Simsbury Accounting Tips

- Be cautious of tax preparers who claim they can obtain larger refunds than other preparers.

- Avoid preparers who base their fee on a percentage of the refund.

- Consider whether the individual or firm will be around to answer questions about the preparation of the tax return months or even years after the return has been filed.

- Check the person's credentials. Only attorneys, certified public accountants (CPAs) and enrolled agents can represent taxpayers before the IRS.

- Find out if the preparer is affiliated with a professional organization that provides its members with continuing education and resources and holds them to a code of ethics.

- Has been providing tax preparation services to Farmington Valley residents and businesses since 1992.

- Holds both Certified Public Accountant (CPA) and Chartered Financial Analyst (CFA) designations.

- Licensed by the Connecticut State Board of Accountancy since 1991.

- Is a member in good standing of the Connecticut Society of Certified Public Accountants.

- Received MBA (with a major in Finance) from the University of Connecticut and MS in Accounting from the University of Hartford.

- Has over two decades of experience in the fields of public audits, pension investments, insurance company analysis and tax preparation services.

Federal Accounting Tips

- Even if you do not have to file a tax return, you should file to get money back if you had federal income tax withheld from your pay.

- You may claim your child as a dependent if they are a full time college student. The child cannot claim themselves if they file a tax return. The box on the return indicating that someone else can claim them as a dependent should be checked.

- You may not be able to deduct all of your itemized deductions if your adjusted gross income is more than $300,000 (married filing jointly) or $250,000 (single).

- Beginning in 2013 a 0.9% additional medicare tax applies to wages and self-employment income that are more than $250,000 (married filing jointly) and $200,000 (single).

- If you claimed the first-time homebuyer credit for a home you bought in 2008, you must begin repaying the credit in 2010.

CT State Accounting Tips

- Interest on U.S. Government Obligations is not taxable.

- Dividends from mutual funds invested in U.S. government obligations are exempt from State tax.

- Social Security benefits are exempt from CT income tax if income is below ($50,000) for Single or ($60,000) for Married Filing Jointly Filing Status.

- State tax refunds are not taxable.

- CT Higher Education Trust (CHET) contributions are deductible on the CT State return – up to $10,000 for ‘Married filing Jointly’ and $5,000 for “Single’ filers.

- The penalty for late payment or under payment of income tax is 10% of the amount due.

- If you fail to pay the tax when due, interest will be charged at 1% per month or fraction of a month from the due date until payment is made.

Though we try to answer the most common accounting questions here, there are always more questions when it comes to your personal finances. Give us a call so that we can answer all your questions based on your own financial situation and your needs.

Phone: (860) 658-7209