Articles

At PRO-TAX we don't want to help you just when you file a tax return.  We want to be a source of information you can depend on for guidance regarding taxation, finance, and commerce...throughout the year. To accomplish that, we regularly post articles and news on a variety of topics. Visit this page frequently for our take on the issues that matter to you. Be sure to read the most recent posts, but also make sure to review the archives. We bet this information will help reduce your tax burden and make you a smarter consumer in every respect! Sign up for RSS Feeds to ensure you don't miss the latest entries.

• National Weather Service Predicts Another Busy Hurricane Season (May 10, 2013)

 

Last fall super storm Sandy made landfall in New Jersey and devastated large parts of that state, New York and eastern North Carolina. Looking ahead to the 2013 hurricane season which starts June 1, the National Weather Service...

• Penalty Relief for Delayed 2012 Forms (April 11, 2013)

Almost everybody is aware that tax returns are generally due April 15, 2013. However, due to the enactment (January 2, 2013) of the American Taxpayer Relief Act of 2012, a number of important IRS forms needed to be revised....

• Don't Miss the Health Insurance Deduction if You're Self-Employed (April 11, 2013)

 

Self-employed business people, including farmers, have a tax deduction available that some may not know about.

If you are self-employed, the deduction is for premiums paid for medical, dental, and/or long-term care insurance...

• You Still Have Time to File for Your 2009 Refund! (April 10, 2013)

 

In the rush of time, it’s not unusual that busy breadwinners sometimes miss a tax return filing date. If you missed filing your 2009 tax return – or your 2010 or 2011 return for that matter – there is still time to file and...

• April 15 Filing Deadline - Need an Extension? (April 10, 2013)

 

April 15 is the filing deadline for a federal tax return. But if you need more time to get your paperwork complete, make sure you file Form 4868, Automatic Extension of Time to File, with the IRS by the end of...

• Tax Planning for Retirement (March 22, 2013)

 

Retirement planning is a complex process with a number of critical steps.  Without careful advance planning, important elements can fall through the cracks and cause significant financial loss.

While many consumers have...

• Remember: Report 2010 Roth Conversions on 2012 Returns (March 8, 2013)

 

Congress enacted a law several years ago that offered taxpayers with individual retirement accounts (IRAs) a deal that looked a lot like those "same as cash" offers you see in ads for furniture and appliances. This...

• College Tax Benefits for 2012 and Years Beyond (February 28, 2013)

 

Parents and students: now is a good time to see if you qualify for either of two college education tax credits, or any of several other education-related tax benefits.

Generally speaking, the American Opportunity Tax...

• Charitable Deductions made in 2012 are still possible (January 28, 2013)

If you own an Individual Retirement Account (IRA),there are still a few days left for you to make a tax-free transfer to eligible charities and have it count as a tax deduction for tax-year 2012.

IRA owners age 70½ or older have...

• IRS Delays Education Credit Processing (January 28, 2013)

 

On January 8, 2013, the IRS had announced that “1040” filers could start submitting their return electronically on January 30--- some eight days later than anticipated. However, there will be significant delays in the...

• IRS raises limits on retirement account contributions for 2013 (January 25, 2013)

 

Several new rules are kicking in for 2013 that will allow you to save more money in your 401(k) or IRA.

First, to keep up with inflation, for 2013 the IRS has raised the annual limit on contributions to 401(k) plans...

• New ITIN Procedures for 2013 Filing Season (January 18, 2013)

 

In October 2012, the IRS announced modifications and restrictions it put in place with the intent of strengthening the individual Taxpayer Identification Number (ITIN) program. As it promised back then, some refinements to...

• The 2012 Tax Laws and Changes—Are They Ready? (January 12, 2013)

 

Well, you can let your breath out now—the IRS has announced when you can start filing your Income Tax Form 1040 for the 2012 Tax Year!

Most people are aware of the late December activity in Congress, and have some ideas about...

• How soon can I spend my Tax Refund? (January 4, 2013)

 

After you file your taxes, how soon can you spend the money from your refund? 

Well, there’s an old saying about, “Don’t count your chickens before they’re hatched…” and that is kind of pertinent here.

Last year, the...

• Identity Theft and The IRS (January 4, 2013)

 

The IRS is seeing an increase in identity thieves looking for ways to use a legitimate taxpayer’s identity and personal information to file a tax return and claim a fraudulent refund. In response to this growing problem, the...

• New Auto Mileage Rates for 2013 (December 29, 2012)

 

A couple of years ago, the available deduction for mileage changed in mid-year—that is, there were different amounts deductible, depending on the time of year the mileage was used.

For 2013 the deductible amounts will apply to...

• New Affordable Care Act Taxes - How Will They Affect You? (December 21, 2012)

 

A new 3.8% tax on investment income – included in the Affordable Care Act - will impact some taxpayers. This new tax is effective January 1, 2013.

This new tax will be imposed on gross income from interest, dividends, rents...

• IRS and the “Fresh Start Initiative” for the Unemployed (December 14, 2012)

Although the unemployment rate in the US has been improving, there are many people still out of work.  These Americans are struggling to make ends meet. The IRS is working with these distressed taxpayers in order to lessen...

• IRAs and 401(k) s – Early Withdrawal Penalties (December 7, 2012)

Some people just can’t wait to get their hands on their retirement money, especially when they get into their fifties.  This article is to remind folks of the penalties and disadvantages of doing that.

 

Retirement Funds...

• Are you prepared for a disaster-related insurance claim? (November 24, 2012)

 

In light of the extreme weather much of America has experienced in the last two years, PRO-TAX is providing the following which should be helpful when dealing with property damage insurance claims. This information is available...

• Don't Forget Miscellaneous Deductions! (November 9, 2012)

 

As fall turns to winter, this might be a good time to take a good look at your income and expenses, and get ready for the 2012 Tax Year, so that you can avoid paying unnecessary income taxes.

For example, here are some...

• Energy Efficiency Credits Article (October 26, 2012)

Tax Credits for Energy Efficiency – Does Your Home Qualify?

Have you made any home improvements that are helping you save money on your electric or gas bills? Do you know that there are federal, state, and local programs that...

• Do I REALLY Need to File? (October 19, 2012)

Myths and Truths about Income Tax Filing

• Don't Forget to File Your Return: Two Weeks Left! (September 26, 2012)

 

 

Did you file an IRS Form 4686 this April to get an extension on filing your tax return? The extension gave you an automatic six months of additional time to get your paperwork together and file that return.  (Well, maybe...

• 3rd Quarter Estimated Taxes Due Today! (September 15, 2012)

 

If you’re self-employed or if you earn wages with no withholding taxes, it’s that time again:  time to send the IRS an estimated tax payment.

Didn’t I just do that, you ask? Well, in a sense, yes, it does kind...

• Summertime - Taxing - Or Not? (September 7, 2012)

Image credit: borodaev / 123RF Stock Photo

While we are nearing the end of the summer season, some of the best “summer” weather is still coming and you want to enjoy it to the fullest – especially if you have your own beach...

• Hurricane, Earthquake, Flood and Fire! Can You Get Tax Relief? (August 31, 2012)

Image credit: kentoh / 123RF Stock Photo

Here we are in essentially the center of the 2012 Hurricane Season– and NOAA expects significant storms yet to come! Across the entire Atlantic Basin for the season – June 1 to November...

• The RTRP Challenge - We are Ready! (August 17, 2012)

“What is the RTRP challenge?” you may be asking.  RTRP is the IRS acronym for Registered Tax Return Preparer. The challenge that the IRS has put before tax preparers all over the U.S. is this:  paid tax preparers must...

• Are You Or Any Dependents In College? You May Be Eligible For Up To $2,500 In Tax Credits From The IRS! (August 3, 2012)

Although inflation and interest rates are at historic lows, college costs continue to rise at about double the rate of inflation regardless of the overall state of the economy. To help lower college costs a bit, the IRS and...

• Mark Your Calendars for Sales Tax Free Weekends! (July 27, 2012)

Across the USA, Sales Tax Free Weekend events will be held in many states, typically in August. Some of these events focus on Energy Star products and others focus on general merchandise for back-to-school shopping. Plan ahead...

• Adoption Tax Credits - Do You Qualify? (July 20, 2012)

If you have adopted or attempted to adopt a child in the past three years, but did not claim the federal Adoption Tax Credit when you filed, read on to find out how you may still be able to claim this credit. Due to the length...

• When You Disagree with the IRS (July 6, 2012)

Let’s say that you have been audited and the IRS has decided that you owe more taxes, but you disagree. If you have had your tax return prepared by PRO-TAX, you have very little to worry about.

PRO-TAX can and will represent...

• CSA Farmers and Taxation (June 22, 2012)

Let’s say you have inherited the family farm. You may suddenly have chickens to take care of, and a little kitchen garden – or a lot of acreage. For the past 15 years you have been a town-dweller. In fact, recently, in order to...

• Your Two Months Are Up! Time For Expatriates To File Their Taxes (June 8, 2012)

Attentions Americans living abroad: you must still file a U.S. tax return every year and include your worldwide income! There is no statute of limitations, so if you haven’t been filing, your obligation to file a tax return (and...

• A Primer For Retiring Baby Boomers (May 25, 2012)

In recognition of Older Americans Month, this goes out to the largest segment of the population in this country – the “Baby Boomers”. Boomers will begin retiring in large numbers this year. If you happen to be a Boomer, here are...

• Virginia Hurricane Preparedness Sales Tax Holiday (May 11, 2012)

Hurricane season is just around the corner and the Commonwealth of Virginia wants to help you prepare with a sales tax holiday later in May.  Lots of "everyday" items will be sales tax free!

Read up on getting...

• The Tax Man Cometh (April 27, 2012)

Happily, the IRS accepts most tax returns as filed, especially those from PRO-TAX. Properly filed returns will keep the Tax Man away from your door.

But what if you receive a notice from the IRS that they are reviewing your tax...

• Tax Filing Extension (April 13, 2012)

This year, taxpayers have already been given an “extension” of two days. April 17 is the filing deadline for a federal tax return. But if you need more time to get your paperwork complete, make sure you file Form 4868,...

• When You Inherit an IRA (March 30, 2012)

Question:  My Grandfather left me one of his IRAs –I haven’t done anything with it, yet, but someone said I had to be very careful to not give in to the desire to cash it in.  Can you tell me what I should...

• Clergy are Blessed with (almost) Tax-Free Status (March 23, 2012)

The Congress officially recognizes the value of all clergy and religious workers, and provides significant income tax benefits not generally available to lay people.  There are rules to follow, but by and large clergy can...

• New e-file Software at IRS Cause Significant Delays in Refunds! (March 16, 2012)

This year, millions of taxpayers have experienced delays in seeing their refunds. And whether the person went to a professional tax firm, like PRO-TAX, or filed their return online on their own, they still may have experienced...

• Winning and What it Costs in Taxes (March 2, 2012)

Have you ever dreamed of winning the lottery or being a game show contestant because you know you would bring home a lot of money or a new car? That’s what everyone thinks, however, before you get too excited and rush out to buy...

• Why Is The IRS So Slow To Send Refunds This Year? (February 28, 2012)

If you are one of the millions of Americans who filed earlier this year, in the hopes of receiving your refund quickly, you probably had to wait much longer than expected. You may not believe this, but the IRS is making you wait...

• Santorum Plans To Use Romney's Secret To Reduce His Taxes...And You Can Too! (February 28, 2012)

Republican presidential nominee, Rick Santorum, thinks he has figured out how Mitt Romney pays so much less in taxes than he does.

As part of his campaign, the former U.S. Senator from Pennsylvania recently released his tax...

• Are SSI Disability Benefits Taxable? (February 21, 2012)

This is a question PRO-TAX preparers are frequently asked. The answer to that question is “that depends…”, so read on for some guidance that will put you on the path to finding the answer to your particular disability benefits...

• Where's My Refund? (February 8, 2012)

You have dutifully filed your tax return and now you have entered the void; that place where you really want your refund, have not received it and have no idea when to expect it. You need some hope that your hard earned money is...

• Tax Benefits of Health Savings Accounts (February 3, 2012)

A Health Savings Account (HSA) is a tax-exempt account that a taxpayer can set up with a qualified HSA trustee (usually a bank or an insurance company) to pay or reimburse certain medical expenses. The only stipulation for...

• Do I Need to File a Tax Return This Year (January 27, 2012)

United States citizens are required to file a federal income tax return if income is above a certain level, which varies depending on filing status, age and the type of income. To find out if you need to file, you can check the...

• Must I Pay Taxes on Unemployment Benefits? (January 20, 2012)

Unemployment is rampant throughout the US (and the world, for that matter) and many of us, some for the first time, are collecting unemployment as a way to get by until we are able to find suitable employment. It seems like we...

• IRS Kicks off 2012 Tax Season with Deadline Extended to April 17 (January 13, 2012)

Again this year there is a later date than the traditional April 15 date to file taxes.  Taxpayers will have until Tuesday, April 17 to file their 2011 tax returns and pay any tax due because April 15 falls on a Sunday,...

• Entertainers and Taxes...That's Show Biz! (January 6, 2012)

Entertainers and artists face unique challenges when filing their income tax returns. To start with, entertainers and artists are typically paid by multiple entities, on an irregular basis, in many states and possibly more than...

• Ho, Ho, Ho! (December 25, 2011)

That’s the Jolly Song you will be singing when the professionals at PRO-TAX attend to your 2011 Income Tax returns.  No more will Bah Humbug be the feeling when you think about income taxes – since your tax “worries” will be...

• Temporary Tax Cuts (December 24, 2011)

Were you expecting a lower payroll check in January?

The Congress has accepted and the President has signed an extension of the amount that will be deducted as “payroll taxes” – social security or FICA taxes – so the amount...

• Everyone Loves A Cheerful Giver, even the IRS! (December 21, 2011)

Yes that’s true, and the IRS encourages “cheerful” giving by permitting many reductions of income taxes for those who donate money and/or property to eligible charitable organizations.

But you need to act fast!

The year is...

• I Received This Letter From the IRS...My Bonds Have Matured! (December 8, 2011)

Some people may have recently received information about their US Government Bonds. They have little time to prepare for what they owe, so we thought we’d brief all PRO-TAX Customers and other readers of these pages.

Especially...

• IRS Goes Green (November 30, 2011)

Did you know that the IRS is among the institutions that are trying to provide a “Green “world?

That is, if certain conditions are met IRS will help you pay your taxes when you make certain energy-efficiency improvements to your...

• Good News from the IRS! (November 11, 2011)

The Internal Revenue Service has recently announced some happy news for taxpayers for the 2011 tax year. Due to inflation, tax brackets will broaden, standard deductions will expand and personal exemptions will rise. All of these...

• The Medicare Alphabet (October 28, 2011)

Whether or not you are on Medicare, it is important now to get a handle on some of the terms which that government program uses.  Medicare beneficiaries can be involved in Medicare part A, Part B, Part C and Part D – plus,...

• Tax Benefits for Small Businesses (October 21, 2011)

Even during the current downturn in the economy, the entrepreneurial spirit is alive and well in the US! To provide encouragement to you small business owners, the IRS can help you cover some of the costs of doing business in the...

• Don't Forget to File Your Return By Monday (October 14, 2011)

Did you file an IRS Form 4686 in April to get an extension to file your tax return?

We are sure that many who filed for an extension thought they’d have everything together long before six months. Now the due date is HERE!

It...

• Professional Tax Preparers become RTRPs (October 7, 2011)

Your PRO-TAX preparers are already professionals, and we’re glad the IRS is beginning to acknowledge them.

Up until last year, anyone could learn to prepare tax returns and either work as a Tax Preparer within an organization,...

• Did You File For An Extension Last April (September 25, 2011)

Although it is September and not April, it's income tax season for some people, especially small business owners, who got an extension until October 15 to file their returns. There is a choice: Start now and do the returns in an...

• Exploring the Mysteries of Financial Aid (September 14, 2011)

Did you know this is National School Success Month?

If you have a child planning to attend college sometime in the near future and you want to pay the lowest price possible, you may need to hit the books to help them. The...

• Hurricane Irene (September 2, 2011)

The Internal Revenue Service (IRS) is granting taxpayers whose preparers were affected by Hurricane Irene until September 22 to file returns normally due September 15. The taxpayer’s preparer must be located in an area...

• This isn't Kansas anymore...or is it? (August 26, 2011)

With this article, we celebrate L. Frank Baum, and Judy Garland, et al, since this month is the anniversary of the release of the original film “The Wizard of Oz”   -- the premiere was on August 17, 1939 in New York...

• Income Averaging - Who is Eligible? (August 12, 2011)

Prior to the 1987 tax year, any taxpayer who experienced a large “bulge” in their annual income from a huge work bonus, or big sales commission, or a financial windfall such as from lottery jackpot winnings, could use income...

• Is Your Child's Income Taxable? (July 29, 2011)

 

During the summer, teenagers make up a significant part of the workforce. Most states allow children to work as early as 14 years of age, providing they have a work permit and follow the rules of limitation.

Any person,...

• Tax Tips for Resident, Nonresident or Dual Status Aliens (July 21, 2011)

Many resident aliens and nonresidents either do not file a return, or file incorrectly. Unfortunately, if your visa status falls into either of these categories, you may have overpaid your U.S. taxes. Even though your employer...

• Salute to Our Armed Forces (July 1, 2011)

The holiday commemorating Independence Day falls on a Monday this year. On this day, there are always an infinite number of possible places to go, things to do, people to see, great food to eat, baseball games to watch, and...

• The Kids are at Summer Camp! (June 24, 2011)

We recognize that the last week of June has been designated as National Camping Week! While the kids are at summer camp busy working parents enjoy the benefits of a few quiet days and evenings to relax, go on a date together, or...

• Stump the Tax Expert Question (June 10, 2011)

 “My son is in his second year of college, I’m paying most of his tuition. He has a small scholarship, and he has a part-time job. He recently went to Vegas with some buddies, and won over $10,000. I told him he would have...

• Remembering Those Who Serve (May 30, 2011)

We owe a lot to those men and women of the United States’ Armed Services – and often their efforts are not recognized.

Our basic liberty and independence in this country essentially has its origins in the sacrifices by...

• Medical Expenses: What's Deductible And What's Not? (May 27, 2011)

May is National Health Awareness & Observances month. Here are some of the special interests and concerns Included in the observances:

Multiple Sclerosis, Osteoporosis Awareness, Stroke Awareness, Melanoma/Skin Cancer...

• Charitable Giving and Your Tax Return (April 29, 2011)

We all enjoy the good feeling we get when we know that we’re helping others with our charitable giving. And we don’t necessarily think of keeping track of donations of time, money, clothing, and other goods since that is not our...

• Insolvency and the IRS (April 15, 2011)

When a financial institution cancels all or some of the debt you owe, they will issue a 1099-C, which shows the amount that was cancelled. If they repossess your car or home and the value of the property does not cover the debt...

• It's Not Too Late For A 2010 IRA Deduction (April 1, 2011)

You may still be able to make contributions to an individual retirement arrangement (IRA) for tax year 2010 that can save you money this year. 

Traditional IRAs

You may still eligible to make deductible contributions to...

• Tax Implications of Bankruptcy (March 28, 2011)

Most people don’t realize that there can be a tax implication when debt is forgiven by a creditor until they file their next tax return. By then, it’s too late to do anything to lower the tax burden. Most will approach their...

• What Happens After Foreclosure? (March 18, 2011)

If you’ve lost your home through foreclosure, there are potential tax consequences that you may have overlooked.

The cancelled debt may be taxable.You may have a gain on the sale of the house, which in turn may be...

• Have You Recently Changed Your Name? (March 7, 2011)

Have you recently changed your name?

A mismatch between the name(s) shown on a tax return and the Social Security Administration (SSA) records can cause problems in the processing of a return and may even delay a...

• Dependents - According To The IRS (February 21, 2011)

Who can I claim as a dependent?  Well, that depends!  In honor of Family Day, February 21, we take a look at identifying who can be claimed as a dependent on your individual tax return.

Being able to claim dependents...

• Will Medicare Part B Premiums Increase In 2011? (February 2, 2011)

Part B is Medicare’s outpatient insurance. Everyone who has Medicare Part B must pay a monthly fee, to have Part B. The standard premium will go up to $115.40 in 2011, but this increase won’t affect most people who will pay the...

• The Making Work Pay Credit May Qualify You For A Refundable Credit (January 18, 2011)

 

The Making Work Pay(MWP) credit appears on your tax return in the same section as the federal taxes withheld on your W-2.  That is, the MWP appears like a payment you made – reducing taxes you might have to...

• Don't Fall Prey To The Common Audit Myths (January 18, 2011)

It’s no secret that our country is going further and further in debt, especially in this recession as tax revenues have slipped. But raising taxes to lower the debt is neither popular nor do most economists think it will improve...

• IRS Filing Delay for Certain Forms (January 16, 2011)

As usual, the tax filing season for tax year 2010 begins this month for the majority of taxpayers. However, late changes in the law mean the IRS has to reprogram its processing systems for three provisions that were extended in...

• Did You Receive A Notice From The IRS? (December 23, 2010)

Did you receive a notice from the IRS? If so, don’t panic. Many of these letters can be dealt with simply and painlessly.

There are number of reasons the IRS sends notices to taxpayers. Typically, the notice you receive...

• How to Reduce Stress at Tax Time (December 9, 2010)

Maintaining good records now can make filing your return a lot easier and it will help you remember transactions you made during the year.

Keeping well-organized records also ensures you can answer questions if your return is...

• Military Tax Tips (November 25, 2010)

Are you, or your spouse, in the military?  Whether it’s moving to a new base or traveling to a duty station, members of the Armed Forces have many experiences that could impact their tax situation. Here are some tax tips to...

• Small Group Tax Credit (November 11, 2010)

Under the new Affordable Care Act, small employers with 25 or fewer employees and an average wage of less than $50,000 per year may be able to use the tax credit to deduct up to 35% of health insurance premium payments from their...

• BOO! Don't Let The Ghosts Of The Next Tax Season Scare You! (October 31, 2010)

We have only Good Spirits at PRO-TAX to help guide you through the Patch of IRS rules, regulations and complicated forms.

 

We will lead you through all the tax “Tricks” and will also provide you with the “Treats” of a...

• Do You Need to Amend Your 2009 Form 1040? (October 28, 2010)

If you didn’t include income or take a deduction on your tax return – you can correct it by amending your tax return. You may also elect to amend your 2009 return if you are eligible to claim...

• Tax Benefits for Job Seekers (October 14, 2010)

In the current economy, many taxpayers are spending time updating their résumés and attending job fairs. If you are searching for a job, there is a good chance you can deduct some of your job-search expenses on your 2010 tax...

• The Certainties Of Life: Death, Taxes...and Divorce? (September 30, 2010)

 

Although you may have heard the only two certainties of life are death and taxes, it seems like divorce is gaining on them. It is estimated that 50% of all marriages in America end in divorce. Although that figure sounds...

• Over the Counter Medicine Healthcare Act Update (September 28, 2010)

Possibly because there has been more than a little bit of misinformation sent around, the Internal Revenue Service issued guidance reflecting statutory changes regarding the use of certain tax-favored arrangements, such as...

• Did "Juno" Your Tax Bill Could Go UP (Or Down) Next April By Getting Married In 2010? (September 16, 2010)

June has traditionally been the most popular month for weddings. Most believe it’s because of the nice weather but the tradition seems to go back to the times of ancient Rome and the mythical goddess named Juno. Juno was known as...

• Tax Considerations of Disabled Taxpayers (September 2, 2010)

If you happen to be disabled there are numerous benefits available from the Federal Government and Internal Revenue Service (IRS) that can be of significant help in reducing or even eliminating your federal income tax. Some...

• Help With Medicare Drug Costs (August 19, 2010)

There is a new benefit for Medicare beneficiaries which will help with prescription medicine costs this year. 

The “donut hole” is a coverage gap that most Medicare Part D plans have – during that period the beneficiary has...

• How Will Healthcare Reform Affect MY Taxes? (August 5, 2010)

As most people are aware, President Obama recently signed into law a major set of new laws on health care. Some believe this bill will save our healthcare system, while others predict it will simply make matters (and costs)...

• Unemployment Benefits and The American Recovery and Reinvestment Act of 2009 (August 3, 2010)

Taxpayers who received unemployment benefits in 2009 are entitled to a special tax break when they file their 2009 federal tax returns as part of the American Recovery and Reinvestment Act of 2009.  

Here are five important...

• August Sales Tax Holiday: School Supplies and Clothing (July 27, 2010)

For most Virginians school begins the week of August 23rd, and with it the need to shop for school supplies.  Don't get caught up in the back-to-school marketing blitz; at least not yet.  If you can hold out for two...

• For Better or Worse...Healthcare Reform Is HERE! (July 22, 2010)

After years of discussion and debate, on March 23, 2010, President Obama signed into law a major set of new laws on health care. This legislation contains the most comprehensive changes to our healthcare system since the...