The goal of this blog is to put tax information in an easier to understand format for US Taxpayers. Please verify all advice with that of a Tax expert or the IRS.
~Due Diligence Only~
Specific benefits that are not compensation for services
Native Vote: Summer of Action - National Congress of American Indians
For many involved within the Indian Tribal Governments, tax rules and processes, this can be very complicated. Here is a link to the ITG (Indian Tribal Governments) Tax Kit
Another resource that may be helpful: The Tribal Business Structure Handbook, here is the PDF Link.
NCAI - Webinar On The Resolution Process
I hope this has been helpful, and for other pod casts and information, here is the link to the Tribal Portal.
To keep up with recent developments between the IRS and Tribal Governments, here is a link.
The I.R.S. (Internal Revenue Service) often gets a bad rap, and all we hear are horror stories of how the IRS has targeted Right-Wing groups for audits, and other scary stories. It would be helpful if U.S. Taxpayers realized that the IRS is basically the clearing house/administrative branch of the U.S. Treasury.
Rules are made, and tax law changes come via the Senate and House of Representatives. All of this is policed and monitored by the United States Treasury Department. That is the reason why U.S. Taxpayers must wait for the Congress to complete it's job, in completing tax law changes, before the IRS can open the "gates" for the acceptance of tax returns for the previous tax year.
2014 taxes will be prepared and filed in 2015 - There are some entities who have different times when their "fiscal year" stops and starts. An example is that the State of Arkansas.gov, has a fiscal tax year starting in July, and ending in June. Many business owners end up filing extensions, changing their tax filing years some.
Again, lately all I have heard about the IRS in the news has been how their investigations have focused on GOP / Tea Party participants. Here are some facts that media does not tell:
90% of the Tea Party / GOP members who have been "targeted" by the Department of Justice (D.O.J. the police force of Federal Agencies), has been due to their own A). Arrogance and Ignorance, and B). The violators of 501(c)3 non-profits, have been foolish enough to call in the press, and use social media to trumpet their violations, as some sort of victory.
When an organization decides to register themselves as an entity with the IRS, they have choices: Sole Proprietor, Corporation, Non-Profit, Charitable Non-Profit, etc.. As a charitable non-profit, an entity would be given a pass on paying taxes, because they are set up as a CHARITY, who is not POLITICKING. If their organization wants to push a political agenda, as a focus, and deride charity, they are not eligible for a tax break from our society.
A new easier form: 1023-EZ - IRS ASL Videos - YouTube
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I said all of that above, to say this; the IRS is made up of a wide variety of people from all walks of life. There was a time during the 1970 -1980's, when the IRS's authority and over-reach were stopped, and the agency became more "taxpayer friendly."
The Internal Revenue Service, has many avenues for the help and assistance to taxpayers. The Summer Tax Tip announced by the IRS today if full of links to help from the IRS. IRS Free File Fillable Forms and Free File is one benefit offered through the IRS website. It is possible for a taxpayer to go directly to companies offering tax software, I think it is more legitimate going through the IRS Website. Withholding Calculator: This is important for those who may be over withholding, or worse, under-withholding on their income tax. Help Yourself: In Spanish: There are many other ways to get taxpayer assistance through the IRS. Stay informed.
Are you really running a business, or is this just a hobby? There is a long list of things to consider before being sure someone is a business: One of the nine items to think about is, "...
Whether you depend on income from the activity for your livelihood."
If a person requires assistance to survive, even though they depend on an activity for income, it is possibly not enough to consider the activity a business.
There are many other things to consider:
Straight from the Internal Revenue Service (IRS), are some resources and ways to find out if you have a business, or a hobby. The best resource to start with is PUB 535 (2013) Business Expenses (HTML link), or Pub 535 (PDF link) If you are a business, and wonder about legit deductions, here is a helpful video from the I.R.S.
Simplified Home Office Deduction, IRS.gov Videos - YouTube
Some hobbies are very expensive, and taxpayers may be stunned to learn that the 100K they won from the bass tournament is only deductible up to the amount laid out to be eligible to fish in a tournament with grand prizes . With a business, the owner may often deduct many expenses that have been laid out to get the business going. This is in earnest hope and planning that the business will be taking in more than it loses, at least three out of the five prior years. If it does not, the business may be reclassified as a hobby.
ASL: Small Business Health Care Tax Credit (Captions & Audio), IRS - YouTube
When that happens: the financial lay-out may have been substantial, with continuing expenses, but once classified as a hobby, they may deduct expenses only up to and equal to any amounts earned.
This is a link to the U.S. Treasury, the place where tax money is processed. The I.R.S. is just a giant clearing house for the Treasury. It is the Treasury who enforces tax code. Here is a link to a definition by the IRS in agreement with the U.S Treasury "What Constitutes A Business?"
Like gambling, if you never win, it is just loss, and not deductible.
For those who are businesses, I hope you find this information useful. Thank you.
Good news folks, it seems shoppers / consumers in the States of lower North America, may benefit from a sales tax holiday! It is getting close to back-to-school time, some nearer than others, so it appears that many States join in to help parents, and retailers get ready for school, and give them a day, weekend or longer to make purchases, without having to pay sales tax.
States who participate are likely to see increased sales figures, because sometimes just a few dollars in savings, can help a parent provide more for their students.
MA State Senators Michael Knapik, Stephen Brewer discuss holiday sales tax - YouTube
Published on Jul 23, 2014
State Senators Michael Knapik, R-Westfield and Stephen Brewer, D-Barre, speak on the Senate floor after a long debate over the sales tax holiday, which passed 28-9
The link to the chart which shows participating States is in the linked article at the top. If you want to pop this up real quick, the link is 2014 Sales Tax Holiday. There are only 17 States which participate, and some of them come and go. This would be a nice thing for other States to participate in.
"2014 Sales Tax Holiday
Beginning at 12:01 a.m. on Saturday August 2, 2014, and ending at 11:59 p.m. on Sunday August 3, 2014, the State of Arkansas will hold its sales tax holiday allowing shoppers the opportunity to purchase certain School Supplies, School Art Supplies, School Instructional Materials, and clothing free of state and local sales or use tax.
All retailers are required to participate and may not charge tax on items that are legally tax-exempt during the Sales Tax Holiday."
Remember, that if your tax situation is complicated, it is advisable to get professional taxpayer assistance. Make sure the person doing your tax return is certified, and is in good standing. Unfortunately the tax payer is responsible for his / her tax return, even if the person doing it, erred.
Getting ready to sell your home, or have you already done so in tax year 2014? The following are some tips that you may want to know come tax time.
Capital Gains Taxes - A capital gain happens when a taxpayer sells something for more than they paid for it.
Exceptions to Capital Gains Taxes on the Sale of the taxpayers Primary residence:
a. Must have used as primary residence at least 2 out of the 5 years before the sale.
b. The gain of $250,000.00 or less can be excluded for tax purposes. ($500,000) for MFJ [Married
Filing Jointly] returns.
The $250G/$500G is not the Sale Price, but the Gain gotten over and above the original purchase price.
Publication 523, from the I.R.S. gives the special qualifications and rules for those selling their homes. Included are special rules for some persons with Disabilities and Service Persons.
"Selling Your Home" - YouTube - IRS Videos
Many may not realize the I.R.S. has information in multiple languages: In Espanol:
"Venta de Su Casa" - YouTube - IRS Videos
and...
ASL: Selling Your Home (Captions & Audio) - YouTube - IRS Videos
Having said all of that, more good news, if your Gain is Not Taxable, you may not be required to report the sale to the I.R.S.
Other news: If the taxpayer decides not to take the exemption, or if any part of the sale is a gain, they may be required to claim it on their taxes. Here is a link to "Questions and Answers on the Net Investment Income Tax."
First Time Homebuyer Credit - Exception(s): There may be special rules regarding the sale of that home. Check Publication 523, to find out what they are.
Important note about the Premium Tax Credit. If you receive advance payment of the Premium Tax Credit in 2014 it is important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.
Lately we have not heard much good news for our military members. The following are some key facts that taxpayers who serve, or have served within this tax year (2014), may not know.
There are some tax breaks, and other rules that affect Active Military, ROTC, Reservists, and those leaving the service to go into civilian, that military tax filers may not know.
Publication 3 is "The Armed Forces Tax Guide." Within this guide is important information for U.S. Military Taxpayers who are stateside, and around the world.
Some breaks for our Military personnel include:
If you leave the military to find work, you may be able to deduct some job seeking expenses. Some moving expenses may be deductible as well.
Most military bases offer Free Tax Assistance during tax season, but there are some that offer help all year long.
Active duty ROTC pay is taxable, but there are some allowances during training that are not taxable. For more information, check the quick "Life Cycle" Series Fact Sheet.
For Reservists traveling over 100 miles from home, who incur unreimbursed travel expenses, they may be deductible.
Joint Returns - Signing a joint tax return, when one member of the couple is on active duty, may give an allowance for the active military member, to waive a signature. In some cases a Power of Attorney should be in place.
If you are out-of-pocket expenses for uniforms you may NOT wear when off duty; cleaning and purchase costs may be deductible.
Active Military personnel may be eligible for automatic extensions for time to file tax returns
If you serve in an active Combat Zone, certain pay may NOT be Taxable, and may not need to be included as income on your tax return, BUT
Active Military may want to check and see if adding it to the non-taxable income section of your tax return would give a higher Earned Income Credit allowance.
Always seek the help of a certified Tax Expert who is classified as an Enrolled Agent or higher, for very complicated returns.
Some States also have Tax Credits, Allowances and Exclusion for Military personnel, so don't forget to check that, or make sure your tax professional checks this for you.
For answers to more military tax returns, order a copy of Publication 3.
U.S. Taxpayers are frequently being given erroneous or completely untrue information regarding the Affordable Care Act (ObamaCare), and taxes.
As of March 31, 2014, taxpayers who lived in States with expanded Medicaid were required to have insurance, or register for Health Care.
It is sad and unfortunate that in many of the States, even where Medicaid was expanded, there are daily untruths, and propaganda being aired on News Stations, and Newspapers. Most of this is being paid for by Teabagger GOP, and propagated by Republicans who continue to act as if they lie long enough, it will become everyone's truth.
Come tax time, 2015 - when the filing for 2014 tax returns, the individuals and families who are going to get a rude awakening, will not have their GOP representatives to pay their fines for not complying with the law. It is my personal opinion (not shared by my employer or any other party in my area), that those who continue to lie, who are causing Americans to pass up benefits that they are entitled to, should be sued in a very large way. It is criminal enterprise, to brainwash people to give up those things that are in their best interest.
For those who are wanting to get to the fact of the matter, the IRS has several links to help taxpayers sort it out. There is a whole page dedicated to the ACA (ObamaCare) Tax Rules and Instructions at http://www.irs.gov/uac/Affordable-Care-Act-Tax-Provisions-Home another shorter resource is the IRS-pdf p5093 http://www.irs.gov/pub/irs-pdf/p5093.pdf. Some Good News for those who may have missed Open Enrollment due to any number of reasons, if you have had a "Change of Life" Experience, ie; Lost a Job, Got Married, Widowed, Increase or decrease in income, you will be allowed to Enroll in the ACA plan(s) available in your State. [If that State expanded Medicaid]. Here is the link to the Health Insurance Market Place: https://www.healthcare.gov/ The thing I will never understand about the TeaBagger movement is how billionaires convinced basically poverty ridden populations to be activists for them??????? This is what I consider shooting off your nose to spite your face. It doesn't make sense, and it is a no win situation. Please enroll for Healthcare if you have not, and you are able to enroll due to changes in circumstances. Don't get your tax information from the News Media. Go to the I.R.S. website or an Enrolled Agent or higher for real tax advice.
