Five Steps to Get Your Taxes Done Timely

Helping taxpayers meet their tax obligations in a timely manner is what I like to do and here at http://civelazquezea.com/ you can contact us for a free consultation. Its a five step process as follows: 1. Visit our website above 2. Call or complete the contact form 3. Set up an appointment before the deadline of 4/15/2014 4. Gather all your documents and bring them to us to prepare your taxes 5. Get your refund timely and if you owe, we can set up an installment agreement immediately. Get your personal and

business tax returns filed timely. Get an installment agreement, resolve collection or audit issues on a timely basis and stop the interest from accumulating. Interest is calculated on a daily basis. See how you can save on this year's tax return, audits, collections and more. Complete the contact form and you will be contacted.

Important Tax Changes for Tax Year 2013

The due date of the return is April 15, 2014 for tax year 2013....

Learn what are the important Tax Changes for 2013:

1.  Income Limits increased for Excluding Education Savings Bond Interest: 
Married Filing Joint taxpayers or Qualifying Widow(er) taxpayers whose modified AGI is between $112,050 and $142,050.  If the modified AGI is $142,050 or more, no deduction is allowed. Single and H of H filing statuses, the interest exclusion is phased out for taxpayers whose modified AGI is between $74,700 and $89,700.  If the modified AGI is $89,700 or more, no deduction is allowed.

2.  Standard Deduction Increases: If you don't itemized deductions on Schedule A (Form 1040) then the deduction is as follows: $12,200 - Married Filing Jointly or Qualifying Widow(er) $8,950 - Head of Household  $6,100 - Single or Married Filing Separately.
Taxpayers who are 65 or older or are blind: $1,200 - Married Filing Jointly, MFS or Qualifying Widow(er) $1,500 - Single or H of H

3.  Expiration of Temporary Decrease in Employee's Share of Payroll Tax:  For 2013, social security tax is withheld from an employee's wages at the rate 6.2% up to the social security wage limit of $113,700.  There is no change to Medicare withholding.

The same change applies to net earnings from self-employment - the rate returns to 12.4% up to the social security wage limit of $113,700/

4.  Exemption Amount:  The amount a taxpayer can deduct for each exemption increased to $3,900 for 2013.

5.  Earned Income Credit (EIC) Amount of Credit Increased:
For 2013, the maximum credit is:

• $6,044 with three or more qualifying children
• $5,372 with two qualifying children
• $3,250 with one qualifying child
• $487 with no qualifying child

6.  Earned Income Amount Increased:  To be eligible for a full or partial credit, the taxpayer must have earned income of at least $1 but less than:

• $46,227 ($51,567 if MFJ) with three or more qualifying children
• $43,038 ($48,378 if MFJ) with two qualifying children
• $37,870 ($43,210 if MFJ) with one qualifying child
• $14,340 ($19,680 if MFJ) with no qualifying child

7.  Investment Income - Taxpayers whose investment income is more than $3,300 cannot claim the EIC.

If you need additional information you can go to IRS.gov website or visit us at http://civelazquezea.com for additional tools and calculators available and for a free consultation for completing your tax return for this new tax year 2013!

How To Share WakeUpNow

Look over this video and learn how to share and earn how to share the business what WakeUpNow can be for you.  You can enjoy lots of freebies, tools for this year's taxes, wellness program, budget and debt consolidation.  Learn how to by joining today at http://civela53.wakeupnow.com  Don't wait any longer start living the life you deserve and start saving for the better things in life you deserve by becoming a business owner here at Wake Up Now

2014 Federal Income Taxes that you will pay!

Here’s what you will be
paying in Federal Income Taxes as
of the new tax year!

The “Tax Brackets” for 2014 will be
10%, 15%, 25%, 28%, 35% and 39.6%. ...

YOUR Federal Tax Rate is determined
by your Adjusted Gross Income, or AGI
(total income, minus all deductions).

Here are the breakdowns…

AGI = Over $1 but not over $18,150
TAX = 10% of the total AGI

AGI = $18,151 through $73,800
TAX = $1,815 + 15% of all over $18,150

AGI = $73,801 through $148,850
TAX = $10,162.50 + 25% of all over $73,800

AGI = $148,851 through $226,850
TAX = $28,925 + 28% of all over $148,850

AGI = $226,851 through $405,100
TAX = $50,765 + 33% of all over $226,850

AGI = $405,101 through $457,600
TAX = $109,587.50 + 35% of all over $405,100

AGI = More than $457,600
TAX = $127,962.50 + 39.6% of all over $457,600

SAMPLE CALCULATION:

A millionaire (AGI = $1-million) will pay
$342,752.90 in Federal Income Taxes.
Now, do you STILL think the rich don’t pay
their fair share of taxes?See More

For more information you can visit the IRS.gov website

or visit http://civelazquezea.com for updates and calculators

and much more to help you through this new tax year!

 

Need to learn how to prepare your own taxes? You can

learn as you go along by completing the contact form at

the website above. 

Five Sections of a Tax Return

Learning About Your Tax Return Form 1040

·        ·        } Section 1: The Entity} This section includes the following:} • Primary taxpayer name} • Secondary taxpayer name (if married)} • Address} • Social security number (SSN)} • Household circumstances or filing status

·        } Filing Status} There are five filing statuses. Single, Married Filing Joint, Married Filing Separate, Head of Household and Qualifying Widower.} Exemptions} List the names, SSNs, and relationship of the individuals are entered in this section of the return.} Considerations} An incorrect or missing SSN can increase the taxpayer’s tax, reduce the refund, or delay the refund.} You must understand the five filing statuses in order to correctly choose the one that gives you the lowest tax.

·        } Exemptions - Reduces the amount of the your taxable income.} You may also elect to have $3 applied to the Presidential Election Campaign Fund. This election does not change the amount of a refund.

·        } Section 2: Income Section} This section consists of:} • Income} • Adjustments to income} • Adjusted gross income} A critical component of completing your return is distinguishing between taxable and nontaxable income, and knowing where to report the different types of income on Form 1040.} The Total Income received minus the Adjustments to Income equals the Adjusted Gross Income or AGI.

·        } Considerations} Gross income is all income received in the form of money, goods, property, and services that are not exempt from tax. It includes income from sources outside the United States, even if the income can be excluded once it is reported.} Incorrect computations and failure to report “all income” are common filing errors.

·        } Section 3: Tax and Credits} This section will calculate your taxable income and tax based on the:} • Your standard or itemized deductions} • Number of exemptions claimed} Alternative Minimum Tax (AMT) .} Credits} These credits (must meet eligibility requirements) may reduce your tax by taking the credits listed in this section.} If the total of the credits exceeds the tax amount, the overage is not refunded to you. Thus, these tax credits are referred to as nonrefundable credits.

·        } Considerations} You are required to retain records used to prepare your return. You should keep these records and a copy of your return until the statute period for the return has expired (three years from the date you filed your return).} Some credits, such as Earned Income Credit (EIC) and Additional Child Tax Credit, are not listed in this section because they are refundable credits and are included in the payments section.

·        } Section 4: Payments} This section is where you report payments and refundable credits.} Refundable credits reduce the total tax liability and will result in a refund if the payments exceed the total tax. The Earned Income Credit and Additional Child Tax Credit are refundable credits.} The most common prepaid payment is federal income tax withheld from Form W- 2, Wage and Income Statement.} Refunds} When the total payments are more than the total tax, you are due a refund. This is figured and claimed in the Refund section.} Amount You Owe} When the tax amount exceeds payments, you have a balance due. This is calculated and entered in the section entitled Amount You Owe. This section also includes the estimated tax penalty.

·        } Considerations} Certain credits and payments can only be listed on Form 1040.} Refund options} Direct Deposit information into checking or savings accounts, savings bond purchases, and split refunds.} Estimated tax payment information (when applicable).} Balance due} There are several payment options that you have when you owe an amount.

·        } Section 5: Jurat} This section is the final step in the return preparation process.} Third Party Designee} You can give the IRS permission to discuss your return with someone else (a third party). The Third Party Designee can be anyone including a friend, family member or another person.} Signature} By signing your return, you declare that the information reported (including attached schedules and statements) is true, accurate, and complete. Both you and your spouse must sign a Married Filing Jointly return.} Paid Preparer} Paid preparers are required to identify themselves at the bottom of the return. For VITA/TCE, the Site Identification Number (SIDN) will appear in this section.

·        } Considerations} Third Party Designee and Paid Preparer} For VITA/TCE program purposes, this section will contain the VITA/TCE Site Identification Number (SIDN). You should ensure that the returns they prepare contain their site’s correct SIDN. The volunteer preparer cannot be the third party designee.} Missing signature(s)} Failing to sign the return is a common error made by taxpayers. When the IRS receives an unsigned return, processing is suspended and a letter is issued to the taxpayer requesting a signature. Processing continues when you furnish the signature to the IRS.

·        } Summary} There are 5 Sections on a Tax Return (Form 1040) that you should be familiar with before preparing your return:} Section 1 – Entity its where your name, address, SSN, Filing Status and Exemptions} Section 2 – Income where you report all your income from all sources and Adjustments to Income which reduce your total income.

·        } Section 3 – Tax & Credit + Other taxes} Section 4 – Payments – Refund/amount owed.} Section 5- Jurat – Signatures section of the Form 1040.} Once you learn about the 5 sections stated above you are ready to prepare your own tax return. You can perform research or find additional information at www.irs.gov and all forms and instructions are available online. There are also free file sites available on the website above for those that qualify.

·        } For additional information you can contact:} Carmen I. Velazquez, Enrolled Agent} Cell: 321-439-3739} Visit my website: www.civelazquezea.com} We can assist you with return preparation for you personally or your business.} You can also send an email to: civelazquezea@gmail.com } January 2013 } PowerPoint #2