Capitol Tax & Financial Services

[11/19/14]   Who's ready to get their money back from the IRS?

[01/13/14]   Health-Care Premium Tax Credit

Starting in 2014, individuals and families who get their health insurance coverage through the Health Insurance Marketplace may be eligible for the Premium Tax Credit. This tax credit can help make purchasing health insurance coverage more affordable for people with moderate incomes. The premium tax credit is refundable so taxpayers who have little or no income tax liability can still benefit. The credit also can be paid in advance to a taxpayer’s insurance company to help cover the cost of premiums. The open enrollment period to purchase health insurance coverage for 2014 through the Marketplace runs from October 1, 2013, through March 31, 2014.

Capitol Tax & Financial Services

2013 Tax Year Earned Income

Tax Year 2013 maximum credit:
$6,044 with three or more qualifying children
$5,372 with two qualifying children
$3,250 with one qualifying child
$487 with no qualifying children

Capitol Tax & Financial Services

SELF EMPLOYED---SCHEDULED C----1099 CONTRACTORS

Deducting Business Expenses

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

The expenses used to figure the cost of goods sold,
Capital Expenses, and
Personal Expenses.
Business Use of Your Home
Business Use of Your Car
Rent Expense

Capitol Tax & Financial Services

TAXES DONE YOUR WAY FOR LESS!

Capitol Tax & Financial Services

Capitol Tax & Financial Services

Got your last check stub? Let us give you a free estimate of your tax refund.....Just Email us your last check stub @ [email protected] or Fax it to 832-201-7798 or Text a picture to 832-567-9424.......

Please include your Name and Phone number

[12/31/13]   Got your last check stub? Let us give you a free estimate of your tax refund.....Just Email us your last check stub @ [email protected] or Fax it to 832-201-7798 or Text a picture to 832-567-9424.......

Please include your Name and Phone number

Capitol Tax & Financial Services

2013 Tax Year Earned Income

Tax Year 2013 maximum credit:
$6,044 with three or more qualifying children
$5,372 with two qualifying children
$3,250 with one qualifying child
$487 with no qualifying children

[12/30/13]   2013 Tax Year Earned Income

Tax Year 2013 maximum credit:
$6,044 with three or more qualifying children
$5,372 with two qualifying children
$3,250 with one qualifying child
$487 with no qualifying children

[12/30/13]   The child tax credit is a credit that may reduce your tax by as much as $1,000 for each of your qualifying children.

A qualifying child for purposes of the child tax credit is a child who:

Is your son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild, niece, or nephew),
Was under age 17 at the end of 2013,
Did not provide over half of his or her own support for 2013,
Lived with you for more than half of 2013
Is claimed as a dependent on your return,
Does not file a joint return for the year (or files it only as a claim for refund), and
Was a U.S. citizen, a U.S. national, or a resident of the United States.

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[12/19/13]   Are you ready for the 2014 Tax season?

Capitol Tax & Financial Services

2014 TAX season is here whose ready for a HUGE REFUND!!!

TAXES DONE YOUR WAY FOR LESS!

Capitol Tax & Financial Services

2014 Tax Season to Open Jan. 31; e-file and Free File Can Speed Refunds

The Internal Revenue Service today announced plans to open the 2014 filing season on Jan. 31 and encouraged taxpayers to use e-file as the fastest way to receive refunds.

The new opening date for individuals to file their 2013 tax returns will allow the IRS adequate time to program and test its tax processing systems. The annual process for updating IRS systems saw significant delays in October following the 16-day federal government closure.

TAXES DONE YOUR WAY FOR LESS!

[11/15/13]   IRS-2014 TENTATIVE FILING DATES

The IRS is exploring options to shorten the expected delay and will announce a final decision on the start of the 2014 filing season in December. The original start date of the 2014 filing season was Jan. 21, and with a one- to two-week delay, the IRS would start accepting and processing 2013 individual tax returns no earlier than Jan. 28 and no later than Feb. 4

[11/05/13]   17 Million Americans Could Get Obama-care Tax Credit Subsidies:

Seventeen million people will qualify for tax credits to reduce the cost of health insurance under Obama-care, according to a report released Tuesday. According to the IRS an estimated 2,049,000 in Texas will qualify for the tax credit with over 50% of the residents coming from Harris County.

[10/31/13]   SELF EMPLOYED---SCHEDULED C----1099 CONTRACTORS

Deducting Business Expenses

Business expenses are the cost of carrying on a trade or business. These expenses are usually deductible if the business is operated to make a profit.

What Can I Deduct?
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

The expenses used to figure the cost of goods sold,
Capital Expenses, and
Personal Expenses.
Business Use of Your Home
Business Use of Your Car
Rent Expense

[10/30/13]   Tax Credits for Students

Update October 30, 2013----- American Opportunity Tax Credit

— This page has been updated to reflect the fact that the American Opportunity Tax Credit, which was set to expire at the end of 2012 Tax Filing Season, was extended through December 2017 by the American Taxpayer Relief Act of 2012.

[10/29/13]   2013 Tax Year EARNED INCOME CREDIT WILL BE HIGHER THAN 2012!!!

Earned Income and adjusted gross income (AGI) must each be less than:

$46,227 ($51,567 married filing jointly) with three or more qualifying children

$43,038 ($48,378 married filing jointly) with two qualifying children

$37,870 ($43,210 married filing jointly) with one qualifying child

$14,340 ($19,680 married filing jointly) with no qualifying children

Tax Year 2013 maximum credit:
$6,044 with three or more qualifying children
$5,372 with two qualifying children
$3,250 with one qualifying child
$487 with no qualifying children
Investment income must be $3,300 or less for the year.

Timeline Photos

[01/23/13]   When to itemize
You may benefit from itemizing your deductions on Schedule A (Form 1040) if you:
• Do not qualify for the standard deduction, or the amount you can claim is limited,
• Had large uninsured medical and dental expenses during the year,
• Paid interest and taxes on your home,
• Had large unreimbursed employee business expenses or other miscellaneous deductions,
• Had large uninsured casualty or theft losses,
• Made large contributions to qualified charities, or
• Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled.

[01/23/13]   Should I itemize?

You should itemize deductions if your total deductions are more than the standard deduction amount. Also, if your standard deduction is zero, you should itemize any deductions you have if:
• You are married and filing a separate return, and your spouse itemizes deductions,
• You are filing a tax return for a short tax year because of a change in your annual accounting period, or
• You are a nonresident or dual-status alien during the year. You are considered a dual-status alien if you were both a nonresident and resident alien during the year.

[01/23/13]   Standard Deduction vs. Itemizing:

Each year, millions of taxpayers choose whether to take the standard deduction or to itemize their deductions. The following seven facts from the IRS can help you choose the method that gives you the lowest tax.

Qualifying expenses - Whether to itemize deductions on your tax return depends on how much you spent on certain expenses last year. If the total amount you spent on qualifying medical care, mortgage interest, taxes, charitable contributions, casualty losses and miscellaneous deductions is more than your standard deduction, you can usually benefit by itemizing.

Standard deduction amounts -Your standard deduction is based on your filing status and is subject to inflation adjustments each year. For 2011, the amounts are:
Single $5,800
Married Filing Jointly $11,600
Head of Household $8,500
Married Filing Separately $5,800
Qualifying Widow(er) $11,600

[01/23/13]   Who Can File Starting Jan. 30?

The IRS anticipates that the vast majority of all taxpayers can file starting Jan. 30, regardless of whether they file electronically or on paper. The IRS will be able to accept tax returns affected by the late Alternative Minimum Tax (AMT) patch as well as the three major “extender” provisions for people claiming the state and local sales tax deduction, higher education tuition and fees deduction and educator expenses deduction.

Who Can’t File Until Later?

There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future.
The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won’t be accepted until later is available on IRS.gov.

[01/14/13]   TAX SEASON IS MOST DEFINITELY IN FULL-MOTION... THANK'S TO THOSE THAT ARE OUT THEIR SHOWING CAPITOL TAX LOVE....THE DOOR'S AND PHONE'S ARE SPINNING TODAY!!

CALL OR EMAIL FOR A FREE ESTIMATE...
713-401-9561 OR [email protected]

[01/11/13]   If YOU have your last check stub for the YEAR, Call us TODAY!!! 713-401-9561 Get your refund fast.

[01/11/13]   Home-Daycare Facility

If you use space in your home on a regular basis for providing daycare, you may be able to deduct the business expenses for that part of your home even if you use the same space for non-business purposes. To qualify for this exception to the exclusive use rule, you must meet both of the following requirements.

You must be in the trade or business of providing daycare for children, persons age 65 or older, or persons who are physically or mentally unable to care for themselves.

You must have applied for, been granted, or be exempt from having, a license, certification, registration, or approval as a daycare center or as a family or group daycare home under state law. You do not meet this requirement if your application was rejected or your license or other authorization was revoked.

Figuring the deduction. If you regularly use part of your home for daycare, figure what part is used for daycare, as explained in Business Percentage , earlier, under Figuring the Deduction. If you use that part exclusively for daycare, deduct all the allocable expenses, subject to the deduction limit, as explained earlier.
If the use of part of your home as a daycare facility is regular, but not exclusive, you must figure the percentage of time that part of your home is used for daycare. A room that is available for use throughout each business day and that you regularly use in your business is considered to be used for daycare throughout each business day. You do not have to keep records to show the specific hours the area was used for business. You can use the area occasionally for personal reasons. However, a room you use only occasionally for business does not qualify for the deduction.

To find the percentage of time you actually use your home for business, compare the total time used for business to the total time that part of your home can be used for all purposes. You can compare the hours of business use in a week with the number of hours in a week (168). Or you can compare the hours of business use for the year with the number of hours in the year (8,760 in 2011). If you started or stopped using your home for daycare in 2011, you must prorate the number of hours based on the number of days the home was available for daycare.

[01/10/13]   Question Just Asked by a client: What types of work-related educational expenses are deductible?

Answer:

Deductible work-related educational expenses include:
Amounts spent for tuition, books, supplies, laboratory fees and similar items.
Transportation and travel expenses to attend qualified educational activities may also be deductible.

[01/10/13]   Child and Dependent Care Credit

You may be able to claim the child and dependent care credit if you paid work-related expenses for the care of a qualifying individual. The credit is generally a percentage of the amount of work-related expenses you paid to a care provider for the care of a qualifying individual. The percentage depends on your adjusted gross income. Work-related expenses qualifying for the credit are those paid for the care of a qualifying individual to enable you to work or actively look for work.

Expenses are paid for the care of a qualifying individual if the primary function is to assure the individual's well-being and protection. In general, amounts paid for services outside your household qualify for the credit if the care is provided for (i) a qualifying individual who is your qualifying child under age 13 or (ii) a qualifying individual who regularly spends at least 8 hours each day in your household.

The expenses qualifying for the credit must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from gross income. The total expenses qualifying for the credit are capped at $3,000 (for one qualifying individual) or at $6,000 (for two or more qualifying individuals). The dollar limits may differ depending on the tax year in question. Also, generally, the expenses claimed may not exceed the lesser of your earned income or your spouse’s earned income. A special rule applies if your spouse is a full-time student or incapable of self-care.

[01/09/13]   About to enjoy these mud bugs at the best crawfish spot ever!

[01/08/13]   Have your last check stub?
Need an Estimate?
Call Capitol Tax Services TODAY 713-401-9561

[01/05/13]   Have your last check stub?
Need an Estimate?
Call Capitol Tax Services TODAY 713-401-9561

Capitol Tax & Financial Services's cover photo

Capitol Tax & Financial Services's cover photo