The Basic discrepancy in the middle of Form 1040Ez and 1040A

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If you have used the 1040Ez form in the pat but your tax situation has changed a bit you might be wondering what form you need to use this year. You may still be able to use the same form this year, or you may need to use the 1040A form. There are some basic differences between the two forms, but it doesn't have to be complicated. Instead of getting frustrated or confused as to which form is right for you, we can break the differences down very plainly for you.

Form 1040Ez if for tax payers that do not own their own home, as this simplifies the tax process. In expanding this form is for those that do not have any dependents as well as minute deductions. There are specific deductions such as those for pupil loans, educator's deductions, and others that cannot be deducted on this specific form. This is a very straightforward form to use, and can be done even by those that have never filled out a tax form on their own before. plainly filling out the form is as easy as following the layout of the form.

Form 1040 Instructions

Form 1040A is for those that have a bit more involved tax situation. You can use all of the same data with this form as you do with the Ez form; it just is the best form for those that have dependents, pupil loan interest, instruction due or deductions, as well as added types of wage that need to be claimed. This is also a very straightforward form that can be filled out either by hand or through any separate Internet based filing resources. either you use one form or the other, each have to be filed by the same date, April 15th and if you owe taxes you should make your check or money order out to the United States Treasury.

The Basic discrepancy in the middle of Form 1040Ez and 1040A

1040 Tax Forms and Instructions 2011 Best

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1040 Tax Forms and Instructions 2011 Overview

IRS Publication 17. This publication covers the general rules for filing a Federal income tax return. It supplements the information contained in the tax form instruction booklet. It explains the tax law to make sure filers pay only the tax they owe and no more.

Complete 1040 Tax Forms and Instructions.
Both 1040 EZ and 1040 Instructions and Forms.

PDF download forms (fill in and send)

Tax Year 2011
236 pages

1040 Tax Forms and Instructions 2011 Specifications

IRS Publication 17. This publication covers the general rules for filing a Federal income tax return. It supplements the information contained in the tax form instruction booklet. It explains the tax law to make sure filers pay only the tax they owe and no more.

Complete 1040 Tax Forms and Instructions.
Both 1040 EZ and 1040 Instructions and Forms.

PDF download forms (fill in and send)

Tax Year 2011
236 pages

Customer Reviews

*** Product Information and Prices Stored: Feb 14, 2012 07:27:37

Many people start out using the 1040Ez when they first file their taxes and then they develop and start using the 1040A form. The Ez form is commonly for those that have a very straightforward tax situation and it allows for tax payers to ease into filing their own taxes before they move on to more involved tax situations and corresponding tax forms. Now that you know the basic differences between the 1040Ez form and the 1040A form you probably know which of the forms is right for you and your tax situation.

The Basic discrepancy in the middle of Form 1040Ez and 1040AHow to Complete a 1040EZ Tax Form : How to E-File a 1040EZ Tax Form Video Clips. Duration : 2.58 Mins.

Tax help! E-filing a1040EZ tax form in this free video covering a demo of how to finish the 1040EZ. Expert: Tom Noah Bio: Tom Noah has been a Certified Public Accountant (CPA) for over 27 years. In that time he has held positions at several companies as an accountant and a director of financial planning. Filmmaker: Drew Noah
Tags: online, form, aid, instruction, help, income, taxes, 1040a, 1040ez, irs, tax, booklet

Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!

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Most all tax preparers understand how income levels and filing requirements are contingent upon filing status, age and the type of income clients receive. What is often overlooked, however, even when clients aren't required to file with Uncle Sam, is the fact that it may indeed advantage them to do so.

Not surprisingly, the Irs provides definitive instructions on the requirements for filing Forms 1040, 1040A, or 1040Ez. With all of the new prestige tax revisions and exceptions, some tax preparers are turning to Tax Cpe procedure materials or Ea Cpe curriculum to brush up on how these new revisions stand to advantage clients. Some continuing instruction tax courses are even focused exclusively on these new tax laws, showing tax preparers how to clients who fit into this scenario to get the greatest bang out of their tax returns.

Form 1040 Instructions

Quick Tips on Non-Required Filing Benefits

Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!

Homebuyer Credit

First time homebuyers are eligible for a maximum 00 or 00 if filing married status separately. To qualify, a someone must have entered into a compact on or before April 30th 2010 and have accomplished by September 30th 2010.

Tax Withheld

For taxpayers who have estimated their tax payments, had a former years overpayment, or had income tax withheld, they may be eligible for a refund.

Child Tax Credit

If a taxpayer has at least one child that qualifies and they didn't receive the full estimate of the current Child Tax prestige originally, they could get a refundable credit.

American occasion Credit

Given the newly renamed and vast Hope credit, taxpayers can claim this prestige for tuition and positive fees for undergraduate and post-secondary education. The maximum prestige per student is ,500.

Earned income Tax Credit

For those individuals who worked but earned dinky in 2010, this tax prestige may prove beneficial in considering to file because it may qualify them for a refund.

Health Coverage Tax Credit

This prestige is primarily for individuals who have received Adjustment aid (either Trade or Reemployment Trade). Further, those receiving Pbgc pension payments may also qualify and receive a credit.

Quick Tips of Non-Required Filing for Losses

Two Scenarios

When taxpayers have suffered an whole loss because of an speculation losses:

• Only if filed in 2010 can they carry that loss transmit and offset dutible capital gains in future years
• They can carry these losses as far back as 2008 and perhaps ask a reimbursement of carry forward, but, again, only if they filed in 2010.

When taxpayers have company losses that experienced a net operating loss (Nol) for 2010:
There are a plethora of resources ready that cover these details and the types of taxpayers that fall into this unique category. The key for enrolled agents, certified collective accounts and other tax professionals is to do the research, sign up for an enrolled agent class or look on the tax Cpe sites that showcase this information.

Irs Circular 230 Disclosure

Pursuant to the requirements of the Internal income aid Circular 230, we forewarn you that, to the extent any guidance relating to a Federal tax issue is contained in this communication, together with in any attachments, it was not written or intended to be used, and cannot be used, for the purpose of (a) avoiding any tax connected penalties that may be imposed on you or any other someone under the Internal income Code, or (b) promoting, marketing or recommending to another someone any transaction or matter addressed in this communication.

Why Filing Taxes for Your Client, Even When They Aren't Required, Might Be a Good Thing!Is the IRS lying and defrauding the American people? Hear from the man who beat Video Clips. Duration : 45.58 Mins.

Robert Lawrence challenged the IRS claim that he is required to file a 1040 Income Tax Confession Form and pay a Federal Income Tax. The US Government charged him with committing “tax crimes”, but later dismissed these charges! The IRS dropped the case when they found out that Robert relied on the instructions within the IRS' 1040 booklet and the law. Robert had proof from these sources that he was not required to file. Hear how this living “David” won his victory over the paper-tiger “Goliath” (the IRS). Freedom Law School Speaker: Robert Lawrence Host: Peymon Mottahedeh
Keywords: googlevideo

Do you want to be homeless and die in the street?

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Homeless

That may seem like a silly question but for some it is not.

Some people prefer to be homeless for whatever reason as strange as it may seem.

I have seen this happen first hand with an old friend who could have lived with others in his family but chose to live on the street "where the action is" .

I never saw anyone so happy to be panhandling. He loved it but alcohol took it's toll.

Some other people might really need your help.

They do care and do not want to be miserable and cold and hungry.

 Here is some information that you can use to help homeless folks or even people who are having a financial hardship.
 "Will I be abandoned by the government and left homeless to starve and die in the street?"

W2 for Social Security

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Employers must send a W2

by Roger Chartier:
If you are a regular employer you have to send the W2 form to your employees  by January 31.
Copy A along with a copy of the W3 form  (Transmittal of income and tax statements)  should be sent to Social Security before the end of February if sending a paper copy or by the end of March for e-filing.
The W2 will reflect how much in wages were paid, social security was withheld or  medicare taxes were withheld. 
 The W4 form informs the employer what the employees status would be for allowances.

Additional information links

Read here for answers for most Social Security questions

This site answers questions about the W2 Form.

Here is an excellent site for information on the W4 form.

Can I Ever Retire?

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The retirement age has changed

by Roger Chartier

For collecting social security anyway. 
If you are lucky enough to be able to retire early and have enough money to wait until the almighty  Social Security kicks in,  good for you.

Once upon a time full retirement age was 65.

Things changed as they always do and the law is that you can retire at 65 only if you were born in or before 1938.

Changed retirement age

If you were born between 1943 and 1954 your full retirement age is 66. 
Oh and it gets worse.

For every 2 months of your age after age 62 your rate changes.
Try this link to a nice Social Security retirement benefits chart that will tell you just how much you can get percentage wise and at what age you would retire.
You might feel the need to retire earlier and if you retire at age 62 (the earliest you can retire) then you get 75% of what you'd get for retirement benefits at full retirement age.
Obviously the longer you wait the more money you will get each month.

Live stress free! File now

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by Roger Chartier
If you didn't already file your taxes for 2011, get off your butt and do it now (I'm talking to myself here as well).
When you have to do it at the last minute you might forget some deductions that would have saved you  some money, maybe a lot of money.

The IRS tells me that last year 79% of tax payers and those who filed for them used efile.
 Set up your efile with direct deposit and you could get your refund in as soon as 10 days.
C'mon stop procrastinating, do it and then relax, have a cold one or go out dancing or something.

New date for the tax filing deadline

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 A two day reprieve from paying tax

So we got lucky and have 2 more days before the federal income tax filing deadline.
As you know it is usually April 15 but his 
year as the 15th falls on a weekend and there is some odd holiday in Washington DC that ultimately means that we don't have to file until the 17th which is a Tuesday.

IRA

The other big advantage here is that if you are currently contributing to an IRA you also get the same two extra days to contribute. No big deal you say? 

Well every little advantage is worth taking.
Also my friends you  might also be eligible for the Savers Credit. This had previously been called the Retirement Savings Contributions Credit.

 

Retirement Planning 

Plan for retirement because when retirement time comes around you may be counting your pennies if all you have is the money coming in from Social Security.

Can't pay your IRS taxes on time?

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6 ways to avoid some IRS late payment penalties and interest .

1. Read the webpage  Tax Troubles

The  tax trouble webpage  can be helpful as well for understanding what to do

2. Don't wait until you have all the money.

File your taxes on time and pay as much as you can when you file. Now you don't get a late filing penalty.
You will get a late payment penalty but it will be lowered as well as the interest and other charges.

3. Don't wait for the IRS to demand payment

Get in touch with the IRS and ask to set up an installment agreement. The sooner that you do that the better because you will pay less in charges, penalties and interest

4. Borrow the money

if the interest rate would be lower than what the IRS interest and charges and penalties would be.

5. If you get an IRS bill

call ASAP to straighten it all out and set yourself up to your best advantage.

6. Set up an extension to pay later

There is a thing called the "Fresh Start Initiative" that you should ask about where if you qualify you can avoid all penalties.

Who's Afraid of the Big Bad W9 form?

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Oh No! I don't want to sign an IRS Form W9!

So you are approached by the company that is paying you as a private contractor to a do a job with the landscaping or outside cleaning services etc.
. He/She has a W9 form in his/her hand and tells you that if you want to get paid you are going to have to fill out the form.

Evil bastards! You have already done half of the job and have agreed to do a lot more in the future so what can you do. They have you by the cahones.They are not really evil bastards but they are just covering their butt, tax-wise.

 So you sign the form knowing that now they are going to send you a 1099-MISC form with the amount that they paid to you and a copy to the IRS just for them to take your costs to them as a tax deduction.

Fight back on the taxes!

The cure is that from the beginning of each year you should keep track of all expenses. I mean everything including mileage allowance and your home office expense.
Use every legitimate deduction that you can to reduce the taxes that will be due. It is your right to do so.

When you take the mileage deduction and you pay for gas you can save more on gas with a few tricks.
Use the free mileage log (courtesy of  www.2012-mileage-allowance.com/ )

 Deduct uniforms and every supply that you use and get more information.
 Let me suggest these sources.

1. www.whatistax.org/


2. www.taxman123-blog.com/


3. www.printw9.com/


4. www.tax-write-off-donations.com/


5. www.1040-forms.com/


6. www.downloadw9.com/


7. www.2012-mileage-deduction.com/


8. www.1099forms.org/


9. www.freew9form.com/


10. www.w9form.biz/

Medicare Open Enrollment

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Medicare open enrollment this year is from October 15-December 7. This is for any change to your Part D drug plan or your Medicare Advantage plan (if you have one) which will then become effective on 01/01/12. You may have noticed an increase in advertisements for plans since the open enrollment dates were moved up this year. 

Last year, a couple of the Part D drug plans decided to opt out of the Medicare program altogether. If you should receive a letter from your plan stating that they are doing that this year, you may choose another plan.

Health Insurance Premium Tax Credit

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In 2014 - Health Insurance Premium Tax Credit

This is a nice idea, a premium tax credit to help folks afford health insurance.
It will be available to families and individuals alike starting in 2014.

Too bad we have to wait but at least it is coming.

Many individuals who are barely getting by financially will have hope for health insurance and this will surely save lives as people often avoid medical treatment that they can't afford when they are uninsured.

The deal involves insurance bought through one of the companies in the Affordable Insurance Exchange that will operate in all 50 states and District of Columbia.

The wonderful part for poor folks is that the credit is a refundable one so that even if you don't have to pay tax you can get a credit paid out to you or paid out directly to the insurance company beforehand so that you don't have to worry about it.

The operation will be run by the Department of Health and Human Services.
The plan will have a choice of health plans that vary in benefit and costs.

Who's Afraid of the Big Bad W9 form?

To contact us Click HERE

Oh No! I don't want to sign an IRS Form W9!

So you are approached by the company that is paying you as a private contractor to a do a job with the landscaping or outside cleaning services etc.
. He/She has a W9 form in his/her hand and tells you that if you want to get paid you are going to have to fill out the form.

Evil bastards! You have already done half of the job and have agreed to do a lot more in the future so what can you do. They have you by the cahones.They are not really evil bastards but they are just covering their butt, tax-wise.

 So you sign the form knowing that now they are going to send you a 1099-MISC form with the amount that they paid to you and a copy to the IRS just for them to take your costs to them as a tax deduction.

Fight back on the taxes!

The cure is that from the beginning of each year you should keep track of all expenses. I mean everything including mileage allowance and your home office expense.
Use every legitimate deduction that you can to reduce the taxes that will be due. It is your right to do so.

When you take the mileage deduction and you pay for gas you can save more on gas with a few tricks.
Use the free mileage log (courtesy of  www.2012-mileage-allowance.com/ )

 Deduct uniforms and every supply that you use and get more information.
 Let me suggest these sources.

1. www.whatistax.org/


2. www.taxman123-blog.com/


3. www.printw9.com/


4. www.tax-write-off-donations.com/


5. www.1040-forms.com/


6. www.downloadw9.com/


7. www.2012-mileage-deduction.com/


8. www.1099forms.org/


9. www.freew9form.com/


10. www.w9form.biz/

You thought that we had it bad here - Forget about it!

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Americans

Are constantly complaining about taxes and tax hikes.

Especially we have the outrageous Republicans who will not, for any reason, raise a tax thanks to Grover Norquist who forced them to sign a pledge against it.
Well America let me tell you about the rest of the civilized world. We are nowhere near the top as far as taxes per capita is concerned.

There are many other countries and in fact most other civilized countries with higher personal and property taxes than we have here in good old USA.

They have free healthcare as well.

Take a lesson from that Romney and the others who would rather that you die from lack of healthcare than see you get it for free from a government program.

That strikes me as something akin to murder from their end of things.

Well this was my rant for today but, I'll be back with more about the whole mess again soon.

I'm not done complaining yet.
Hang in there Rummy you miserable old goat you.

IRS tax break for hurricane Isaac people

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Hurricane Isaac tax deal

Hurricane Isaac hit the gulf area pretty hard this late August and the IRS realizes that it is time for a tax deal to help out those affected by it in certain areas.

Those areas include Louisiana parishes such as Ascension, Jefferson, Lafourche, Livingston, Orleans, Plaquemines, St. Bernard, St. Charles, St. John the Baptist and St. Tammany.


Mississippi counties are, Jackson, Hancock, Pearl and Harrison.

The Internal Revenue Service

Tax relief  for individual assistance goes out to those counties listed above and businesses in them. If there are more areas to be involved they will be listed soon by FEMA.
Aha!, not so fast, so far you aren't saving money in all cases but mostly putting off the payment till later.

The deal will postpone some tax filing and people and businesses affected will have until January 11, 2013 to file and pay taxes due on or after Aug. 26, 2012 and this is also going to be for those who had an extension to wait until September 17, 2012 for filing 2011 returns.

The deal also involves businesses

That had gotten an October 15, 2012  deadline on extension.

So the money for taxes here also includes the estimated tax for the third quarter of 2012 that would have been due on September 17, 2012

The IRS said

That they "Will abate any interest, late-payment or late-filing penalty that would otherwise apply. In addition, the IRS is waiving failure-to-deposit penalties for federal employment and excise tax deposits normally due on or after Aug. 26 and before Sept. 10, if the deposits are made by Sept. 10, 2012. "

New leader for the IRS upcoming although temporary

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Doug Shulman

Is leaving the  agency soon and a permanent replacement is yet to be found for him. They do have a temporary replacement from within the ranks at the IRS.

So far Steven Miller

Will replace him until the President and the Senate approve a new head for the job. 

Personally I am betting that Steven will get the job full time in the end but for now it is temporary but that again is just my bet as far as this subject is concerned.

In the past he has done a lot of work within the agency and has earned a top position in the minds of a lot of insiders there.

Our MR. Shulman

Was at first an appointment of our former president George W. Bush and has been working on his very own battle against offshore tax evasion. 

Mr. Shulman also has initiated a program aimed at the people who prepare taxes. It is designed to get them to be more accountable and more well trained, etc. 

In the end we will have to wait for who will be the next head of the IRS but I assure you the IRS will not stop prosecuting and persecuting etc. individuals who are breaking the law and they will continue to be doing their job elsewhere in our dear tax system.

Canon Law Resource

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Amy Hereford has been posting and updating the Canon Law Wiki for about 5 years. It provides a basic online resource for canon law.
A wiki is an online platform that allows multiple editors to contribute to the project. Currently it boasts about a thousand visitors each month from around the globe. Each flag on the map at the right indicates that visitors from that country have used the resource.
You may wish to use the resource the next time you have a canon law question. Writers are also welcome and invited to share their expertise.

IRS on Supporting Organizations and Donor Advised Funds

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The IRS issued a report regarding supporting organizations (SO) and donor advised funds (DAF), including whether contributions to SOs or DAFs should be deductible and/or whether SOs and DAFs should be subject to minimum distribution requirements.   This long-awaited report was released by Treasury on December 5 and can be found by clicking here.   Based on a quick review of this 100+ page report, there are no recommendations that would seem to require additional regulation beyond those amendments made by the Pension Protection Act of 2006 – the report concludes contributions are generally deductible, and no minimum distribution requirement is necessary.

Directors personally liable for negligence of a nonprofit board

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Directors and officers must exercise reasonable inquiry, skill and diligence in performing their duties and must have a reasonable basis for their reliance on any information provided them. If it is determined that officers or directors of a nonprofit corporation have not fulfilled their fiduciary duties with respect to the management of the organization, creditors may be able to hold the directors personally liable for the nonprofit’s debts. Read more....

Nonprofit Law Seminar

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Establishingand Running a Non-Profit: Part I

Thispopular seminar provides an overview of the legal basics forestablishing and running a non-profit organization. Presented by AmyHereford, an attorney and entrepreneur who speaks from her experiencein working with non-profit start-ups. It includes practical tips,useful resources including the Non-profit, Tax-exempt CorporationWorkbook (2012), an e-book (PDF) that presents the process ofestablishing a non- profit in a step-by-step format with ample spacefor notes, charts for gathering necessary information and tables fordeveloping time-lines and assigning responsibilities. An excellenttool for assisting in non-profit formation, orienting new boardmembers and non-profit directors. NPAD:703| $25 680 #10am-12pm Saturday Sept. 29, 2012Meramec-Bus.Admin., 205 (Meramec - 802 Couch Ave. Meramec Campus )

Establishingand Running a Non-Profit: Part II

Thisseminar builds on the previous session and provides more information.It will explore the legal requirements of operating a non- profitbusiness organization, board responsibilities, business law for non-profits and legal compliance. It will also explore newer businessmodels for non-profits, including fiscal sponsorship, nonprofitalliances, non- profit/for profit joint ventures and othercollaborative structures. NPAD:703| $25 681 #1pm-3pm Saturday Sept. 29, 2012Meramec-Bus.Admin., 205 (Meramec - 802 Couch Ave. Meramec Campus )
AdditionalInformation Call: (314)984-7777 Visit: www.stlcc.edu/Continuing_Education

All Social Security Payments to Come Electronically

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In August, anyone who gets Social Security retirement or Supplemental Security Income (SSI) benefits by mail should have received a notice with their monthly check that emphasized the need to switch to electronic payments by March 1, 2013.  If any of your community members are not receiving their Social Security or SSI payments electronically, they need to switch to electronic payments ahead of the deadline. If they don’t make the switch, they may see an interruption of benefits come March.
For more information see http://www.socialsecurity.gov/deposit/howtosign.htm. 

More Money For Retirement

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by Roger Chartier

Retirement age might come when you least expect it.

Social Security retirement age has changed for a lot of people here is a  retirement age chart with that info.

A lot of people in the USA are going to get to an "Oh Shit" point in their lives when either their health takes an unexpected turn or they aren't as sturdy as they thought they'd be when they get to a certain age and that is pushing them to retire without enough income.
I recently spoke with two friends one living in a  trailer park who is facing the imminent death of her dad in the next week or so and she won't be able to handle the living expenses alone.

The other has been able to get public housing but only in a crime ridden building where people destroy and steal everything without conscience. She is a gentle woman who lived in the countryside for a long time and this is a nightmare for her.

 Some 55+ folks give up their apartments or get a room mate. If you have been living on your own or with a spouse etc., it can be hard to change to having to put up with someone else in your immediate environment. You can at least make an attempt to ward off this situation looming ahead.

Way back in 2002 Congress added a provision that eligible people can take advantage of a tax credit for the first $2,000.00 of a contribution to an IRA.
Learn how you can save now with an IRA that is tax free either when you put the money in and take the deduction that year or pay tax on the income that year and take out the dispersion tax free.
 Learn about a Traditional IRA or a Roth IRA.This might sound like a pain in the butt now but you will be a lot happier when you have to retire if you can at least get rid of car payments or whatever when the financial tragedy  comes. We have a nice web page here that defines the differences between the Roth or Traditional IRA. 
 On the other hand there are cheaper places to retire in the USA .

Watch  the video and learn more.

15 Top Baby Names For 2010

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American baby names for 2010

The Social Security Administration has put out this list of names that are given to children and listed them in order of popularity.

Names and Style

It seems that names come in and out of style from time to time. Some of these names are familiar from different eras of time.

Often names that originate in one country with that nationality are adopted by another. America the melting pot gives us a variety unlike most other countries.

Although these names don't seem so popular now in a few years when the babies born in 2010 grow up the names will be pervasive.

	Boys			Girls
1	Jacob		1	Isabella
2	Ethan		2	Sophia
3	Michael		3	Emma
4	Jayden		4	Olivia
5	William		5	Ava
6	Alexander		6	Emily
7	Noah		7	Abigail
8	Daniel		8	Madison
9	Aiden		9	Chloe
10	Anthony		10	Mia
11	Joshua		11	Addison
12	Mason		12	Elizabeth
13	Christopher		13	Ella
14	Andrew		14	Natalie
15	David		15	Samantha

Medicare from Social Security!

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Medicare is the all American health insurance program. It covers folks who are age 65 or older.

There are those folks who do qualify who are under age 65 .

They include people who have disabilities such as permanent kidney failure or amyotrophic lateral sclerosis (Lou Gehrig’s disease).

The cost of healthcare is high and so Medicare helps with the cost.

We do know that it doesn't cover all medical expenses or the cost of most long-term care.

The money to finance Medicare comes from (in part) the payroll taxes paid working Americans and their employers.

Some of it's financing comes from monthly premiums deducted from Social Security checks.

Read more about Social -Security and Medicare at http://www.social-security.biz/medicare.html

Born on November 27, 1950 - will die 83.3 yrs old

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Who told me that?

The Social Security Administration told me that I will die when I am 83.3 years old...most likely anyway.

That is an estimate based on records of people who have died and who have not yet died in the USA.

It seems quite accurate but of course there are anomalies such as 1 out of 5 of those men born on November 27, 1950 will live to be 90 years old, one out of 10 born then could make it to 93, and some will die earlier than predicted.
The penalty for taking social security early say starting at age 62  is 7-8% a year up to your full age of retirement year. 
For those of us who are born between 1943 and 1954 the year of full retirement is 66 years old. The age changes as the time passes.
The opposite holds for those who wait to collect until the last minute when they are 70 years old. From the actual full retirement age, say 66 years old until they collect, they earn an extra 8% a year. 
That can add up to a good amount especially if you are easily earning money as you are working or collecting money before and into your retirement years.

In any event until it hits you in the face that you feel that you should start collecting Social-Security then don't bother jumping into it unless of course if you have health problems.
Then you might die earlier. Oh What a horrible thought! But that is the way it goes like it or not. 
So make a wise choice about when you will take your retirement.

Held prisoner in a dark basement

To contact us Click HERE

For What? Social-security checks

The victim is a 63 year old, deaf, mute, man who was held in a locked and boarded up windowed basement since April of 2012.
He was given no food but drink and a bucket to pee in while locked up and yet beaten on many occasions
Philadelphia police where this event happened are doing well in the investigation and have apprehended 53 year old Dwayne Morrison on charges pertaining to kidnapping and other crimes perpetrated on the poor man.

The un-named victim

Managed to stay alive for all of the months that he was locked up in his miserable hell-hole.

Dwayne Morrison stole his wallet, social-security checks, money and possessions while beating him and leaving him in the cellar to rot.
Our poor nameless victim told police through his brother who interpreted for him, about the abuse and time spent locked up. There was somewhere around $3,000.00 taken from social-security checks.. The perpetrator is being held on a one million dollar bail for the theft, kidnapping, etc to the victim. The impoverished and beaten 63 year old victim's brother told people that the bad guy needs rot in jail and never get to leave the prison.

Church Mileage Reimbursement of Volunteers

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Question:A church has an associate pastor who is unpaid. He drives30 miles each direction from his home to the church, 2 to 3 times per week. Ithas been proposed that a “gift” from the church be made to reimburse hisgasoline costs. It appears that any payment to him would be taxable. Is thereany exception since he is unpaid for his services to the church, and notactually an employee? If not, can he claim his mileage at the charity ratesince he is not a paid employee of the church, but involved in a charitableactivity?

Answer:Any money that the church gives the associate pastor is consideredcompensation because he is performing a service to the church. Employees can bereimbursed at $.555 (2012) for business miles, but not for commuting (theapparent case in this situation). If the pastor continues as a volunteer, hecould claim his mileage at the $.14 per mile charitable rate (2012). Therefore,if he continues as a volunteer, the church could reimburse him up to $.14 permile without tax consequences. Given an average of 2.5 trips per week, thisequals $21 per week (truly a “token”)!

The members of myFederal Taxation I class at Maranatha Baptist Bible College in Watertown,Wisconsin have taken on the challenge of study and research to answer postedquestions. LeslieHarrison of Michigan gets credit for this one.

Church as Facilitator to Pastor Contributions to a Traditional IRA Account

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Question:

Is there any reason a church could not make deposits to anIRA account for its pastor? It is understood that any deposits would have to bereported as income on Form W-2, but other than that, is there any problem?Also, how much of a monthly contribution would be necessary for a 403(b) to beworth the trouble to set up?Answer:

Usually it is the responsibility of the minister to makecontributions to his IRA himself and take a deduction when he files hispersonal returns. But there is no restriction to assist in payroll deductionsfor any purpose as long as they are handled correctly on Form W-2 (as issuggested in the Question). Many ministers do not use traditional IRA planssince Internal Revenue Code section 403(b) and Roth IRA plans are available.Self-employment tax is not assessed on contributions to Church Plans (IRS Revenue Rulings 68-395 and 78-6) which it isbelieved to include 403(b) plans. It is our experience that most investment firms thatsponsor 403(b) plans require minimum monthly contributions. Fees to establishand to contribute to these plans must be weighed against the tax benefits.

The members of my Federal Taxation I class at MaranathaBaptist Bible College in Watertown, Wisconsin have taken on the challenge ofstudy and research to answer posted questions. Leslie Harrison of Michigan gets creditfor this one.

Housing Allowance Designation of IRC 403(b) Distributions

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Question:

Are Internal Revenue Code 403(b) distributions (to aminister over the age of 59 ½) that are designated as housing allowance inexcess of housings costs subject to self-employment tax, or are they onlysubject to income tax as regular income?

Answer:

If a minister owns a home, the amount excluded from theminister’s gross income as a housing allowance is limited to the least of thefollowing: (a) the amount actually used to provide a home, (b) the amountofficially designated as a housing allowance, or c) the fair rental value ofthe home.

As with virtually all retirement plan distributions, noself-employment tax is due on 403(b) distributions.

The members of my Federal Taxation I class at MaranathaBaptist Bible College in Watertown, Wisconsin have taken on the challenge ofstudy and research to answer posted questions. Mariya Bondarenko of Minnesota getscredit for this one.

Designated Gifts to Church on Behalf of Missionary

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Questions:

A missionary is going to be serving with a recognized U.S.missions’ organization. His home church is willing to receive funds from donorsand then disburse them to him. What is the best way for the missionary’s homechurch to do this?

Answer:

Once the church has communicated its endorsement of amissionary, it will naturally encourage donors to contribute to his support. Thechecks to support him need to be made payable to the church and accountable toits control. The church then will disburse the funds. It is stronglyrecommended that the church dispense the funds directly to the missionary’smission agency. The agency will handle all tax related issues and the churchwill have no further reporting requirements.

The members of my Federal Taxation I class at MaranathaBaptist Bible College in Watertown, Wisconsin have taken on the challenge ofstudy and research to answer posted questions. Mariya Bondarenko of Minnesota getscredit for this one.

The Deason Rule

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Question:

A minister has been using tax preparation software for years. He is paid as a Form 1099-MISC, self-employed pastor. The program sent him to a worksheet which took his Schedule C business expenses and reduced them by a percentage of income attributed to housing allowance. He had never had that happen before. Is there some new regulation or provision in the tax code? Answer:

What the minister is dealing with here is something called the Deason Rule, and it is based on a tax case going back to 1964. The rule applies to clergy who are able to take business expense deductions for unreimbursed business expenses. According to the IRS: “A minister may deduct ordinary and necessary business expenses. However, if a minister's compensation includes a parsonage or housing allowance which is exempt from income under IRC § 107, the prorated portion of the expenses allocable to the tax exempt income is not deductible, per IRC § 265, Deason v. Commissioner, 41 T.C. 465 (1964), Dalan v. Commissioner, T.C. Memo. 1988-106, and McFarland v. Commissioner , T.C. Memo. 1992-440.”

There is a way that will help the pastor get out of the Deason Rule, and it is by having the church set up an Accountable Plan for his professional clergy expenses. Under such an arrangement, the church establishes part of its minister’s compensation package for ministry expenses. The minister is reimbursed for those expenses. By doing this, the pastor will not have unreimbursed expenses that will be of limited tax benefit. Hint: This would be a good time to use this blog’s search window to find and review Accountable Plans.
The members of my Federal Taxation I class at Maranatha Baptist Bible College in Watertown, Wisconsin have taken on the challenge of study and research to answer posted questions. Mariya Bondarenko of Minnesota gets credit for this one.

More Money For Retirement

by Roger Chartier

Retirement age might come when you least expect it.

Social Security retirement age has changed for a lot of people here is a  retirement age chart with that info.

A lot of people in the USA are going to get to an "Oh Shit" point in their lives when either their health takes an unexpected turn or they aren't as sturdy as they thought they'd be when they get to a certain age and that is pushing them to retire without enough income.
I recently spoke with two friends one living in a  trailer park who is facing the imminent death of her dad in the next week or so and she won't be able to handle the living expenses alone.

The other has been able to get public housing but only in a crime ridden building where people destroy and steal everything without conscience. She is a gentle woman who lived in the countryside for a long time and this is a nightmare for her.

 Some 55+ folks give up their apartments or get a room mate. If you have been living on your own or with a spouse etc., it can be hard to change to having to put up with someone else in your immediate environment. You can at least make an attempt to ward off this situation looming ahead.

Way back in 2002 Congress added a provision that eligible people can take advantage of a tax credit for the first $2,000.00 of a contribution to an IRA.
Learn how you can save now with an IRA that is tax free either when you put the money in and take the deduction that year or pay tax on the income that year and take out the dispersion tax free.
 Learn about a Traditional IRA or a Roth IRA.This might sound like a pain in the butt now but you will be a lot happier when you have to retire if you can at least get rid of car payments or whatever when the financial tragedy  comes. We have a nice web page here that defines the differences between the Roth or Traditional IRA. 
 On the other hand there are cheaper places to retire in the USA .

Watch  the video and learn more.

15 Top Baby Names For 2010

American baby names for 2010

The Social Security Administration has put out this list of names that are given to children and listed them in order of popularity.

Names and Style

It seems that names come in and out of style from time to time. Some of these names are familiar from different eras of time.

Often names that originate in one country with that nationality are adopted by another. America the melting pot gives us a variety unlike most other countries.

Although these names don't seem so popular now in a few years when the babies born in 2010 grow up the names will be pervasive.

	Boys			Girls
1	Jacob		1	Isabella
2	Ethan		2	Sophia
3	Michael		3	Emma
4	Jayden		4	Olivia
5	William		5	Ava
6	Alexander		6	Emily
7	Noah		7	Abigail
8	Daniel		8	Madison
9	Aiden		9	Chloe
10	Anthony		10	Mia
11	Joshua		11	Addison
12	Mason		12	Elizabeth
13	Christopher		13	Ella
14	Andrew		14	Natalie
15	David		15	Samantha

Medicare from Social Security!

Medicare is the all American health insurance program. It covers folks who are age 65 or older.

There are those folks who do qualify who are under age 65 .

They include people who have disabilities such as permanent kidney failure or amyotrophic lateral sclerosis (Lou Gehrig’s disease).

The cost of healthcare is high and so Medicare helps with the cost.

We do know that it doesn't cover all medical expenses or the cost of most long-term care.

The money to finance Medicare comes from (in part) the payroll taxes paid working Americans and their employers.

Some of it's financing comes from monthly premiums deducted from Social Security checks.

Read more about Social -Security and Medicare at http://www.social-security.biz/medicare.html

Born on November 27, 1950 - will die 83.3 yrs old

Who told me that?

The Social Security Administration told me that I will die when I am 83.3 years old...most likely anyway.

That is an estimate based on records of people who have died and who have not yet died in the USA.

It seems quite accurate but of course there are anomalies such as 1 out of 5 of those men born on November 27, 1950 will live to be 90 years old, one out of 10 born then could make it to 93, and some will die earlier than predicted.
The penalty for taking social security early say starting at age 62  is 7-8% a year up to your full age of retirement year. 
For those of us who are born between 1943 and 1954 the year of full retirement is 66 years old. The age changes as the time passes.
The opposite holds for those who wait to collect until the last minute when they are 70 years old. From the actual full retirement age, say 66 years old until they collect, they earn an extra 8% a year. 
That can add up to a good amount especially if you are easily earning money as you are working or collecting money before and into your retirement years.

In any event until it hits you in the face that you feel that you should start collecting Social-Security then don't bother jumping into it unless of course if you have health problems.
Then you might die earlier. Oh What a horrible thought! But that is the way it goes like it or not. 
So make a wise choice about when you will take your retirement.

Held prisoner in a dark basement

For What? Social-security checks

The victim is a 63 year old, deaf, mute, man who was held in a locked and boarded up windowed basement since April of 2012.
He was given no food but drink and a bucket to pee in while locked up and yet beaten on many occasions
Philadelphia police where this event happened are doing well in the investigation and have apprehended 53 year old Dwayne Morrison on charges pertaining to kidnapping and other crimes perpetrated on the poor man.

The un-named victim

Managed to stay alive for all of the months that he was locked up in his miserable hell-hole.

Dwayne Morrison stole his wallet, social-security checks, money and possessions while beating him and leaving him in the cellar to rot.
Our poor nameless victim told police through his brother who interpreted for him, about the abuse and time spent locked up. There was somewhere around $3,000.00 taken from social-security checks.. The perpetrator is being held on a one million dollar bail for the theft, kidnapping, etc to the victim. The impoverished and beaten 63 year old victim's brother told people that the bad guy needs rot in jail and never get to leave the prison.

Social Security: Opt Back "In"?

Question:

I am a minister who decided to opt out of the SocialSecurity system. Am I able to opt back into Social Security if I so choose?Answer:

Unfortunately, no. Once a minister requestsexemption from social security, that exemption is irrevocable (Reg. §1.1402(e)-4A(b)). The Ticket to Work and Work IncentivesImprovement Act of 1999 did allow for a reversal of the exemption betweenJanuary 1, 2000 and April 15, 2002. I am aware of no Congressional considerationto repeat the allowance of the 1999 Act.The members of my Federal Taxation I class at Maranatha Baptist Bible College in Watertown, Wisconsin have taken on the challenge of study and research to answer the posted question. Aaron Oberholtzer of Marinette, Wisconsin gets credit for this one.

Unsolicited, Unilateral Gifts Directed to Individuals

Question:

Financial gifts are given by several persons to ourformer pastor who is now retired. The question is: since they give through thechurch, are their gifts deductible and do we need to give him a Form W-2 at theend of the year or are these gifts not taxable? Answer:

The way the question is worded leads me to believethat the actions of the donors were unsolicited (i.e., the church did not takecorporate action to initiate the collection of funds in order to compensate itsformer pastor). The church is simply acting as a conduit to forward thegifts  to the pastor.To be deductible, charitable contributions must bemade to a qualified organization, donors releasing control of the funds to itin order that it might accomplish its charitable purposes. On occasion, a churchwill encourage contributions to enable it to compensate its employees,including its pastor(s). These contributions are deductible by the donors. Therecipients are generally subject to income and self-employment tax (see otherpostings within this blog for exceptions or strategies to avoid or limit thesetaxes). Payments toindividuals are not considered qualified organizations per IRS Publication 526, even if the organization is used as a conduitto accomplish the donor’s unilateral show of generosity. Individuals whomake contributions to another individual are not able to take a tax deduction,nor is the gift taxable to the recipient.

The members of my Federal Taxation I class at Maranatha Baptist Bible College in Watertown, Wisconsin have taken on the challenge of study and research to answer the posted question. Aaron Oberholtzer of Marinette, Wisconsin gets credit for this one.

Unincorporated Churches--A "Loophole"?

Question:

I am a member of a local church that has opted to notincorporate with our State nor to file for the 501(c)(3) tax exemption with thefederal government. I have heard of churches giving occasional"gifts" to individuals within the church from money that was given tothe church by donors who write these contributions off as tax-deductible andthe recipients of these gifts were never given Form 1099s from the church, nor dothey claim them as income on their personal tax returns.  How do donations to individual missionaries qualifyfor tax deduction? What is the responsibility of the church to account for suchdistributions to individuals?  
Answer:“A church is a cohesive group of individuals who jointogether to accomplish the religious purposes of mutually held beliefs. Inother words, a church's principal means of accomplishing its religious purposemust be to assemble regularly a group of individuals related by common worshipand faith” (Tax Court Memorandum 1990-41). Whether the church has eitherformally incorporated or filed for IRS recognition as a 501(c)(3) organization isirrelevant to its classification as a church and to its responsibility tocomply with tax law.

According to IRS Publication 526 charitable contributionsmade to individuals are not tax deductible nor are they reported as income.Donations must be given to a qualified organization (e.g. achurch) in order to be tax deductible by the donor. The church can use suchdonations to support missionaries without affecting the tax deductibility ofthe gift for the donor. 

In the case of a church giving a “gift” to an individualwithin a church, it depends on the relationship between the church and theindividual. Because a missionary is providing services on behalf of the church,money received from the church is considered taxable income . If the gift isdispensed by the church for non-compensatory, benevolent purposes, then it isnot taxable to the recipient.If the a church is simply a supporting church and themissionary is sent funds through a missions’ agency, the “gift” is treated as atransfer to funds between two tax-exempt organizations—a church and a missions’agency. The missions’ agency is responsible to correctly report thedisbursement of taxable compensation to the missionary.

If the church is acting as the missions’ agency then taxtreatment must be determined by the church—typically Form W-2 or Form 1099-MISCdepending on the missionary’s employment status (i.e., employee or independentcontractor). I recommend that readers of this blog explore other postings for areview of rules to determine this status.

The members of my Federal Taxation I class at Maranatha Baptist Bible College in Watertown, Wisconsin have taken on the challenge of study and research to answer the posted question. Andrew Domsic of Mattawan, Michigan gets credit for this one.

Short-term Missions Trip Income

Question:

Mywife and I recently returned from a six-month mission trip. We were sent andsupported by our church congregation. Our flight, living expenses, and mortgageback home were all covered by the church. We weresupported directly by our home church as missionaries (no missions’ agency wasemployed). We received a Form 1099-MISC from the church listing all of oursupport as “Non-employee compensation.” How will I report this to make our tripexpenses balance out?
Answer:
Non-employeecompensation reported on Form 1099-MISC is included on Schedule C of IRS Form1040. This Schedule allows business expenses to be deducted directly fromincome. In your case, business expenses will include your deductible tripexpenses assuming you have adequate substantiation of the expenses as requiredby the IRS. Payments on your home mortgage are not deductible businessexpenses. 
Themembers of my Federal Taxation I class at Maranatha Baptist Bible College inWatertown, Wisconsin have taken on the challenge of study and research toanswer posted questions. Dan Chodan of Lancaster, Pennsylvaniagets credit for this one.

Review of Car Allowance

Question:

A church approved a “car allowance” for one of itspastors. The pastor is considering a lease or new car purchase. What will bethe effect of his options on his taxes?
Answer:
Any car allowance should be set up using an “accountableplan”, which must meet three requirements under the Internal Revenue Code Sec.62(a)(2)(A): the reimbursements must have a business connection, must besubstantiated on a timely basis using the mileage records kept by the employee,and must be returned to the employer to the extent they exceed actual expenses.Using an accountable plan allows the car allowance to be excluded from anemployee’s income on his Form W-2. Mileage records should include the date,business purpose, and number of miles for each trip. The IRS sets maximum permile rates (55.5 cents for 2012, according to IRS Notice 2012-1). If the actualmiles multiplied by the IRS rate is less than the allowance, the pastor must returnthat amount to the church, otherwise the full allowance would be included in hisincome.
Readers of this post should search other blog entriesregarding alternatives to “car allowances” – specifically, more flexibleprofessional expense reimbursement plans. Also, leases can complicate thereimbursement arrangement, but that’s a topic of a future post!
The members of my Federal Taxation I classat Maranatha Baptist Bible College in Watertown, Wisconsin have taken on thechallenge of study and research to answer posted questions. Kyle Krohn of Iowagets credit for this one.

Can't pay your IRS taxes on time?

6 ways to avoid some IRS late payment penalties and interest .

1. Read the webpage  Tax Troubles

The  tax trouble webpage  can be helpful as well for understanding what to do

2. Don't wait until you have all the money.

File your taxes on time and pay as much as you can when you file. Now you don't get a late filing penalty.
You will get a late payment penalty but it will be lowered as well as the interest and other charges.

3. Don't wait for the IRS to demand payment

Get in touch with the IRS and ask to set up an installment agreement. The sooner that you do that the better because you will pay less in charges, penalties and interest

4. Borrow the money

if the interest rate would be lower than what the IRS interest and charges and penalties would be.

5. If you get an IRS bill

call ASAP to straighten it all out and set yourself up to your best advantage.

6. Set up an extension to pay later

There is a thing called the "Fresh Start Initiative" that you should ask about where if you qualify you can avoid all penalties.

Health Insurance Premium Tax Credit

In 2014 - Health Insurance Premium Tax Credit

This is a nice idea, a premium tax credit to help folks afford health insurance.
It will be available to families and individuals alike starting in 2014.

Too bad we have to wait but at least it is coming.

Many individuals who are barely getting by financially will have hope for health insurance and this will surely save lives as people often avoid medical treatment that they can't afford when they are uninsured.

The deal involves insurance bought through one of the companies in the Affordable Insurance Exchange that will operate in all 50 states and District of Columbia.

The wonderful part for poor folks is that the credit is a refundable one so that even if you don't have to pay tax you can get a credit paid out to you or paid out directly to the insurance company beforehand so that you don't have to worry about it.

The operation will be run by the Department of Health and Human Services.
The plan will have a choice of health plans that vary in benefit and costs.