An Oakland Calfornia based Tax Return Preparation Firm - Company Message
Tax Tips

TAX FILING ODDS and ENDS

For many efling cannot be done until Feb 14 .. this is due to the late passage of the tax laws.

Everyone should efile .. no reason not to do it.. it is quick and efficient .. you get your money back faster .. a Direct Deposit will get you a refund in 8-15 days ..  no need to use those high priced refund anticipation loans ..

lots of ads out there that are sort of false .. HRB says they will do your taxes for free?? well, yes if you use a 1040EZ .. but extra for state .. and their normal high prices for 1040A and 1040 ..

I still see returns from new clients that used a chain tax store and their prices are much higher than ours and we do just fine with our pricing structure . of course it helps that we have low overhead, but still the chains often really gouge people .. this week a new client came in and had her taxes done.. she was with her friend that had gone to JH .. just for fun I showed her my pricing (it is on the computer screen) and what she paid $200 for, I would have done for $140 .. pretty sure she will come back to me next year..

brokerage account information is beginning to flow in .. keep an eye out for it .. make sure that you pay attention to the 1099-B .. if you sold stocks, even if you lost money on them you have to report them or you will get an audit lettter..  you should report to get the advantage of the loss.. also, people often don't  know that they have to report option sales .. they think because it is on the W2 it is taken care of.. it is not .. usually those sales have a small loss equal to the commission so you should report the loss.

Any one who did a conversation to a ROTH needs to be careful when they do their taxes.. you can either pay the tax now .. or you can spread the income over 2011 and 2012 and pay the tax then... this is what I will be doing. 

you should have kept theamount of the conversion separate .. then plan to file your taxes about October 15th .. why?  let's say if you do a $30K conversion .. if on 10!/14  it isworth $40 K, great go ahead and file

if the $30K has become $20K,you don't want to pay tax on the $30K when it is only worth $20K so move it back to the IRA . this is called recharacterization  see the following url for more on this

http://www.investopedia.com/articles/retirement/03/092403.asp

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