2018 AZ Credits for Contributions

It is the time of year to think about tax planning and to determine where to spend your charitable dollars.  Arizona offers tax credits for donation to certain types of charities.  The tax credit provides a dollar for dollar reduction in your Arizona taxes and in some cases an itemized deduction on your federal return.  That means you could get more than a $1 tax benefit for each $1 you donate.

donation

Like in 2017 there are two different due dates for the credits for 2018 tax year.  Arizona has extended the date that you can donate by for most credits to April 15, 2019.  If made after December 31st, the credit will be on your AZ return in 2018 and your federal return in 2019.

Military Family Relief-Donation due by December 31, 2018 (https://dvs.az.gov/mfrf):
Single $200;  Married $400  –   Unfortunately the limit has been reached for 2018 military family contributions.

Qualifying Charitable Organizations-Donation due by April 15, 2019:
Single $400; Married $800

List of Qualifying Charitable Organizations:
https://azdor.gov/sites/default/files/media/CREDITS_2018_qco.pdf

Qualifying Foster Care Charitable Organizations-Donation due by April 15, 2019:

Single $500; Married $1,000

List of Qualifying Foster Care Charitable Organizations:
https://azdor.gov/sites/default/files/media/CREDITS_2018_qfco.pdf

Public School-Donation due by April 15, 2019:
Single $200;  Married $400

School Tuition Organizations-Donation due by April 15, 2019:
Single $555 + $552  =  $1,107;  Married  $1,110 + $1,103 = $2,213

https://azdor.gov/sites/default/files/media/REPORTS_2018_sto-i-list.pdf

 

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2017 Arizona Tax Credits

It is the time of year to think about tax planning and to determine where to spend your charitable dollars.  Arizona offers tax credits for donation to certain types of charities.  The tax credit provides a dollar for dollar reduction in your Arizona taxes and an itemized deduction on your federal return.  That means you will get more than a $1 tax benefit for each $1 you donate.

There are two different due dates for the credits for 2017.  Arizona has extended the date that you can donate by for most credits to April 15, 2018.  If made after December 31st, the credit will be on your AZ return in 2017 and your federal return in 2018.

Military Family Relief-Donation due by December 31, 2017:
Single $200;  Married $400

Qualifying Charitable Organizations-Donation due by April 15, 2018:
Single $400; Married $800
Qualifying Foster Care Charitable Organizations-Donation due by April 15, 2018:
Single $500; Married $1,000

Public School-Donation due by April 15, 2018:
Single $200;  Married $400

School Tuition Organizations-Donation due by April 15, 2018:
Single $546 + $543  =  $1,089;  Married  $1,092 + $1,085 = $2,177

List of Qualifying Charitable Organizations:
https://www.azdor.gov/Portals/0/RefundCredits/CertifiedCharities2017.pdf

List of Qualifying Foster Care Charitable Organizations:
https://www.azdor.gov/Portals/0/RefundCredits/CertifiedFosterCareCharities2017.pdf

 

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Keyboard Shortcuts for QuickBooks Online + One Click Trick

Keyboard shortcuts can be a time saver when you are working in QuickBooks so I’m happy to share keyboard shortcuts for QuickBooks Online (QBO).  Plus, you can use One Click Trick in QuickBooks Online to create your own ‘icon bar’ to access things you use most frequently with just one click.  The keyboard shortcuts will work in Chrome or Firefox and not in Internet Explorer.

YouTube video on the topic. http://bit.ly/QBOTips

Keyboard Shortcuts for QuickBooks Online

In Chrome or Firefox:

Ctrl + Alt + I

Invoice

Ctrl + Alt + W

Write Checks

Ctrl + Alt + X

eXpense

Ctrl + Alt + R

Receive payment

Ctrl + Alt + E

Estimate

Ctrl + Alt + L

Lists

Ctrl + Alt + A

Accounts

Ctrl + Alt + C

Customers

Ctrl + Alt + V

Vendors

Ctrl + Alt + F

Find transactions

Ctrl + Alt + H

Help

Date Shortcuts:

Today

T

YeaR

Y = Beginning of the year

R = End of the year

MontH

M= Beginning of the month

H = End of the month

WeeK

W= Beginning of the week

K= End of the week

+ or –

Forward or back quickly

Zoom Display (make it larger or smaller): Ctrl+ or Ctrl- (plus or minus or hold Control and scroll up or down with your mouse to zoom in or out)

One Click Trick

You can create your own one click “icon bar” in QuickBooks Online for the things that you use most frequently. http://bit.ly/QBOTips

Using this one click trick will help save you lots of time navigating in QuickBooks Online.  Best of all, if you have more than one company, it will work in all the QBO companies.  However, for an account register (like the check register), the account numbers should be the same in each company.

 

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Interesting Facts About The IRS: The IRS

Interesting Facts About The IRS:

The IRS has a special Criminal Investigation (CI) branch made up of 3,500 employees worldwide whose main job is to investigate tax and money laundering. CI special agents have badges and are allowed to carry weapons but do not have uniforms. Qualified retired CI agents are exempt from concealed weapon laws.

The IRS is a United States government agency that consists of four primary divisions: Wage and Investment, Large Business and International, Small Business/Self-Employed, and Tax-Exempt and Government Agencies. Its mission statement is to “provide America’s taxpayers top-quality service by helping them understand and meet their tax responsibilities and enforce the law with integrity and fairness to all.”

Previous to 1862, the government only collected sales tax on certain items such as alcohol and tobacco. President Lincoln created the IRS and enacted a 3% income tax on those who made between $600 and $10,000 to assist in covering Civil War costs. This would be repealed 10 years later.

After the initial income tax was repealed in 1872, the position of commissioner of Internal Revenue was once again in charge of taxes on goods such as sugar and tobacco. In 1894, income tax was enacted and then repealed a year later yet again, as Congress ruled it unconstitutional.

To help combat the growing number of tax frauds, in 2012 the IRS doubled the number of employees working to prevent identity theft and refund fraud prevention assistance to 3,000 workers.

When the income tax was fully established in 1913, the tax rate was 1%. Few paid income tax to the IRS, as it was required only if you made $3,000 or more per year. That year only 1 out of 271 Americans had to pay income tax.

When the IRS 1040 tax form was first introduced in 1914, it had only 3 pages including the instructions. Today, the 1040 has 101 pages of instructions alone.

In 2014, 35% of calls to the IRS were unanswered by IRS customer service representatives.

In fiscal year 2014, the IRS spent 38 cents for every $100 it collected.

The IRS Intelligence Unit used undercover agents to gather evidence against gangster Al Capone in 1913. He was charged with tax evasion and received an 11-year sentence.

Part of the difficulty of understanding taxes has been the ever-changing tax code. From fiscal years 2000 to 2010, the IRS implemented over 4,000 changes to the tax code, with 570 of the changes taking place in 2010 alone.

http://www.cillierscpa.com http://ow.ly/i/ragdr

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Tips for Deducting Medical and Dental Ex

Tips for Deducting Medical and Dental ExpensesIf you, your spouse or dependents have significant medical or dental costs in 2016, you may be able to deduct those expenses when you file your tax return next year. Here are eight things you should know about medical and dental expenses and other benefits. 1. You must itemize. You can only claim medical expenses that you paid for in 2016, and only if you itemize on Schedule A on Form 1040. If you take the standard deduction, you can’t claim these expenses. 2. Deduction is limited. You can deduct all the qualified medical costs that you paid for during the year. However, you can only deduct the amount that is more than 10 percent of your adjusted gross income. The AGI threshold is still 7.5 percent of your AGI if you or your spouse is age 65 or older. This exception applies through December 31, 2016. 3. Expenses must have been paid in 2016. You can include medical and dental expenses you paid during the year, regardless of when the services were provided. Be sure to save your receipts and keep good records to substantiate your expenses. 4. You can’t deduct reimbursed expenses. Your total medical expenses for the year must be reduced by any reimbursement. Costs reimbursed by insurance or other sources do not qualify for a deduction. Normally, it makes no difference if you receive the reimbursement or if it is paid directly to the doctor or hospital. 5. Whose expenses qualify. You may include qualified medical expenses you pay for yourself, your spouse and your dependents. Some exceptions and special rules apply to divorced or separated parents, taxpayers with a multiple support agreement, or those with a qualifying relative who is not your child. 6. Types of expenses that qualify. You can deduct expenses primarily paid for the diagnosis, cure, mitigation, treatment or prevention of disease, or treatment affecting any structure or function of the body. For drugs, you can only deduct prescription medication and insulin. You can also include premiums for medical, dental and certain long-term care insurance in your expenses. And, you can also include lactation supplies. 7. Transportation costs may qualify. You may deduct transportation costs primarily for and essential to medical care that qualifies as a medical expense, including fares for a taxi, bus, train, plane or ambulance as well as tolls and parking fees. If you use your car for medical transportation, you can deduct actual out-of-pocket expenses such as gas and oil, or you can deduct the standard mileage rate for medical expenses, which is 19 cents per mile for 2016. 8. No double benefit. You can’t claim a tax deduction for medical and dental expenses you paid for with funds from your Health Savings Accounts (HAS) or Flexible Spending Arrangements (FSA). Amounts paid with funds from those plans are usually tax-free. This rule prevents two tax benefits for the same expense. http://www.cillierscpa.com http://ow.ly/i/r7ON1

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IRS Fact: Tax form mistakes are 41 times

IRS Fact:

Tax form mistakes are 41 times more common on paper forms than through e-filing
There are some easy ways to flag an IRS audit, such as an inordinate amount of write-offs relative to reported income, but perhaps none is greater than turning in a paper form as opposed to filing electronically. http://ow.ly/i/r5Ezv

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Income Tax: The first income tax in the

Income Tax:

The first income tax in the U.S was imposed in July 1861 to help pay for the Civil War. In 1862, it was repealed and replaced with the tiered income tax. The current income tax system was made into law in 1913, before the start of WWI. http://ow.ly/i/r0Y0T http://ow.ly/i/r0Y44

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