Spiker Tax Services

"Why did the IRS keep part of my refund this year?" I get this question quite a few times each year and it can be difficult to give an exact reason why. Thanks to some upgrades in their cyber-security, the IRS is making it easier to find out if you have a balance due, how much that amount is and why. Balances due can occur if you've failed to file taxes in previous years or if you've left off income on your tax return that the IRS knows about. Or, maybe you have a balance... due that you are aware of and just want to check and see where you currently stand. Here is the link to the IRS website that will help you find out this information: https://www.irs.gov/payments/finding-out-how-much-you-owe You can also get there by googling "do I owe the IRS". If you have a question on a tax related matter, I'd be happy to help you with it. Contact me via email at: [email protected] Sincerely, Brian Spiker

The open enrollment period for healthcare insurance just opened on Nov 1st and will close on Dec 15th for those needing coverage for 2017. This will not affect everyone, if you already have healthcare insurance through an employer, the VA or any other approved source then you do not need to worry about this. Keep in mind, the Affordable Care Act mandates everyone on your tax return must have the minimum coverage or there can be penalties. If you need coverage or know some...one who does, this government website is a good place to start your search: https://www.healthcare.gov//preview-2017-health-care-plan/ I’m not an insurance expert and don’t endorse/recommend any specific plan but if you have any questions about how this part of the tax code could affect you or your family at tax time, please feel free to email me and I’ll answer any questions I can. Sincerely,

There's always a new way for scammers to try and part you with your money, here's the latest: The IRS has been receiving reports of individuals in the US receiving fake tax notices via email that states they have underreported their income as related to Affordable Care Act coverage. The form looks very much like a legitimate CP2000 notice which the IRS mails people when the have failed to report income earned from their tax return. The biggest telltale sign that this is a sc...am is that the IRS does not send notices via email OR initiate contact with taxpayers via email or social media. If you receive an email of this sort, do not open it or click on the attachment/link. The IRS has asked people to forward these emails to them at the following address: [email protected] and then delete the email from your account. Or you can simply delete the email. It's worth noting that some states do offer the ability for you to receive updates to your account via email instead of regular mail. This is an option each year when you fill out your state tax return, let your tax professional know if this is something you'd like to have set up. Many of my clients like to have this convenience and so far scammers have confined their efforts to using the IRS to scare people. If you ever receive a letter from the IRS in the mail, don't ignore it! Send a copy of all pages of the letter to your tax professional right away so they can assist you in getting it taken care of. If you have a tax question or situation you need help with, contact me at [email protected] or call me directly at 619-990-8108.

TAX RETURNS DUE APRIL 18TH THIS YEAR!!! "Wait, is that a misprint? I thought it was always April 15th?" Nope! This year you get 3 extra days to file your federal tax return. This is not a permanent change, for this year only the date was moved due a conflict with Emancipation Day, an official public holiday that's observed by the District of Colombia where the IRS is located. To avoid a "failure to file" on time penalty, make sure your federal tax return is postmarked ...(if mailed) or e-filed by midnight on April 18th. If you'll be late this year, make sure and have your tax pro file an extension for you. The extension will give you an extra 6 months to get your paperwork together without incurring the dreaded (and expensive) failure to file penalty. Just remember, if you owe taxes, the extension does NOT prevent late payment penalties and interest. See more

Did you know you have up until April 18th to contribute to an individual retirement account and have it count towards 2015? If you're under 50, you can contribute up to $5,500 to a TRADITIONAL IRA (or $6,500 if you're 50+) and it will reduce your taxable income by that same amount. There are some rules to know about however. Whether or not this contribution is tax deductible depends on if your employer offers a retirement account and your income level. Checking your w2 to ...see if the "retirement plan" box is checked is a good way to see if you meet that checkpoint. If you're single and make $61,000 or less you can take the full deduction. If your earnings are between $61,000 and $71,000 you get a partial deduction and those earning over $71,000 do not qualify for the deduction (but you can still save for retirement this way!). If you're interested in contributing to a ROTH IRA, you can contribute for 2015 all the way up to the April 18th deadline this year. ROTH IRA contributions are not tax deductible but the earnings do grow tax free and you have the flexibility to take your original contribution amount back out if you need to. For more information or other tips on tax planning/tax return filing, email me at [email protected] or call me at 619-990-8108.

W2 Income vs. 1099-MISC It's important to recognize the tax implications of receiving a w2 vs. a 1099-MISC form that reports income. In order to deduct expenses against w2 income, you must itemize on your tax return which typically means going over $6,300 in expenses for the year (if you're filing single). That can be tough to do unless you're paying on a mortgage. When you receive a 1099-MISC as an independent contractor or sole proprietor, you can deduct expenses agains...t this income from the very first dollar you earn! For the savvy taxpayer (and his/her accountant) can mean you can significantly reduce your taxable 1099 income by offsetting the it with various business related expenses. A few examples are: tech gear, work tools, the home office deduction, cell phone & internet fees and mileage. If you received a 1099-MISC this year, contact me for a free consultation on how you can reduce this taxable income (and possibly even claim a loss!). The fastest response will be achieved by emailing me at [email protected] or you can email me through LinkedIn

Are you a US citizen working overseas as a security contractor, teacher or administrator? You may probably already know that for 2015, up to $100,800 of your foreign earned income can be tax free provided you meet certain very specific qualifications. If you paid tax to a foreign country, this also can be used to off-set any US income tax you might owe. It pays to work with someone who is knowledgeable about this area of tax law and this is my area of expertise. Feel free to email or call me and let's talk about how I can help you keep more of your hard earned money.

If you're looking for ways to reduce your 2015 taxable income, here are some ideas you may be able to use. Keep in mind they must be accomplished BEFORE the end of the year to help! 1) Do you have any stocks in your personal trading account that have lost value? You can write off up to $3,000 in losses per year, even if you don't itemize. Conversely, if you need to sell some winners, wait until January 2016 to keep those gains off of your 2015 tax return. 2) In 2015, you... can contribute up to $18,000 to a 401K (or $24,000 if you're 50 or older). If you haven't maxed it out yet, ask your employer if you can make an additional contribution before Dec. 31st. 3) Donate to charity. This could be a cash or goods donation and only helps you on your tax return if you itemize. At simple trip to drop off old items at Goodwill can put about $25 in your pocket for every $100 in value of items donated. I'd advise 2 separate trips on different days to get you the safest, maximum benefit (email me for more detailed info on this) 4) Pay your January 2016 mortgage or 2016 property tax in December. This allows you to use the mortgage interest paid or tax paid for 2016 on your 2015 tax return. This one is a bit of a balancing act though, use it in 2015 and you can't use that amount for 2016. This one only applies if you itemzie. There are many other deductions out there that not many people think about for their particular situation. If you'd like to run anything by me, shoot me an email and we can talk!

If you filed a 6-month extension earlier this year for your 2014 taxes, the October 15th deadline is coming up fast! If you have tax due the IRS or state and file AFTER the deadline, you can get hit with a "failure to file" penalty. The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late so this is something you want to address before you get hit with this or other penalties. More info on late to file or late to pay penalties can be found here on the IRS website: http://www.irs.gov//Failure-to-File-or-Pay-Penalties:-Eigh or you can always email me at: [email protected] if you have any questions.

Have you filed your federal tax return and want to know the status of you refund? It's easy to check, all you need is your SSN, filing status and anticipated refund amount. Start on the official IRS webpage here: http://www.irs.gov/Refunds and click on any of the links that say "where's my refund?"

Are you working overseas on an extended (1year +) employment contract? If you qualify you're able to exclude the first $99,200 in foreign earned income for 2014 AND use foreign tax paid to reduce your tax liability even further. Understanding the rules for this tax credit is vital. Whether it's your first year in working overseas or you've been doing this for a while don't let a small mistake disqualify you for this important tax credit! I specialize in tax returns where knowledge of the tax code surrounding the Foreign Income Exclusion (form 2555) is key. This tax credit probably has more confusion and misinformation than any other out there, I'm always happy to field questions that will help you understand how it can work for you.

Starting in tax year 2014, the Affordable Care Act sets penalties for not having healthcare insurance. For 2014, the penalty is the larger of 1% of your income OR $95 per year for adults/ $47.50 for children. There are ways to get this penalty removed, make sure your tax preparer knows how!