30 The QUEE NS Courier • FEBRUARY 21, 2013 for breaking news visit www.queenscourier.com tax tips When You Should Itemize On Your Tax Return BY BARY LISAK Barry Lisak, EA, is an IRS Enrolled Agent who has operated a tax preparation office for over 30 years. Any questions or comments, please contact [email protected] or 516-829-7283. Generally, you must decide whether to itemize or to use the standard deduction on your tax return. You should itemize if your allowable itemized deductions are greater than your standard deduction. The taxpayer must maintain the records and receipts to substantiate the itemized deductions. All deductions are reported in the tax year in which the eligible expenses were paid. You may benefit from itemizing your deductions on Form 1040, Schedule A if you: • had large, uninsured medical and dental expenses. Payments for doctors and dentists, premiums for medical insurance, Photo courtesy THEWHO.com s payments for prescription drugs, and medical transportation are considered. You can deduct health costs on your tax return for yourself, your spouse and your dependents only when the expenses exceed 7.5 percent of your adjusted gross income (AGI). Effective for the 2013 tax year, this threshold rises to 10 percent for taxpayers under 65 years of age. • had state and local income taxes withheld from your wages or paid estimated state taxes. Real estate taxes, personal property taxes, and state and local sales taxes fall into this tax-deductible category. • paid mortgage interest on your principal and/or vacation home, or private mortgage insurance premiums. Points paid on a new home and investment interest can be deducted. Credit card interest is not deductible. • made large contributions to qualified charities. Both cash and noncash (usually clothing) items are considered. If noncash items exceed $500, you must attach Form 8283, Noncash Charitable Contributions. You can deduct charitable donations only if you itemize. • had large, uninsured casualty or theft losses. You are allowed to claim only the amount that exceeds 10 percent of your AGI after subtracting $100 for each casualty loss on your return. Losses due to Hurricane Sandy may be eligible for casualty loss deductions. You claim your casualty or theft losses on Form 4684, Casualties and Thefts. • had miscellaneous and employee deductions that exceeding 2 percent of AGI. Examples include union dues, fees paid to tax preparers, and investment expenses. • had gambling losses, but only to the extent of gambling winnings. Caution: If you are married and filing a married filing separate return and your spouse itemizes deductions, then you are also required to itemize on your tax return. Josephine Lam, CPA 136-40 39th Avenue, Ste. 506 Flushing, NY 11354 Tel: 718.888.0988 Fax: 718.888.1011 “Two Decades Of Personalized Service” [email protected] At Gilman Ciocia, you’ll receive 25% OFF* whatever you paid your accountant last year. And that’s only the beginning. We like saving people money on their taxes - and we’d like to help you. With the economy the way it is, there’s never been a better time to take control of your taxes. Call to schedule an appointment Queens Office: 35-30 Francis Lewis Blvd. Flushing, NY 11358 718-304-2035 www.gtax.com Jim Ciocia, Founder and Chairman *$99 minimum tax preparation fee. Please bring your invoice from last years tax preparation fees. Offer available for 2012 tax returns only. Not to be combined with any other offer. Non-negotiable. No cash value. If you had your taxes prepared by Gilman Ciocia in 2012, you do not qualify for this promotion. This discount must be requested at time of service, no credits will be issued after the tax return has been filed. Offer expires March 31, 2013. Email: [email protected] TAX INFO CORNER Choose Tax Preparers Wisely By: Javier N. Solis The IRS issued a Tax Tips email urging taxpayers to choose their preparers carefully. “Even if someone else prepares your return, you are legally responsible for what is on it,” the IRS warned. The IRS then offered 10 tips to keep in mind when choosing a tax return preparer: 1. Check the preparer’s qualifications. All paid tax return preparers are required to have a Preparer Tax Identification Number. In addition to making sure they have a PTIN, ask if the preparer belongs to a professional organization and attends continuing education classes. 2. Check on the preparer’s history. Check with the Better Business Bureau to see if the preparer has a questionable history. Also check for any disciplinary actions and for the status of their licenses. For certified public accountants, check with the state boards of accountancy. For attorneys, check with the state bar associations. For enrolled agents, check with the IRS Office of Enrollment. 3. Ask about service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers can. Also, always make sure any refund due is sent to you or deposited into an account in your name. Taxpayers should not deposit their refund into a preparer’s bank account. 4. Ask to e-file your return. Make sure your preparer offers IRS e-file. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. IRS has safely and securely processed more than one billion individual tax returns since the debut of electronic filing in 1990. 5. Make sure the preparer is accessible. Make sure you will be able to contact the tax preparer after you file your return, even after the April 15 due date. This may be helpful in the event questions arise about your tax return. 6. Provide records and receipts. Reputable preparers will request to see your records and receipts. They will ask you questions to determine your total income and your qualifications for deductions, credits and other items. Do not use a preparer who is willing to e-file your return by using your last pay stub before you receive your Form W-2. This is against IRS e-file rules. 7. Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form. 8. Review the entire return before signing. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it. 9. Make sure the preparer signs and includes their PTIN. A paid preparer must sign the return and include their PTIN as required by law. The preparer must also give you a copy of the return. 10. Report abusive tax preparers to the IRS. You can report abusive tax preparers and suspected tax fraud to the IRS on Form 14157, Complaint: Tax Return Preparer. If you suspect a return preparer filed or altered a return without your consent, you should also file Form 14157-A, Return Preparer Fraud or Misconduct Affidavit. Download the forms on the IRS.gov website or order them by mail at 800-TAX-FORM (800-829-3676). Javier N. Solis is the President and Founder of Los Taxes Network, the First and Only Latino Network of Tax Preparation in America. You can contact Javier directly at [email protected] or 718-645-0690. His main office is located at 2812 Fulton Street, Brooklyn, NY 11207 Advertorial
QC02212013
To see the actual publication please follow the link above