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2011 Deductions

Medical and Dental Expenses

Prescription medications

Health insurance premiums

Doctors, dentist, etc.

Hospitals, clinics, etc.

Eyeglasses and contact lenses

Miles driven for medical purposes:

Taxes

Real estate taxes paid on principal residence

Real estate taxes paid on additional homes or land

Auto license registration fees based on the value of the vehicle

Other personal property taxes

Interest Expenses

Home mortgage interest paid – 1098

Points paid on loan to buy, build or improve main home

Cash/Check/Credit Contributions & Noncash Charitable Contributions

Miscellaneous Deductions

Union and professional dues

Professional subscriptions, books, supplies

Uniforms and protective clothing (including cleaning)

Job search costs

Taxpayer educator expenses

Spouse educator expenses

Tax return preparation fees

Safe deposit box rental

Gambling losses (to the extent of gambling income)

Millionaires

The average car payment is $492/month for 63 months.  92% of new cars are financed or leased.  82% of millionaires have never leased.

What is EIC (Earned Income Credit)?

The earned income credit is a tax credit for certain people who work and have earned income under $48,362.  A tax credit usually means more money in your pocket.  It reduces the amount of tax you owe.  The EIC may also give you a refund.

Accounting for the next generation

Helping the next generation understand taxes.

Encourage kids and young adults to:

1. View a tax return and ask questions.  
2. Create a fun way to learn by giving them numbers.  See if they can put the right numbers in the right spot.
3. View the 1040 tax return on this blog's page 1.  Very simple way to remember the lines of the 1040.
4. Teach them why we pay taxes and why it is important to understand taxes.

If you would like a free copy of a blank tax return come in and ask.  We do accounting for the next generation.

Roth IRA

Safe from Bankruptcy.

What do you call an accountant without a spreadsheet?

Lost.

Do's and Don't mortgage loans

The do list

• shop for your loan
• interview real estate agents, mortgage brokers, lenders and other settlement service providers to find the best professionals for your loan and settlement needs
• be sure to read and understand everything before you sign anything
• accurately report your debts
• be honest about all sources of funds you will use to purchase your home
• be upfront about any credit problems you have or have had in the past
• be wary of unsolicited loan or refinance offers that you receive in the mail or through e-mail
• always pay your mortgage payment on time, even if you are having a dispute with your loan servicer
• if you are having problems paying your mortgage, contact your loan servicer immediately

The don't list

1. do not sign blank documents
2. do not overstate your income
3. do not overstate your length of employment
4. do not overstate your assets
5. do not change your income tax returns
6. do not list fake co - borrowers on your loan application
7. do not provide false documentation or permit someone to provide false documents about you

Purchasing a home steps

1. determine what you can afford
2. find a real estate agent
3. find a house and negotiate contract terms
4. sop for your loan - compare multiple GFEs
5. choose best loan for you
6. loan originator processes loan
7. have house inspected
8. shop for other service providers(title agent, attorney, escrow agent)
9. loan is approved
10. get insurances and do final walk through
11. go to settlement
12. move in

This information was from First Internet Bank of Indiana

Dependent

A child or other individual who can be claimed as a dependent on another person’s tax return must file a return if that individual’s income exceeds certain threshold amounts for earned or unearned income.

With respect to a dependent child or other individual who is neither age 65 or older, or blind, at the end of 2011 and for whom a dependency exemption is allowable to another taxpayer, a return must be filed for the 2011 tax year if the individual has:

·    Over $950 of unearned income;

·    Over $5,800 of earned income; or

·    A total of unearned and earned income which exceeds the larger of $950 or earned income (up to $5,500) plus $300.

With respect to a dependent child or other individual who is either age 65 or older, or blind, at the end of 2011, and for whom a dependency exemption is allowed to another taxpayer, a return must be filed if the individual’s:

·    Earned income exceeds his or her maximum standard deduction amount;

·    Unearned income is in excess of the sum of $950 plus additional standard deduction amounts to which he or she is entitled; or

·    Gross income exceeds the total of earned income up to the regular standard deduction amount or $950, whichever is larger, plus the applicable additional standard deduction amounts.

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