Archive for December, 2008
Keeping up with 2008 tax changes can be a challenge. Here are some important 2008 tax changes that could help you maximize your tax refund and improve your overall tax preparation experience:
First Time Home Buyer’s Credit – This is a new refundable credit of up to $7,500 for first time homebuyers for homes purchased after April 8, 2008 and before July 1, 2009. You may also qualify for this credit if you have not purchased a main home within the prior three years. If the purchase was in 2009, you can elect to treat it as a 2008 purchase and claim the credit in 2008.
This credit basically functions as a 15-year interest free loan, with 1/15th of the credit recaptured annually beginning two years after the year of purchase. If you sell your home before the 15 year repayment period has ended, all remaining annual installments become due on the return for the year of sale. This repayment is limited to the amount of gain on the sale. This credit is claimed on form 5405.
Click here for more information about the First Time Home Buyer’s credit.
Additional Standard Deduction for Real Estate (Property) Taxes – Homeowners who do not itemize can deduct up to $500 ($1,000 for joint filers) of property taxes in addition to the standard deduction.
Regulation 7216 – This new regulation gives taxpayers greater control over their personal tax return information. The statute limits tax preparers’ use and disclosure of information obtained during the tax preparation process to activities directly related to the preparation of the return. The regulations describe how preparers, with the informed written consent of taxpayers, may use or disclose return information for other purposes.
For more 2008 tax changes information, visit IRS.gov.
It takes a lot of hard work to create small business success, especially in this rough economy. Here are some tips on how you can create your own success story!
1) Start small, think big. Keep your business manageable up front. If you can only afford one storefront, open one storefront. Test your concept. But no matter how small you start… keep your bigger goal in mind. Creating small business success has more to do with the scope of your dreams than the size of your first office.
2) Continuous improvement.“But that’s the way we’ve always done it!” is the fastest way to put your company on the road to stagnation. If you’re turning a profit, great, but don’t stop there. Look for ways you can improve your services – and your bottom line. Whether it’s a more specialized staff member, a technological tool, or improved customer service script, smart entrepreneurs know that continuous improvement puts them on the road to small business success.
3) Listen to your customers (and your franchisees, if you’ve got them)! As a busy entrepreneur, you sometimes have so much of the big picture in mind that you can forget the details. When your customers (or franchisees, if you have them) come to you with a complaint or suggestion, listen to them! They can see areas of improvement you may have missed.
4) Innovate! Change doesn’t have to be scary. Keep up with the latest technology tools and gadgets, industry news, processes, and procedures. Have a look at what other people in your industry are doing – and improve on it.
5) Surround yourself with the best. And listen to them! If you want to create small business success, surround yourself with experts in your field or areas of expertise you may not feel as strong in. Ask for their advice when you need it… and listen to it! You and your employees, friends, and advisers may not always agree, but having them on board means you won’t have to re-invent the wheel every time there’s a crises. In fact, having trusted legal, financial, HR, and public relations advisers on board may help you avoid a crises!
The numbers are out, and Instant Tax Service came out on top again!
Entrepreneur magazine just ranked Instant Tax Service the #1 new franchise for 2009… for the second year in a row! We’re now also the #3 fastest-growing franchise in America…
Click here to find out why!
On Saturday, December 20th, Instant Tax Service locations across the country participated in a companywide toy giveaway! Many of our offices, including our Dayton, OH corporate stores – partnered with the well-known Toys for Tots charity in their neighborhoods and gave away thousands of toys across the country.
In other areas, Instant Tax Service’s franchise owners stepped up individually to give back to their neighborhoods. One of those franchisees was Matt Welde in Norfolk News, VA.
Check out some of the amazing stories from Matt’s locations in Newport News and Norfolk, VA: Here, here and here.
Great way to give back, Matt!
2008 is coming to a close (and there are a lot of folks out there who are glad to see it go!), and we’re pushing toward tax season here at Instant Tax Service.
Here are this year’s Top 10 Tips for the Taxed to chew over during your holiday meal this season:
1) Remember, you have until December 31st to get all your affairs in order. Remember that income deferred until after the new year won’t count on this year’s tax return. If you’re freelancing, you can ask your employer if they’ll pay you for December’s work in January.
2) Looking to clean out the house before the holiday gift-giving madness? Donate all of your items before December 31st to a local charity like Goodwill or The Salvation Army and keep your receipts. Donations are tax-deductible.
3) Don’t forget your flex spending accounts. Some companies offer flex spending accounts to help employees pay for health care related costs throughout the year. The great thing about these accounts is that the money is deposited (and accumulates) tax free. But remember: any money you deposit into your account and don’t use by year end… you lose. So gather up those health care related receipts and cash out your flex spend accounts before they dry up.
4) Shop around for a great tax preparer. This can be vital to receiving the maximum refund amount you’re entitled to. Tax codes change quickly – and often. A professional tax preparer can help you navigate this winding road.
5) Lost your tax documents? Don’t fret. Call the companies that gave them to you. They can send you copies. Sure, losing tax documents is inconvenient, but it’s not the end of the world.
6) And, if you’re still having trouble keeping track of all that paper… Create a tax documents checklist. If you’re using a tax preparer this year, some of them have checklists on their websites. We have one here.
7) File online. Online filing has been a great boon for procrastinators and worriers alike. Online filers, or e-filers get faster return confirmations from the IRS and faster refunds when refunds are due.
8 ) Always check your filing status. This is one of the biggest mistakes that tax payers make. Incorrect filing status can cost you time and $$$. Claiming an incorrect filing status means you could lose your ability to claim your child tax credit, dependent exemptions, and earned-income tax credit.
9) Remember your supporting documents, and don’t send the IRS your only copies! W-2s, 1099s, all of your receipts… (keep copies!) If you’ve used a tax checklist, this hopefully won’t be as much of an issue.
10) Keep great records all year long. This is really the key to avoiding a lot of the headache when tax season rolls around. The IRS loves receipts and documentation! Make sure yours is in order. Organize your filing system now. If you need help getting organized, contact your local tax preparer for some tips. They’re the experts at record keeping.
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