Ways to Make Money as a Tax Preparer
What are the most missed Itemized Deductions?
By Tim Frye
As a tax preparer there are sometimes few and very limited ways that you can truly make a difference for your client. On many occasions when you are preparing a return, the overall situation is clear and relatively simple. The taxpayer has a short form, single standard deduction, and not much else going on. So at this point your service will basically consist of entering the taxpayer's information correctly. As you can see, there is not much room for you to show off your tax preparation talents. The one way you could change this situation and widen the gap between you and the other preparers out there is to find the taxpayer some itemized deductions that another guy may have missed. Doing this could help them save some extra dough. Lets look at the often over-looked itemized deductions that may be able to get your client over the standard deduction hump, and help you prove your tax preparer pedigree.
Best Credits Available to Taxpayers
By Tim Frye
Everybody wants a little credit. When you work hard, you want it from your wife. When your son hits a jumper, he wants it from you. When you wife finally cooks up a decent meal, she wants it from you. Well, the tax game is no different. When your client is settling up with the IRS, they want their. Credits can be an extremely powerful antidote to taxation, because they can eat away at tax liability dime for dime, and can even give money back once the taxpayer's liability reaches zero, if the credit is considered refundable. Lets go through the top credits and their benefits, and give an additional layer of knowledge to drop on your client.
Tax Breaks That May Change for 2013
By Tim Frye
As the tax code shape-shifts at an increasingly drastic and more rapid rate every year, even the most accomplished accountants can be left with their head spinning. So for the average American, who, most likely, would rather be assaulted by a mother raccoon protecting her young than attempt to keep up with the tax code, it can be a daunting challenge just to hold a minute grasp of their tax situation. Pronto Tax to the rescue.
There are many tax changes that have been implemented and are as we speak effecting taxpayers in 2013. The tax hikes that lawmakers levied against taxpayers are more like Jerry-mandered attempts to plug the infinitely flowing debt leaks ravaging the United States economy. These hikes will not raise a sufficient enough amount of revenue to keep the budget woes at bay. Obama is now seeking other ways to raise government funds and he is looking your tax loopholes and deductions dead in the eye. Let’s look at the changes that Congress is discussing.
Top 3 Benefits to Owning Income Property
By Tim Frye
Let’s be honest with ourselves here. Nobody wants to sit and rot in front of a computer, 9-5, for 80% of their short time here on earth as 10-50% of the fruits of your labor roll over to the big bully upstairs, without having anything to supplement income going on the side that could one day pull you out of the cycle that perpetuates banality.
Now there are many ways to accomplish this method of income supplementation. Many are dicey and treacherous, such as investing in the stock market or contributing all your hard earned money into a 401 k that is essentially exposed to the same market vacillations.
Here at Pronto Education we like to recommend the type of investment methodology that is multifarious and double-edged, meaning advising your client to put money into an asset that can eat away at their tax bill while concomitantly giving them consistent monthly scratch for as long as your client exists.
Hobby Income vs Business Income
The IRS has stringent rules regarding self-employment, and it is for obvious reason on their end. The realm of self-employment allows for a tremendous amount of taxpayer freedom, and the tax reporting regulations rely on the honesty of the individual. So when your client is reporting self-employment income and expenses, the government is naturally skeptical and scrutinizes the taxpayers”s actions extremely closely. One of the ways the IRS limits Schedule C losses is by classifying a taxpayer's self directed activity as a hobby, and subsequently disallowing certain expenses. Let's take a look at the IRS's guidelines and regulations as to the definition of a hobby versus a business venture.