Claiming your parent or a relative as a dependent

Are you your parent caregiver and always wanted to know if you could claim your parent as a dependent? 

Answer:

You may claim your parent as a dependent if you meet the following IRS tests:

1. You're not a dependent of another taxpayer.
2. Your parent, if married, doesn't file a joint return, unless your parent and his or her spouse file a joint return only to claim a refund of income tax withheld or estimated tax paid.
3. Your parent is a U.S. citizen, U.S. national, U.S. resident alien, or a resident of Canada or Mexico.
4. You paid more than half of your parent's support for the calendar year.
5. Your parent's gross income for the calendar year was less than the exemption amount.
6. Your parent isn't a qualifying child of another taxpayer.

Relatives who don't have to live with you. 

A person related to you in any of the following ways doesn't have to live with you all year as a member of your household to meet this test.

1. Your child, stepchild, foster child, or a descendant of any of them (for example, your grandchild). (A legally adopted child is considered your child.)
2. Your brother, sister, half brother, half sister, stepbrother, or stepsister.
3. Your father, mother, grandparent, or other direct ancestor, but not foster parent.
4. Your stepfather or stepmother.
5. A son or daughter of your brother or sister.
6. A son or daughter of your half brother or half sister.
7. A brother or sister of your father or mother.
8. Your son-in-law, daughter-in-law, father-in-law, mother-in-law, brother-in-law, or sister-in-law.

Surprisingly, any of these relationships that were established by marriage aren't ended by death or divorce.

TAX DEDUCTIONS HOMEOWNERS SHOULD KEEP IN MIND

New homeowners do not know how lucky they are to be able to write off mortgage interest and property taxes. Galloway Tax Express want our clients to take advantage of all tax benefits as a homeowner with the following tips.

Homeowner Mortgage Interest

This is the most common homeowner tax deduction. This includes equity loan, home improvement loan, and points. If you have a first or second home you may be able to deduct that interest up to $1 million dollars in loan value.

     

Equity Loan Interest

 You may be able to deduct some of the interest from your home equity loan, however, limited to the smaller of $100,000 or the total of your home’s value minus the outstanding debt.

Home Improvement Loan Interest
Home improvement loan interest can be deductible up to $100,000. The loan must be for capital improvements and not simple repairs. Capital improvements is something that will make your home value increase or change the way you can use your home. Examples of capital improvements include:

• Porch
• Insulation
• Built In Appliances
• Roof
• Fence
• Garage
• Landscaping
• Deck
• Swimming Pool
• Heating
• Cooling

Home Purchase Points
If your home purchased or refinanced was your primary home, you may be able to write off the points from that loan with the point from a second home being spread out over the life of the loan.

Homeowner Home Property Taxes
Almost always, state and local taxes are deductible in states, whether paid in escrow or to the state.

Home Office Tax Deductions
Home offices may be able to deduct costs related to that portion of your home. However, must be used exclusively as your place of business or as the storage for samples and inventory.

IRS Face-To-Face Help Is Now By Appointment

Taxpayers who need in-person help from an IRS Taxpayer Assistance Center (TAC) need to call to schedule an appointment. All TACs provide service by appointment only now. They are an essential service the IRS provides when a tax issue cannot be resolved online or by phone.

If face-to-face service is necessary, then taxpayers should call 844-545-5640 to schedule an appointment. .

The Contact Your Local Office tool on IRS.gov helps taxpayers find the closest IRS TAC, the days and hours of operation, and a list of services provided.  

Taxpayers should consider the self-service options on IRS.gov before calling for an appointment. Many questions can be resolved online without taxpayers having to travel to a Tax Assistance Center. Publication 5136, the IRS Services Guide, has additional information about where to find help.

Additional help for taxpayers

Answering a tax question:

• The Interactive Tax Assistant asks the taxpayer a series of questions and provides answers based on their input.
• IRS Publication 17 covers a broad range of topics and updates on tax law changes.
• The IRS Tax Map finds all the relevant tax information needed in one place.
• The IRS mails millions of letters every year. Each one deals with a specific issue and provides specific instructions on what to do so careful reading is essential.

Checking on a refund status:

• Use the “Where’s My Refund?” online tool to check the status of a tax refund.
• Call 800-829-1954 anytime, to access the audio version of this tool.
• Taxpayers should have their Social Security number, filing status and exact refund amount ready.

Making a payment:

• Use IRS Direct Pay on IRS.gov - a free, secure electronic payment method from a checking or savings account.
• The Electronic Federal Tax Payment System has online and phone options.
• Pay in a single step by using tax software when e-filing.
• Taxpayers can pay online, by phone or with a mobile device using the IRS2Go app. Get instant payment confirmation.
• They can view their balance online or refer to the information in the notice they received to determine the amount owed. They can also access their tax account to view recent payment history.
• Make a cash payment in-person at more than 7,000 retail stores nationwide.
• Mail a personal, cashier’s check or money order but never send cash. Make it payable to “U.S. Treasury” along with a completed Form 1040-V, Payment Voucher.

Getting Forms & Publications:

• View, download and print federal tax forms and publications anytime. Dozens of IRS publications are available for download in ePub format.

Galloway Tax Express advises all taxpayers to be aware of scams and avoid scams. Please know and remember, the IRS does not initiate contact using social media or text message. First contact normally comes in the mail. Those wondering if they owe money to the IRS can check to see if they have a balance due on IRS.gov.  

Questions to Answer Before You Retire

After 30 years or more of working, retirement might no longer seem like a far-off goal. Before quitting the grind, however, you’ve got to be realistic about what your retirement is really going to look like and how well you’ve prepared for it. Answer these questions to make sure you’re really ready:

Is this the right time for me? The answer to this question will depend not only on your age and your health but also on your financial status and your happiness at work. Putting off retirement for an extra year or two can make a huge difference in your nest egg—you’ll continue putting money into your retirement accounts during that time and reduce the number of years you’ll have to draw them down.

Are my spouse and I on the same page? If you’re married, it’s important that you and your spouse talk through your retirement plans before you stop working, to make sure you’re both envisioning a similar lifestyle and timeline. If you don’t want to or are unable to stop working at the same time, talk about what life will look like when one of you is retired and the other is not.

Where will I live? If you’re still living in the home where you raised your family, it might make sense to consider downsizing before you retire. Moving into a smaller home, or one in a less expensive area, can be a great way to make your retirement funds last a little bit longer. Since you won’t be tied to your office, retirement is also a chance to relocate to a region where the weather is better or that’s closer to your grandchildren. Look for a home that offers universal design elements, which will allow you to remain there even as you age.

Have I saved enough money? The amount of money you need varies widely, depending on the retirement you’re envisioning. If you haven’t run the numbers to make sure that your nest egg will last through retirement, it’s important to do so before you officially quit working. A Certified Financial Planner^® professional can give you a realistic sense about whether you’re adequately prepared and provide you with some options on how to tweak your plan if it appears that you’re going to fall short.

How will I get health insurance? If you’re not old enough to qualify for Medicare, you’ll need a plan for securing health insurance until you turn 65. This year, that might have meant purchasing an individual plan through the Affordable Care Act exchanges. Those exchanges might or might not exist after regulatory changes in the next few years, but you’ll still need to plan on buying private insurance to cover health care costs.

What will I do every day? While the idea of golfing or gardening year-round sounds appealing, you’ll likely tire of even your favorite hobby after a few years. Consider whether it makes sense (financially or otherwise) to continue working part-time, or if there are other interests you might like to pursue with all your new free time.ll products and services featured are based solely on editorial selection. TIME may receive compensation for some links to products and services on this website.

Bookkeeping Tips

2017 Rules for Summer hires: Hiring the owners' children

Hiring the owners’ children of any age

·         Can work any number of hours or time of day. No one under 16 can do hazardous work (e.g., with lawn mowers, sewing machines), work near flammable or hazardous materials, or where food is cooked.

·         If all employees are immediate family, owners’ children need not be paid the minimum wage—but if others are regularly employed, even family must be paid the minimum wage.

Hiring the owners’ children under 21

·         Wages are exempt from FUTA.

 

Hiring any children under 18

·         If the business is 100% parent-owned, the children under 18 are exempt from FICA.

·         If not the owners’ children, obtain an age certificate that is recognized by both the  U.S. Department of Labor (DOL) and your state Wage and Hour Division (WHD). DOL often accepts state age certificates, but ask your state or local WHD to be sure. Return the certificate to the worker at termination.

·         These workers may not do hazardous work.

Hiring workers aged 14-15 who are not the owners’ children

·         Can work 8 hrs./day, 40 hrs./wk, June 1-Labor Day, between 7 a.m.-9 p.m., if school is not in session. Exceptions: Limits do not apply to news carriers or children who are employed exclusively by a parent/sole proprietor. For agricultural jobs, contact the DOL.

Hiring children under 14

·         Cannot be hired unless they work for a parent/sole owner.

 

Always check your state laws.

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Giving you the experience you need in a tax preparation company

Reasons we give to trust Galloway Tax Express

Our company is here to help you and your business. From any bookkeeping needs to tax planning for your business. We're here to help you achieve your business goals.

The key to success in any business is being able to obtain information to assist all clients. Therefore, our services are offered through the NEW model of bookkeeping, remote. Yes, by outsourcing your bookkeeping with us, we will keep your books up-to-date remotely. It does not matter where in the U.S. you are we can help you remotely.

We have designed our services to complete bookkeeping task as efficiently as possible. We handle your taxes, payroll, and bookkeeping so you can run your business. We prepare personal, business, for profit, payroll returns and all state tax returns that are required for you as a business or individual. 

We are ready to help you get back to your business while we do all the work. Our bookkeepers are certified and stay current with continuous certifications and seminars to ensure we are up-to-date on all of the newest information, laws, regulations, and techniques in our field to help you with all your business planning.

Monthly Reporting 
We offer help with simplified monthly reports and statements to provide a quick and accurate picture of your business activity by utilizing QuickBooks software. Monthly Operating Statements We Present your monthly breakdown of sales, cost of sales and expenses; also called a Profit and Loss Statement. All monthly operating expenses in one place by one bookkeeper.

Balance Sheet 
We summarize all your total business assets, liabilities and net worth at a given point in time so you can make decisions about capital expenditures or how to improve profits. Overall, we help you balance your business.

Bank Reconciliation 
We carefully comparison and proof of your bank account statement with your checkbook balance on a monthly basis to ensure you are working with the correct total amounts for your monthly business bank account.

Need assistance with your tax planning? We've got you and your business goals and objectives in mind. You and all your tax planning needs are in expert hands. Leave it to us.

We provide comprehensive tax planning and preparation of all tax returns. . . . federal, state, local and all payroll taxes ....we prepare whatever is necessary to protect your interests, save you time, money and discuss your return with you prior to the filing. We also help you by paying extra attention to your situation, whether individual taxpayer or business taxpayer. We have all the IRS gov forms needed to prepare your tax return.

Self-employed?
 We understand owning you own business can put a lot on you. We prepare and file all your contractor 1099-Misc for you at an affordable and convenient price. We also have IRS gov tax forms needed for you to file your IRS gov forms along with the IRS gov forms publications.

Contact our office to make an appointment. 

Paperless tax return solutions

Choose Galloway Tax Express and Go Paperless

Do you get tired of receiving so many tax papers after getting your tax return completed? We have a solution! We have a paperless solution to the issue. When you come to us and get your tax return done, we will deliver your tax return to you through email.

The benefits you receive:

1. Less paper clutter
2. No more looking for tax return
3. You can look in your email for your tax return whenever you need it
4. Confidence that your tax return is safe and secure in your care after tax season
5. Never loose your tax return again

Visit our website to learn more www.gallowaytax.com