Entries by Steve Gentry

Employee Business Expenses

One of my clients was recently audited by the IRS for deducting unreimbursed employee business expenses on his tax return. These expenses are deductible as an itemized deduction on Schedule A of Form 1040. Those expenses make their way to the Schedule A (Itemized Deductions) by way of Form 2106 (Employee Business Expenses). To get […]

Where is My Refund?

If it has been at least 21 days since you filed your tax return and you have not received your refund, you can log onto IRS.gov click on the link that says “Where is My Refund?”  The following Youtube video should explain the details of how it is done.

What the IRS Knows About You

The IRS gets information from third parties and matches this information to you through its computers. Stay one step ahead by being extra careful to report on your tax return what the IRS already knows about you. (You should receive from the third parties copies of all the information they send to the IRS.) What […]

Well-known and hidden deductions

Hidden Deductions In Unreimbursed Business Expenses If you have any out-of-pocket expenses in connection with your employment, and you don’t get reimbursed for them, you may be entitled to deduct them to the extent that they exceed 2% of your Adjusted Gross Income. These expenses include well-known deductible costs, such as those incurred for business […]

Top 10 Filing Mistakes To Avoid

1. Incorrect amount of tax entered from the tax table. Find your correct filing status at the top of the tax table and copy the correct amount from that column onto your return. 2. Error in computing the credit for child- and dependent-care expenses. Carefully work through Form 2441 and the accompanying worksheet contained in […]

Tips for Avoiding Identity Theft

Do not give out personal information over the phone, through the mail or over the Internet unless you have initiated the contact or know with whom you are dealing. Shred all discarded documents, including bank statements, pre-approves credit card offers, insurance forms and other documents that contain financial information. Do not use your mother’s maiden […]

Tax-Free-Income Loopholes

One of the shortest sections of the federal Tax Code is Section 61. It defines gross income as “all income from whatever source derived.” But don’t take this literally. There are many kinds of income that are not taxable. Types of income that you don’t pay federal income tax on: Gain on the sale of […]

Recordkeeping Hotline

Recordkeeping Alert As a result of Tax Reform, recordkeeping is now necessary in some areas that never required records before. Crucial: Keep flawless records. IRA contributions. For most people, the new rules have cut out deductible Individual Retirement Account contributions. If you or your spouse has a company pension plan and your Adjusted Gross Income […]

Paying Your Child A Tax-Deductible Allowance

A favorite tax-planning tactic is to have a minor child work for the family-owned business. Income earned by the child is taxed at the child’s tax rate, which is likely to be much lower than the parents’ rate. In addition, the company gets a deduction for the child’s salary. A dramatic taxpayer victory* shows just […]

Loopholes in setting up a business

Leasing Assets To Your Own Corporation The fact that the corporate form is selected as the basic means of conducting a business enterprise does not mean that all of the physical components of the enterprise need to be owned by the corporation. Indeed, there may be legal, tax, and personal financial planning reasons for not […]