IT’S YOUR STIMULUS CHECK FOR CRYING OUT LOUD!@!%

blah blah blah

Ahhhhhh- felt so good to say that!

Our phone and email inbox are being flooded by panicking herds with reactions ranging from surprise to serious accusations of negligence!

MY REFUND WAS LOWER THAN YOU QUOTED!!!!

SOMEONE DEPOSITED $$$ INTO MY ACCOUNT!!!

MY REFUND WAS MORE THAN YOU QUOTED!!!

my humble response…..

STOP BINGE WATCHING, GET YOUR PHONE OUT OF YOUR FACE AND PAY ATTENTION!!!! DON’T ANY OF YOU READ THE NEWS ???!!! IT’S YOUR STIMULUS CHECK!!!!!

Thank you ūüôā

Nice Try – Enjoy Your Audit in 2 Years

audit

With the removal of job expenses under tax reform I have seen this scheme just like I predicted after the new tax laws were passed. It’s summed up in one really lame statement I heard:

“I make myself a 1099 worker by filing exempt from tax withholding for my W2 job and then claim all my travel expenses on a Schedule C, Self Employment Form. All my friends do it!!”

Nice try…..

Creative Record Keeping

receipts

In a December 2017 tax court case in Canada, the taxpayer was asked to supply documentation for his expenses. The court record states:

…..In the course of the audit of the Corporation, the Appellant was asked to provide records to show the amount of the expenses which he said he had incurred for the Corporation. He gave the auditor three grocery bags of unsorted receipts. When he was asked to organize the receipts into some sort of coherent order, he said that he was unable to do so. The Appellant admitted in cross-examination that his record keeping was¬†‚Äúshoddy‚ÄĚ.

ūüôā

Student Loans and Tuition Tax Credits/Deductions

One thing I have never understood is why some clients believe they cannot claim tuition on their tax return if they receive the funds from student loans. At the same time, they will take out a loan to buy a car and be very forthright about claiming the sales tax.

I guess it’s a misunderstanding of how things are paid.¬† When someone loans you money,¬† your obligation to repay that loan is instantaneous¬† regardless of the fact that you negotiate¬† a payment frequency and an end point¬† for those payments.¬† I guess some¬† would surmise that they could not¬† deduct the tuition immediately,¬† but over the life¬† of the loan.¬† If that was the case,¬† they would have to keep track of every principle payment¬†they make to determine¬† the amount of tuition they can deduct.¬†¬†That would¬†be a huge administrative burden on the¬†IRS to track.

With tuition,¬† the only time the source of funds becomes an issue is when it comes from¬†scholarships, grants¬† and any other source of tax free, unearned¬†funds.¬† Otherwise,¬†whether¬†you get the tuition money¬† from a loan or¬†a gift from Aunt Sue,¬† it’s the payment of the tuition that triggers the¬† deduction.

Digress to a Rant #1

Digress to a Rant #1

It amazes me that some people like¬†working as an independent contractor¬†because “they¬†don’t take taxes out” ……… That euphoria ends when I have to tell them how much they owe which commences the¬†obligatory rage¬†that the contractor screwed, tricked {Insert your own expression of surprise} them into doing it that way.