Charities worth giving to in 2017/2018

As a tax professional, I often encourage my clients to give to charity to reduce their tax burdens.  Not only does it reduce your tax burden, but giving to charity is just the right thing to do.  There are many charities that do not do much good with the money that they are given, while others support worthwhile causes.  I took great pains to ensure that everyone on this list does what they say they are going to do.  Here are a few of my favorites (along with their mission statement):

Institute for Justice - Founded in 1991, the Institute for Justice (IJ) advances a rule of law under which individuals can control their destinies as free and responsible members of society. IJ litigates to secure economic liberty, school choice, private property rights, freedom of speech and other vital individual liberties and to restore constitutional limits on the power of government. IJ provides legal counsel to inner-city entrepreneurs, because their freedom to shape their own businesses directly affects their freedom to shape their own lives and communities. In addition, IJ trains law students, lawyers, policy activists and grassroots organizers in the tactics of public interest litigation and advocacy for liberty. Through these activities, IJ challenges the ideology of the welfare state and illustrates and extends the benefits of freedom to those whose full enjoyment of liberty is denied by government.

Georgia Goal Scholarship - Georgia Goal Scholarship gives children an opportunity to escape poorly performing schools and be able to get into better performing private schools.  The really cool thing about this scholarship is that you get a dollar for dollar tax credit of up to $1,000 on your Georgia state income taxes as well as the deduction on your federal taxes.  So you actually get paid to donate to this charity!

Atlanta Children's Shelter - Founded in 1986, the Atlanta Children's Shelter provides free, quality day care, emotional support, an educational curriculum for homeless children, and focused social services for their families. Dedicated to helping families overcome the issues that contribute to homelessness, including domestic violence and job loss, the Atlanta Children's Shelter focuses on the long-term self-sufficiency of the family - which sets us apart from other Atlanta homeless shelters. Since our opening, the Shelter has provided loving care for 8,000 homeless children and helped guide 5,000 homeless families to stable, self-sufficiency.

Atlanta Community Food Bank - The Atlanta Community Food Bank works to end hunger across metro Atlanta and north Georgia with the food, people, and big ideas needed to make sure all members of our community have access to enough nourishment to live a healthy and productive life.  We all need nutritious food to live the lives we imagine. Yet far too many people in our own community experience hunger every day, including children, seniors, and working families.  Through more than 600 nonprofit partners, we help more than 755,000 people get healthy food every year. Our goal is that, by 2025, all hungry people in our service area will have access to the nutritious meals they need when they need them. It takes the power of our whole community to make that possible.

St. Jude Children's Research Hospital - The mission of St. Jude Children's Research Hospital is to find cures for children with cancer and other catastrophic diseases through research and treatment. Research efforts are directed at understanding the molecular, genetic and chemical bases of catastrophic diseases in children; identifying cures for such diseases and promoting their prevention. Research is focused specifically on cancers, some acquired and inherited immunodeficiencies, sickle cell disease, infectious diseases and genetic disorders.

Homes for Our Troops - Homes For Our Troops (HFOT) is a privately funded 501(c) (3) nonprofit organization that builds and donates specially adapted custom homes nationwide for severely injured post - 9/11 Veterans, to enable them to rebuild their lives. Most of these Veterans have sustained injuries including multiple limb amputations, partial or full paralysis, and/or severe traumatic brain injury (TBI). These homes restore some of the freedom and independence our Veterans sacrificed while defending our country, and enable them to focus on their family, recovery, and rebuilding their lives. Since its inception in 2004, nearly 90 cents of every dollar has gone directly to our program services for Veterans. HFOT builds these homes where the Veteran chooses to live, and continues its relationship with the Veterans after home delivery to assist them with rebuilding their lives.

You may also check with your local zoo, aquarium, museum, or arts center.  Often times you can get an annual membership that allows you free entry into their (and sometimes their affiliates) facilities for a little more than the cost of a single ticket.  The membership is tax deductible, whereas the single day ticket is not.

Finally, I encourage you to invest in your own community.  Public (and some private) schools and churches are non-profit and gifts to them are tax deductible.  Before you give, make sure most of the money goes towards the cause.  All of these charities contribute at least 73% of their income towards their cause, most significantly higher.  There are many charities that have similar sounding names, but only an abysmal percentage of their revenue towards the cause.

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Simplified Document Solutions offers affordable tax and bankruptcy solutions to individuals from our Atlanta, Georgia based office.  Our office is located in Atlantic Station in Midtown Atlanta at 201 17th Street, N.W., Suite 300, Atlanta, GA 30363.  You can reach us at (678) 490-5841 or via email at 249bankruptcy@gmail.com.

Congress has designated Simplified Document Solutions as a debt relief agency.  Part of our business involves assisting individuals obtain affordable relief under the United States Bankruptcy Code.

10 end of the year tax tips that could save you big in 2017/2018!

As 2017 draws to a close, tax season will be upon us before you know it.  Whether you are expecting to get a big income tax refund or write a big check to Uncle Trump, the goal is always to pay as little in taxes as you are legally required to.  This year, there are a few things that are different or more important than other years, in large part because of the massive tax overhaul that is working its way through the legislature.  Whether some version of the bills become law or not is anybody's guess, but its always best to prepare for the worst and hope for the best!

Here are a few tips to help you save money on taxes:

1.  Pay any accrued interest on your student loans on December 29, 2017.  You have to pay Aunt Sally anyway, so cut your January check a little bit early to enjoy the interest deduction.  Generally speaking, you are allowed to deduct up to $2,500 of student loan interest paid during the calendar year 2017 (subject to income limits).  This deduction is one of my favorites because it is an "above the line" deduction so you will not be required to itemize your deductions to take advantage of it.  It may be out the window for 2018, so you should maximize it this year if you can.  ***Note: Some servicers acknowledge payments on weekends and you may actually be able to pay up until December 31, 2017.***

2.  Pay that property tax bill early.  One of the biggest deductions that homeowners enjoy is a deduction on taxes paid to their local and state governments.  That means not only income tax, but also property tax.  Depending on your county and/or municipality, the due date may be in 2018, but that does not mean that you can't pay them early to increase the deduction.  For those with very high property tax liabilities, this may also be the last year that your tax liability is virtually unlimited.  The bill working its way through Congress will limit the deduction to $10,000.  If you fall into a category that pays more than that in property taxes, pay all of the taxes that are going to be due in the early part of 2018 early and let's discuss ways to maximize this deduction in the future.  I have some ideas but it is dependent on your specific situation.

3.  Contribute to that IRA.  You can contribute $5,500 towards your IRA in 2018 for an above the line deduction.  If you are over the age of 50, you get an extra $1,000 (subject to income limits).  If you are a lower income taxpayer, you may also be eligible for a retirement tax credit of up to 50% of your contribution.  This is another of my favorites because you actually save taxes while saving for your future, it is above the line, and it allows you to contribute up until April 15, 2018 and still take the deduction for 2017.  This deduction also looks like it is on the way out, so take it now while it is still available.

4.  Buy a new electric car.  If you are in the market for a new car, an electric vehicle might be a good option for you.  The federal government is giving a tax credit up to $7,500 for the purchase of a new electric vehicle.  Some states also have an additional credit for state returns.  In addition, the sales tax (TATV) that you pay for the vehicle may also be deductible on your tax returns.  I do not encourage anyone to incur debt that they can't afford to take advantage of this credit.

5.  Pay your December mortgage early.  Along the same lines as paying property taxes and student loans early, you may be able to save a few bucks by paying your January mortgage payment in December.  Most lenders will give you credit for the interest paid on your 1099 for up to 13 months per calendar year.  This only works if you are itemizing your deductions.

6.  Give to your favorite charity or church.  Charitable contributions are deductible in the year that they were given.  There are many well-deserving charities that can truly improve the lives of you, someone you know, or even a complete stranger with the donation that you give them.  For every passion that you have, there is a charity for it.  Here is a list of our favorites.  Note: Non-cash donations in excess of $500 will need an appraisal.  This will only be a tax deduction if you itemize your returns, but I always encourage you to be charitable regardless of your tax savings.

7.  Start that business and work towards financial freedom.  If you are considering starting a business, money that you put in will probably reduce your income (thus reducing your taxes).  Since most businesses lose money their first year (especially if you start it this late), you will probably be looking at a loss. Starting a business is the hardest thing that you will ever do, but the rewards are priceless!  If you've always dreamed of being your own boss, you may want to consider it before the end of the calendar year.

8.  Get that medical procedure.  If your out of pocket medical care was more than 10% of your income, you can deduct that portion that exceeds 10% when you itemize deductions.  While not a tax savings, if you have already met your deductible, it might make sense to get it done now before your deductible starts over for the new year.

9.  Enroll in a health insurance plan.  It doesn't look like the Affordable Care Act is going anywhere anytime soon (again, I could be proven wrong).  For now, it's here.  President Trump took executive action to change the way that it was interpreted, which made health insurance premiums go up.  The good thing about the premium increase for people eligible for a subsidy, some plans may not cost you a dime!  Enrollment will not help you for the 2017 tax season, but since there is a small open enrollment period for the healthcare exchange (excluding a special enrollment in limited circumstances) so I thought it would be worth mentioning here because lack of health insurance could cost you big!

10.  Contact Simplified Document Solutions for a free consultation.  Simplified Document Solutions will take a look at your situation and offer a free, no-obligation consultation to discuss ways to reduce your tax liability from now until the end of the year.  Simply go to my website, www.249bankruptcy.com and schedule a tax consultation appointment at your convenience.  When you come in, please bring a copy of last year's tax returns.

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Simplified Document Solutions offers affordable tax and bankruptcy solutions to individuals from our Atlanta, Georgia based office.  Our office is located in Atlantic Station in Midtown Atlanta at 201 17th Street, N.W., Suite 300, Atlanta, GA 30363.  You can reach us at (678) 490-5841 or via email at 249bankruptcy@gmail.com.

Congress has designated Simplified Document Solutions as a debt relief agency.  Part of our business involves assisting individuals obtain affordable relief under the United States Bankruptcy Code.

Why you should chose a local tax preparer over H&R Block, Jackson Hewitt, or Liberty Tax Service

Often, people seeking assistance with their taxes take the path of least resistance and choose one of the “Big” tax services, such as H&R Block, Liberty Tax Service or Jackson Hewitt.  Let’s be realistic, they are convenient; they are everywhere and they are well known.  However, you should really consider using a smaller tax service.

1.       Many of the “Big Box” preparers are unfamiliar with the tax code.

Part of the reason that there is an H&R Block on every block and a Jackson Hewitt in every Wal-Mart is that they hire a ton of seasonal tax preparers every year.  This means that the people that they hire have little to no experience and very little training.  Once tax season is done, they will go back to looking for a job, presuming that they find a job, they won’t be back next year.  Some of the people are hired because they cannot find a permanent job.  Is this the person you really want with your sensitive personal and financial information?

 

2.      Local companies keep money in the community and bolster the economy all year.

Large tax companies are generally franchises that people can buy.  The person who owns the franchise must send hundreds of thousands of dollars to a large corporation in order to buy the franchise, purchase supplies from out of town companies, and send a percentage of their profits to the multinational company to pay overpriced CEOs.  With all of this money flowing out of the local community, the local economy struggles.  The struggling economy employs less people and creates an oversupply of employees, which reduces wages. 

Your local tax preparer spends money in the community, creating jobs and a tax base.  The tax money will be used to help build roads and help your local community.

Not only that, you will feel better about yourself if you support a local working class family, rather than a rich CEO.

 

3.      Your local preparer will be available all year long.

After April 15, the large tax offices close almost all of their offices.  There is no one there to go talk to if you have a question, get a letter from the IRS, need a copy of your tax return, or any other problem that may come up during the year.  When they re-open the following year, the person that is there will be a new face that is unfamiliar with you and your tax situation.

 

4.      Your local preparer may charge less.

Local tax preparers are part of your community.  They understand the struggles of the people in it.  We generally can’t afford expensive commercials, thousands of storefronts (which are vacant eyesores 2/3 of the year), or ugly green bowties, nor do we send a large part of our profit to someone else.  Who do you really think pays for that?  You do! 

 

How to choose a tax preparer

Choosing the right tax preparer is incredibly important.  Not only is the tax code complex, you are trusting all of your sensitive personal information to this person.  The person preparing your taxes must be trustworthy, intelligent, and experienced.  Making the wrong decision can cost you a lot of money, cause a major headache, and in extreme circumstances, will land you 3 hots and a cot in the Federal Pen.

Here are some suggestions on what to look for in a preparer (many of these are suggestions by the IRS, but I have added a couple of my own.

·  Check the person's qualifications. New regulations require all paid tax return preparers to have a Preparer Tax Identification Number (PTIN). In addition to making sure they have a PTIN, ask if the preparer is affiliated with a professional organization and attends continuing education classes. The IRS is also phasing in a new test requirement to make sure those who are not an enrolled agent, CPA, or attorney have met minimal competency requirements. Those subject to the test will become a Registered Tax Return Preparer once they pass it.

Note:  Charles M. Langevin, Jr. of Simplified Document Solutions has been preparing taxes for many years and has completed the IRS’ AFSP Program.

·  Check the preparer's history. Check to see if the preparer has a questionable history with the Better Business Bureau and check for any disciplinary actions and licensure status through the state boards of accountancy for certified public accountants; the state bar associations for attorneys; and the IRS Office of Enrollment for enrolled agents.

Note:  Simplified Document Solutions is a BBB accredited business with no complaints and an A- rating.

·  Find out about their service fees. Avoid preparers who base their fee on a percentage of your refund or those who claim they can obtain larger refunds than other preparers. Also, always make sure any refund due is sent to you or deposited into an account in your name. Under no circumstances should all or part of your refund be directly deposited into a preparer’s bank account.

Note: Simplified Document Solutions offers one of the lowest service fees in the Atlanta area.

·  Ask if they offer electronic filing. Any paid preparer who prepares and files more than 10 returns for clients must file the returns electronically, unless the client opts to file a paper return. More than 1 billion individual tax returns have been safely and securely processed since the debut of electronic filing in 1990. Make sure your preparer offers IRS e-file.

Note: E-file providers must be fingerprinted and go through a FBI criminal records searc to become an authorized E-file provider.  Simplified Document Solutions is an IRS e-file provider. 

·  Make sure the tax preparer is accessible. Make sure you will be able to contact the tax preparer after the return has been filed, even after the April due date, in case questions arise.

Note:  Simplified Document Solutions is open year-round and helps people with both taxes and bankruptcy throughout the year.  DON’T USE SOMEONE YOU MEET AT STARBUCKS!

·  Make sure the preparer has a secure office space.   The IRS still requires that preparers print out sensitive taxpayer information and maintain signed copies.  If an unauthorized person obtains access to your information, your identity could be compromised.  Storefronts with large glass windows do not provide sufficient protection against identity thieves.

Note:  Simplified Document Solutions takes protecting your information seriously.  After-hours access to our office requires the use of electronic access cards in three places, a regular key to get into the office and another key for the file cabinets.  There is only one person with access to all of these access points.  Our electronic files are protected by a world class firewall.

·  Find someone with sufficient experience preparing taxes.  Tax preparation is a seasonal business.  Unfortunately, that often means that the person that is hired in the big tax stores are often unemployed people who are just there to make a quick buck.  They have little to no training, have not had sufficient inquiry into their background, and will only be there one season. 

Note:  Charles Langevin is very experienced and is really the only one that will be handling taxes at Simplified Document Solutions.  We do not hire seasonal people with no experience.

·  Provide all records and receipts needed to prepare your return. Reputable preparers will request to see your records and receipts and will ask you multiple questions to determine your total income and your qualifications for expenses, deductions and other items. Do not use a preparer who is willing to electronically file your return before you receive your Form W-2 using your last pay stub. This is against IRS e-file rules.

·  Never sign a blank return. Avoid tax preparers that ask you to sign a blank tax form.

·  Review the entire return before signing it. Before you sign your tax return, review it and ask questions. Make sure you understand everything and are comfortable with the accuracy of the return before you sign it.

·  Make sure the preparer signs the form and includes his or her preparer tax identification number (PTIN). A paid preparer must sign the return and include his or her PTIN as required by law. Although the preparer signs the return, you are responsible for the accuracy of every item on your return. The preparer must also give you a copy of the return.

Employers Should Expedite W-2's; Here's Why!

January is here and employees are turning their thoughts from the holiday season to tax season.  In order to properly file their taxes, people are waiting for W-2's, 1099's, 1098's and other tax forms that must be provided by the companies that they work with or pay throughout the year.  In most cases, these companies are required to provide them no later than January 31, however, they are not required to wait that long, and in most cases it just doesn't make sense to.

• Providing tax documents early is easy;

Just about every employer, mortgage company, student loan servicer, bank, brokerage firm, and other company that issues tax forms uses a computer to track the appropriate information.  Years ago, when everything was done by paper and pencil, it took the entire month to calculate everything, that is simply not the case anymore.  These things can be generally be complete on January 1 simply by pushing "print all."  Why wait until tomorrow to do what you can do today?

 

• Providing tax documents early may keep you out of trouble with the IRS;

If you fail to file W-2s on time, the IRS can assess a penalty of $30 per W-2 if you file the correct form within 30 days of the due date. If you file between 30 days of the due date and August 1, the fine increases to $60 per form, with a maximum fine of $500, or $200 if you operate a small business. Failure to file forms by August 1 results in a fine of $100 per W-2, or $500 a year for small businesses and $1,500 annually for others. Small businesses are those with gross receipts of $5 million or less for the three most recent tax years.

• Providing tax documents early makes your employees happy;

I know many business owners dread tax day because they owe taxes.  However, for many of your employees (especially those not being paid much), they get refunds (some quite large) and they rely on these to support themselves.  I have seen people get most of their income just from their income tax refund.  Consider this, some people will take their tax refund to prevent eviction from their home, repossession of their vehicle, shutoff of their utilities, and to pay off a high interest credit card.  In these cases, filing early is not just convenient for the employee, it is necessary.  Even the employees that will wait until the last minute won't mind you getting them the documents early.

• Providing documents early saves you money;

For those employers still utilizing paper paystubs and W-2s (I encourage using electronic delivery so your employees don't have to bother you when they need paycheck stubs and W-2s for their financial transactions.); you can send out the W-2s with the first paycheck stub of the New Year, saving postage and envelopes.  This may seem like a small expense, but if you have several employees, this may be hundreds of dollars per year.

• Providing documents early may reduce employee theft;

I wish I could tell you that every employee is honest and upstanding.  Statistics show that most theft in a business environment is caused by employee theft.  Even those who are honest may be tempted to steal if they are facing losing their home or car or getting utilities cut-off.  We all have an instinctive survival instinct for ourselves and our families.  You don't know the financial situation of those working for you.  Will an early tax refund save them some pain?  Maybe.  Is the chance of reducing the risk worth the small amount of extra effort to expedite your tax refund?  I think so.

 

 

 

Simplified Document Solutions provides professional tax preparation and support for individuals, as well as bankruptcy support, and educational representation and consulting.  We can be found online at www.249bankruptcy.com or www.simplifieddocumentsolutions.net. 

 

Our office is conveniently located just north of Atlanta's Hartsfield-Jackson International Airport at 100 Hartsfield Center Pkwy. Suite 500, Atlanta, GA 30354.  We can be reached by telephone at (678) 490-5841 or via email at 249bankruptcy@gmail.com.

5 Simple Actions to Reduce your 2014 Tax Liability and Increase your Refund!

           With only a few days left in 2014, it may seem like there is nothing that can be done with such short notice to reduce your tax liability.  This is simply not true.  While you can’t change how much income you made over the course of the year or increase your tax withholdings that were set too low over the course of the year, there are some small things that you can do to reduce your tax liability and/or increase your tax refund before the end of the year.

           All of these things may not be a good idea for everyone.  Whether these things are best for your situation depends on your past tax years, your current tax situation and income, and your expected tax situation next year.  If you are unsure if something is a good idea, it might make since for you to contact an experienced tax professional before making any moves.

• Pay Your Student Loan Interest:

            This is one of my favorite moves since it is pretty easy and you don’t hear about it very often.  Student loan interest is deductible up to $2,500 per year, even if you don’t itemize your deductions (subject to income requirements).  I generally pay the accrued interest on my student loans on December 30 to reduce my income for that calendar year.

• Pay Your January Mortgage Payment:

            If you do itemize your deductions, one of the biggest deductions is your mortgage interest.  Pay your January mortgage (that you have to pay anyway) in December to increase the amount of interest you pay in this calendar year.

            NOTE REGARDING MORTGAGES:  During the 2012 & 2013 tax seasons, a problem started showing up.  People who had always itemized their deductions suddenly realized that it no longer made financial sense to do so.  This was due to mortgage modifications that drastically reduced their interest rates.  To those that got mortgage modifications early in the year or late last year, you might find that it doesn’t make sense to itemize anymore due to the drastic decrease in mortgage interest paid.  It’s not all bad, if you are one of these people, you are probably saving a lot of money on a monthly basis, even if it means Uncle Sam gets a little more at the end of the year!

• Donate to Charity:

            Have you noticed that charities are pushing for money this time of year?  Not only are people in a more giving mood around the holidays, they are also looking to decrease their tax liability.  Since you can donate to most charities and churches through their website, you can really do this up until the clock strikes midnight on New Years.

            If you don’t have money to give, you can go through your closet to see if there is something that can be given to Goodwill or Salvation Army to be sold in one of their thrift stores.  They will give you a 2014 receipt as long as you can get it to them before they close on December 31.  This might give you a chance to reduce those overflowing closets after Santa gave the kids all of those new toys.

• Invest in an IRA:

            IRAs are a great investment tool to plan for your retirement in the future and reduce your current tax liability.  Most people can deduct a contribution up to $5,500 per year to an IRA and you don’t have to itemize your taxes to do it.  For certain low-income taxpayers, you may also be eligible for a credit of a portion of the contribution.  So you get to take it twice!  An added benefit of this contribution is that you have until April 15 to contribute and you can even use your tax refund to contribute.  Please contact an experienced tax professional to get more information on how to maximize your contribution.

•     Time your invoices:

           

            If you are self-employed, time your invoice to reduce your tax liability.  For those who have had an unusually good year, you might want to send out your last invoice to your clients after January 1.  If you have had a bad year financially and you expect to do better next year, get your invoices out now so you make more income this year.

Simplified Document Solutions provides professional individual tax preparation by an experienced and IRS Certified tax preparer for a fraction of the cost of the competition.  You can reach Simplified Document Solutions by telephone at (678) 490-5841 or you can schedule an appointment online by going to www.simplifieddocumentsolutions.net or www.249bankruptcy.com.  Like our Facebook page for specials.

                                                                                                          

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