COMBAT PAY

Due to the Working Families Tax Relief Act of 2004 military personnel receiving combat pay can get larger tax credits in 2004. The new law counts excludable combat pay as income when figuring the Child Tax Credit. The taxpayer also has the option of including or excluding combat pay when figuring the Earned Income Tax Credit. As always, combat pay is excluded from taxable income.

OPEN AN INDIVIDUAL RETIREMENT PLAN ACCOUNT (IRA)

See http://www.dgoodmancpa.com/smallbusinessretirementplan.htm#INDPLAN for an example of what you can do to defer income until retirement. You can open your 2004 IRA as late as April 15th of 2005. You may want to consider a Roth IRA. They are not tax deductible but also are not taxable when withdrawn at retirement.

GET ORGANIZED

Clients always ask me what I need in order to do their taxes. For 90% of the population, with a little organization, your tax preparation doesn't have to be overwhelming. First, when you get those tax documents in the mail, have a folder ready to just drop it in there and forget about it until tax time. Most tax documents are required to be mailed by January 31st so you should have almost everything by the first week of February. If not, call to have them send a duplicate. Next, go through your check book, credit card statements and cash payouts for the basic deductible items. This would include your medical expenses including eye glasses, taxes paid including vehicle registrations, donations and any employer expenses that were not reimbursed. Don't forget day care expenses, student loan interest and tuition if any of those apply to you.

These are just some tax tips you should consider when thinking about your year end tax planning. If you have a specific question about your particular situation, e-mail me at dianne@dgoodmancpa.com and I will help you muddle through the tax planning issues you may have.

This article was intended to provide general information about year end tax planning. It does not contain all the rules and exceptions that may apply to your situation. If you have further questions regarding year end tax planning, I can be reached at www.dgoodmancpa.com.

Coming Soon - E-mail me at dianne@dgoodmancpa.com and tell me what you would like to know more about. It just might be my next article!

About the Author

Dianne Goodman, CPA -Specializes in servicing Small Businesses and Individuals. Visit www.dgoodmancpa.com for relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-866-531-3035.

CONTACT INFORMATION:

Dianne Goodman, CPA
Comprehensive Small Business Solutions, PC
505 323-2307
1 866-531-3035 toll free
http://www.dgoodmancpa.com

You have permission to reprint what you just read. Use it in your ezine, at your website or in your newsletter. The only requirement is to include the following footer...
2004 Year End Tax Planning and Preparation for Individuals - Tax Tips for 2004 by Dianne Goodman, visit http://www.dgoodmancpa.com for more content like this.

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YEAR END TAX PLANNING AND PREPARATION FOR INDIVIDUALS - Tax Tips for 2004 including new tax relief due to the Working Families Tax Relief Act of 2004   
Dianne Goodman, CPA

Now is the best time to start thinking about your year end tax planning. These tax strategies can be put into effect by the end of the year and some as late as when the tax return is due. Planning now will save you money and reduce your tax liability not only with your IRS taxes but also with your state taxes. Here are tax tips that will help you accomplish your goal.

MINIMIZE YOUR CAPITAL GAINS

Review your capital gains and losses for the year including taxable investment accounts and taxable real estate sales. If you have net capital gains, you may want to sell some of your investments that have a loss to offset the gain. You should also check your 2003 tax return for any loss carry forwards to 2004.

NEW SALES TAX DEDUCTION

New in 2004 taxpayers who itemize deductions can now choose between claiming the state income tax or sales tax as a deduction. The IRS will provide optional tables for use in determining this sales tax deduction if tax payers don't keep their receipts throughout the year. Sales tax paid on motor vehicles and boats may be added to the table amount up to the general sales tax rate.

EDUCATOR'S DEDUCTION

Renewed for 2004 and 2005, eligible educators are permitted an "above-the-line" deduction up to $250 per year for non-reimbursed expenses incurred in connection with books, supplies, computer equipment and supplementary materials used in the classroom.

COMBAT PAY

Due to the Working Families Tax Relief Act of 2004 military personnel receiving combat pay can get larger tax credits in 2004. The new law counts excludable combat pay as income when figuring the Child Tax Credit. The taxpayer also has the option of including or excluding combat pay when figuring the Earned Income Tax Credit. As always, combat pay is excluded from taxable income.

OPEN AN INDIVIDUAL RETIREMENT PLAN ACCOUNT (IRA)

See http://www.dgoodmancpa.com/smallbusinessretirementplan.htm#INDPLAN for an example of what you can do to defer income until retirement. You can open your 2004 IRA as late as April 15th of 2005. You may want to consider a Roth IRA. They are not tax deductible but also are not taxable when withdrawn at retirement.

GET ORGANIZED

Clients always ask me what I need in order to do their taxes. For 90% of the population, with a little organization, your tax preparation doesn't have to be overwhelming. First, when you get those tax documents in the mail, have a folder ready to just drop it in there and forget about it until tax time. Most tax documents are required to be mailed by January 31st so you should have almost everything by the first week of February. If not, call to have them send a duplicate. Next, go through your check book, credit card statements and cash payouts for the basic deductible items. This would include your medical expenses including eye glasses, taxes paid including vehicle registrations, donations and any employer expenses that were not reimbursed. Don't forget day care expenses, student loan interest and tuition if any of those apply to you.

These are just some tax tips you should consider when thinking about your year end tax planning. If you have a specific question about your particular situation, e-mail me at dianne@dgoodmancpa.com and I will help you muddle through the tax planning issues you may have.

This article was intended to provide general information about year end tax planning. It does not contain all the rules and exceptions that may apply to your situation. If you have further questions regarding year end tax planning, I can be reached at www.dgoodmancpa.com.

Coming Soon - E-mail me at dianne@dgoodmancpa.com and tell me what you would like to know more about. It just might be my next article!

About the Author

Dianne Goodman, CPA -Specializes in servicing Small Businesses and Individuals. Visit www.dgoodmancpa.com for relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-866-531-3035.

CONTACT INFORMATION:

Dianne Goodman, CPA
Comprehensive Small Business Solutions, PC
505 323-2307
1 866-531-3035 toll free
http://www.dgoodmancpa.com

You have permission to reprint what you just read. Use it in your ezine, at your website or in your newsletter. The only requirement is to include the following footer...
2004 Year End Tax Planning and Preparation for Individuals - Tax Tips for 2004 by Dianne Goodman, visit http://www.dgoodmancpa.com for more content like this.

Article to continue below----------------------------------------------

Rally To Push For Hike To Georgia Cigarette Tax (AP Via Yahoo! Finance)
Anti-smoking advocates say they know a way to help fill Georgia's $1 billion budget shortfall: hike the tax on cigarettes by $1.

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Article to continue below----------------------------------------------

Tax Tips For The Unemployed (CNN Money)
Tax time can be a painful time for many of us, and it's especially tough for people without jobs. If you're unemployed, there are a few twists and turns in the tax code that can work to your benefit.
No Blowing Smoke: Group Discusses SC Cigarette Tax (AP Via Yahoo! Finance)
Doctors and an anti-smoking group discuss efforts to raise South Carolina's 7-cent-a-pack cigarette tax that is the lowest in the nation.

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About the Author

Dianne Goodman, CPA -Specializes in servicing Small Businesses and Individuals. Visit www.dgoodmancpa.com for relevant and current information on a variety of financial and tax issues focusing on small businesses and individuals or call at 1-866-531-3035.

What Other Authors say about Taxes

Small Business Tax Credit - Americans with Disabilities Act by Richard A. Chapo

Many small businesses complain when confronted with the expense of complying with the Americans with Disabilities Act. Most do not realize that there are a number of tax incentives available to offset...

Solving Common Tax-Preparation Problems by Stephen L. Nelson

There are some potential pitfalls to using your Quicken data as the one and only source of all your taxable income and tax-deductible expense information. This doesn't mean you shouldn't use Quicken; it...

Mortgage Tax Relief- Free Important Hint For Taxes by deepak kulkarni

<p>Most of those benefiting from tax relief are low income individuals and families, usually in the form of full or partial tax exemptions. Some middle income families and people can receive tax...

Lump-Sum Social Security Benefits--Tax Election by Alan D Campbell

Sometimes a taxpayer will receive Social Security benefits in one lump sum. A taxpayer might have to pay income taxes on up to 85 percent of these benefits. However, a taxpayer may make an election under...

Options For Filing And Reporting Small Business Taxes by Gary Ruplinger

Large and small businesses all around the United States are required to file and pay taxes. Small business taxes are applied and determined differently than those of larger corporations. To accurately...

Income Tax Booklet- Useful Roadmap For Tax Savings by deepak kulkarni

<p>Now consider your credit card. Most credit cards carry an interest rate of anywhere from twelve to twenty-one percent. If you owe taxes that you can't pay, you probably have a higher interest...

Do You Know When To File A Tax Return? by Ken Snowie

Every year, millions of Americans dread the inevitable; they have to gather all of their receipts and records and get ready to file their Federal Income Tax Returns. When was tax season first initiated?...


Who are the CPA Moms?      Your Tax Professional Forever!!!!

“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
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Index of Articles about Taxes

What Other Authors say about Taxes

Small Business Tax Credit - Americans with Disabilities Act by Richard A. Chapo

Many small businesses complain when confronted with the expense of complying with the Americans with Disabilities Act. Most do not realize that there are a number of tax incentives available to offset...

Solving Common Tax-Preparation Problems by Stephen L. Nelson

There are some potential pitfalls to using your Quicken data as the one and only source of all your taxable income and tax-deductible expense information. This doesn't mean you shouldn't use Quicken; it...

Mortgage Tax Relief- Free Important Hint For Taxes by deepak kulkarni

<p>Most of those benefiting from tax relief are low income individuals and families, usually in the form of full or partial tax exemptions. Some middle income families and people can receive tax...

Lump-Sum Social Security Benefits--Tax Election by Alan D Campbell

Sometimes a taxpayer will receive Social Security benefits in one lump sum. A taxpayer might have to pay income taxes on up to 85 percent of these benefits. However, a taxpayer may make an election under...

Options For Filing And Reporting Small Business Taxes by Gary Ruplinger

Large and small businesses all around the United States are required to file and pay taxes. Small business taxes are applied and determined differently than those of larger corporations. To accurately...

Income Tax Booklet- Useful Roadmap For Tax Savings by deepak kulkarni

<p>Now consider your credit card. Most credit cards carry an interest rate of anywhere from twelve to twenty-one percent. If you owe taxes that you can't pay, you probably have a higher interest...

Do You Know When To File A Tax Return? by Ken Snowie

Every year, millions of Americans dread the inevitable; they have to gather all of their receipts and records and get ready to file their Federal Income Tax Returns. When was tax season first initiated?...