Heintz Tax Service

Do you donate to charity? If you do you will need to keep a list of the Fair Market Value of the items you have donated. It is always a good idea to take pictures of items you donate. See link with a list of FMV of certain household items that you may donate. http://www.metrorestores.org/habitat_for_humanity_donation_

Anytime you want to claim a home improvement as a medical deduction, you need to do two things: 1) Get a letter from the doctor saying that this is a medical necessity. 2) Figure out how much the improvement adds to the value of the house. If the cost is more than the increase in value (if any), then you can deduct the difference as a medical expense - providing you met condition #1.

Great article explaining the tax effects of a Roth IRA and the benefits of having one or converting to a Roth.

2014 Tax Season to Open Jan. 31; e-file and Free File Can Speed Refunds IR-2013-100, Dec. 18, 2013 WASHINGTON The Internal Revenue Service today announced pl...ans to open the 2014 filing season on Jan. 31 and encouraged taxpayers to use e-file or Free File as the fastest way to receive refunds. The new opening date for individuals to file their 2013 tax returns will allow the IRS adequate time to program and test its tax processing systems. The annual process for updating IRS systems saw significant delays in October following the 16-day federal government closure. Our teams have been working hard throughout the fall to prepare for the upcoming tax season, IRS Acting Commissioner Danny Werfel said. The late January opening gives us enough time to get things right with our programming, testing and systems validation. It’s a complex process, and our bottom-line goal is to provide a smooth filing and refund process for the nation’s taxpayers. The government closure meant the IRS had to change the original opening date from Jan. 21 to Jan. 31, 2014. The 2014 date is one day later than the 2013 filing season opening, which started on Jan. 30, 2013, following January tax law changes made by Congress on Jan. 1 under the American Taxpayer Relief Act (ATRA). The extensive set of ATRA tax changes affected many 2012 tax returns, which led to the late January opening. The IRS noted that several options are available to help taxpayers prepare for the 2014 tax season and get their refunds as easily as possible. New year-end tax planning information has been added to IRS.gov this week. In addition, many software companies are expected to begin accepting tax returns in January and hold those returns until the IRS systems open on Jan. 31. More details will be available in January. The IRS cautioned that it will not process any tax returns before Jan. 31, so there is no advantage to filing on paper before the opening date. Taxpayers will receive their tax refunds much faster by using e-file or Free File with the direct deposit option. The April 15 tax deadline is set by statute and will remain in place. However, the IRS reminds taxpayers that anyone can request an automatic six-month extension to file their tax return. The request is easily done with Form 4868, which can be filed electronically or on paper.

Tax Changes for 2014 from the Affordable Care Act. http://www.taxslayerpro.com//The-Affordable-Care-Act-What-

IRS Acting Commissioner announces delay to start of the 2014 filing season: 2014 Tax Season to Start Later Following Government Closure; WASHINGTON The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems

401(k) and IRA Changes Coming in 2014 The amount workers can contribute to 401(k)s and individual retirement accounts will stay the same in 2014. Inflation, as measured by the consumer price index, didn't increase enough to justify raising the contribution caps. "Some pension limitations such as those governing 401(k) plans and IRAs will remain unchanged because the increase in the consumer price index didn't meet the statutory thresholds for their adjustment," according to a... statement from the Internal Revenue Service. But some of the income thresholds that allow savers to qualify for tax deductions and credits will increase next year. Here's a look at how 401(k) and IRA rules will change in 2014: Limits for 401(k) contributions unchanged. Taxpayers may contribute up to $17,500 to their 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan in 2014, which is the same amount as in 2013. The catch-up contribution limit for employees age 50 and older is also unchanged at $5,500. In 2012, 11 percent of 401(k) participants contributed the maximum possible amount, according to a Vanguard study of 2,000 401(k) plans with 3 million participants. Some 401(k) plans also have lower plan-specific caps on contributions. IRA contribution limits unaffected. The limit on IRA contributions will continue to be $5,500 in 2014. Individuals age 50 and older can contribute an additional $1,000, the same catch-up contribution as in 2013. Just under half (47 percent) of IRA savers contributed the maximum amount in 2011, according to an Employee Benefit Research Institute analysis of 20.5 million accounts. Larger IRA income limits. The tax deduction for traditional IRA contributions is phased out for savers with a workplace retirement plan who have modified adjusted gross incomes between $60,000 and $70,000, up from $59,000 and $69,000 in 2013. The income phase-out range for married couples with retirement accounts at work will also climb by $1,000 to between $96,000 and $116,000. For investors who don't have a workplace retirement plan but are married to someone who does, the tax deduction is phased out if the couple's income is between $181,000 and $191,000, which is $3,000 more than in 2013. Higher Roth IRA income cutoffs. Workers can earn $2,000 more ($3,000 for couples) in 2014 and still be eligible to contribute to a Roth IRA. The AGI phase-out range for Roth IRAs is $114,000 to $129,000 for singles and heads of household and $181,000 to $191,000 for married couples. However, investors who earn more than these income limits may still be able to convert traditional IRA assets to a Roth. "Even if you are phased out by income from making a Roth contribution, you can contribute to a traditional IRA that is nondeductible and then convert that to a Roth," says Lara Lamb, a certified financial planner and founder of Lamb Financial Planning in Encino, Calif. "However, you need to be aware that the conversion might be taxed."

What's a home office? A home office is generally a room in your home, a portion of a room in your home, or a separate building next to your home (such as a con...verted garage or barn) that you use to conduct business activities. In order to deduct associated expenses, though, certain requirements apply. Basic requirements Your home office must be used regularly and exclusively as your principal place of business, or as a place where you meet or deal with clients, patients, or customers, in the normal course of your business. If you have a business outside your home, but conduct substantial administrative and management tasks for your business at home (e.g., billing clients, keeping books and records) you may qualify, provided that you have no other fixed location where you could conduct these activities. The portion of your home used for business purposes (i.e., your home office) must be used exclusively for business purposes. You will not qualify for a deduction if the portion of your home is also used for personal purposes. There are two exceptions, however, relating to the storage of inventory and product samples, and the use of part of your home as a day-care facility. Regular method of determining allowable deduction Under this method, you determine your actual expenses relating to your home office. Deductible expenses can include both direct expenses and indirect expenses. Direct expenses are costs that apply only to your home office, like the cost of a second telephone line used exclusively for your business. Indirect expenses are costs that benefit your entire home. Only the business portion of your indirect expenses is deductible as part of the home office deduction (even if you don't claim a home office deduction, some of these indirect expenses may be deductible as itemized deductions on Schedule A of Form 1040). Some examples of indirect costs include rent, deductible mortgage interest, real estate taxes, and homeowners insurance. The business percentage of your home is determined by dividing the area exclusively used for business by the total area of the home. For example, if your home is 2,000 square feet and your home office is 200 square feet, your business percentage is 10% (200 divided by 2,000). In such a case, if you rent your home, you can deduct 10% of your rent as part of your home office deduction. New simplified option available Starting in 2013, a new simplified option is available for calculating the home office deduction. Under this method, instead of determining and allocating actual expenses, you calculate the home office deduction by simply multiplying the square footage of the home office by $5. There's a cap of 300 square feet, so the maximum deduction available under this method is $1,500. You can't use this method if you are an employee with a home office and receive advances, allowances, or reimbursements for expenses related to the business use of your home under an expense or reimbursement allowance with your employer. Each year, you can choose whether to use the regular or simplified method of calculating the deduction. If you use the simplified method in one year, and in a later year use the regular method, special rules will apply in calculating your allowable depreciation deduction. Additionally, if you are carrying forward an unused deduction from a prior year (because your business deduction exceeded your business income in a prior year), you will not be able to claim the deduction in any year in which you use the simplified method--you'll have to wait for the next year you use the regular method to claim the unused deduction. See more

The IRS has announced that their computers will begin accepting returns with education credits on February 14. Returns from our office are being processed within days. Refunds are flowing.

HEINTZ TAX SERVICE 2012 Tax Prep Fees Starting prices: Short 1040 with W2’s only $75 and up... Short 1040 with Schedule B $85 and up Long form Sch A,B, and misc forms $110 and up Long form Sch A, B, D and misc forms $125 and up Long form -- with Sch C small business $150 and up Long form with Rentals Sch E $150 and up Student return with parents $25 - $30 ** Average return fee - $110-$150 ** LLC’s, Partnerships, S-Corps and C-Corps $175 and up ** Average return runs $225-$300 ** All returns are electronically filed Direct deposit available

Filing will begin January 30th. You may have to file later if waiting for specific forms.