Category Archives: Advocacy

Canceled Debt – Is It Taxable or Not?

 

Canceled DebtIRS Answers,  ‘Canceled Debt – Is It Taxable or Not?’

US-TaxLaws.com has published the most recent writing from the IRS on the subject of canceled debt.

Cancellation of a debt may occur if the creditor cannot collect, or gives up on collecting, the amount you are obligated to pay. 

If you own property subject to a debt, cancellation of the debt also may occur because of a foreclosure, a repossession, a voluntary transfer of the property to the lender, abandonment of the property, or a mortgage modification.

To read the full article.  

IRS FORMS   Exclusive Use Rule   POLICIES  & PROCEDURES   Checklists, Mail & Mileage Logs   IMPORTANT TAX DATES   Articles & Books   GLOSSARY OF TERMS   Childcare Provider  BLOG   US-TaxLaws.com BLOG  Crime Prevention and Emergency Handbook
Home Fire Safety Self-Inspection Checklist   TAX INTERVIEW CHECKLIST
Child care provider medical safety checklist   Provider Meal and Snack Log
The Baby Name Wizard

For more than 30 years R. Patrick Michael has been preparing tax returns for individuals, small businesses, cottage industries and in-home child care providers. Pat is a recognized child care provider tax expert, and has been providing educational seminars for child care providers in San Diego County for the YMCA Child Resource Services for more than 18 years. bluehost india coupon Pat and his team have built a following that is comprised of long-term clients, new relationships and word-of-mouth referrals. Child Care Tax Specialists take care of their clients year-round with tax preparation, business entity creation and support, as well as tax planning for retirement, and estate planning.

 

 

The Child Tax Credit

Child Tax Credit and The LawTop Six Things You Should Know about The Child Tax Credit

The Child Tax Credit may save you money at tax-time if you have a qualified child. Here are six things you should know about the credit.

  1. Amount. The Child Tax Credit may help reduce your federal income tax by up to $1,000 for each qualifying child that you are eligible to claim on your tax return.
  2. Additional Child Tax Credit. If you qualify and get less than the full Child Tax Credit, you could receive a refund even if you owe no tax with the Additional Child Tax Credit.
  3. Qualifications. For this credit, a qualifying child must pass several tests:
    Age test. The child must have been under age 17 at the end of 2014.
    Relationship test. The child must be your son, daughter, stepchild, foster child, brother, sister, stepbrother, or stepsister. The child may be a descendant of any of these individuals. A qualifying child could also include your grandchild, niece or nephew. You would always treat an adopted child as your own child. An adopted child includes a child lawfully placed with you for legal adoption.
    Support test. The child must not have provided more than half of their own support for the year.
    Dependent test. The child must be a dependent that you claim on your federal tax return.
    Joint return test. The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
    Citizenship test. The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
    Residence test. In most cases, the child must have lived with you for more than half of 2014.
  1. Limitations. The Child Tax Credit is subject to income limitations. The limits may reduce or eliminate your credit depending on your filing status and income.

5.Schedule 8812. If you qualify to claim the Child Tax Credit, make sure to check whether you must complete and attach Schedule 8812, Child Tax Credit, with your tax return. For example, if you claim a credit for a child with an Individual Taxpayer Identification Number, you must complete Part I of Schedule 8812. If you qualify to claim the Additional Child Tax Credit, you must complete and attach Schedule 8812. Visit IRS.gov to view, download or print IRS tax forms anytime.

  1. IRS E-file. Electronic filing is the best way to file your tax return. IRS E-file is the safe, accurate and easiest way to file. If you use IRS Free File, you can prepare and e-file your taxes for free. Go to IRS.gov/filing and review your options.

You can use the Interactive Tax Assistant tool on IRS.gov to see if you can claim the credit.

If you found this Tax Tip helpful, please share it through your social media platforms. A great way to get tax information is to use IRS Social Media. You can also subscribe to IRS Tax Tips or any of our e-news subscriptions.

Additional IRS Resources:

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Scariest Tax Errors – Forbes

CAUTION Audit Alert SignIf you aren’t using a professional tax preparer – you might want to reconsider that decision after reading this post and the articles it links to.  If you needed a reason why you would want to use a professional tax preparer – this is just what you need. If  you know someone who needs a little convincing – send a link to this post.

Let’s start with a great article in Forbes that begins, “Before you file your taxes, consider how long you must look over your shoulder.” (That’s sort of chilling, don’t you think?) They add that tax lawyers and accountants are used to monitoring the duration of their clients’ audit exposure – and so should you.  (Now really … is that something you want to do – or wouldn’t you prefer a tax professional who knows how the IRS functions?)  Here’s the article “The Scariest Tax Errors, They Extend IRS Audits To Six Years Or Endlessly.”

Compound the above with the fact that the Commissioner of the IRS publicly thanked tax preparers for “surviving a very challenging tax season“, and if he thought the season was *challenging* it’s not because it’s easy.   Safe to say the tax code is not going to get easier – so unless you have nerves of steel, do yourself a favor and research professional preparers and go talk to them.

IRS FORMS   Exclusive Use Rule   POLICIES  & PROCEDURES   Checklists, Mail & Mileage Logs   IMPORTANT TAX DATES   Articles & Books   GLOSSARY OF TERMS   Childcare Provider  BLOG   US-TaxLaws.com BLOG  Crime Prevention and Emergency Handbook
Home Fire Safety Self-Inspection Checklist   TAX INTERVIEW CHECKLIST
Child care provider medical safety checklist   Provider Meal and Snack Log
The Baby Name Wizard

 

What’s the “Cost of Cash” to Small Business Owners?

Pause ButtonDEBIT CARD? CREDIT CARD? CASH?

“Some small business owners are intimidated by the thought of accepting credit and debit card payments. And that’s understandable- with the prospect of paying fees, plus the cost of acquiring new point of sale terminals, electronic payments can seem daunting.” (SCORE ). They made some really good points, such as: Continue reading →

Tax Advantages You Need to Keep In Mind

Small CCP teaching children

 

ChildCareTaxSpecialists.com  (CCTS) is always looking for informative content to help you with your in-home business.  The fact that your business of child care has the greatest opportunity to maximize deductions for your home business, makes it all the more important.

[CCTS Says: before you start to read, you might want to take a look at our FREE GUIDE The World of Child Care Providers Taxes & Recordkeeping.  You will also want to check out our FREE checklists and templates for keeping records. All of our documents are free, downloadable and toner friendly.  Just click here.] Continue reading →

LA Child Care Providers Subject of Debate

The LawLawmakers are debating a bill to increase child care vouchers and allow workers to unionize.

For more details go to

CBS – local, Sacramento, and Southern California Public Ratio (SPCR)

 

IRS FORMS   Exclusive Use Rule   POLICIES  & PROCEDURES   Checklists, Mail & Mileage Logs   IMPORTANT TAX DATES   Articles & Books   GLOSSARY OF TERMS   Childcare Provider  BLOG   US-TaxLaws.com BLOG  Crime Prevention and Emergency Handbook
Home Fire Safety Self-Inspection Checklist   TAX INTERVIEW CHECKLIST
Child care provider medical safety checklist   Provider Meal and Snack Log
The Baby Name Wizard

For more than 30 years R. Patrick Michael has been preparing tax returns for individuals, small businesses, cottage industries and in-home child care providers. Pat is a recognized child care provider tax expert, and has been providing educational seminars for child care providers in San Diego County for the YMCA Child Resource Services for more than 18 years.  Pat and his team have built a following that is comprised of long-term clients, new relationships and word-of-mouth referrals. Child Care Tax Specialists take care of their clients year-round with tax preparation, business entity creation and support, as well as tax planning for retirement, and estate planning.

NEED HELP?  CALL (619) 589-8680 TODAY!

So, You Are Being Audited. Now what?

FINAL October 2014 Audit Seminar FlyerJust finished an article in Entrepreneur Magazine.  It is a columnist sharing his experience and *lessons learned* going through an audit.  He thought he kept good records, but discovered there is always room for improvement.

Every year I give seminars exclusively for the child care provider community through the YMCA Child Resource Services.  The entire purpose of these seminars is to give providers the best tools and tips that will help maximize their deductions, and improve their record keeping skills.This year the Audit Seminar is on Wednesday, October 22, and includes a free workbook handout of our  “Secrets to Survive an IRS Audit”. Continue reading →

10 Tips for Beginning Child Care Providers

EARLY CHILDHOOD NEWS PROVIDES LOTS OF GOOD STUFF1 Green Checkmark

Whenever we come across a site that can give our clients additional resources to help them, we are more than happy to share the information. “Early Childhood News is an online resource for Teachers and Parents of children, from infants to age 8 years. Read articles about child development, developmentally appropriate practices, health and safety, behavior and guidance, assessment and much more.

Early ChildHood News

 

Changes in Circumstances Can Affect Advanced Payments of the Premium Tax Credit

Latest Breaking News

Individuals who purchased health insurance coverage from the Health Insurance Marketplace may be getting advance payments of the premium tax credit to help pay for health insurance coverage in 2014.

If they are, it is important to report changes in circumstances, such as changes in income, marital status or family size, to the Health Insurance Marketplace when they happen.

Receiving too much or too little in advance payments of the premium tax credit can affect refunds or balance due when individuals file federal tax returns in 2015.

Reporting changes will help avoid getting a smaller refund than expected or even owing money not expected to owe.

Publication 5152, Report changes to the Marketplace as they happen, is available on www.IRS.gov/aca. Go to www.HealthCare.gov for information about health insurance coverage and financial assistance.

Source: IRS.gov Newsletter

AN EDUCATED TAXPAYER IS OUR BEST CLIENT.  NEED HELP?  CALL (619) 589-8680 TODAY!

For more than 30 years R. Patrick Michael has been preparing tax returns for individuals, small businesses, cottage industries and in-home child care providers. Pat is a recognized child care provider tax expert, and has been providing educational seminars for child care providers in San Diego County for the YMCA Child Resource Services for more than 18 years.  Pat and his team have built a following that is comprised of long-term clients, new relationships and word-of-mouth referrals. Child Care Tax Specialists take care of their clients year-round with tax preparation, business entity creation and support, as well as tax planning for retirement, and estate planning.

Why Do You Need Business Liability Insurance?

Homeowner Liability Insurance Will Not Protect You

Do you have business liability insurance?  Do you know why you need business liability insurance?  Because if a child gets hurt, while in your care, you may get sued by the parents if they have an issue with the actions  you took.  I read an article this morning about child care providers and the type of risks your business has.  This article was about liability insurance and what can happen when a child is injured. Continue reading →