Rebella Accountancy | 507 E. First Street, Suite A | Tustin, CA 92780 | Phone: 714-619-0667 | Fax: 714-544-0236

       

 

 

Monica Rebella, CPA/IAR - President

Rebella Accountancy

 

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Other Articles

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Feature Articles

- Sweeping new IRS 'repair regulations' impact most businesses
- Congress begins work on payroll tax extension as White House unveils new proposals
- IRS launches third version of voluntary offshore disclosure program
- The Saver's Credit: An underused retirement savings benefit
- Using fringe benefits as an income substitute during the economic downturn

How Do I?

- Claim a charitable contribution of property?
- obtain an appraisal for a noncash charitable contribution
- Compute gain in a like-kind exchange when some cash is received
- How do I? Deduct a contribution of clothing or a household item under the new rules?

Frequently Asked Questions

- When do I need to file IRS Form 8938, Statement of Specified Foreign Financial Assets?
- When is the best time of year to contribute to an IRA?
- How does a 60-day loan from an IRA work?
- What if I owe taxes and can't pay the full amount?
- How does the new sales tax deduction for vehicle purchases work?
- How much proof is enough, when contributing used clothing to charity?

 

 

 

Standard Deduction vs. Itemizing:

7 Facts to Help You Choose


Each year, millions of taxpayers choose whether to take the standard deduction or to itemize their deductions.

The following seven facts from the IRS can help you choose the method that gives you the lowest tax.

1. Qualifying expenses - Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year.

If the total amount you spent on qualifying medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous deductions is more than your standard deduction, you can usually benefit by itemizing.

2. Standard deduction amounts -Your standard deduction is based on your filing status and is subject to inflation adjustments each year.

For 2011, the amounts are:
  Single-$5,800
  Married Filing Jointly-$11,600
  Head of Household-$8,500
  Married Filing Separately-$5,800
  Qualifying Widow(er)-$11,600

3. Some taxpayers have different standard deductions - The standard deduction amount depends on your filing status, whether you are 65 or older or blind and whether another taxpayer can claim an exemption for you. If any of these apply, use the Standard Deduction Worksheet on the back of Form 1040EZ, or in the 1040A or 1040 instructions.

4. Limited itemized deductions - Your itemized deductions are no longer limited because of your adjusted gross income.

5. Married filing separately - When a married couple files separate returns and one spouse itemizes deductions, the other spouse cannot claim the standard deduction and therefore must itemize to claim their allowable deductions.

6. Some taxpayers are not eligible for the standard deduction - They include nonresident aliens, dual-status aliens and individuals who file returns for periods of less than 12 months due to a change in accounting periods.

Click Here To Learn Why When Your Bring Your 2011-2012 Taxes To Us And You’re Entered Into a Drawing For a 50-Inch Large Screen TV!

   

7. Forms to use - The standard deduction can be taken on Forms 1040, 1040A or 1040EZ. To itemize your deductions, use Form 1040, U.S. Individual Income Tax Return, and Schedule A, Itemized Deductions.

These forms and instructions may be downloaded from the IRS website at www.irs.gov or ordered by calling 800-TAX-FORM (800-829-3676).  ( taken from IRS Tax Tip 2012-43 )

click here to listen to this video update on:

click here to listen to this video update on:

   

I read an article in SmartMoney magazine recently that I wanted to pass along to you titled: 5 Little-Known Tax Deductions by Bill Bischoff where he talks about it being possible to write off some expenses that were paid for by someone else such as:

  1. Medicare Insurance and Long-Term Care Premiums
  2. Medical Expenses Paid by Someone Else
  3. Real Estate Taxes Paid by Someone Else
  4. Home Mortgage Points Paid by Someone Else
  5. Fees to Charge Taxes to Your Credit Card


      Click here to read the article online.

   

 

Contributing to Your Traditional IRA or Roth IRA before April 17

 

Remember you have until you file your tax return to make a contribution to a Traditional IRA or Roth IRA for the 2011 tax year. The annual contribution amount is $5,000 or $6,000 (if you are age 50 or over). Prior to making the contribution you will want to make sure your modified adjusted gross income (MAGI) does not exceed the income thresholds. The 2011 limits are:


 
How does the phase-out work?

If your income is below the "full contribution" amount noted above, you can contribute up to the maximum annual contribution. But what if your income falls between these ranges? Then how much can you contribute?

1. Subtract your income from the higher (phase-out complete) amount to get your contribution income potential.

2. Next calculate the phase out range.

3. Divide your contribution income potential by the phase-out range.

4. Take the result times your maximum annual contribution amount.

Example: Roth IRA contribution limit for a single person, age 40 with MAGI of $112,000; $10,000 contribution income potential (122,000-112,000); divided by phase-out range of $15,000 ($122,000 – 107,000); 10,000/15,000= .666 x $5,000 = $3,300 2011 ROTH IRA contribution limit. Rounding rules apply.

If it's too late for you to make a 2011 contribution, it’s not too late to plan for 2012. Here are the limits for 2012.

 



A final thought: If your income is too high to take advantage of these IRAs you can always make a non-deductible contribution to an IRA. While the contributions are not tax-deferred, the earnings are not taxed until they are withdrawn.   (click here to see this article as a web page)

To read this & my other articles online go to www.MyDentalCPA.com and click on the Newsletter section.

 


 

As always you can call me at 714-619-0667 if you have any questions about investing, retirement or any other tax & accounting related issues. 

 

Regards, Monica Rebella, CPA/IAR

President, Rebella Accountancy

 
Disclaimer:  The opinions contained herein are not intended to be investment advice or a solicitation to buy or sell any securities. With any investment you should carefully consider the investment objectives, potential risks, management fees, and charges and expenses before investing.  Past performance is not a guarantee of future results. The investment return and principle value of any investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.

To see more Business Owner Clients talk about Monica, click here!

 

 

Monica Rebella, CPA/IAR | President - Rebella Accountancy | Certified Public Accountants
507 E. First Street, Suite A | Tustin, CA 92780 | Phone: 714-619-0667 | Fax: 714-544-0236
Email: mrebella@rebellacpa.com | www.RebellaCPA.com | www.MyDentalCPA.com