one piece of taxpayer created documentation (erasings and all) that the IRS is required to accept at an audit. Make sure it has the year beginning and ending odometer numbers and for each entry:Where you wentWhy business relatedMiles drivenBeginning and ending odometer numbersAll this stuff is why it is such a pain keep, but still necessary. Keep it in mind when it is time to do your taxes.You can count on us to count for you!
Brian’s Tax Musings
Hope everyone had a happy new year – if you think you have a headache now, guess what? You may have to recapture some of your two month payroll tax cut if congress doesn’t extend it to the whole year! See this alert from Spidell Publishing:https://www.magnetmail.net/actions/email_web_version.cfm?recipient_id=654422898&message_id=1690721&user_id=Spidell&group_id=759130&jobid=8369505Make sure you make some new years resolutions to cut your tax bill in 2012, cause the Government won’t do it for you. Call me at 818-317-6035 or 818-333-5095, email me at bstonercpa@sbcglobal.net and we can talk about it. You can count on us to count for you!