(OCEAN COUNTY, NJ) - MILITARY - Did you know you can exclude certain pay from your income while working in a combat zone?
Service outside a combat zone is considered to be inside a combat zone if the service is in direct support of combat zone military operations.
If you're a member of the U.S. Armed Forces who serves in a combat zone, you can exclude certain pay from your income. You also have additional time to make a qualified contribution to an IRA. A combat zone is an area designated by the U.S. President by Executive Order as an area in which U.S. Armed Forces are engaging in or have engaged in combat.
CONTACT US AT OUR YEAR 'ROUND OFFICES
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LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Income
The following income received during service in a combat zone doesn’t have to be reported as gross income:
active duty pay earned in any month served in a combat zone
imminent danger/hostile fire pay during a month served in a combat zone
re-enlistment bonus if re-enlistment or voluntary extension occurs during a month served in a combat zone
Pay for accrued leave — the Department of Defense must determine the unused leave was earned during the month served in a combat zone
pay for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other non-appropriated fund activities earned during a month served in a combat zone
awards or achievement pay made for a suggestion or achievement made in a month served in a combat zone
student loan repayments to the extent service in the year of service required to earn the repayment was performed in a combat zone
(new for 2008) bonus payments by a state or local government entity to a member or former member of the armed forces, if the payment is made solely because of service in a combat zone
If you're a commissioned officer (other than a commissioned warrant officer), the combat pay exclusion for any month is limited to the highest rate on enlisted pay (plus hostile fire/imminent danger pay, if any).
You do not claim an exclusion for combat pay on your tax return. The excludable amount should not be included in your Box 1 wages on Form W-2. If an excludable amount is included in your Box 1 wages, you should get a corrected Form W-2.
If you served in a combat zone for 1 or more days during a particular month, you’re allowed the above exclusions for that entire month. Combat zone service includes any periods you are absent from duty due to illness, wounds or leave. A person is considered to be serving in a combat zone if he or she becomes a prisoner of war or is missing in action if that status is kept for military pay purposes.
You can also exclude military pay earned while hospitalized (you don’t have to be hospitalized in the combat zone). Your hospitalization must be due to having served in a combat zone. This is true even if you’re hospitalized after combat zone service. For more information, check with a tax professional.
Combat Zone Considerations
Military service outside the combat zone is, for tax purposes, considered to be inside a combat zone if the service is in direct support of combat zone military operations and the service qualifies you for special military pay for duty subject to hostile fire or imminent danger.
But in these situations, you're not considered to be in a combat zone:
1.You're present in a combat zone during leave from a duty station located outside the combat zone.
2.You pass over or through a combat zone during a trip between 2 points that are outside a combat zone.
3.You’re in a combat zone only for your personal convenience.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Monday, September 28, 2009
(TOMS RIVER, NJ AREA) - Top 11 Tips For Filling Out The FAFSA Form.
(TOMS RIVER, NJ AREA) - Top 11 Tips For Filling Out The FAFSA Form.
Tip # 1: Read. Read. Read. Before you start, make sure you read ALL the instructions. Sounds like a given, but many think they can just dive into the application process without benefit of the instructions. Big mistake.
Tip #2: Pay attention to filing dates. The FAFSA form should be completed and mailed as soon as possible AFTER January 1 because Federal and State funds are awarded on a first come, first serve basis. However, this is one case where the early bird doesn’t catch the worm; file BEFORE January 1, and your application will be returned to you because your current year income tax return data is needed to complete the FAFSA documentation. Check with the Financial Aid office at your school for the deadline dates.
Tip #3: File once, but file even if you think you’re not eligible. Only one financial aid application can be submitted each calendar year. Even if you think you’re ineligible for financial aid, you should still complete the form because many states and schools use it to award non-federal aid.
Tip #4: Online or paper. You can complete a paper copy or you can complete the FAFSA application online at www.fafsa.ed.gov. With an online application, the processing time is cut in half. Remember, however, that you’ll need a PIN number for an online application if you’re planning to submit an online signature. Without a pin, you can still file online, but you will need to print out the signature page, sign it and return the signature page to the Dept. of Education. The Dept of Education then matches the online data received with the signature page submitted by mail and processes the FAFSA accordingly.
Tip #5: Get your stuff in order. To complete a FAFSA form, whether online or paper, you’ll need: your driver’s license and Social Security Card; Income tax returns; W-2s forms as well as other records of money earned; documentation of any other untaxed income such as welfare or veteran’s benefits; your current bank statements; current mortgage information; and any business or farm reports if applicable. Ask your tax professional if you have any questions about the tax-related information.
Tip #6: Black not blue. For paper copies, complete your application in black ink; not blue, and whatever you’re thinking, please don’t use a pencil.
Tip #7: Answer all questions. Print clearly; preferably in capital letters for all responses. If a question doesn’t apply to you, write “0” or “NA” (not applicable) as the response. Round any dollar amounts to nearest whole dollar. And, remember, on the FAFSA form, “you” and “your” always refers to the student, not the parents.
Tip #8: Help. I need someone. When stuck, get help.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
If you live in the Atlanta, GA Metro, Northern Georgia, New York City Metro, Charlotte, NC Metro, Missoula, MT, Baltimore, MD, Jacksonville, FL, McAllen, TX or Harligen, TX, you may receive professional assistance in completing the 2009-2010 FAFSA form beginning in January 2009 while completing your tax return with H&R Block. Other H&R Block locations can help assist you in answering questions regarding the FAFSA form. For more information about participating offices in your area, please contact your local H&R Block office.
Tip # 9: Don’t forget to sign. Parents, too, if you’re a dependent. This is a common blooper; check and double-check your application to make sure you’ve answered ALL questions and DON’T forget to sign the application. For online applications, if you have a PIN, it will serve as your online signature.
Tip #10: Submit and wait. In 3-4 weeks, you should receive a Student Aid Report (SAR). This report will detail your expected family contribution and give you the opportunity to correct any errors or wrong information. In late March or early April, the award letter should be in the mail and you’ll know how much financial aid you are eligible to receive.
Tip #11: CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Congratulations!!!!
Tip # 1: Read. Read. Read. Before you start, make sure you read ALL the instructions. Sounds like a given, but many think they can just dive into the application process without benefit of the instructions. Big mistake.
Tip #2: Pay attention to filing dates. The FAFSA form should be completed and mailed as soon as possible AFTER January 1 because Federal and State funds are awarded on a first come, first serve basis. However, this is one case where the early bird doesn’t catch the worm; file BEFORE January 1, and your application will be returned to you because your current year income tax return data is needed to complete the FAFSA documentation. Check with the Financial Aid office at your school for the deadline dates.
Tip #3: File once, but file even if you think you’re not eligible. Only one financial aid application can be submitted each calendar year. Even if you think you’re ineligible for financial aid, you should still complete the form because many states and schools use it to award non-federal aid.
Tip #4: Online or paper. You can complete a paper copy or you can complete the FAFSA application online at www.fafsa.ed.gov. With an online application, the processing time is cut in half. Remember, however, that you’ll need a PIN number for an online application if you’re planning to submit an online signature. Without a pin, you can still file online, but you will need to print out the signature page, sign it and return the signature page to the Dept. of Education. The Dept of Education then matches the online data received with the signature page submitted by mail and processes the FAFSA accordingly.
Tip #5: Get your stuff in order. To complete a FAFSA form, whether online or paper, you’ll need: your driver’s license and Social Security Card; Income tax returns; W-2s forms as well as other records of money earned; documentation of any other untaxed income such as welfare or veteran’s benefits; your current bank statements; current mortgage information; and any business or farm reports if applicable. Ask your tax professional if you have any questions about the tax-related information.
Tip #6: Black not blue. For paper copies, complete your application in black ink; not blue, and whatever you’re thinking, please don’t use a pencil.
Tip #7: Answer all questions. Print clearly; preferably in capital letters for all responses. If a question doesn’t apply to you, write “0” or “NA” (not applicable) as the response. Round any dollar amounts to nearest whole dollar. And, remember, on the FAFSA form, “you” and “your” always refers to the student, not the parents.
Tip #8: Help. I need someone. When stuck, get help.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
If you live in the Atlanta, GA Metro, Northern Georgia, New York City Metro, Charlotte, NC Metro, Missoula, MT, Baltimore, MD, Jacksonville, FL, McAllen, TX or Harligen, TX, you may receive professional assistance in completing the 2009-2010 FAFSA form beginning in January 2009 while completing your tax return with H&R Block. Other H&R Block locations can help assist you in answering questions regarding the FAFSA form. For more information about participating offices in your area, please contact your local H&R Block office.
Tip # 9: Don’t forget to sign. Parents, too, if you’re a dependent. This is a common blooper; check and double-check your application to make sure you’ve answered ALL questions and DON’T forget to sign the application. For online applications, if you have a PIN, it will serve as your online signature.
Tip #10: Submit and wait. In 3-4 weeks, you should receive a Student Aid Report (SAR). This report will detail your expected family contribution and give you the opportunity to correct any errors or wrong information. In late March or early April, the award letter should be in the mail and you’ll know how much financial aid you are eligible to receive.
Tip #11: CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Congratulations!!!!
TOMS RIVER, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
TOMS RIVER, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
FOR RELEASE SEPTEMBER 29, 2009
(KANSAS CITY, Mo.) - Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.
"Given the current economic climate - and the need for taxpayers to claim every tax credit and deduction they're due - the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."
The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.
"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill - their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."
Among the survey's findings:
70 percent of taxpayers surveyed by The Tax Institute at H&R Block said they weren't aware of recent legislative changes that could affect their return next year.
"There are changes that affect parents, first-time homebuyers, long-time homeowners, military personnel, retirees, people impacted by the Alternative Minimum Tax and more," said McAnarney. "Every one of those changes could mean money in taxpayers' pockets."
Most Americans don't know a tax credit from a deduction - and that could be costing them big bucks.
Nearly 60 percent of those surveyed didn't know which trims more off the bottom line. The answer? A tax credit, which lowers a tax bill dollar-for-dollar, while a tax deduction lowers taxable income.
"This is not the time for taxpayers to guess on their own or see a tax professional who isn't a tax expert," said McAnarney. "More than ever, taxpayers need advice that translates into the biggest refund they're allowed by law."
Talking about taxes is one thing, but knowing how much that bill costs is an entirely different discussion. The survey showed that 78 percent weren't totally confident they even know what tax bracket they're in.
"Knowing your tax bracket is the first step to taking advantage of opportunities to lower your tax liability," said McAnarney. "There are lots of things people can do to lower their tax bill throughout the year: invest in a 529, a 401 (k) or an IRA, contribute to a health savings account, knowing when to dispose of capital assets - the list goes on."
84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. "There are do-overs in taxes, but not enough people take advantage of that," said McAnarney. "A professional can look at an old return and see if there is additional money left unclaimed." At H&R Block, 87 percent of previous years' amended returns net taxpayers an average refund of $1,300.
Americans fail to recognize that up-to-date training and education are key when selecting a tax professional. According to the survey, 76 percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. One of the top traits survey participants chose? Location.
"Convenience is always important but knowledge means money," said McAnarney. "The U.S. tax code is always changing, which is why taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer."
And despite the fact that the majority of those surveyed did not know their tax bracket, how much they paid in taxes or the difference between a credit and a deduction - they still aren't enamored with the U.S. tax system. A whopping 92 percent of those taxpayers surveyed could not describe the U.S. tax system as "very fair."
Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to those taxpayers both younger and older than them. Only 32 percent of those between 35 and 54 said the tax system was very or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 and older.
Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical - especially in today's economy.
"Americans should treat their tax bill like their bill of health," said McAnarney. "At times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve."
The Tax Institute is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McLaren. For more information visit our Online Press Center at www.hrblock.com.
FOR RELEASE SEPTEMBER 29, 2009
(KANSAS CITY, Mo.) - Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.
"Given the current economic climate - and the need for taxpayers to claim every tax credit and deduction they're due - the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."
The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.
"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill - their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."
Among the survey's findings:
70 percent of taxpayers surveyed by The Tax Institute at H&R Block said they weren't aware of recent legislative changes that could affect their return next year.
"There are changes that affect parents, first-time homebuyers, long-time homeowners, military personnel, retirees, people impacted by the Alternative Minimum Tax and more," said McAnarney. "Every one of those changes could mean money in taxpayers' pockets."
Most Americans don't know a tax credit from a deduction - and that could be costing them big bucks.
Nearly 60 percent of those surveyed didn't know which trims more off the bottom line. The answer? A tax credit, which lowers a tax bill dollar-for-dollar, while a tax deduction lowers taxable income.
"This is not the time for taxpayers to guess on their own or see a tax professional who isn't a tax expert," said McAnarney. "More than ever, taxpayers need advice that translates into the biggest refund they're allowed by law."
Talking about taxes is one thing, but knowing how much that bill costs is an entirely different discussion. The survey showed that 78 percent weren't totally confident they even know what tax bracket they're in.
"Knowing your tax bracket is the first step to taking advantage of opportunities to lower your tax liability," said McAnarney. "There are lots of things people can do to lower their tax bill throughout the year: invest in a 529, a 401 (k) or an IRA, contribute to a health savings account, knowing when to dispose of capital assets - the list goes on."
84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. "There are do-overs in taxes, but not enough people take advantage of that," said McAnarney. "A professional can look at an old return and see if there is additional money left unclaimed." At H&R Block, 87 percent of previous years' amended returns net taxpayers an average refund of $1,300.
Americans fail to recognize that up-to-date training and education are key when selecting a tax professional. According to the survey, 76 percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. One of the top traits survey participants chose? Location.
"Convenience is always important but knowledge means money," said McAnarney. "The U.S. tax code is always changing, which is why taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer."
And despite the fact that the majority of those surveyed did not know their tax bracket, how much they paid in taxes or the difference between a credit and a deduction - they still aren't enamored with the U.S. tax system. A whopping 92 percent of those taxpayers surveyed could not describe the U.S. tax system as "very fair."
Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to those taxpayers both younger and older than them. Only 32 percent of those between 35 and 54 said the tax system was very or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 and older.
Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical - especially in today's economy.
"Americans should treat their tax bill like their bill of health," said McAnarney. "At times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve."
The Tax Institute is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McLaren. For more information visit our Online Press Center at www.hrblock.com.
As Unemployment Rises, So Does Confusion on Tax Implications
As Unemployment Rises, So Does Confusion on Tax Implications
KANSAS CITY, Mo. – One in 10. That is how many Americans economists predict could be unemployed by year’s end. Yet, 8 in 10 taxpayers believe they won’t have to pay taxes on unemployment benefits, according to a survey conducted by The Tax Institute at H&R Block.
Numbers recently released show 9.4 percent of Americans are unemployed. For those people and the more than 1 million others who filed for unemployment in the past two months, it’s critical to understand the tax implications of receiving those benefits. Those who don’t, may have an unexpected tax bill next April, warned tax professionals at H&R Block (NYSE: HRB).
“For most individuals, taxes are very confusing. If your situation has changed and you are now unemployed, that adds a new level of complexity and stress to an apprehensive time,” said Amy McAnarney, executive director of The Tax Institute at H&R Block.
To help relieve some of that stress, McAnarney said it’s important to learn a little more about three key areas:
Taxability of unemployment benefits
COBRA insurance subsidy
The reasons for tracking job search expenses
Extra, extra
Congress did pass some additional relief, however. A provision in this year’s Recovery Act is designed to relieve some financial burden for those who are unemployed. For anyone receiving unemployment benefits in 2009, an extra $25 per week is added to their benefit. In addition, the time a person can receive unemployment payments was extended to 20 weeks and in certain high unemployment states, extended an additional 13 weeks. Be sure to check with a local tax professional or unemployment office to determine which states give the extension.
The legislation passed in February also gives a break on COBRA insurance premiums to those who qualify. This benefit is a federal subsidy of 65 percent on monthly premiums for up to nine months. This decreases the out-of-pocket expense on COBRA by almost two-thirds for those who are eligible.
To tax or not to tax
Although unemployment compensation is taxable, the Recovery Act contains a provision that exempts the first $2,400 of unemployment benefits earned in 2009 from federal taxes. However, any unemployment compensation earned over $2,400 is still taxable.
So, for those unemployed, these steps can simplify the tax picture:
Setting aside a portion of your benefit amount to pay taxes next year or fill out form W-4V to have it automatically withheld
Tracking and documenting job search related expenses
Talking to a tax professional to avoid confusion
Deducting the job search
McAnarney said many expenses incurred as a result of a job search are tax deductible when a taxpayer seeks employment in the same field or business as their previous job. Among them:
Resume development
Professional placement services
Mileage driven to job interviews and other unreimbursed travel expenses such as airfare
Taxpayers must itemize as part of their miscellaneous deductions to deduct job search expenses. However, only miscellaneous expenses that exceed 2 percent of adjusted gross income are deductible. “Because even the little expenses add up, be sure to document and keep receipts,” McAnarney said.
H&R Block tax offices are open now and can help individuals best prepare for any taxes on unemployment compensation before the year ends. Or visit www.hrblock.com for tax tips and other important information.
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
KANSAS CITY, Mo. – One in 10. That is how many Americans economists predict could be unemployed by year’s end. Yet, 8 in 10 taxpayers believe they won’t have to pay taxes on unemployment benefits, according to a survey conducted by The Tax Institute at H&R Block.
Numbers recently released show 9.4 percent of Americans are unemployed. For those people and the more than 1 million others who filed for unemployment in the past two months, it’s critical to understand the tax implications of receiving those benefits. Those who don’t, may have an unexpected tax bill next April, warned tax professionals at H&R Block (NYSE: HRB).
“For most individuals, taxes are very confusing. If your situation has changed and you are now unemployed, that adds a new level of complexity and stress to an apprehensive time,” said Amy McAnarney, executive director of The Tax Institute at H&R Block.
To help relieve some of that stress, McAnarney said it’s important to learn a little more about three key areas:
Taxability of unemployment benefits
COBRA insurance subsidy
The reasons for tracking job search expenses
Extra, extra
Congress did pass some additional relief, however. A provision in this year’s Recovery Act is designed to relieve some financial burden for those who are unemployed. For anyone receiving unemployment benefits in 2009, an extra $25 per week is added to their benefit. In addition, the time a person can receive unemployment payments was extended to 20 weeks and in certain high unemployment states, extended an additional 13 weeks. Be sure to check with a local tax professional or unemployment office to determine which states give the extension.
The legislation passed in February also gives a break on COBRA insurance premiums to those who qualify. This benefit is a federal subsidy of 65 percent on monthly premiums for up to nine months. This decreases the out-of-pocket expense on COBRA by almost two-thirds for those who are eligible.
To tax or not to tax
Although unemployment compensation is taxable, the Recovery Act contains a provision that exempts the first $2,400 of unemployment benefits earned in 2009 from federal taxes. However, any unemployment compensation earned over $2,400 is still taxable.
So, for those unemployed, these steps can simplify the tax picture:
Setting aside a portion of your benefit amount to pay taxes next year or fill out form W-4V to have it automatically withheld
Tracking and documenting job search related expenses
Talking to a tax professional to avoid confusion
Deducting the job search
McAnarney said many expenses incurred as a result of a job search are tax deductible when a taxpayer seeks employment in the same field or business as their previous job. Among them:
Resume development
Professional placement services
Mileage driven to job interviews and other unreimbursed travel expenses such as airfare
Taxpayers must itemize as part of their miscellaneous deductions to deduct job search expenses. However, only miscellaneous expenses that exceed 2 percent of adjusted gross income are deductible. “Because even the little expenses add up, be sure to document and keep receipts,” McAnarney said.
H&R Block tax offices are open now and can help individuals best prepare for any taxes on unemployment compensation before the year ends. Or visit www.hrblock.com for tax tips and other important information.
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
(LAKEWOOD, NJ) Why Choose H&R Block?
(LAKEWOOD, NJ) Why Choose H&R Block?
Our average client sees a Tax Professional with more than 8 years of experience and hundreds of hours of specialty training. Have a one-to-one relationship the way you want it: face-to-face, over the phone or online - you decide.
TOP 3 REASONS TO CHOOSE H&R BLOCK OVER ANOTHER PREPARER:
1. Tax Laws Change - Most H&R Block Tax Professionals receive more than 50 hours of training annually.
2. We Have the Answers - We have 90,000 trained professionals with access to H&R Block's Tax Institute - the leader in tax research.
3. We Guarantee Our Work - If we make a mistake, we'll pay any resulting penalties and interest; we guarantee it.
WE EMPLOY HIGHLY-TRAINED TAX PROFESSIONALS:
H&R Block's been in business for more than 50 years, and on average, our clients are served by a tax professional with more than 8 years of tax preparation experience. Plus, the majority of H&R Block tax professionals receive more than 50 hours of training every year, ensuring they stay on top of recent tax law changes and understand how they may impact your personal tax situation. In fact, the H&R Block Income Tax Course is recognized as the industry's leading tax training program.
WE’RE MORE THAN A TAX RETURN:
When you meet with your pro, they'll look for every possible deduction and credit to maximize your tax outcome, such as those related to your job.* You'll also get advice tailored to your unique tax situation. And at the end of each interview, you'll receive a personalized H&R Block Advantage statement summarizing year-round tax-saving tips.
• Life changes could mean tax changes.
If you change jobs, get married, buy a new home, have a baby or experience another life-changing event, your tax professional can help you plan for it.
We'll help you determine the right number of payroll exemptions with our W-4 estimator.
H&R Block Savings products can help you save for short- or long-term goals.
• Need help after April 15?
We offer year-round support by calling 1-800-HRBLOCK. We can also refer you to an H&R Block Year Round office in case you have tax questions or in case of an IRS audit.
YOUR SATISFACTION IS GUARANTEED:
If you are not satisfied, you are not obligated to accept and pay for the preparation of your tax return.
The H&R Block Guarantee:
If H&R Block makes an error in the preparation of your tax return, H&R Block will pay penalties and interest caused by such error. In addition, if the IRS audits you, an H&R Block representative will assist in answering questions regarding the preparation of your return (not as a legal representative)1.
1 If H&R Block makes an error in the preparation of your tax return, it will pay penalties and interest caused by such error. If you are audited, H&R Block will explain your audit notice and advise you as to documentation you should provide to the auditing authority.
Posted by tencake at 12:06 PM 0 comments
Labels: NJ - One in 10. That is how many Americans economists predict could be unemployed by year’s end, OCEAN AND MONMOUTH COUNTIES
LAKEWOOD, NJ - Tax Issue after April 15th? RELAX. You Got People.
LAKEWOOD, NJ - Tax Issue after April 15th? RELAX. You Got People.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Our average client sees a Tax Professional with more than 8 years of experience and hundreds of hours of specialty training. Have a one-to-one relationship the way you want it: face-to-face, over the phone or online - you decide.
TOP 3 REASONS TO CHOOSE H&R BLOCK OVER ANOTHER PREPARER:
1. Tax Laws Change - Most H&R Block Tax Professionals receive more than 50 hours of training annually.
2. We Have the Answers - We have 90,000 trained professionals with access to H&R Block's Tax Institute - the leader in tax research.
3. We Guarantee Our Work - If we make a mistake, we'll pay any resulting penalties and interest; we guarantee it.
WE EMPLOY HIGHLY-TRAINED TAX PROFESSIONALS:
H&R Block's been in business for more than 50 years, and on average, our clients are served by a tax professional with more than 8 years of tax preparation experience. Plus, the majority of H&R Block tax professionals receive more than 50 hours of training every year, ensuring they stay on top of recent tax law changes and understand how they may impact your personal tax situation. In fact, the H&R Block Income Tax Course is recognized as the industry's leading tax training program.
WE’RE MORE THAN A TAX RETURN:
When you meet with your pro, they'll look for every possible deduction and credit to maximize your tax outcome, such as those related to your job.* You'll also get advice tailored to your unique tax situation. And at the end of each interview, you'll receive a personalized H&R Block Advantage statement summarizing year-round tax-saving tips.
• Life changes could mean tax changes.
If you change jobs, get married, buy a new home, have a baby or experience another life-changing event, your tax professional can help you plan for it.
We'll help you determine the right number of payroll exemptions with our W-4 estimator.
H&R Block Savings products can help you save for short- or long-term goals.
• Need help after April 15?
We offer year-round support by calling 1-800-HRBLOCK. We can also refer you to an H&R Block Year Round office in case you have tax questions or in case of an IRS audit.
YOUR SATISFACTION IS GUARANTEED:
If you are not satisfied, you are not obligated to accept and pay for the preparation of your tax return.
The H&R Block Guarantee:
If H&R Block makes an error in the preparation of your tax return, H&R Block will pay penalties and interest caused by such error. In addition, if the IRS audits you, an H&R Block representative will assist in answering questions regarding the preparation of your return (not as a legal representative)1.
1 If H&R Block makes an error in the preparation of your tax return, it will pay penalties and interest caused by such error. If you are audited, H&R Block will explain your audit notice and advise you as to documentation you should provide to the auditing authority.
Posted by tencake at 12:06 PM 0 comments
Labels: NJ - One in 10. That is how many Americans economists predict could be unemployed by year’s end, OCEAN AND MONMOUTH COUNTIES
LAKEWOOD, NJ - Tax Issue after April 15th? RELAX. You Got People.
LAKEWOOD, NJ - Tax Issue after April 15th? RELAX. You Got People.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
LAKEWOOD, NJ - Hobby or Business? It's all about the “Pursuit of Profit.”
LAKEWOOD, NJ - Hobby or Business? It's all about the “Pursuit of Profit.”
So, how was business this year? Did you make a profit? If your business is very new, most likely you took a loss. Oh well, at least you can write it off, right?
Well... maybe.
Whether you can write off your business losses depends on whether your business really is a business or a hobby.
"Of course it's a business!", I hear you say. "I don't put myself through this for the fun of it!"
That's what Brenda Konchar thought.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Brenda Konchar, a Mary Kay Cosmetics representative and Indiana mother of 4, reported her Mary Kay activity as business income.
The IRS disagreed. Konchar took her case to the Tax Court...
... and lost. (See: Konchar and Konchar v. Commissioner of Internal Revenue, (Docket 5388-01S-2004)
So what does it mean?
In a nutshell, if you earn income in the pursuit of a hobby, you can offset the income with deductions. You cannot claim deductions that exceed your income – there’s no loss for a hobby.
However, if you earn income in the pursuit of a business, you can not only offset the income with deductions, you can carry any losses forward. This can be huge for new businesses.
Brenda Konchar had deductions which exceeded her income and reported net business losses for the years 1996 through 1998. The IRS disallowed the losses, claiming that Konchar’s activities constituted a hobby. As a backup, the IRS claimed that even if she were operating a business, her expenses were not properly business expenses.
Here's the important part: The IRS consider a number of factors when determining whether a taxpayer is engaging in a business or a hobby, none more important than profit motive.
The IRS considers that you are engaging in a business when it is your intention to make money. You should be able to demonstrate that you have made a profit for at least three of the last five tax years.
So where did Brenda Konchar go wrong? She didn’t operate her Mary Kay activities like a business. She didn’t effectively promote the business – she didn’t even have business cards – and most of her customers were family and friends. She mixed her business assets with her personal assets. She sold her products to friends at or near cost, and lost money year after year and made no substantial steps to make changes. As a result, her business losses were disallowed.
Here’s the lesson to be learned: if you’re going to operate a business, treat it like a business.
H&R Block does individual returns, as well as business returns: We even prepare C-Corp. And S-Corp. Returns for large national companies.
We even do Small Business Bookkeeping & Accounting.
Posted by tencake at 12:02 PM 0 comments
Labels: Lakewood, NJ - Hobby or Business? It's all about the “Pursuit of Profit.”
So, how was business this year? Did you make a profit? If your business is very new, most likely you took a loss. Oh well, at least you can write it off, right?
Well... maybe.
Whether you can write off your business losses depends on whether your business really is a business or a hobby.
"Of course it's a business!", I hear you say. "I don't put myself through this for the fun of it!"
That's what Brenda Konchar thought.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Brenda Konchar, a Mary Kay Cosmetics representative and Indiana mother of 4, reported her Mary Kay activity as business income.
The IRS disagreed. Konchar took her case to the Tax Court...
... and lost. (See: Konchar and Konchar v. Commissioner of Internal Revenue, (Docket 5388-01S-2004)
So what does it mean?
In a nutshell, if you earn income in the pursuit of a hobby, you can offset the income with deductions. You cannot claim deductions that exceed your income – there’s no loss for a hobby.
However, if you earn income in the pursuit of a business, you can not only offset the income with deductions, you can carry any losses forward. This can be huge for new businesses.
Brenda Konchar had deductions which exceeded her income and reported net business losses for the years 1996 through 1998. The IRS disallowed the losses, claiming that Konchar’s activities constituted a hobby. As a backup, the IRS claimed that even if she were operating a business, her expenses were not properly business expenses.
Here's the important part: The IRS consider a number of factors when determining whether a taxpayer is engaging in a business or a hobby, none more important than profit motive.
The IRS considers that you are engaging in a business when it is your intention to make money. You should be able to demonstrate that you have made a profit for at least three of the last five tax years.
So where did Brenda Konchar go wrong? She didn’t operate her Mary Kay activities like a business. She didn’t effectively promote the business – she didn’t even have business cards – and most of her customers were family and friends. She mixed her business assets with her personal assets. She sold her products to friends at or near cost, and lost money year after year and made no substantial steps to make changes. As a result, her business losses were disallowed.
Here’s the lesson to be learned: if you’re going to operate a business, treat it like a business.
H&R Block does individual returns, as well as business returns: We even prepare C-Corp. And S-Corp. Returns for large national companies.
We even do Small Business Bookkeeping & Accounting.
Posted by tencake at 12:02 PM 0 comments
Labels: Lakewood, NJ - Hobby or Business? It's all about the “Pursuit of Profit.”
OCEAN COUNTY - There is THAT much new stuff in taxes for '09? Thank goodness You Got People.
OCEAN COUNTY - There is THAT much new stuff in taxes for '09? Thank goodness You Got People.
There was a lot of new stuff in the Tax Laws for 2008. The New Economic stimulus payment. The Recovery rebate credit. The First-time homebuyer credit. An additional standard deduction for real estate taxes and net disaster loss. TWO changes to the standard mileage rates!
Fortunately, you’re not going to need to learn all of the changes for 2009. Why? Because You Got People. CONTACT THEM AT:
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Nevertheless, here’s some of what's NEW for 2009:
This section summarizes the important changes that take effect in 2009 that could affect your estimated tax payments for 2009. More information on these and other changes can be found in Publication 553.
IRA income limits. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income is less than $65,000.
Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount will decrease to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately).
The definition of a “Qualifying Child” changed: For starters, your qualifying child must be younger than you and a child cannot be your qualifying child if he or she files a joint return.
Personal casualty and theft loss limit. Generally, a personal casualty or theft loss must exceed $500 to be allowed for 2009.
There was a lot of new stuff in the Tax Laws for 2008. The New Economic stimulus payment. The Recovery rebate credit. The First-time homebuyer credit. An additional standard deduction for real estate taxes and net disaster loss. TWO changes to the standard mileage rates!
Fortunately, you’re not going to need to learn all of the changes for 2009. Why? Because You Got People. CONTACT THEM AT:
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Nevertheless, here’s some of what's NEW for 2009:
This section summarizes the important changes that take effect in 2009 that could affect your estimated tax payments for 2009. More information on these and other changes can be found in Publication 553.
IRA income limits. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income is less than $65,000.
Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount will decrease to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately).
The definition of a “Qualifying Child” changed: For starters, your qualifying child must be younger than you and a child cannot be your qualifying child if he or she files a joint return.
Personal casualty and theft loss limit. Generally, a personal casualty or theft loss must exceed $500 to be allowed for 2009.
(OCEAN COUNTY, NJ) Are you sure your taxes were done correctly? A Second Look Review will help.
(OCEAN COUNTY, NJ) Are you sure your taxes were done correctly? A Second Look Review will help.
Are you sure your taxes were done correctly? With a Second Look ® review from H&R Block, we'll review your taxes no matter who did them for just $29 per return.
If you didn't use H&R Block, you may not have received the maximum refund you're entitled to. Bring in your 2008, 2007 and/or 2006 return(s) for review by an H&R Block tax professional who will review them for accuracy and check to see if you claimed all eligible credits and deductions.
In the past, we found errors in 4 out of 5 of the returns people brought in for a Second Look Review If your tax return is correct, or if you have H&R Block file a corrected return for you, we’ll stand behind you in case you're audited. That is part of the H&R Block Guarantee.
It pays to have people.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
With a Second Look Review you'll get:
An affordable, professional review of your tax return
Advice on what to do next if any variances are found
A printed advice summary in an H&R Block Advantage Report
H&R Block Guarantee coverage for penalties and interest repayment and audit assistance if your return is correct or H&R Block files a corrected return for you.
Price: $29 for each review
Individual results will vary. Error claims are for calendar year 2007. Fees apply for Second Look reviews and if you have us prepare a corrected or amended return. Excludes tax returns prepared by H&R Block.
²If H&R Block makes an error in the preparation of your tax return or calculation of taxes owed; it will pay penalties and interest
Are you sure your taxes were done correctly? With a Second Look ® review from H&R Block, we'll review your taxes no matter who did them for just $29 per return.
If you didn't use H&R Block, you may not have received the maximum refund you're entitled to. Bring in your 2008, 2007 and/or 2006 return(s) for review by an H&R Block tax professional who will review them for accuracy and check to see if you claimed all eligible credits and deductions.
In the past, we found errors in 4 out of 5 of the returns people brought in for a Second Look Review If your tax return is correct, or if you have H&R Block file a corrected return for you, we’ll stand behind you in case you're audited. That is part of the H&R Block Guarantee.
It pays to have people.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
With a Second Look Review you'll get:
An affordable, professional review of your tax return
Advice on what to do next if any variances are found
A printed advice summary in an H&R Block Advantage Report
H&R Block Guarantee coverage for penalties and interest repayment and audit assistance if your return is correct or H&R Block files a corrected return for you.
Price: $29 for each review
Individual results will vary. Error claims are for calendar year 2007. Fees apply for Second Look reviews and if you have us prepare a corrected or amended return. Excludes tax returns prepared by H&R Block.
²If H&R Block makes an error in the preparation of your tax return or calculation of taxes owed; it will pay penalties and interest
(TOMS RIVER, NJ AREA) - Tax Checkup Now Possible Cure for 'Making Work Pay' Confusion Later
(TOMS RIVER, NJ AREA) - Tax Checkup Now Possible Cure for 'Making Work Pay' Confusion Later
H&R Block Warns That Possible Under Withholding Puts Certain Segments at Risk of Reduced Refund or Increased Balance Due Next Year
KANSAS CITY, MO-- Millions of taxpayers, depending upon other tax breaks they may qualify for, could find themselves with a tax surprise next year because of the Making Work Pay tax credit unless they adjust their withholding, according to analysis by The Tax Institute at H&R Block (NYSE: HRB).
Ninety-five percent of taxpayers automatically started taking home more money in their paychecks this past April thanks to a change in the IRS withholding tables, triggered by the Making Work Pay Credit. Those taxpayers who should take special care in understanding their new take home pay thanks to the Making Work Pay tax credit include:
-- Married couples with two incomes
-- Individuals with multiple incomes
-- Retirees who have taxes withheld from a pension or social security
benefits
-- Individuals who work but who can be claimed as a dependent on someone
else's tax return.
"Considering how complex taxes can be, most taxpayers need guidance on assessing their tax picture," said H&R Block spokesman Anthony Rosania. "Not knowing or not taking the time to understand how their withholding and other tax breaks affect them could lead to a surprising tax liability. A little knowledge now could save them a lot of disappointment later."
The credit could mean up to $400 for individuals and $800 for couples in 2009 and 2010. There is a phaseout of the credit starting at modified adjusted gross income (MAGI) of $75,000 for single filers and for married filers at MAGI of $150,000. It's totally phased out at MAGI of $95,000 for singles and $190,000 for married filers.
Prescription: tax checkup
To avoid an unwelcome tax surprise, H&R Block recommends taxpayers receive a tax checkup now to see if they should adjust their W-4 allowances before the end of the year. Taxpayers just need to follow three easy steps:
1. Click on www.hrblock.com or go directly to the Making Work Pay calculator on H&R Block's Web site to estimate if their total withholding change will be greater than the credit they'll likely be able to claim, then
2. Call 1-800-HRBLOCK to find an office near them to schedule a tax checkup, and finally
3. Come by the local office for a free tax checkup and bring last year's tax return and a current pay stub indicating year-to-date totals. This checkup takes only a few minutes and could end up saving the taxpayer from an unexpected tax bill at tax time.
If needed, it's recommended taxpayers adjust their W-4 and submit it to their employer. If not, the amount being withheld could be more than the credit amount they're eligible to claim.
Survey shows taxpayers reluctant to change withholdings
A Tax Institute survey showed that 14 percent of respondents didn't know that the W-4 controlled their withholdings. More than 40 percent of those surveyed have not adjusted their W-4 in three or more years.
"To better understand how the Making Work Pay Credit and other tax law changes impacts you a W-4 review and tax checkup now can save money on your tax liability and give you peace of mind," Rosania said.
For more information, visit the IRS newsroom
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
Disclaimer: The tax checkup and information provided are estimates, and your actual tax liability may materially differ depending on recent and future changes to the tax law and changes in your personal and financial circumstances. If your personal and financial circumstances do change, we suggest that you review the changes with your tax advisor.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 120,000 highly trained tax professionals. The Company provides tax return preparation services in person, online through H&R Block Online, through its TaxCut® software and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
H&R Block Warns That Possible Under Withholding Puts Certain Segments at Risk of Reduced Refund or Increased Balance Due Next Year
KANSAS CITY, MO-- Millions of taxpayers, depending upon other tax breaks they may qualify for, could find themselves with a tax surprise next year because of the Making Work Pay tax credit unless they adjust their withholding, according to analysis by The Tax Institute at H&R Block (NYSE: HRB).
Ninety-five percent of taxpayers automatically started taking home more money in their paychecks this past April thanks to a change in the IRS withholding tables, triggered by the Making Work Pay Credit. Those taxpayers who should take special care in understanding their new take home pay thanks to the Making Work Pay tax credit include:
-- Married couples with two incomes
-- Individuals with multiple incomes
-- Retirees who have taxes withheld from a pension or social security
benefits
-- Individuals who work but who can be claimed as a dependent on someone
else's tax return.
"Considering how complex taxes can be, most taxpayers need guidance on assessing their tax picture," said H&R Block spokesman Anthony Rosania. "Not knowing or not taking the time to understand how their withholding and other tax breaks affect them could lead to a surprising tax liability. A little knowledge now could save them a lot of disappointment later."
The credit could mean up to $400 for individuals and $800 for couples in 2009 and 2010. There is a phaseout of the credit starting at modified adjusted gross income (MAGI) of $75,000 for single filers and for married filers at MAGI of $150,000. It's totally phased out at MAGI of $95,000 for singles and $190,000 for married filers.
Prescription: tax checkup
To avoid an unwelcome tax surprise, H&R Block recommends taxpayers receive a tax checkup now to see if they should adjust their W-4 allowances before the end of the year. Taxpayers just need to follow three easy steps:
1. Click on www.hrblock.com or go directly to the Making Work Pay calculator on H&R Block's Web site to estimate if their total withholding change will be greater than the credit they'll likely be able to claim, then
2. Call 1-800-HRBLOCK to find an office near them to schedule a tax checkup, and finally
3. Come by the local office for a free tax checkup and bring last year's tax return and a current pay stub indicating year-to-date totals. This checkup takes only a few minutes and could end up saving the taxpayer from an unexpected tax bill at tax time.
If needed, it's recommended taxpayers adjust their W-4 and submit it to their employer. If not, the amount being withheld could be more than the credit amount they're eligible to claim.
Survey shows taxpayers reluctant to change withholdings
A Tax Institute survey showed that 14 percent of respondents didn't know that the W-4 controlled their withholdings. More than 40 percent of those surveyed have not adjusted their W-4 in three or more years.
"To better understand how the Making Work Pay Credit and other tax law changes impacts you a W-4 review and tax checkup now can save money on your tax liability and give you peace of mind," Rosania said.
For more information, visit the IRS newsroom
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
Disclaimer: The tax checkup and information provided are estimates, and your actual tax liability may materially differ depending on recent and future changes to the tax law and changes in your personal and financial circumstances. If your personal and financial circumstances do change, we suggest that you review the changes with your tax advisor.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 120,000 highly trained tax professionals. The Company provides tax return preparation services in person, online through H&R Block Online, through its TaxCut® software and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
(BRICK, NJ AREA) - Stimulus Package Allows Tax Deduction on New Cars Bought through 2009.
(BRICK, NJ AREA) - Stimulus Package Allows Tax Deduction on New Cars Bought through 2009.
Did you know that the American Recovery and Reinvestment Act of 2009 allows sales tax deductions on new vehicle purchases.
What are the specifics for auto shoppers? In sum, state and local motor vehicle sales taxes and motor vehicle excise taxes are all deductible on any new car, light truck, recreational vehicle, or motorcycles purchased between February 17th and December 31, 2009. Individuals with a modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 qualify.
According to the National Automobile Dealers Association, it doesn't matter what model year your vehicle is (2008 or 2009, for example). New vehicles of any model year qualify so long as you're the vehicle's first owner.
Any vehicle sold for under $49,500 qualifies for the full deduction, but consumers may also deduct sales taxes on the first $49,500 of any vehicle sold above this price. It is considered an "above the line" (for itemizers and non-itemizers) deduction on federal tax return.
Of course, the actual amount of your deduction depends on your tax bracket, so consult with a tax professional for more details.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Did you know that the American Recovery and Reinvestment Act of 2009 allows sales tax deductions on new vehicle purchases.
What are the specifics for auto shoppers? In sum, state and local motor vehicle sales taxes and motor vehicle excise taxes are all deductible on any new car, light truck, recreational vehicle, or motorcycles purchased between February 17th and December 31, 2009. Individuals with a modified adjusted gross income of less than $125,000 or joint-filers making less than $250,000 a year in 2009 qualify.
According to the National Automobile Dealers Association, it doesn't matter what model year your vehicle is (2008 or 2009, for example). New vehicles of any model year qualify so long as you're the vehicle's first owner.
Any vehicle sold for under $49,500 qualifies for the full deduction, but consumers may also deduct sales taxes on the first $49,500 of any vehicle sold above this price. It is considered an "above the line" (for itemizers and non-itemizers) deduction on federal tax return.
Of course, the actual amount of your deduction depends on your tax bracket, so consult with a tax professional for more details.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
(WHITING, NJ AREA) - Did you know significant tax credits for certain cars begin on December 31, 2009? Thank goodness you got People!! Did you know o
(WHITING, NJ AREA) - Did you know significant tax credits for certain cars begin on December 31, 2009? Thank goodness you got People!! Did you know our Recovery plan contains more than $2 billion in tax credits to promote sales of plug-in hybrid vehicles?
It has, and we found one significant change in the segment on tax credits for plug-in hybrids that needs to be reported.
The first version of the stimulus plan initially approved by the House would have started phasing out tax credits for purchasers of plug-in hybrids after the 250,000th model was sold.
The Senate version doubled the cap to 500,000 plug-ins. But after after an intensive lobbying effort by the advocacy group Plug In America - which sent more than 55,000 letters of support for its plan to the Senate - the measure was amended again to tie the credits to individual manufacturers' s sales.
The final version, signed into law by President Obama, says that the credits for plug-in hybrids will extend to the first 200,000 models sold by each automaker.
Depending on how many car companies start making plug-ins, that could push the total number of models eligible for the tax credits to well in excess of 500,000.
"This bill, which invests more than $2 billion in plug-in technology, will put vastly more numbers and kinds of plug-in electric vehicles on the road," said H&R Block District Manager Anthony Rosania. "It will help create jobs and spur spending by incentivizing consumers to purchase the cleanest-running vehicles made today and those just around the corner."
As a refresher: The credits start at $2,500 and ratchet up by $417 for every kilowatt-hour of battery capacity on board the vehicle in excess of 4 kWh; they top out, for most passenger vehicles, at $7,500.
For heavier plug-in hybrid vehicles - those, mostly commercial trucks, that would tip the scales at 10,001 pounds and up - the credits start at $10,000 and rise to a maximum of $15,000.
There also are provisions that give qualified aftermarket conversions that turn conventional hybrids such as the Toyota Prius into plug-ins with additional all-electric range a credit of 10 percent of the cost up to $4,000 (or a $40,000 conversion cost), and for credits of up to $2,500 for purchasers of low speed or neighborhood electric vehicles (limited in most states to top speeds of 25 mph), and electric motorcycles including three-wheeled vehicles
MORE QUESTIONS? CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
It has, and we found one significant change in the segment on tax credits for plug-in hybrids that needs to be reported.
The first version of the stimulus plan initially approved by the House would have started phasing out tax credits for purchasers of plug-in hybrids after the 250,000th model was sold.
The Senate version doubled the cap to 500,000 plug-ins. But after after an intensive lobbying effort by the advocacy group Plug In America - which sent more than 55,000 letters of support for its plan to the Senate - the measure was amended again to tie the credits to individual manufacturers' s sales.
The final version, signed into law by President Obama, says that the credits for plug-in hybrids will extend to the first 200,000 models sold by each automaker.
Depending on how many car companies start making plug-ins, that could push the total number of models eligible for the tax credits to well in excess of 500,000.
"This bill, which invests more than $2 billion in plug-in technology, will put vastly more numbers and kinds of plug-in electric vehicles on the road," said H&R Block District Manager Anthony Rosania. "It will help create jobs and spur spending by incentivizing consumers to purchase the cleanest-running vehicles made today and those just around the corner."
As a refresher: The credits start at $2,500 and ratchet up by $417 for every kilowatt-hour of battery capacity on board the vehicle in excess of 4 kWh; they top out, for most passenger vehicles, at $7,500.
For heavier plug-in hybrid vehicles - those, mostly commercial trucks, that would tip the scales at 10,001 pounds and up - the credits start at $10,000 and rise to a maximum of $15,000.
There also are provisions that give qualified aftermarket conversions that turn conventional hybrids such as the Toyota Prius into plug-ins with additional all-electric range a credit of 10 percent of the cost up to $4,000 (or a $40,000 conversion cost), and for credits of up to $2,500 for purchasers of low speed or neighborhood electric vehicles (limited in most states to top speeds of 25 mph), and electric motorcycles including three-wheeled vehicles
MORE QUESTIONS? CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Friday, September 25, 2009
LUMBERTON, NJ - LATE TAX RETURN FILING – Automatic Extensions Expire on October 15th! Call your People!
LUMBERTON, NJ - LATE TAX RETURN FILING – Automatic Extensions Expire on October 15th! Call your People!
OVERVIEW: If you file on time, but don’t pay the entire balance you’ll be charged a late payment penalty of 0.5%, up to 25%, of the unpaid tax.
You may be penalized up to 47.5% of your unpaid tax if you don’t file your return on time.
If you request an installment payment plan for your taxes, and the IRS accepts it, you’ll be charged a fee plus interest on all unpaid taxes.
It’s best to file on time and pay as much of your balance due as possible. If you didn’t do this by the tax deadline, you probably fit into 1 of 3 categories.
1.You filed on time but didn’t pay all of your balance due.
You’ll generally have to pay a late-payment penalty of 0.5% of the tax owed for each month, or part of a month that the tax remains unpaid after the due date, up to 25% of the tax due. The 0.5% rate increases to 1% if the tax remains unpaid after several notices have been sent to you, and the IRS issues a notice of intent to levy. The penalty will not be imposed if you can show reasonable cause for the failure to pay.
1.You haven’t filed or paid your balance due.
If you did not file on time, and you owe tax, you may owe a late-filing penalty in addition to the late-payment penalty unless you can show reasonable cause. The combined penalty is 5% (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return is late. The late-filing penalty is generally imposed for a maximum of 5 months. However, after 5 months, if you still have not paid, the 0.5% late-payment penalty continues to run, up to 25%, until the tax is paid. So, the combined maximum penalty may be as high as 47.5% [(4.5% x 5 months) + 25%].
Note: If your return is more than 60 days late, the minimum late-filing penalty is the smaller of $135 or 100% of the tax required to be shown on the return.
1.You’re paying taxes through an installment agreement.
If you or your tax professional filed Form 9465 requesting an installment payment plan, and the IRS accepted your installment payment plan, they will charge you an administrative fee plus interest on the unpaid tax. If you filed a timely return and are paying your tax due according to an installment agreement, the late-payment penalty is 0.25% (instead of 0.5%) for each month, or part of a month, that the tax remains unpaid.
Regardless of which category you fall into, you’ll owe interest on any balance due from the due date of the return until the date of payment. The interest rate is adjusted every 3 months.
Still have questions about paying or filing your taxes late? Contact an H&R Block tax professional.
CONTACT US AT OUR YEAR ‘ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
OVERVIEW: If you file on time, but don’t pay the entire balance you’ll be charged a late payment penalty of 0.5%, up to 25%, of the unpaid tax.
You may be penalized up to 47.5% of your unpaid tax if you don’t file your return on time.
If you request an installment payment plan for your taxes, and the IRS accepts it, you’ll be charged a fee plus interest on all unpaid taxes.
It’s best to file on time and pay as much of your balance due as possible. If you didn’t do this by the tax deadline, you probably fit into 1 of 3 categories.
1.You filed on time but didn’t pay all of your balance due.
You’ll generally have to pay a late-payment penalty of 0.5% of the tax owed for each month, or part of a month that the tax remains unpaid after the due date, up to 25% of the tax due. The 0.5% rate increases to 1% if the tax remains unpaid after several notices have been sent to you, and the IRS issues a notice of intent to levy. The penalty will not be imposed if you can show reasonable cause for the failure to pay.
1.You haven’t filed or paid your balance due.
If you did not file on time, and you owe tax, you may owe a late-filing penalty in addition to the late-payment penalty unless you can show reasonable cause. The combined penalty is 5% (4.5% late filing, 0.5% late payment) for each month, or part of a month, that your return is late. The late-filing penalty is generally imposed for a maximum of 5 months. However, after 5 months, if you still have not paid, the 0.5% late-payment penalty continues to run, up to 25%, until the tax is paid. So, the combined maximum penalty may be as high as 47.5% [(4.5% x 5 months) + 25%].
Note: If your return is more than 60 days late, the minimum late-filing penalty is the smaller of $135 or 100% of the tax required to be shown on the return.
1.You’re paying taxes through an installment agreement.
If you or your tax professional filed Form 9465 requesting an installment payment plan, and the IRS accepted your installment payment plan, they will charge you an administrative fee plus interest on the unpaid tax. If you filed a timely return and are paying your tax due according to an installment agreement, the late-payment penalty is 0.25% (instead of 0.5%) for each month, or part of a month, that the tax remains unpaid.
Regardless of which category you fall into, you’ll owe interest on any balance due from the due date of the return until the date of payment. The interest rate is adjusted every 3 months.
Still have questions about paying or filing your taxes late? Contact an H&R Block tax professional.
CONTACT US AT OUR YEAR ‘ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
FT. DIX / MCGUIRE AFB (MILITARY) – Did you know you can exclude certain pay from your income while working in a combat zone?
FT. DIX / MCGUIRE AFB (MILITARY) – Did you know you can exclude certain pay from your income while working in a combat zone?
Service outside a combat zone is considered to be inside a combat zone if the service is in direct support of combat zone military operations.
If you’re a member of the U.S. Armed Forces who serves in a combat zone, you can exclude certain pay from your income. You also have additional time to make a qualified contribution to an IRA. A combat zone is an area designated by the U.S. President by Executive Order as an area in which U.S. Armed Forces are engaging in or have engaged in combat.
CONTACT US AT OUR YEAR ‘ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
Income
The following income received during service in a combat zone doesn’t have to be reported as gross income:
active duty pay earned in any month served in a combat zone
imminent danger/hostile fire pay during a month served in a combat zone
re-enlistment bonus if re-enlistment or voluntary extension occurs during a month served in a combat zone
Pay for accrued leave — the Department of Defense must determine the unused leave was earned during the month served in a combat zone
pay for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other non-appropriated fund activities earned during a month served in a combat zone
awards or achievement pay made for a suggestion or achievement made in a month served in a combat zone
student loan repayments to the extent service in the year of service required to earn the repayment was performed in a combat zone
(new for 2008) bonus payments by a state or local government entity to a member or former member of the armed forces, if the payment is made solely because of service in a combat zone
If you’re a commissioned officer (other than a commissioned warrant officer), the combat pay exclusion for any month is limited to the highest rate on enlisted pay (plus hostile fire/imminent danger pay, if any).
You do not claim an exclusion for combat pay on your tax return. The excludable amount should not be included in your Box 1 wages on Form W-2. If an excludable amount is included in your Box 1 wages, you should get a corrected Form W-2.
If you served in a combat zone for 1 or more days during a particular month, you’re allowed the above exclusions for that entire month. Combat zone service includes any periods you are absent from duty due to illness, wounds or leave. A person is considered to be serving in a combat zone if he or she becomes a prisoner of war or is missing in action if that status is kept for military pay purposes.
You can also exclude military pay earned while hospitalized (you don’t have to be hospitalized in the combat zone). Your hospitalization must be due to having served in a combat zone. This is true even if you’re hospitalized after combat zone service. For more information, check with a tax professional.
Combat Zone Considerations
Military service outside the combat zone is, for tax purposes, considered to be inside a combat zone if the service is in direct support of combat zone military operations and the service qualifies you for special military pay for duty subject to hostile fire or imminent danger.
But in these situations, you’re not considered to be in a combat zone:
1.You’re present in a combat zone during leave from a duty station located outside the combat zone.
2.You pass over or through a combat zone during a trip between 2 points that are outside a combat zone.
3.You’re in a combat zone only for your personal convenience.
Service outside a combat zone is considered to be inside a combat zone if the service is in direct support of combat zone military operations.
If you’re a member of the U.S. Armed Forces who serves in a combat zone, you can exclude certain pay from your income. You also have additional time to make a qualified contribution to an IRA. A combat zone is an area designated by the U.S. President by Executive Order as an area in which U.S. Armed Forces are engaging in or have engaged in combat.
CONTACT US AT OUR YEAR ‘ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
Income
The following income received during service in a combat zone doesn’t have to be reported as gross income:
active duty pay earned in any month served in a combat zone
imminent danger/hostile fire pay during a month served in a combat zone
re-enlistment bonus if re-enlistment or voluntary extension occurs during a month served in a combat zone
Pay for accrued leave — the Department of Defense must determine the unused leave was earned during the month served in a combat zone
pay for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other non-appropriated fund activities earned during a month served in a combat zone
awards or achievement pay made for a suggestion or achievement made in a month served in a combat zone
student loan repayments to the extent service in the year of service required to earn the repayment was performed in a combat zone
(new for 2008) bonus payments by a state or local government entity to a member or former member of the armed forces, if the payment is made solely because of service in a combat zone
If you’re a commissioned officer (other than a commissioned warrant officer), the combat pay exclusion for any month is limited to the highest rate on enlisted pay (plus hostile fire/imminent danger pay, if any).
You do not claim an exclusion for combat pay on your tax return. The excludable amount should not be included in your Box 1 wages on Form W-2. If an excludable amount is included in your Box 1 wages, you should get a corrected Form W-2.
If you served in a combat zone for 1 or more days during a particular month, you’re allowed the above exclusions for that entire month. Combat zone service includes any periods you are absent from duty due to illness, wounds or leave. A person is considered to be serving in a combat zone if he or she becomes a prisoner of war or is missing in action if that status is kept for military pay purposes.
You can also exclude military pay earned while hospitalized (you don’t have to be hospitalized in the combat zone). Your hospitalization must be due to having served in a combat zone. This is true even if you’re hospitalized after combat zone service. For more information, check with a tax professional.
Combat Zone Considerations
Military service outside the combat zone is, for tax purposes, considered to be inside a combat zone if the service is in direct support of combat zone military operations and the service qualifies you for special military pay for duty subject to hostile fire or imminent danger.
But in these situations, you’re not considered to be in a combat zone:
1.You’re present in a combat zone during leave from a duty station located outside the combat zone.
2.You pass over or through a combat zone during a trip between 2 points that are outside a combat zone.
3.You’re in a combat zone only for your personal convenience.
SOUTHER NEW JERSEY / VOORHEES, NJ) – What do students say about the H&R Block Income Tax Course?
SOUTHER NEW JERSEY / VOORHEES, NJ) – What do students say about the H&R Block Income Tax Course?
CONTACT US AT OUR YEAR 'ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
Income Tax Course
Learn tax preparation from the professionals at H&R Block.
What do students say about the Income Tax Course?
“Taking the H&R Block Tax Course proved to be valuable in two ways. First of all, I gained important information to help me in preparing my own taxes. Second, it was the gateway for an exciting career as a tax professional with H&R Block. I thought that being back in a classroom to learn might be a challenge, but it was a great experience and it led to a challenging and exciting job opportunity.”
- Jill Taylor, Data Architect
“This course was the perfect chance for me to learn something new after retirement. My friends and family come to me year-round with tax questions,
and I enjoy being the go-to guy.”
- Douglas Michaels, Retiree
“Overall, the course was a win-win opportunity for me because it helped me improve my professional capacity at my full-time job and gave me the opportunity to have a seasonal job. It’s not often that you can benefit so significantly by 1 course!”
-Lauren Elizabeth, Nonprofit Executive Director Enrollment in or completion of the H&R Block Income Tax Course is neither an offer nor a guarantee of employment. Enrollment restrictions apply. Book or other fees may also apply. This course is neither intended for nor open to any persons who are either currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block. During the course, should H&R Block learn of any student’s employment or intended employment with a competing professional tax preparation company or service, H&R Block reserves the right to immediately cancel the student’s enrollment. In the event of such cancellation, the student will not be entitled to a refund of any fees paid unless required by state law. See Enrollment Agreement for details. State restrictions may apply. Valid at participating locations only. Void where prohibited. H&R Block is an equal opportunity employer.
The H&R Block Income Tax Course is authorized for operation as a postsecondary educational institution by the Tennessee Higher Education Commission.
H&R Block has been approved by the California Tax Education Council to offer Basic Building Blocks, course number 1040-QE-0002, which fulfills the 60-hour “qualifying education” requirement imposed by the State of California to become a tax preparer. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA 95812-2890; toll-free by phone at (877) 850-2832; or at www.ctec.org.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
Income Tax Course
Learn tax preparation from the professionals at H&R Block.
What do students say about the Income Tax Course?
“Taking the H&R Block Tax Course proved to be valuable in two ways. First of all, I gained important information to help me in preparing my own taxes. Second, it was the gateway for an exciting career as a tax professional with H&R Block. I thought that being back in a classroom to learn might be a challenge, but it was a great experience and it led to a challenging and exciting job opportunity.”
- Jill Taylor, Data Architect
“This course was the perfect chance for me to learn something new after retirement. My friends and family come to me year-round with tax questions,
and I enjoy being the go-to guy.”
- Douglas Michaels, Retiree
“Overall, the course was a win-win opportunity for me because it helped me improve my professional capacity at my full-time job and gave me the opportunity to have a seasonal job. It’s not often that you can benefit so significantly by 1 course!”
-Lauren Elizabeth, Nonprofit Executive Director Enrollment in or completion of the H&R Block Income Tax Course is neither an offer nor a guarantee of employment. Enrollment restrictions apply. Book or other fees may also apply. This course is neither intended for nor open to any persons who are either currently employed by or seeking employment with any professional tax preparation company or organization other than H&R Block. During the course, should H&R Block learn of any student’s employment or intended employment with a competing professional tax preparation company or service, H&R Block reserves the right to immediately cancel the student’s enrollment. In the event of such cancellation, the student will not be entitled to a refund of any fees paid unless required by state law. See Enrollment Agreement for details. State restrictions may apply. Valid at participating locations only. Void where prohibited. H&R Block is an equal opportunity employer.
The H&R Block Income Tax Course is authorized for operation as a postsecondary educational institution by the Tennessee Higher Education Commission.
H&R Block has been approved by the California Tax Education Council to offer Basic Building Blocks, course number 1040-QE-0002, which fulfills the 60-hour “qualifying education” requirement imposed by the State of California to become a tax preparer. A listing of additional requirements to register as a tax preparer may be obtained by contacting CTEC at P.O. Box 2890, Sacramento, CA 95812-2890; toll-free by phone at (877) 850-2832; or at www.ctec.org.
(VOORHEES, NJ AREA) - Top 11 Tips For Filling Out The FAFSA Form You Can Do It Top 11 Tips For Filling Out The FAFSA Form You Can Do It! Top 11 Tip
(VOORHEES, NJ AREA) - Top 11 Tips For Filling Out The FAFSA Form You Can Do It
Top 11 Tips For Filling Out The FAFSA Form You Can Do It!
Top 11 Tips from The Tax Institute at H&R Block
Tip # 1: Read. Read. Read. Before you start, make sure you read ALL the instructions. Sounds like a given, but many think they can just dive into the application process without benefit of the instructions. Big mistake.
Tip #2: Pay attention to filing dates. The FAFSA form should be completed and mailed as soon as possible AFTER January 1 because Federal and State funds are awarded on a first come, first serve basis. However, this is one case where the early bird doesn’t catch the worm; file BEFORE January 1, and your application will be returned to you because your current year income tax return data is needed to complete the FAFSA documentation. Check with the Financial Aid office at your school for the deadline dates.
Tip #3: File once, but file even if you think you’re not eligible. Only one financial aid application can be submitted each calendar year. Even if you think you’re ineligible for financial aid, you should still complete the form because many states and schools use it to award non-federal aid.
Tip #4: Online or paper. You can complete a paper copy or you can complete the FAFSA application online at www.fafsa.ed.gov. With an online application, the processing time is cut in half. Remember, however, that you’ll need a PIN number for an online application if you’re planning to submit an online signature. Without a pin, you can still file online, but you will need to print out the signature page, sign it and return the signature page to the Dept. of Education. The Dept of Education then matches the online data received with the signature page submitted by mail and processes the FAFSA accordingly.
Tip #5: Get your stuff in order. To complete a FAFSA form, whether online or paper, you’ll need: your driver’s license and Social Security Card; Income tax returns; W-2s forms as well as other records of money earned; documentation of any other untaxed income such as welfare or veteran’s benefits; your current bank statements; current mortgage information; and any business or farm reports if applicable. Ask your tax professional if you have any questions about the tax-related information.
Tip #6: Black not blue. For paper copies, complete your application in black ink; not blue, and whatever you’re thinking, please don’t use a pencil.
Tip #7: Answer all questions. Print clearly; preferably in capital letters for all responses. If a question doesn’t apply to you, write “0” or “NA” (not applicable) as the response. Round any dollar amounts to nearest whole dollar. And, remember, on the FAFSA form, “you” and “your” always refers to the student, not the parents.
Tip #8: Help. I need someone. When stuck, get help.
CONTACT US AT OUR YEAR 'ROUND OFFICES
Visit one of our Year-round locations.
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
If you live in the Atlanta, GA Metro, Northern Georgia, New York City Metro, Charlotte, NC Metro, Missoula, MT, Baltimore, MD, Jacksonville, FL, McAllen, TX or Harligen, TX, you may receive professional assistance in completing the 2009-2010 FAFSA form beginning in January 2009 while completing your tax return with H&R Block. Other H&R Block locations can help assist you in answering questions regarding the FAFSA form. For more information about participating offices in your area, please contact your local H&R Block office.
Tip # 9: Don’t forget to sign. Parents, too, if you’re a dependent. This is a common blooper; check and double-check your application to make sure you’ve answered ALL questions and DON’T forget to sign the application. For online applications, if you have a PIN, it will serve as your online signature.
Tip #10: Submit and wait. In 3-4 weeks, you should receive a Student Aid Report (SAR). This report will detail your expected family contribution and give you the opportunity to correct any errors or wrong information. In late March or early April, the award letter should be in the mail and you’ll know how much financial aid you are eligible to receive.
Tip #11: CONTACT US AT OUR YEAR 'ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
Congratulations!!!!
These tips are brought to you by The Tax Institute at H&R Block.
Top 11 Tips For Filling Out The FAFSA Form You Can Do It!
Top 11 Tips from The Tax Institute at H&R Block
Tip # 1: Read. Read. Read. Before you start, make sure you read ALL the instructions. Sounds like a given, but many think they can just dive into the application process without benefit of the instructions. Big mistake.
Tip #2: Pay attention to filing dates. The FAFSA form should be completed and mailed as soon as possible AFTER January 1 because Federal and State funds are awarded on a first come, first serve basis. However, this is one case where the early bird doesn’t catch the worm; file BEFORE January 1, and your application will be returned to you because your current year income tax return data is needed to complete the FAFSA documentation. Check with the Financial Aid office at your school for the deadline dates.
Tip #3: File once, but file even if you think you’re not eligible. Only one financial aid application can be submitted each calendar year. Even if you think you’re ineligible for financial aid, you should still complete the form because many states and schools use it to award non-federal aid.
Tip #4: Online or paper. You can complete a paper copy or you can complete the FAFSA application online at www.fafsa.ed.gov. With an online application, the processing time is cut in half. Remember, however, that you’ll need a PIN number for an online application if you’re planning to submit an online signature. Without a pin, you can still file online, but you will need to print out the signature page, sign it and return the signature page to the Dept. of Education. The Dept of Education then matches the online data received with the signature page submitted by mail and processes the FAFSA accordingly.
Tip #5: Get your stuff in order. To complete a FAFSA form, whether online or paper, you’ll need: your driver’s license and Social Security Card; Income tax returns; W-2s forms as well as other records of money earned; documentation of any other untaxed income such as welfare or veteran’s benefits; your current bank statements; current mortgage information; and any business or farm reports if applicable. Ask your tax professional if you have any questions about the tax-related information.
Tip #6: Black not blue. For paper copies, complete your application in black ink; not blue, and whatever you’re thinking, please don’t use a pencil.
Tip #7: Answer all questions. Print clearly; preferably in capital letters for all responses. If a question doesn’t apply to you, write “0” or “NA” (not applicable) as the response. Round any dollar amounts to nearest whole dollar. And, remember, on the FAFSA form, “you” and “your” always refers to the student, not the parents.
Tip #8: Help. I need someone. When stuck, get help.
CONTACT US AT OUR YEAR 'ROUND OFFICES
Visit one of our Year-round locations.
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
If you live in the Atlanta, GA Metro, Northern Georgia, New York City Metro, Charlotte, NC Metro, Missoula, MT, Baltimore, MD, Jacksonville, FL, McAllen, TX or Harligen, TX, you may receive professional assistance in completing the 2009-2010 FAFSA form beginning in January 2009 while completing your tax return with H&R Block. Other H&R Block locations can help assist you in answering questions regarding the FAFSA form. For more information about participating offices in your area, please contact your local H&R Block office.
Tip # 9: Don’t forget to sign. Parents, too, if you’re a dependent. This is a common blooper; check and double-check your application to make sure you’ve answered ALL questions and DON’T forget to sign the application. For online applications, if you have a PIN, it will serve as your online signature.
Tip #10: Submit and wait. In 3-4 weeks, you should receive a Student Aid Report (SAR). This report will detail your expected family contribution and give you the opportunity to correct any errors or wrong information. In late March or early April, the award letter should be in the mail and you’ll know how much financial aid you are eligible to receive.
Tip #11: CONTACT US AT OUR YEAR 'ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
Congratulations!!!!
These tips are brought to you by The Tax Institute at H&R Block.
MT. HOLLY, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
MT. HOLLY, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
FOR RELEASE SEPTEMBER 23, 2009
(KANSAS CITY, Mo.) - Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.
"Given the current economic climate - and the need for taxpayers to claim every tax credit and deduction they're due - the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."
The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.
"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill - their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."
Among the survey's findings:
70 percent of taxpayers surveyed by The Tax Institute at H&R Block said they weren't aware of recent legislative changes that could affect their return next year.
"There are changes that affect parents, first-time homebuyers, long-time homeowners, military personnel, retirees, people impacted by the Alternative Minimum Tax and more," said McAnarney. "Every one of those changes could mean money in taxpayers' pockets."
Most Americans don't know a tax credit from a deduction - and that could be costing them big bucks.
Nearly 60 percent of those surveyed didn't know which trims more off the bottom line. The answer? A tax credit, which lowers a tax bill dollar-for-dollar, while a tax deduction lowers taxable income.
"This is not the time for taxpayers to guess on their own or see a tax professional who isn't a tax expert," said McAnarney. "More than ever, taxpayers need advice that translates into the biggest refund they're allowed by law."
Talking about taxes is one thing, but knowing how much that bill costs is an entirely different discussion. The survey showed that 78 percent weren't totally confident they even know what tax bracket they're in.
"Knowing your tax bracket is the first step to taking advantage of opportunities to lower your tax liability," said McAnarney. "There are lots of things people can do to lower their tax bill throughout the year: invest in a 529, a 401 (k) or an IRA, contribute to a health savings account, knowing when to dispose of capital assets - the list goes on."
84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. "There are do-overs in taxes, but not enough people take advantage of that," said McAnarney. "A professional can look at an old return and see if there is additional money left unclaimed." At H&R Block, 87 percent of previous years' amended returns net taxpayers an average refund of $1,300.
Americans fail to recognize that up-to-date training and education are key when selecting a tax professional. According to the survey, 76 percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. One of the top traits survey participants chose? Location.
"Convenience is always important but knowledge means money," said McAnarney. "The U.S. tax code is always changing, which is why taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer."
And despite the fact that the majority of those surveyed did not know their tax bracket, how much they paid in taxes or the difference between a credit and a deduction - they still aren't enamored with the U.S. tax system. A whopping 92 percent of those taxpayers surveyed could not describe the U.S. tax system as "very fair."
Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to those taxpayers both younger and older than them. Only 32 percent of those between 35 and 54 said the tax system was very or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 and older.
Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical - especially in today's economy.
"Americans should treat their tax bill like their bill of health," said McAnarney. "At times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve."
The Tax Institute is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McLaren. For more information visit our Online Press Center at www.hrblock.com.
FOR RELEASE SEPTEMBER 23, 2009
(KANSAS CITY, Mo.) - Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.
"Given the current economic climate - and the need for taxpayers to claim every tax credit and deduction they're due - the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."
The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.
"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill - their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."
Among the survey's findings:
70 percent of taxpayers surveyed by The Tax Institute at H&R Block said they weren't aware of recent legislative changes that could affect their return next year.
"There are changes that affect parents, first-time homebuyers, long-time homeowners, military personnel, retirees, people impacted by the Alternative Minimum Tax and more," said McAnarney. "Every one of those changes could mean money in taxpayers' pockets."
Most Americans don't know a tax credit from a deduction - and that could be costing them big bucks.
Nearly 60 percent of those surveyed didn't know which trims more off the bottom line. The answer? A tax credit, which lowers a tax bill dollar-for-dollar, while a tax deduction lowers taxable income.
"This is not the time for taxpayers to guess on their own or see a tax professional who isn't a tax expert," said McAnarney. "More than ever, taxpayers need advice that translates into the biggest refund they're allowed by law."
Talking about taxes is one thing, but knowing how much that bill costs is an entirely different discussion. The survey showed that 78 percent weren't totally confident they even know what tax bracket they're in.
"Knowing your tax bracket is the first step to taking advantage of opportunities to lower your tax liability," said McAnarney. "There are lots of things people can do to lower their tax bill throughout the year: invest in a 529, a 401 (k) or an IRA, contribute to a health savings account, knowing when to dispose of capital assets - the list goes on."
84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. "There are do-overs in taxes, but not enough people take advantage of that," said McAnarney. "A professional can look at an old return and see if there is additional money left unclaimed." At H&R Block, 87 percent of previous years' amended returns net taxpayers an average refund of $1,300.
Americans fail to recognize that up-to-date training and education are key when selecting a tax professional. According to the survey, 76 percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. One of the top traits survey participants chose? Location.
"Convenience is always important but knowledge means money," said McAnarney. "The U.S. tax code is always changing, which is why taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer."
And despite the fact that the majority of those surveyed did not know their tax bracket, how much they paid in taxes or the difference between a credit and a deduction - they still aren't enamored with the U.S. tax system. A whopping 92 percent of those taxpayers surveyed could not describe the U.S. tax system as "very fair."
Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to those taxpayers both younger and older than them. Only 32 percent of those between 35 and 54 said the tax system was very or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 and older.
Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical - especially in today's economy.
"Americans should treat their tax bill like their bill of health," said McAnarney. "At times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve."
The Tax Institute is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LUMBERTON PLAZA
1636-15 RTE 38
MOUNT HOLLY, NJ 08060
Phone: 609-267-1020
VOORHEES TOWN CENTER
1610 ECHELON MALL LOWER LEVEL
VOORHEES, NJ 08043
Phone: 856-772-2211
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McLaren. For more information visit our Online Press Center at www.hrblock.com.
Wednesday, September 23, 2009
TOMS RIVER, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
TOMS RIVER, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
TOMS RIVER, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
FOR RELEASE SEPTEMBER 23, 2009
(KANSAS CITY, Mo.) - Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.
"Given the current economic climate - and the need for taxpayers to claim every tax credit and deduction they're due - the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."
The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.
"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill - their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."
Among the survey's findings:
70 percent of taxpayers surveyed by The Tax Institute at H&R Block said they weren't aware of recent legislative changes that could affect their return next year.
"There are changes that affect parents, first-time homebuyers, long-time homeowners, military personnel, retirees, people impacted by the Alternative Minimum Tax and more," said McAnarney. "Every one of those changes could mean money in taxpayers' pockets."
Most Americans don't know a tax credit from a deduction - and that could be costing them big bucks.
Nearly 60 percent of those surveyed didn't know which trims more off the bottom line. The answer? A tax credit, which lowers a tax bill dollar-for-dollar, while a tax deduction lowers taxable income.
"This is not the time for taxpayers to guess on their own or see a tax professional who isn't a tax expert," said McAnarney. "More than ever, taxpayers need advice that translates into the biggest refund they're allowed by law."
Talking about taxes is one thing, but knowing how much that bill costs is an entirely different discussion. The survey showed that 78 percent weren't totally confident they even know what tax bracket they're in.
"Knowing your tax bracket is the first step to taking advantage of opportunities to lower your tax liability," said McAnarney. "There are lots of things people can do to lower their tax bill throughout the year: invest in a 529, a 401 (k) or an IRA, contribute to a health savings account, knowing when to dispose of capital assets - the list goes on."
84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. "There are do-overs in taxes, but not enough people take advantage of that," said McAnarney. "A professional can look at an old return and see if there is additional money left unclaimed." At H&R Block, 87 percent of previous years' amended returns net taxpayers an average refund of $1,300.
Americans fail to recognize that up-to-date training and education are key when selecting a tax professional. According to the survey, 76 percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. One of the top traits survey participants chose? Location.
"Convenience is always important but knowledge means money," said McAnarney. "The U.S. tax code is always changing, which is why taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer."
And despite the fact that the majority of those surveyed did not know their tax bracket, how much they paid in taxes or the difference between a credit and a deduction - they still aren't enamored with the U.S. tax system. A whopping 92 percent of those taxpayers surveyed could not describe the U.S. tax system as "very fair."
Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to those taxpayers both younger and older than them. Only 32 percent of those between 35 and 54 said the tax system was very or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 and older.
Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical - especially in today's economy.
"Americans should treat their tax bill like their bill of health," said McAnarney. "At times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve."
The Tax Institute is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McLaren. For more information visit our Online Press Center at www.hrblock.com.
TOMS RIVER, NJ - Americans Failing Taxes 101: H&R Block survey shows most can’t answer basic tax questions
FOR RELEASE SEPTEMBER 23, 2009
(KANSAS CITY, Mo.) - Americans may like to talk about taxes but according to an annual survey by The Tax Institute at H&R Block (NYSE: HRB), most can't answer even the most basic tax questions correctly.
"Given the current economic climate - and the need for taxpayers to claim every tax credit and deduction they're due - the survey results are alarming," said Amy McAnarney, executive director of The Tax Institute at H&R Block. "The bottom line: Americans are failing Taxes 101."
The Tax Institute survey assessed the knowledge and opinions of a nationally representative sample of more than 1,000 U.S. adults, and found the majority doesn't know a credit from a deduction and, even more surprising, they aren't completely sure how much they even pay in taxes.
"Americans will spend more this year on taxes than food, housing and clothing combined," said McAnarney. "While they may clip coupons or negotiate their mortgage, most don't pay attention to their largest bill - their taxes. This could be especially troublesome for people who prepare their taxes themselves or don't check their tax professional's credentials."
Among the survey's findings:
70 percent of taxpayers surveyed by The Tax Institute at H&R Block said they weren't aware of recent legislative changes that could affect their return next year.
"There are changes that affect parents, first-time homebuyers, long-time homeowners, military personnel, retirees, people impacted by the Alternative Minimum Tax and more," said McAnarney. "Every one of those changes could mean money in taxpayers' pockets."
Most Americans don't know a tax credit from a deduction - and that could be costing them big bucks.
Nearly 60 percent of those surveyed didn't know which trims more off the bottom line. The answer? A tax credit, which lowers a tax bill dollar-for-dollar, while a tax deduction lowers taxable income.
"This is not the time for taxpayers to guess on their own or see a tax professional who isn't a tax expert," said McAnarney. "More than ever, taxpayers need advice that translates into the biggest refund they're allowed by law."
Talking about taxes is one thing, but knowing how much that bill costs is an entirely different discussion. The survey showed that 78 percent weren't totally confident they even know what tax bracket they're in.
"Knowing your tax bracket is the first step to taking advantage of opportunities to lower your tax liability," said McAnarney. "There are lots of things people can do to lower their tax bill throughout the year: invest in a 529, a 401 (k) or an IRA, contribute to a health savings account, knowing when to dispose of capital assets - the list goes on."
84 percent of those surveyed did not know they could go back three years to amend a return. For taxpayers who may have missed a credit or deduction, that could spell money in the bank. "There are do-overs in taxes, but not enough people take advantage of that," said McAnarney. "A professional can look at an old return and see if there is additional money left unclaimed." At H&R Block, 87 percent of previous years' amended returns net taxpayers an average refund of $1,300.
Americans fail to recognize that up-to-date training and education are key when selecting a tax professional. According to the survey, 76 percent of taxpayers fail to list "knowledge of current tax laws" as an important trait when picking a tax professional. One of the top traits survey participants chose? Location.
"Convenience is always important but knowledge means money," said McAnarney. "The U.S. tax code is always changing, which is why taxpayers need to make sure their professional receives continuous education on key changes which then translates into more value for the taxpayer."
And despite the fact that the majority of those surveyed did not know their tax bracket, how much they paid in taxes or the difference between a credit and a deduction - they still aren't enamored with the U.S. tax system. A whopping 92 percent of those taxpayers surveyed could not describe the U.S. tax system as "very fair."
Middle-aged Americans were less likely to see the U.S. taxation system as very fair or somewhat fair compared to those taxpayers both younger and older than them. Only 32 percent of those between 35 and 54 said the tax system was very or somewhat fair, compared with 47 percent of taxpayers between 18 and 34 and those 55 and older.
Whether taxpayers prepare their own returns or rely on professional help, paying attention to their largest expense of the year is critical - especially in today's economy.
"Americans should treat their tax bill like their bill of health," said McAnarney. "At times it may be appropriate to evaluate your own condition, but on balance it is extremely important to lean on a knowledgeable expert to ensure you are on the right track. Now, more than ever, it is critical for taxpayers to get the advice they need to ensure the refund they deserve."
The Tax Institute is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by Enrolled Agents, CPAs, and Attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McLaren. For more information visit our Online Press Center at www.hrblock.com.
(Lakewood, NJ) - Top 11 Tips For Filling Out The FAFSA Form You Can Do It!
(Lakewood, NJ) - Top 11 Tips For Filling Out The FAFSA Form You Can Do It
Top 11 Tips For Filling Out The FAFSA Form You Can Do It!
Top 11 Tips from The Tax Institute at H&R Block
Tip # 1: Read. Read. Read. Before you start, make sure you read ALL the instructions. Sounds like a given, but many think they can just dive into the application process without benefit of the instructions. Big mistake.
Tip #2: Pay attention to filing dates. The FAFSA form should be completed and mailed as soon as possible AFTER January 1 because Federal and State funds are awarded on a first come, first serve basis. However, this is one case where the early bird doesn’t catch the worm; file BEFORE January 1, and your application will be returned to you because your current year income tax return data is needed to complete the FAFSA documentation. Check with the Financial Aid office at your school for the deadline dates.
Tip #3: File once, but file even if you think you’re not eligible. Only one financial aid application can be submitted each calendar year. Even if you think you’re ineligible for financial aid, you should still complete the form because many states and schools use it to award non-federal aid.
Tip #4: Online or paper. You can complete a paper copy or you can complete the FAFSA application online at www.fafsa.ed.gov. With an online application, the processing time is cut in half. Remember, however, that you’ll need a PIN number for an online application if you’re planning to submit an online signature. Without a pin, you can still file online, but you will need to print out the signature page, sign it and return the signature page to the Dept. of Education. The Dept of Education then matches the online data received with the signature page submitted by mail and processes the FAFSA accordingly.
Tip #5: Get your stuff in order. To complete a FAFSA form, whether online or paper, you’ll need: your driver’s license and Social Security Card; Income tax returns; W-2s forms as well as other records of money earned; documentation of any other untaxed income such as welfare or veteran’s benefits; your current bank statements; current mortgage information; and any business or farm reports if applicable. Ask your tax professional if you have any questions about the tax-related information.
Tip #6: Black not blue. For paper copies, complete your application in black ink; not blue, and whatever you’re thinking, please don’t use a pencil.
Tip #7: Answer all questions. Print clearly; preferably in capital letters for all responses. If a question doesn’t apply to you, write “0” or “NA” (not applicable) as the response. Round any dollar amounts to nearest whole dollar. And, remember, on the FAFSA form, “you” and “your” always refers to the student, not the parents.
Tip #8: Help. I need someone. When stuck, get help.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
If you live in the Atlanta, GA Metro, Northern Georgia, New York City Metro, Charlotte, NC Metro, Missoula, MT, Baltimore, MD, Jacksonville, FL, McAllen, TX or Harligen, TX, you may receive professional assistance in completing the 2009-2010 FAFSA form beginning in January 2009 while completing your tax return with H&R Block. Other H&R Block locations can help assist you in answering questions regarding the FAFSA form. For more information about participating offices in your area, please contact your local H&R Block office.
Tip # 9: Don’t forget to sign. Parents, too, if you’re a dependent. This is a common blooper; check and double-check your application to make sure you’ve answered ALL questions and DON’T forget to sign the application. For online applications, if you have a PIN, it will serve as your online signature.
Tip #10: Submit and wait. In 3-4 weeks, you should receive a Student Aid Report (SAR). This report will detail your expected family contribution and give you the opportunity to correct any errors or wrong information. In late March or early April, the award letter should be in the mail and you’ll know how much financial aid you are eligible to receive.
Tip #11: CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Congratulations!!!!
These tips are brought to you by The Tax Institute at H&R Block.
Top 11 Tips For Filling Out The FAFSA Form You Can Do It!
Top 11 Tips from The Tax Institute at H&R Block
Tip # 1: Read. Read. Read. Before you start, make sure you read ALL the instructions. Sounds like a given, but many think they can just dive into the application process without benefit of the instructions. Big mistake.
Tip #2: Pay attention to filing dates. The FAFSA form should be completed and mailed as soon as possible AFTER January 1 because Federal and State funds are awarded on a first come, first serve basis. However, this is one case where the early bird doesn’t catch the worm; file BEFORE January 1, and your application will be returned to you because your current year income tax return data is needed to complete the FAFSA documentation. Check with the Financial Aid office at your school for the deadline dates.
Tip #3: File once, but file even if you think you’re not eligible. Only one financial aid application can be submitted each calendar year. Even if you think you’re ineligible for financial aid, you should still complete the form because many states and schools use it to award non-federal aid.
Tip #4: Online or paper. You can complete a paper copy or you can complete the FAFSA application online at www.fafsa.ed.gov. With an online application, the processing time is cut in half. Remember, however, that you’ll need a PIN number for an online application if you’re planning to submit an online signature. Without a pin, you can still file online, but you will need to print out the signature page, sign it and return the signature page to the Dept. of Education. The Dept of Education then matches the online data received with the signature page submitted by mail and processes the FAFSA accordingly.
Tip #5: Get your stuff in order. To complete a FAFSA form, whether online or paper, you’ll need: your driver’s license and Social Security Card; Income tax returns; W-2s forms as well as other records of money earned; documentation of any other untaxed income such as welfare or veteran’s benefits; your current bank statements; current mortgage information; and any business or farm reports if applicable. Ask your tax professional if you have any questions about the tax-related information.
Tip #6: Black not blue. For paper copies, complete your application in black ink; not blue, and whatever you’re thinking, please don’t use a pencil.
Tip #7: Answer all questions. Print clearly; preferably in capital letters for all responses. If a question doesn’t apply to you, write “0” or “NA” (not applicable) as the response. Round any dollar amounts to nearest whole dollar. And, remember, on the FAFSA form, “you” and “your” always refers to the student, not the parents.
Tip #8: Help. I need someone. When stuck, get help.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
If you live in the Atlanta, GA Metro, Northern Georgia, New York City Metro, Charlotte, NC Metro, Missoula, MT, Baltimore, MD, Jacksonville, FL, McAllen, TX or Harligen, TX, you may receive professional assistance in completing the 2009-2010 FAFSA form beginning in January 2009 while completing your tax return with H&R Block. Other H&R Block locations can help assist you in answering questions regarding the FAFSA form. For more information about participating offices in your area, please contact your local H&R Block office.
Tip # 9: Don’t forget to sign. Parents, too, if you’re a dependent. This is a common blooper; check and double-check your application to make sure you’ve answered ALL questions and DON’T forget to sign the application. For online applications, if you have a PIN, it will serve as your online signature.
Tip #10: Submit and wait. In 3-4 weeks, you should receive a Student Aid Report (SAR). This report will detail your expected family contribution and give you the opportunity to correct any errors or wrong information. In late March or early April, the award letter should be in the mail and you’ll know how much financial aid you are eligible to receive.
Tip #11: CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Congratulations!!!!
These tips are brought to you by The Tax Institute at H&R Block.
(OCEAN COUNTY, NJ) - MILITARY - Did you know you can exclude certain pay from your income while working in a combat zone?
(OCEAN COUNTY, NJ) - MILITARY - Did you know you can exclude certain pay from your income while working in a combat zone?
Service outside a combat zone is considered to be inside a combat zone if the service is in direct support of combat zone military operations.
If you're a member of the U.S. Armed Forces who serves in a combat zone, you can exclude certain pay from your income. You also have additional time to make a qualified contribution to an IRA. A combat zone is an area designated by the U.S. President by Executive Order as an area in which U.S. Armed Forces are engaging in or have engaged in combat.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Income
The following income received during service in a combat zone doesn’t have to be reported as gross income:
active duty pay earned in any month served in a combat zone
imminent danger/hostile fire pay during a month served in a combat zone
re-enlistment bonus if re-enlistment or voluntary extension occurs during a month served in a combat zone
Pay for accrued leave — the Department of Defense must determine the unused leave was earned during the month served in a combat zone
pay for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other non-appropriated fund activities earned during a month served in a combat zone
awards or achievement pay made for a suggestion or achievement made in a month served in a combat zone
student loan repayments to the extent service in the year of service required to earn the repayment was performed in a combat zone
(new for 2008) bonus payments by a state or local government entity to a member or former member of the armed forces, if the payment is made solely because of service in a combat zone
If you're a commissioned officer (other than a commissioned warrant officer), the combat pay exclusion for any month is limited to the highest rate on enlisted pay (plus hostile fire/imminent danger pay, if any).
You do not claim an exclusion for combat pay on your tax return. The excludable amount should not be included in your Box 1 wages on Form W-2. If an excludable amount is included in your Box 1 wages, you should get a corrected Form W-2.
If you served in a combat zone for 1 or more days during a particular month, you’re allowed the above exclusions for that entire month. Combat zone service includes any periods you are absent from duty due to illness, wounds or leave. A person is considered to be serving in a combat zone if he or she becomes a prisoner of war or is missing in action if that status is kept for military pay purposes.
You can also exclude military pay earned while hospitalized (you don’t have to be hospitalized in the combat zone). Your hospitalization must be due to having served in a combat zone. This is true even if you’re hospitalized after combat zone service. For more information, check with a tax professional.
Combat Zone Considerations
Military service outside the combat zone is, for tax purposes, considered to be inside a combat zone if the service is in direct support of combat zone military operations and the service qualifies you for special military pay for duty subject to hostile fire or imminent danger.
But in these situations, you're not considered to be in a combat zone:
1.You're present in a combat zone during leave from a duty station located outside the combat zone.
2.You pass over or through a combat zone during a trip between 2 points that are outside a combat zone.
3.You’re in a combat zone only for your personal convenience.
Service outside a combat zone is considered to be inside a combat zone if the service is in direct support of combat zone military operations.
If you're a member of the U.S. Armed Forces who serves in a combat zone, you can exclude certain pay from your income. You also have additional time to make a qualified contribution to an IRA. A combat zone is an area designated by the U.S. President by Executive Order as an area in which U.S. Armed Forces are engaging in or have engaged in combat.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Income
The following income received during service in a combat zone doesn’t have to be reported as gross income:
active duty pay earned in any month served in a combat zone
imminent danger/hostile fire pay during a month served in a combat zone
re-enlistment bonus if re-enlistment or voluntary extension occurs during a month served in a combat zone
Pay for accrued leave — the Department of Defense must determine the unused leave was earned during the month served in a combat zone
pay for duties as a member of the Armed Forces in clubs, messes, post and station theaters, and other non-appropriated fund activities earned during a month served in a combat zone
awards or achievement pay made for a suggestion or achievement made in a month served in a combat zone
student loan repayments to the extent service in the year of service required to earn the repayment was performed in a combat zone
(new for 2008) bonus payments by a state or local government entity to a member or former member of the armed forces, if the payment is made solely because of service in a combat zone
If you're a commissioned officer (other than a commissioned warrant officer), the combat pay exclusion for any month is limited to the highest rate on enlisted pay (plus hostile fire/imminent danger pay, if any).
You do not claim an exclusion for combat pay on your tax return. The excludable amount should not be included in your Box 1 wages on Form W-2. If an excludable amount is included in your Box 1 wages, you should get a corrected Form W-2.
If you served in a combat zone for 1 or more days during a particular month, you’re allowed the above exclusions for that entire month. Combat zone service includes any periods you are absent from duty due to illness, wounds or leave. A person is considered to be serving in a combat zone if he or she becomes a prisoner of war or is missing in action if that status is kept for military pay purposes.
You can also exclude military pay earned while hospitalized (you don’t have to be hospitalized in the combat zone). Your hospitalization must be due to having served in a combat zone. This is true even if you’re hospitalized after combat zone service. For more information, check with a tax professional.
Combat Zone Considerations
Military service outside the combat zone is, for tax purposes, considered to be inside a combat zone if the service is in direct support of combat zone military operations and the service qualifies you for special military pay for duty subject to hostile fire or imminent danger.
But in these situations, you're not considered to be in a combat zone:
1.You're present in a combat zone during leave from a duty station located outside the combat zone.
2.You pass over or through a combat zone during a trip between 2 points that are outside a combat zone.
3.You’re in a combat zone only for your personal convenience.
Friday, September 11, 2009
OCEAN AND MONMOUTH COUNTIES, NJ - One in 10. That is how many Americans economists predict could be unemployed by year’s end
OCEAN AND MONMOUTH COUNTIES, NJ - One in 10. That is how many Americans economists predict could be unemployed by year’s end
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
As Unemployment Rises, So Does Confusion on Tax Implications
KANSAS CITY, Mo. – One in 10. That is how many Americans economists predict could be unemployed by year’s end. Yet, 8 in 10 taxpayers believe they won’t have to pay taxes on unemployment benefits, according to a survey conducted by The Tax Institute at H&R Block.
Numbers recently released show 9.4 percent of Americans are unemployed. For those people and the more than 1 million others who filed for unemployment in the past two months, it’s critical to understand the tax implications of receiving those benefits. Those who don’t, may have an unexpected tax bill next April, warned tax professionals at H&R Block (NYSE: HRB).
“For most individuals, taxes are very confusing. If your situation has changed and you are now unemployed, that adds a new level of complexity and stress to an apprehensive time,” said Amy McAnarney, executive director of The Tax Institute at H&R Block.
To help relieve some of that stress, McAnarney said it’s important to learn a little more about three key areas:
Taxability of unemployment benefits
COBRA insurance subsidy
The reasons for tracking job search expenses
Extra, extra
Congress did pass some additional relief, however. A provision in this year’s Recovery Act is designed to relieve some financial burden for those who are unemployed. For anyone receiving unemployment benefits in 2009, an extra $25 per week is added to their benefit. In addition, the time a person can receive unemployment payments was extended to 20 weeks and in certain high unemployment states, extended an additional 13 weeks. Be sure to check with a local tax professional or unemployment office to determine which states give the extension.
The legislation passed in February also gives a break on COBRA insurance premiums to those who qualify. This benefit is a federal subsidy of 65 percent on monthly premiums for up to nine months. This decreases the out-of-pocket expense on COBRA by almost two-thirds for those who are eligible.
To tax or not to tax
Although unemployment compensation is taxable, the Recovery Act contains a provision that exempts the first $2,400 of unemployment benefits earned in 2009 from federal taxes. However, any unemployment compensation earned over $2,400 is still taxable.
So, for those unemployed, these steps can simplify the tax picture:
Setting aside a portion of your benefit amount to pay taxes next year or fill out form W-4V to have it automatically withheld
Tracking and documenting job search related expenses
Talking to a tax professional to avoid confusion
Deducting the job search
McAnarney said many expenses incurred as a result of a job search are tax deductible when a taxpayer seeks employment in the same field or business as their previous job. Among them:
Resume development
Professional placement services
Mileage driven to job interviews and other unreimbursed travel expenses such as airfare
Taxpayers must itemize as part of their miscellaneous deductions to deduct job search expenses. However, only miscellaneous expenses that exceed 2 percent of adjusted gross income are deductible. “Because even the little expenses add up, be sure to document and keep receipts,” McAnarney said.
H&R Block tax offices are open now and can help individuals best prepare for any taxes on unemployment compensation before the year ends. Or visit www.hrblock.com for tax tips and other important information.
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
Why Choose H&R Block?
Our average client sees a Tax Professional with more than 8 years of experience and hundreds of hours of specialty training. Have a one-to-one relationship the way you want it: face-to-face, over the phone or online - you decide.
TOP 3 REASONS TO CHOOSE H&R BLOCK OVER ANOTHER PREPARER:
1. Tax Laws Change - Most H&R Block Tax Professionals receive more than 50 hours of training annually.
2. We Have the Answers - We have 90,000 trained professionals with access to H&R Block's Tax Institute - the leader in tax research.
3. We Guarantee Our Work - If we make a mistake, we'll pay any resulting penalties and interest; we guarantee it.
WE EMPLOY HIGHLY-TRAINED TAX PROFESSIONALS:
H&R Block's been in business for more than 50 years, and on average, our clients are served by a tax professional with more than 8 years of tax preparation experience. Plus, the majority of H&R Block tax professionals receive more than 50 hours of training every year, ensuring they stay on top of recent tax law changes and understand how they may impact your personal tax situation. In fact, the H&R Block Income Tax Course is recognized as the industry's leading tax training program.
WE’RE MORE THAN A TAX RETURN:
When you meet with your pro, they'll look for every possible deduction and credit to maximize your tax outcome, such as those related to your job.* You'll also get advice tailored to your unique tax situation. And at the end of each interview, you'll receive a personalized H&R Block Advantage statement summarizing year-round tax-saving tips.
• Life changes could mean tax changes.
If you change jobs, get married, buy a new home, have a baby or experience another life-changing event, your tax professional can help you plan for it.
We'll help you determine the right number of payroll exemptions with our W-4 estimator.
H&R Block Savings products can help you save for short- or long-term goals.
• Need help after April 15?
We offer year-round support by calling 1-800-HRBLOCK. We can also refer you to an H&R Block Year Round office in case you have tax questions or in case of an IRS audit.
YOUR SATISFACTION IS GUARANTEED:
If you are not satisfied, you are not obligated to accept and pay for the preparation of your tax return.
The H&R Block Guarantee:
If H&R Block makes an error in the preparation of your tax return, H&R Block will pay penalties and interest caused by such error. In addition, if the IRS audits you, an H&R Block representative will assist in answering questions regarding the preparation of your return (not as a legal representative)1.
1 If H&R Block makes an error in the preparation of your tax return, it will pay penalties and interest caused by such error. If you are audited, H&R Block will explain your audit notice and advise you as to documentation you should provide to the auditing authority.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
As Unemployment Rises, So Does Confusion on Tax Implications
KANSAS CITY, Mo. – One in 10. That is how many Americans economists predict could be unemployed by year’s end. Yet, 8 in 10 taxpayers believe they won’t have to pay taxes on unemployment benefits, according to a survey conducted by The Tax Institute at H&R Block.
Numbers recently released show 9.4 percent of Americans are unemployed. For those people and the more than 1 million others who filed for unemployment in the past two months, it’s critical to understand the tax implications of receiving those benefits. Those who don’t, may have an unexpected tax bill next April, warned tax professionals at H&R Block (NYSE: HRB).
“For most individuals, taxes are very confusing. If your situation has changed and you are now unemployed, that adds a new level of complexity and stress to an apprehensive time,” said Amy McAnarney, executive director of The Tax Institute at H&R Block.
To help relieve some of that stress, McAnarney said it’s important to learn a little more about three key areas:
Taxability of unemployment benefits
COBRA insurance subsidy
The reasons for tracking job search expenses
Extra, extra
Congress did pass some additional relief, however. A provision in this year’s Recovery Act is designed to relieve some financial burden for those who are unemployed. For anyone receiving unemployment benefits in 2009, an extra $25 per week is added to their benefit. In addition, the time a person can receive unemployment payments was extended to 20 weeks and in certain high unemployment states, extended an additional 13 weeks. Be sure to check with a local tax professional or unemployment office to determine which states give the extension.
The legislation passed in February also gives a break on COBRA insurance premiums to those who qualify. This benefit is a federal subsidy of 65 percent on monthly premiums for up to nine months. This decreases the out-of-pocket expense on COBRA by almost two-thirds for those who are eligible.
To tax or not to tax
Although unemployment compensation is taxable, the Recovery Act contains a provision that exempts the first $2,400 of unemployment benefits earned in 2009 from federal taxes. However, any unemployment compensation earned over $2,400 is still taxable.
So, for those unemployed, these steps can simplify the tax picture:
Setting aside a portion of your benefit amount to pay taxes next year or fill out form W-4V to have it automatically withheld
Tracking and documenting job search related expenses
Talking to a tax professional to avoid confusion
Deducting the job search
McAnarney said many expenses incurred as a result of a job search are tax deductible when a taxpayer seeks employment in the same field or business as their previous job. Among them:
Resume development
Professional placement services
Mileage driven to job interviews and other unreimbursed travel expenses such as airfare
Taxpayers must itemize as part of their miscellaneous deductions to deduct job search expenses. However, only miscellaneous expenses that exceed 2 percent of adjusted gross income are deductible. “Because even the little expenses add up, be sure to document and keep receipts,” McAnarney said.
H&R Block tax offices are open now and can help individuals best prepare for any taxes on unemployment compensation before the year ends. Or visit www.hrblock.com for tax tips and other important information.
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
# # #
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world’s preeminent tax services provider, having served more than 400 million clients since 1955 and generating annual revenues of $4.1 billion in fiscal year 2008. H&R Block provides income tax return preparation and related services and products via a nationwide network of approximately 13,000 company-owned and franchised offices and through TaxCut® online and software solutions. The company also provides business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
Why Choose H&R Block?
Our average client sees a Tax Professional with more than 8 years of experience and hundreds of hours of specialty training. Have a one-to-one relationship the way you want it: face-to-face, over the phone or online - you decide.
TOP 3 REASONS TO CHOOSE H&R BLOCK OVER ANOTHER PREPARER:
1. Tax Laws Change - Most H&R Block Tax Professionals receive more than 50 hours of training annually.
2. We Have the Answers - We have 90,000 trained professionals with access to H&R Block's Tax Institute - the leader in tax research.
3. We Guarantee Our Work - If we make a mistake, we'll pay any resulting penalties and interest; we guarantee it.
WE EMPLOY HIGHLY-TRAINED TAX PROFESSIONALS:
H&R Block's been in business for more than 50 years, and on average, our clients are served by a tax professional with more than 8 years of tax preparation experience. Plus, the majority of H&R Block tax professionals receive more than 50 hours of training every year, ensuring they stay on top of recent tax law changes and understand how they may impact your personal tax situation. In fact, the H&R Block Income Tax Course is recognized as the industry's leading tax training program.
WE’RE MORE THAN A TAX RETURN:
When you meet with your pro, they'll look for every possible deduction and credit to maximize your tax outcome, such as those related to your job.* You'll also get advice tailored to your unique tax situation. And at the end of each interview, you'll receive a personalized H&R Block Advantage statement summarizing year-round tax-saving tips.
• Life changes could mean tax changes.
If you change jobs, get married, buy a new home, have a baby or experience another life-changing event, your tax professional can help you plan for it.
We'll help you determine the right number of payroll exemptions with our W-4 estimator.
H&R Block Savings products can help you save for short- or long-term goals.
• Need help after April 15?
We offer year-round support by calling 1-800-HRBLOCK. We can also refer you to an H&R Block Year Round office in case you have tax questions or in case of an IRS audit.
YOUR SATISFACTION IS GUARANTEED:
If you are not satisfied, you are not obligated to accept and pay for the preparation of your tax return.
The H&R Block Guarantee:
If H&R Block makes an error in the preparation of your tax return, H&R Block will pay penalties and interest caused by such error. In addition, if the IRS audits you, an H&R Block representative will assist in answering questions regarding the preparation of your return (not as a legal representative)1.
1 If H&R Block makes an error in the preparation of your tax return, it will pay penalties and interest caused by such error. If you are audited, H&R Block will explain your audit notice and advise you as to documentation you should provide to the auditing authority.
LAKEWOOD, NJ - Tax Issue after April 15th? RELAX. You Got People.
LAKEWOOD, NJ - Tax Issue after April 15th? RELAX. You Got People.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Why Choose H&R Block?
Our average client sees a Tax Professional with more than 8 years of experience and hundreds of hours of specialty training. Have a one-to-one relationship the way you want it: face-to-face, over the phone or online - you decide.
TOP 3 REASONS TO CHOOSE H&R BLOCK OVER ANOTHER PREPARER:
1. Tax Laws Change - Most H&R Block Tax Professionals receive more than 50 hours of training annually.
2. We Have the Answers - We have 90,000 trained professionals with access to H&R Block's Tax Institute - the leader in tax research.
3. We Guarantee Our Work - If we make a mistake, we'll pay any resulting penalties and interest; we guarantee it.
WE EMPLOY HIGHLY-TRAINED TAX PROFESSIONALS:
H&R Block's been in business for more than 50 years, and on average, our clients are served by a tax professional with more than 8 years of tax preparation experience. Plus, the majority of H&R Block tax professionals receive more than 50 hours of training every year, ensuring they stay on top of recent tax law changes and understand how they may impact your personal tax situation. In fact, the H&R Block Income Tax Course is recognized as the industry's leading tax training program.
WE’RE MORE THAN A TAX RETURN:
When you meet with your pro, they'll look for every possible deduction and credit to maximize your tax outcome, such as those related to your job.* You'll also get advice tailored to your unique tax situation. And at the end of each interview, you'll receive a personalized H&R Block Advantage statement summarizing year-round tax-saving tips.
• Life changes could mean tax changes.
If you change jobs, get married, buy a new home, have a baby or experience another life-changing event, your tax professional can help you plan for it.
We'll help you determine the right number of payroll exemptions with our W-4 estimator.
H&R Block Savings products can help you save for short- or long-term goals.
• Need help after April 15?
We offer year-round support by calling 1-800-HRBLOCK. We can also refer you to an H&R Block Year Round office in case you have tax questions or in case of an IRS audit.
YOUR SATISFACTION IS GUARANTEED:
If you are not satisfied, you are not obligated to accept and pay for the preparation of your tax return.
The H&R Block Guarantee:
If H&R Block makes an error in the preparation of your tax return, H&R Block will pay penalties and interest caused by such error. In addition, if the IRS audits you, an H&R Block representative will assist in answering questions regarding the preparation of your return (not as a legal representative)1.
1 If H&R Block makes an error in the preparation of your tax return, it will pay penalties and interest caused by such error. If you are audited, H&R Block will explain your audit notice and advise you as to documentation you should provide to the auditing authority.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Why Choose H&R Block?
Our average client sees a Tax Professional with more than 8 years of experience and hundreds of hours of specialty training. Have a one-to-one relationship the way you want it: face-to-face, over the phone or online - you decide.
TOP 3 REASONS TO CHOOSE H&R BLOCK OVER ANOTHER PREPARER:
1. Tax Laws Change - Most H&R Block Tax Professionals receive more than 50 hours of training annually.
2. We Have the Answers - We have 90,000 trained professionals with access to H&R Block's Tax Institute - the leader in tax research.
3. We Guarantee Our Work - If we make a mistake, we'll pay any resulting penalties and interest; we guarantee it.
WE EMPLOY HIGHLY-TRAINED TAX PROFESSIONALS:
H&R Block's been in business for more than 50 years, and on average, our clients are served by a tax professional with more than 8 years of tax preparation experience. Plus, the majority of H&R Block tax professionals receive more than 50 hours of training every year, ensuring they stay on top of recent tax law changes and understand how they may impact your personal tax situation. In fact, the H&R Block Income Tax Course is recognized as the industry's leading tax training program.
WE’RE MORE THAN A TAX RETURN:
When you meet with your pro, they'll look for every possible deduction and credit to maximize your tax outcome, such as those related to your job.* You'll also get advice tailored to your unique tax situation. And at the end of each interview, you'll receive a personalized H&R Block Advantage statement summarizing year-round tax-saving tips.
• Life changes could mean tax changes.
If you change jobs, get married, buy a new home, have a baby or experience another life-changing event, your tax professional can help you plan for it.
We'll help you determine the right number of payroll exemptions with our W-4 estimator.
H&R Block Savings products can help you save for short- or long-term goals.
• Need help after April 15?
We offer year-round support by calling 1-800-HRBLOCK. We can also refer you to an H&R Block Year Round office in case you have tax questions or in case of an IRS audit.
YOUR SATISFACTION IS GUARANTEED:
If you are not satisfied, you are not obligated to accept and pay for the preparation of your tax return.
The H&R Block Guarantee:
If H&R Block makes an error in the preparation of your tax return, H&R Block will pay penalties and interest caused by such error. In addition, if the IRS audits you, an H&R Block representative will assist in answering questions regarding the preparation of your return (not as a legal representative)1.
1 If H&R Block makes an error in the preparation of your tax return, it will pay penalties and interest caused by such error. If you are audited, H&R Block will explain your audit notice and advise you as to documentation you should provide to the auditing authority.
LAKEWOOD, NJ - Hobby or Business? It's all about the “Pursuit of Profit.”
LAKEWOOD, NJ - Hobby or Business? It's all about the “Pursuit of Profit.”
So, how was business this year? Did you make a profit? If your business is very new, most likely you took a loss. Oh well, at least you can write it off, right?
Well... maybe.
Whether you can write off your business losses depends on whether your business really is a business or a hobby.
"Of course it's a business!", I hear you say. "I don't put myself through this for the fun of it!"
That's what Brenda Konchar thought.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Brenda Konchar, a Mary Kay Cosmetics representative and Indiana mother of 4, reported her Mary Kay activity as business income.
The IRS disagreed. Konchar took her case to the Tax Court...
... and lost. (See: Konchar and Konchar v. Commissioner of Internal Revenue, (Docket 5388-01S-2004)
So what does it mean?
In a nutshell, if you earn income in the pursuit of a hobby, you can offset the income with deductions. You cannot claim deductions that exceed your income – there’s no loss for a hobby.
However, if you earn income in the pursuit of a business, you can not only offset the income with deductions, you can carry any losses forward. This can be huge for new businesses.
Brenda Konchar had deductions which exceeded her income and reported net business losses for the years 1996 through 1998. The IRS disallowed the losses, claiming that Konchar’s activities constituted a hobby. As a backup, the IRS claimed that even if she were operating a business, her expenses were not properly business expenses.
Here's the important part: The IRS consider a number of factors when determining whether a taxpayer is engaging in a business or a hobby, none more important than profit motive.
The IRS considers that you are engaging in a business when it is your intention to make money. You should be able to demonstrate that you have made a profit for at least three of the last five tax years.
So where did Brenda Konchar go wrong? She didn’t operate her Mary Kay activities like a business. She didn’t effectively promote the business – she didn’t even have business cards – and most of her customers were family and friends. She mixed her business assets with her personal assets. She sold her products to friends at or near cost, and lost money year after year and made no substantial steps to make changes. As a result, her business losses were disallowed.
Here’s the lesson to be learned: if you’re going to operate a business, treat it like a business.
H&R Block does individual returns, as well as business returns: We even prepare C-Corp. And S-Corp. Returns for large national companies.
We even do Small Business Bookkeeping & Accounting.
So, how was business this year? Did you make a profit? If your business is very new, most likely you took a loss. Oh well, at least you can write it off, right?
Well... maybe.
Whether you can write off your business losses depends on whether your business really is a business or a hobby.
"Of course it's a business!", I hear you say. "I don't put myself through this for the fun of it!"
That's what Brenda Konchar thought.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Brenda Konchar, a Mary Kay Cosmetics representative and Indiana mother of 4, reported her Mary Kay activity as business income.
The IRS disagreed. Konchar took her case to the Tax Court...
... and lost. (See: Konchar and Konchar v. Commissioner of Internal Revenue, (Docket 5388-01S-2004)
So what does it mean?
In a nutshell, if you earn income in the pursuit of a hobby, you can offset the income with deductions. You cannot claim deductions that exceed your income – there’s no loss for a hobby.
However, if you earn income in the pursuit of a business, you can not only offset the income with deductions, you can carry any losses forward. This can be huge for new businesses.
Brenda Konchar had deductions which exceeded her income and reported net business losses for the years 1996 through 1998. The IRS disallowed the losses, claiming that Konchar’s activities constituted a hobby. As a backup, the IRS claimed that even if she were operating a business, her expenses were not properly business expenses.
Here's the important part: The IRS consider a number of factors when determining whether a taxpayer is engaging in a business or a hobby, none more important than profit motive.
The IRS considers that you are engaging in a business when it is your intention to make money. You should be able to demonstrate that you have made a profit for at least three of the last five tax years.
So where did Brenda Konchar go wrong? She didn’t operate her Mary Kay activities like a business. She didn’t effectively promote the business – she didn’t even have business cards – and most of her customers were family and friends. She mixed her business assets with her personal assets. She sold her products to friends at or near cost, and lost money year after year and made no substantial steps to make changes. As a result, her business losses were disallowed.
Here’s the lesson to be learned: if you’re going to operate a business, treat it like a business.
H&R Block does individual returns, as well as business returns: We even prepare C-Corp. And S-Corp. Returns for large national companies.
We even do Small Business Bookkeeping & Accounting.
OCEAN COUNTY - There is THAT much new stuff in taxes for '09? Thank goodness I Got People.
OCEAN COUNTY - There is THAT much new stuff in taxes for '09? Thank goodness I Got People.
There was a lot of new stuff in the Tax Laws for 2008. The New Economic stimulus payment. The Recovery rebate credit. The First-time homebuyer credit. An additional standard deduction for real estate taxes and net disaster loss. TWO changes to the standard mileage rates!
Fortunately, you’re not going to need to learn all of the changes for 2009. Why? Because You Got People. CONTACT THEM AT:
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Nevertheless, here’s some of what's NEW for 2009:
This section summarizes the important changes that take effect in 2009 that could affect your estimated tax payments for 2009. More information on these and other changes can be found in Publication 553.
IRA income limits. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income is less than $65,000.
Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount will decrease to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately).
The definition of a “Qualifying Child” changed: For starters, your qualifying child must be younger than you and a child cannot be your qualifying child if he or she files a joint return.
Personal casualty and theft loss limit. Generally, a personal casualty or theft loss must exceed $500 to be allowed for 2009.
What’s New In Taxes for 2009? Oh, Boy. A Lot. Thank goodness You Got People.
There was a lot of new stuff in the Tax Laws for 2008. The New Economic stimulus payment. The Recovery rebate credit. The First-time homebuyer credit. An additional standard deduction for real estate taxes and net disaster loss. TWO changes to the standard mileage rates!
Fortunately, you’re not going to need to learn all of the changes for 2009. Why? Because You Got People. CONTACT THEM AT:
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
Nevertheless, here’s some of what's NEW for 2009:
This section summarizes the important changes that take effect in 2009 that could affect your estimated tax payments for 2009. More information on these and other changes can be found in Publication 553.
IRA income limits. You may be able to take an IRA deduction if you were covered by a retirement plan and your 2009 modified adjusted gross income is less than $65,000.
Alternative minimum tax (AMT) exemption amount decreased. The AMT exemption amount will decrease to $33,750 ($45,000 if married filing jointly or a qualifying widow(er); $22,500 if married filing separately).
The definition of a “Qualifying Child” changed: For starters, your qualifying child must be younger than you and a child cannot be your qualifying child if he or she files a joint return.
Personal casualty and theft loss limit. Generally, a personal casualty or theft loss must exceed $500 to be allowed for 2009.
What’s New In Taxes for 2009? Oh, Boy. A Lot. Thank goodness You Got People.
Are you sure your taxes were done correctly? A Second Look Review will help. (OCEAN COUNTY, NJ)
Are you sure your taxes were done correctly? With a Second Look ® review from H&R Block, we'll review your taxes no matter who did them for just $29 per return.
If you didn't use H&R Block, you may not have received the maximum refund you're entitled to. Bring in your 2008, 2007 and/or 2006 return(s) for review by an H&R Block tax professional who will review them for accuracy and check to see if you claimed all eligible credits and deductions.
In the past, we found errors in 4 out of 5 of the returns people brought in for a Second Look Review If your tax return is correct, or if you have H&R Block file a corrected return for you, we’ll stand behind you in case you're audited. That is part of the H&R Block Guarantee.
It pays to have people.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
With a Second Look Review you'll get:
An affordable, professional review of your tax return
Advice on what to do next if any variances are found
A printed advice summary in an H&R Block Advantage Report
H&R Block Guarantee coverage for penalties and interest repayment and audit assistance if your return is correct or H&R Block files a corrected return for you.
Price: $29 for each review
Individual results will vary. Error claims are for calendar year 2007. Fees apply for Second Look reviews and if you have us prepare a corrected or amended return. Excludes tax returns prepared by H&R Block.
²If H&R Block makes an error in the preparation of your tax return or calculation of taxes owed; it will pay penalties and interest
If you didn't use H&R Block, you may not have received the maximum refund you're entitled to. Bring in your 2008, 2007 and/or 2006 return(s) for review by an H&R Block tax professional who will review them for accuracy and check to see if you claimed all eligible credits and deductions.
In the past, we found errors in 4 out of 5 of the returns people brought in for a Second Look Review If your tax return is correct, or if you have H&R Block file a corrected return for you, we’ll stand behind you in case you're audited. That is part of the H&R Block Guarantee.
It pays to have people.
CONTACT US AT OUR YEAR 'ROUND OFFICES
LAKEWOOD PLAZA
1700 MADISON AVE
LAKEWOOD, NJ 08701
Phone: 732-364-3000
TOWN AND COUNTRY CENTER
1900 RTE 70 STE 218
LAKEWOOD, NJ 08701
Phone: 732-920-9333
MANCHESTER PLAZA
1039 RTE 70
MANCHESTER, NJ 08759
Phone: 732-408-9123
93 3RD AVE
BLDG E STE 505
NEPTUNE CITY, NJ 07753
Phone: 732-502-8314
With a Second Look Review you'll get:
An affordable, professional review of your tax return
Advice on what to do next if any variances are found
A printed advice summary in an H&R Block Advantage Report
H&R Block Guarantee coverage for penalties and interest repayment and audit assistance if your return is correct or H&R Block files a corrected return for you.
Price: $29 for each review
Individual results will vary. Error claims are for calendar year 2007. Fees apply for Second Look reviews and if you have us prepare a corrected or amended return. Excludes tax returns prepared by H&R Block.
²If H&R Block makes an error in the preparation of your tax return or calculation of taxes owed; it will pay penalties and interest
TRENTON, NJ AREA - Tax Checkup Now Possible Cure for 'Making Work Pay' Confusion Later
TRENTON, NJ AREA - Tax Checkup Now Possible Cure for 'Making Work Pay' Confusion Later
H&R Block Warns That Possible Under Withholding Puts Certain Segments at Risk of Reduced Refund or Increased Balance Due Next Year
KANSAS CITY, MO-- Millions of taxpayers, depending upon other tax breaks they may qualify for, could find themselves with a tax surprise next year because of the Making Work Pay tax credit unless they adjust their withholding, according to analysis by The Tax Institute at H&R Block (NYSE: HRB).
Ninety-five percent of taxpayers automatically started taking home more money in their paychecks this past April thanks to a change in the IRS withholding tables, triggered by the Making Work Pay Credit. Those taxpayers who should take special care in understanding their new take home pay thanks to the Making Work Pay tax credit include:
-- Married couples with two incomes
-- Individuals with multiple incomes
-- Retirees who have taxes withheld from a pension or social security
benefits
-- Individuals who work but who can be claimed as a dependent on someone
else's tax return.
"Considering how complex taxes can be, most taxpayers need guidance on assessing their tax picture," said H&R Block spokesman Anthony Rosania. "Not knowing or not taking the time to understand how their withholding and other tax breaks affect them could lead to a surprising tax liability. A little knowledge now could save them a lot of disappointment later."
The credit could mean up to $400 for individuals and $800 for couples in 2009 and 2010. There is a phaseout of the credit starting at modified adjusted gross income (MAGI) of $75,000 for single filers and for married filers at MAGI of $150,000. It's totally phased out at MAGI of $95,000 for singles and $190,000 for married filers.
Prescription: tax checkup
To avoid an unwelcome tax surprise, H&R Block recommends taxpayers receive a tax checkup now to see if they should adjust their W-4 allowances before the end of the year. Taxpayers just need to follow three easy steps:
1. Click on www.hrblock.com or go directly to the Making Work Pay calculator on H&R Block's Web site to estimate if their total withholding change will be greater than the credit they'll likely be able to claim, then
2. Call 1-800-HRBLOCK to find an office near them to schedule a tax checkup, and finally
3. Come by the local office for a free tax checkup and bring last year's tax return and a current pay stub indicating year-to-date totals. This checkup takes only a few minutes and could end up saving the taxpayer from an unexpected tax bill at tax time.
Premium Office
PLAINSBORO PLAZA
10 SCHALKS CROSSING RD
PLAINSBORO, NJ 08536
LIBERTY SQUARE SHOPPING CTR
2106 MT HOLLY RD
BURLINGTON, NJ 08016
Phone: 609-239-8491
Premium Office
SHOPPES AT FOXMOOR
1055 WASHINGTON BLVD
ROBBINSVILLE, NJ 08691
Phone: 609-490-0099
LAWRENCEVILLE SHOPPING CENTER
2495 US RTE ONE STE 14
LAWRENCEVILLE, NJ 08648
Phone: 609-912-0451
If needed, it's recommended taxpayers adjust their W-4 and submit it to their employer. If not, the amount being withheld could be more than the credit amount they're eligible to claim.
Survey shows taxpayers reluctant to change withholdings
A Tax Institute survey showed that 14 percent of respondents didn't know that the W-4 controlled their withholdings. More than 40 percent of those surveyed have not adjusted their W-4 in three or more years.
"To better understand how the Making Work Pay Credit and other tax law changes impacts you a W-4 review and tax checkup now can save money on your tax liability and give you peace of mind," Rosania said.
For more information, visit the IRS newsroom
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
Disclaimer: The tax checkup and information provided are estimates, and your actual tax liability may materially differ depending on recent and future changes to the tax law and changes in your personal and financial circumstances. If your personal and financial circumstances do change, we suggest that you review the changes with your tax advisor.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 120,000 highly trained tax professionals. The Company provides tax return preparation services in person, online through H&R Block Online, through its TaxCut® software and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
H&R Block Warns That Possible Under Withholding Puts Certain Segments at Risk of Reduced Refund or Increased Balance Due Next Year
KANSAS CITY, MO-- Millions of taxpayers, depending upon other tax breaks they may qualify for, could find themselves with a tax surprise next year because of the Making Work Pay tax credit unless they adjust their withholding, according to analysis by The Tax Institute at H&R Block (NYSE: HRB).
Ninety-five percent of taxpayers automatically started taking home more money in their paychecks this past April thanks to a change in the IRS withholding tables, triggered by the Making Work Pay Credit. Those taxpayers who should take special care in understanding their new take home pay thanks to the Making Work Pay tax credit include:
-- Married couples with two incomes
-- Individuals with multiple incomes
-- Retirees who have taxes withheld from a pension or social security
benefits
-- Individuals who work but who can be claimed as a dependent on someone
else's tax return.
"Considering how complex taxes can be, most taxpayers need guidance on assessing their tax picture," said H&R Block spokesman Anthony Rosania. "Not knowing or not taking the time to understand how their withholding and other tax breaks affect them could lead to a surprising tax liability. A little knowledge now could save them a lot of disappointment later."
The credit could mean up to $400 for individuals and $800 for couples in 2009 and 2010. There is a phaseout of the credit starting at modified adjusted gross income (MAGI) of $75,000 for single filers and for married filers at MAGI of $150,000. It's totally phased out at MAGI of $95,000 for singles and $190,000 for married filers.
Prescription: tax checkup
To avoid an unwelcome tax surprise, H&R Block recommends taxpayers receive a tax checkup now to see if they should adjust their W-4 allowances before the end of the year. Taxpayers just need to follow three easy steps:
1. Click on www.hrblock.com or go directly to the Making Work Pay calculator on H&R Block's Web site to estimate if their total withholding change will be greater than the credit they'll likely be able to claim, then
2. Call 1-800-HRBLOCK to find an office near them to schedule a tax checkup, and finally
3. Come by the local office for a free tax checkup and bring last year's tax return and a current pay stub indicating year-to-date totals. This checkup takes only a few minutes and could end up saving the taxpayer from an unexpected tax bill at tax time.
Premium Office
PLAINSBORO PLAZA
10 SCHALKS CROSSING RD
PLAINSBORO, NJ 08536
LIBERTY SQUARE SHOPPING CTR
2106 MT HOLLY RD
BURLINGTON, NJ 08016
Phone: 609-239-8491
Premium Office
SHOPPES AT FOXMOOR
1055 WASHINGTON BLVD
ROBBINSVILLE, NJ 08691
Phone: 609-490-0099
LAWRENCEVILLE SHOPPING CENTER
2495 US RTE ONE STE 14
LAWRENCEVILLE, NJ 08648
Phone: 609-912-0451
If needed, it's recommended taxpayers adjust their W-4 and submit it to their employer. If not, the amount being withheld could be more than the credit amount they're eligible to claim.
Survey shows taxpayers reluctant to change withholdings
A Tax Institute survey showed that 14 percent of respondents didn't know that the W-4 controlled their withholdings. More than 40 percent of those surveyed have not adjusted their W-4 in three or more years.
"To better understand how the Making Work Pay Credit and other tax law changes impacts you a W-4 review and tax checkup now can save money on your tax liability and give you peace of mind," Rosania said.
For more information, visit the IRS newsroom
The Tax Institute, a division of H&R Block, is a national leader in providing unbiased research, analysis and interpretation of federal and state tax laws. Staffed by enrolled agents, CPAs and attorneys, The Tax Institute provides industry expertise for matters related to taxes and the professional tax preparation industry.
Disclaimer: The tax checkup and information provided are estimates, and your actual tax liability may materially differ depending on recent and future changes to the tax law and changes in your personal and financial circumstances. If your personal and financial circumstances do change, we suggest that you review the changes with your tax advisor.
About H&R Block
H&R Block Inc. (NYSE: HRB) is the world's preeminent tax services provider, having prepared more than 500 million tax returns since 1955. In fiscal 2009, H&R Block had annual revenues of $4.1 billion and prepared more than 24 million tax returns worldwide, utilizing more than 120,000 highly trained tax professionals. The Company provides tax return preparation services in person, online through H&R Block Online, through its TaxCut® software and through other channels. The Company is also one of the leading providers of business services through RSM McGladrey. For more information visit our Online Press Center at www.hrblock.com.
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