Tax Season — Meet Government Shutdown

Since the government shutdown back in October, there have been many things that have taken a hit. The latest arising problems come along with the upcoming tax season and being able to receive your check at an early date. Due to the shutdown, the early birds who get their taxes done lickedy split are going to have to wait a little longer than usual to collect.

Other than that, tax season will still end on April 15th, unless you submit for the six month extension.

More here: http://money.cnn.com/2013/12/18/pf/taxes/2014-tax-season/

Keeping Records

Most people store their old records, (such as old tax documents, receipts, and bills), in boxes in their basement. There will be a section of the basement devoted to boxes of old documents that people keep for those “just in case” moments that will probably never happen. However, many people would rather be safe than sorry, so they stockpile all of these old documents and hoard them until they finally see that there is no use for them any more.

The IRS has some tips on what documents are good to keep, how long you should keep them, etc. so that you can store other useful things in your basement.

What tips do you have for storing your documents?

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Recordkeeping

Tax Benefits for Families with Special Needs Children

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Having a child with special needs can be financially challenging for a family. They have the responsibility of paying for medications, medical bills, possibly equipment, and school as well as many other things. If you or someone you know has a child with special needs, this may come as a sort of relief, or just a helping hand. Either way, instead of spending money on taxes, spend it on necessities for your child.

Because of the large increase in special needs, there has become an increased awareness as well as more tools to ease the situation. It is also common knowledge that these children need specialized attention and curriculum in school. Many times schools have to administer medical help to children because of the specific needs of the child.

“[…] according to Regs. Sec. 1.213-1(e)(1)(v), the unreimbursed cost of attending a ‘special school’ for a neurologically or physically handicapped individual is deductible as a medical expense if the principal reason for sending the individual to the school is to alleviate the handicap through the school’s resources.” (Journal of Accountancy)

There are many benefits to having these expenses deducted as medical expenses. The expenses include transportation, food, housing, and the cost of special education. A regular school that has a special needs program can also count for this deductible. If a child attends a special school but can function in a regular school over time, there is another policy for that:

“In Rev. Rul. 78-340, the IRS concluded that a taxpayer whose child had severe learning disabilities caused by a neurological disorder (e.g., an ASD) could deduct as a medical expense amounts paid for tuition and related fees for the child’s education at a special school that has a program designed to ‘mainstream’ these children so they can ultimately return to a regular school.” (Journal of Accountancy)

Though having a child with special needs can put a family through financial strain, parents still want their child to have a quality education. Now those families can do that with less stress.

For further information, read the whole article that I was citing:

When Disaster Strikes

IRS Disaster Tips

Being an office in New England, there are many natural events that cause us to worry about our valuables, especially financial documents! The IRS came out with an article about how to safeguard your documents and valuables in your home in the event of a natural disaster in your area. (We have included it above in the blue print)

A lot of people do not realize the importance of making sure that they have copies of important tax documents, bank statements, accounts, etc. Check out this link to see what precautions you can take other than hoping everything stays safe in your home!

Stay safe this season!