Income Tax Preparation
Tax Return Preparer Ann Arbor, Plymouth, Canton, Livonia, Northville, & Metro Detroit
Appointments are welcome.
At Schultz & Associates, CPA, we are seasoned tax and accounting professionals. We are the perfect fit if you are looking for the best income tax preparation CPA Firm. We want to be your tax adviser, not just the accountant you go see when you need individual federal income tax return preparation. In 2013 we prepared tax returns for clients domiciled in 26 different states and also advised on foreign reporting and related matters.
Firm staff are available all year long to assist clients with IRS and Michigan Department of Treasury letters, tax planning, audit assistance and for other types of financial consulting.
Our knowledge includes rental properties, sale of stock, small business Schedule C, AMT, IRA’s, passive activities, capital transactions and farming activities.
Here are some key federal tax return preparation items to be aware of when organizing your tax life.
Federal income tax preparation continues to become more and more complicated. With the implementation of the Affordable Care Act a 3.8% tax on investment income and a .9% increase in medicare tax for certain high income earners beginning in 2013. Now more than ever it is important to engage a knowledgeable and trusted adviser that can guide you through the ever changing tax laws and ultimately help you with individual tax preparation.
- It is time to start saving for the future. Make use of 401k plans, your 403b, IRA’s, SEP’s and ROTH IRA. Most plans deferred the tax on the income earned in these plans. And many except for the ROTH provides for a current year tax deduction for making the investment.
- Medical expenses may be deductible but are subject to a floor of 10% of adjusted gross income before there is any income tax benefit.
- Residential mortgage interest is deductible on a primary and a secondary residence.
- Real estate taxes paid on your Michigan real property is deductible for those who itemize.
- Individual income tax returns are due April 15. Filing can be extended with Form 4868 until October 15. Extensions only extend the filing of the return, they do not extend the payment of taxes. Taxes must be paid by April 15.
- The personal exemption for 2013 is $3,900.
- Same sex marriages are now required to file married joint or married separate for federal tax preparation. Filing single for same sex married couples is not an option.
- See the 2014 Tax Tables
- The maximum IRA contribution for 2014 is $5,500. Taxpayers 50 and over can make an additional “catch up” contribution of $1,000 to their IRA. The Traditional IRA is generally deductible on your individual income tax return.
- The maximum 401(k) contribution for 2014 is $17,500. Contributions to a 401(k) are not subject to income taxes. Increased value in your 401(k) plan is not subject to income tax. The 401(k) is only subject to income tax once a taxpayer make a distribution from the account. Withdrawals made prior to reaching the age of 59 1/2 are subject to a early withdrawal penalty. The penalty is 10% of the distribution.
- Need to check on the status of your tax return? Click here
- CP-2000 is a type of letter from the IRS. It is not a tax audit. It is a proposed change. The IRS is not stating that you filed an incorrect return. The IRS is stating that they have some dependencies that they need your assistance in resolving. Now if you do not respond to the CP-2000, then the proposed tax increase becomes a permanent change to your return. Sometimes the IRS is correct, sometimes they are not. If you receive a CP-2000 do not assume that you owe the “proposed” tax.
- If you discover an error on your originally filed income tax return, file an amended return. Amendments to income tax returns are filed on Form 1040X.
Michigan Tax Preparation Topics
- Contributions to a MESP is deductible on Schedule 1 of the Michigan Income Tax Return Form MI-1040.
- Rent on a house or apartment in Canton, Livonia , Northville or any other city in Michigan may be eligible for the Michigan Property Tax Credit on Form MI-1040CR.
- The Michigan Property Tax Credit takes into consideration only the taxes that were levied during the year, rather than the amount of taxes actually paid.
- Taxpayers whose household resources are in excess of $50,000 are not eligible for the Michigan Homestead Property Tax Credit.
- Michigan taxpayers whose primary residence has a taxable value in excess of $135,000 are not eligible for the Property Tax Credit.
Local Tax Preparation Topics
So if you’re looking for real help with your taxes, not just one-size-fits-all federal income tax return preparation, contact us today.
Local CPA Firms Staff