(254) 723-4270 [email protected]

2016 Automobile Mileage Rates

The IRS released the 2016 standard mileage rates for business, medical and moving in December. The rates have decreased from 2015, probably due to the decrease in the cost of gasoline.  Effective January 1, 2016, the standard mileage rates for the use of an...

Tax Deductible Expenses

I’m often asked if a particular expense is tax deductible.  Everyone is looking for a deduction!  In general, only expenses incurred in a trade or business (IRC §162) or those incurred in the production of income (IRC §212), will be deductible on an...

Social Security Benefits for Widows & Widowers

What happens to Social Security benefits when a spouse dies? Let’s use an example of Bill and Ann Jones. Bill and Ann are both receiving Social Security benefits when Bill dies suddenly of a heart attack. Ann can keep her own Social Security benefit payment or...

Social Security Benefits

Nearing retirement age?  Not sure when to start receiving your social security?  These are common questions among Americans in their 60s.  Unfortunately, due to insufficient savings, in 2014 Social Security provided 100% of the retirement income...

Tax Return For A Deceased Taxpayer

What are the income tax consequences if Grandpa dies on June 30, 2014?  If a taxpayer dies during the tax year, the IRS still expects a tax return to be filed on behalf of the decedent.  In general, it is the executor’s responsibility to ensure the...

SEP Plans

Many times I’m asked, “How can I reduce my tax bill?”  One of the best ways for small business owners to reduce their taxes is to create and contribute to a retirement plan.  There are many low cost options available for small employers; however, I...

Love Letter from the IRS?

What happens if you receive correspondence from the Internal Revenue Service?  In my experience, most taxpayers either panic or they ignore it.  The very worst thing you can do is ignore the letter! Trust me, the IRS won’t magically go away. The folks...

ABLE Accounts for Disabled Individuals

The Tax Increase Prevention Act of 2014 (TIPA), signed into law by the President on December 19, 2014, provides for a new type of tax-advantaged savings program to help meet the financial needs of disabled individuals called the “Achieving a Better...

Income Received For Serving as a Host Family

Question:  Are stipends taxable income for Federal income tax purposes?  The taxpayer has been serving as a host family for a foreign exchange student and has received monthly payments during 2014.  Should this income be taxable to the host family?...