Pronto Tax Class Blog
Top 4 Deductions without Itemizing
By Tim Frye
As a tax preparer you have to be able to adapt and attach a certain level of elasticity to your client's current situation. The last half decade has been pretty rough on taxpayers, with the real estate bubble burst, the economy tanking, wars continuing for perpetuity, etc. So it goes without saying that tax situations have changed drastically for many people. For example, let's say you have a client who lost their home to a foreclosure, and now pays rent. This is an individual who used to employ the long form due to the large sum deduction they received for mortage interest to boost them over their standard deduction hump. With that no longer in existence, this client is now reduced to using the short form, and loses many of the deduction options that were previously available to them. So in these situations it is still vital for you to try and get them as many deductions as you can, even when they are not utilizing the Schedule A. Lets take a look at the top four deductions that you can access for your client without them itemizing.
Explaining the Roth IRA
By Tim Frye
Our goal at Pronto Education is to keep our fellow preparers sharp, and assist them in explaining certain aspects of tax and making them simple to understand for their present and future clients. This is no easy task, and especially with all of the changes in the tax code taking place currently. There are changes sure to come in the future, and keeping your client well informed and up to date has never been more important. Advising clients on the moves they can make in the future to escape heavy taxation is one of the main traits of a superb preparer. This is where you will earn your clients trust and turn them into returning customers. Retirement is an area of financial planning that is very important to most taxpayers, and it is your job to assist them in saving money on taxes so that their funds will be sufficient enough to live on once they call it quits. This article will assist you as a preparer in explaining the benefits of a Roth IRA.
Advice on the Avoidance of IRS “Examination”
How very nice of the IRS to “Examine” our records. I am sure they are just looking out for our best interests. You know, similar to a doctor's examination. Just checking all our working parts to make sure there is nothing catastrophic taking place. Well, I wouldn't be so sure that is the case. The IRS has now kindly reclassified and renamed their notorious audits with a connotation containing a tad more gentility. The “Examination.” Well, a pig is a pig, no matter what you call it. The audit is a dreaded part of life, and it can happen to even the most meticulously diligent of taxpayers. Lets discuss the ways for you to avoid getting bit by the great white IRS.
Making it through the stress of tax season
By Tim Frye
Being a tax preparer is truly an interesting trade. You really only work four months out of the year, and the rest of the year you are looking for ways to sustain your income and more importantly your sanity. When the season arrives, if you have any clients, you are excited to be getting started. You are looking forward to testing your mettle and seeing if all that training in the off season helped you progress and improve. So the first month of tax season is spent just being happy to be doing tax returns and making good money, and you are working on completely them with an exceptional amount of expertise and consistency. Then month two comes along. You fire is now flickering and growing more faint by the day, and you now have your most voracious and bellicose of clients calling you and aggressively inquiring as to why they have not received their refund yet. The IRS is growing increasingly more ambiguous as to the return time of the refunds rolling in, and this is leaving you at a loss for words as to how to articulate this to your clients. This year there have been more delays than ever it seems. Which in turn means more chaos than ever. Which consequently means you are more stressed than ever. Lets take a look at a few methods that can help you push through and survive the stress of tax season.
1099 Taxpayers: Vehicle Expenses or Vehicle Mileage
By Tim Frye
As a tax preparer you are relied on by the general public to understand the tax code and it's nuances. As much as this seems like an impossible feat, it is within the realm of reality to at least keep up with its foundational aspects and remain cogent as to it's applications. One area of taxation that allows you as a professional to flex your preparer muscles is when your client is an independent contractor. This type of taxpayer has income that is subject to the self-employment tax, and that means their deductions are of even more value. One of the biggest deductions available to the independent contractor is usually their driving expenses. There are a couple different ways to expense out the miles your client drives for work. This article will seek to define the two main methods in deducting business driving expense, and will offer an objective comparison as to which is better for which taxpayer.