Are You Overpaying Taxes If You Use Tax Preparation Software?

Written by Richard A. Chapo


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If you are only claiming general business tax deductions, you are paying more than you should in taxes. Ask yourself if you have seen any ofrepparttar following questions in a tax software program interview:

Q. Do you store business inventory in your house?

Hint: You may be able to claim hundreds or thousands of dollars in deductions.

Q. Did you start a pension plan for your employees?

Hint: You may be able to claim a tax credit forrepparttar 149642 next three years totaling $1,500.

Q. Do you have a home-based business and a second office?

Hint: You may be able to deduct your commuting expenses each day. Yes, commuting expenses.

Q. Do you have business meetings at your home?

Hint: Did you charge your business forrepparttar 149643 space?

Q. Should you claimrepparttar 149644 standard mileage rate for your auto orrepparttar 149645 actual costs?

Hint: The standard mileage rate may notrepparttar 149646 best option.

Q. Did you modify your business location to comply withrepparttar 149647 Americans with Disabilities Act?

Hint: You may be able to claim a tax credit AND tax deduction for tax savings of $20,000 or more.

Q. Did you refinance your home?

Hint: The points you paid on your original mortgage are fully deductible now, not overrepparttar 149648 length ofrepparttar 149649 loan.

This represents onlyrepparttar 149650 tip ofrepparttar 149651 iceberg of available credits and deductions available to you. Just one of these deductions could save you thousands of dollars in taxes. Yet, you are never going to see these questions raised in a tax software program interview. The tax code and regulations are simply too large to be incorporated into a usable software program.

Your business is unique. You face and overcome issues and problems that are unique to your size, financial situation and particular business needs. Donít short change yourself by limiting your deductions by using tax software programs.

Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Go to our article section to discover tax strategies and deductions.


Tax Deduction for Alimony Payments? - Yes!

Written by Richard A. Chapo


Continued from page 1

5. You have no liability to make any payment (in cash or property) afterrepparttar death of your spouse or former spouse; and

6. Your payment is not treated as child support.

If you are receiving or paying alimony, you must use Form 1040 for your personal taxes. Regardless of income levels, deductions or miscellaneous tax issues, you cannot use Form 104A or Form 1040EZ.

In preparing your tax return,repparttar 149641 person receiving alimony will reportrepparttar 149642 information on line 11 of Form 1040. That person must also provide their social security number to their former spouse or face a fine of $50. The person payingrepparttar 149643 alimony can claimrepparttar 149644 deduction on line 34a of Form 1040.

Richard Chapo is with Business Tax Recovery - Obtaining tax refunds for small businesses for overpaid taxes. Go to our article section to discover tax strategies and deductions.


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