2023 INDIVIDUAL YEAR-END PLANNING

Category: Individual Tax Planning

Posted: December 2023

FRAUD UPDATES

Category: Individual Tax Planning

Posted: December 2022

If a letter directs you to call a number to pay Michigan tax debt, this is a scam! Be suspicious of text messages, emails or calls claiming you owe taxes...

2022 INDIVIDUAL YEAR-END PLANNING

Category: Individual Tax Planning

Posted: December 2022

It’s time to think about steps that may help lower your tax bill for this year and next. Your professional tax preparers at Mierendorf & Co. stay on top of Federal and State taxes and tax law changes with continuous education and tax preparer resources...

AUGUST 2022 NEWSLETTER FOR INDIVIDUALS

Category: Individual Tax Planning

Posted: August 2022

The IRS's Where's My Refund now allows you to check the status of your current tax year and two previous years' refunds. Select any of the three most recent tax years to check your refund status. The tool and more information are found at...

2021 INDIVIDUAL TAX PLANNING

Category: Individual Tax Planning

Posted: December 2021

Planning to help lower your individual taxes for 2021 and 2022 is more challenging than usual...

ARE ADVANCE CHILD TAX CREDITS A GOOD OPTION FOR YOU?

Category: Individual Tax Planning

Posted: November 2021

The Advance Child Tax Credit has generated questions for parents. Take some time to better understand what impact this advance could have on your 2021 personal tax return.

FRAUD AWARENESS: IRS SCAMS

Category: Individual Tax Planning

Posted: November 2021

The last two years have provided new material for scammers who leverage IRS fears and COVID relief programs into their schemes

2020 INDIVIDUAL TAX PLANNING

Category: Individual Tax Planning

Posted: December 2020

The end of the year is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Here are some important points to remember...

2019 INDIVIDUAL TAX PLANNING

Category: Individual Tax Planning

Posted: December 2019

Although the tax laws have not changed, the end of the year is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next. Here are some important points to remember...

CONSUMER ALERTS ON TAX SCAMS

Category: Individual Tax Planning

Posted: October 2019

The IRS wants you to understand how and when they contact taxpayers, and to help you determine whether a contact you receive is truly from an IRS employee...

TAXATION OF LOTTERY WINNINGS

Category: Individual Tax Planning

Posted: August 2019

Did you know that lottery winnings ARE taxable? This is the case for cash winnings and for the fair market value of any noncash prizes you may win, such as a car or vacation. Depending on your other income and the amount of your winnings, your federal tax rate may be as high as 37%. In Michigan, your lottery winnings are also subject to state income tax. You don't get any capital gains rate break for...

RENTAL OF VACATION PROPERTY

Category: Individual Tax Planning

Posted: June 2019

In recent years, finding a rental home has become a common part of travel and vacation planning. Have you thought about the tax consequences of renting out your vacation home for part o...

ARE FREQUENT FLYER MILES TAXABLE?

Category: Individual Tax Planning, Business Tax Planning

Posted: March 2019

When you travel on business for your company, you may earn frequent flyer miles or other promotional benefits, such as through rental cars or hotels. These promotional benefits can be exchanged for free or discounted travel, upgraded seating, travel services, etc. Even though the business trips are paid for by your employer, you may be allowed to use the frequent flyer miles and other benefits for your own personal travel...

2018 INDIVIDUAL TAX PLANNING

Category: Individual Tax Planning

Posted: December 2018

Year-end planning for 2018 takes place against the backdrop of a new tax law – the Tax Cuts and Jobs Act – that made major changes in the tax rules for individuals and businesses. As the end of the year approaches...

What If... You Get Audited?

Category: Individual Tax Planning, Business Tax Planning

Posted: September 2018

The IRS will audit hundreds of thousands of individual tax returns this year. Although that represents a small percentage of all returns filed, this is little consolation if YOUR return is selected for audit. But, with proper planning and preparation, you should fare well. The purpose of the audit is to verify items reported on a tax return. The easiest way to survive a tax audit is to prepare for one in advance. On an ongoing basis you should systematically...

Electric Car Tax Credit?

Category: Individual Tax Planning

Posted: August 2018

A tax credit called the "new qualified plug-in electric drive motor vehicle" credit (NQPEDMV credit) is available. Basically a vehicle eligible for the NQPEDMV credit must be new, have 4 wheels (2-wheeled vehicles may qualify for a separate credit) and a battery capacity of at least four kilowatt hours. The base amount of the NQPEDMV credit is...

Basic Retirement Planning: Changing jobs or Moving

Category: Individual Tax Planning

Posted: August 2018

If you need to move your IRA (Individual Retirement Account) or 401(k) Profit Sharing Plan, what should you do? As long as you follow the rules, this movement of funds is tax-free and allows continual tax-free buildup. This can be accomplished by a direct transfer from your plan to a new IRA or other retirement plan, or by a distribution (payment) to you that you then transfer within 60 days to a "rollover" IRA (or other plan)...

Medical Deductions

Category: Individual Tax Planning

Posted: September 2018

The medical deduction can only be claimed if your unreimbursed costs exceed 7.5% of your adjusted gross income (AGI) for tax years 2017-2018 (10% of your AGI after 2018). Qualifying costs, which include many items other than hospital and doctor bills, often amount to much larger figures than expected. Here are some items you should take into account when determining your medical costs...

Is 'Bad Debt' Deductible on Your Taxes? Yes, but...

Category: Business Tax Planning, Individual Tax Planning

Posted: August 2018

A realtor may say location, location, location. But, a CPA will say document, document, document! If you want to deduct bad debts, you must have made real, serious attempts to collect the debt. A debt that cannot be repaid becomes "wholly or partially worthless." To claim a tax deduction for a worthless business debt, the taxpayer must show the existence of a valid debtor-creditor relationship, that the debt was created or acquired in connection with a trade...

How the Provisions of the Tax Cuts and Jobs Act (TCJA) Affect Individuals

Category: Individual Tax Planning

Posted: January 2017

The recently enacted Tax Cuts and Jobs Act (TCJA) is a sweeping tax package. Here's a look at some of the more important elements of the new law that have an impact on individuals. Unless otherwise noted, the changes are effective for tax years beginning in 2018 through 2025...

2017 Individual Tax Planning

Category: Individual Tax Planning

Posted: December 2017

Tax reform creates uncertainty for many individuals as the end of 2017 approaches. Using some of these planning techniques can help you reduce your individual tax burden...

What do you need to know about the sharing economy?

Category: Individual Tax Planning, Business Tax planning

Posted: September 2017

Uber, Lyft, Airbnb, Etsy, Rover, TaskRabbit. If you've taken advantage of these services�or provided them to others�you're a member of the sharing economy. If you've only used these services (and not provided them), there's no need to worry about the tax implications. But if you've rented out a spare room in your house through a company like Airbnb, you're probably collecting a fee. A portion of this goes to the company (in this example, Airbnb) while you keep a portion for providing the service. Whether this is your full-time job or a part-time gig to make some extra cash, you need to be aware of the tax consequences�

The IRS isn�t giving up on its mission to enforce tax laws

Category: Individual Tax Planning

Posted: May 2017

There has been news about downsizing at the IRS�budget cuts, reduced personnel, and fewer audits and other compliance activities. What most people don�t realize is that the IRS is persisting in enforcing tax laws...

Year End Tax Planning for Individuals in 2016

Category: Individual Tax Planning

Posted: December 2016

As the end of the year approaches, it is a good time to think of planning moves that will help lower your tax bill for this year and possibly the next.

What Students and their Parents Need to Know About the 2017-2018 FAFSA

Category: Individual Tax Planning

Posted: August 2016

People starting college in the fall of 2017 probably haven�t decided where they are going to school, but it�s almost time to start applying for financial aid!

THE MICHIGAN PERSONAL PROPERTY TAX YOU PROBABLY DON�T KNOW ABOUT

Category: Individual Tax Planning

Posted: July 2016

Michigan�s use tax is one of the least known taxes in the state and for that matter, in most states.

GIVE BACK, GET A DEDUCTION: THE CHARITABLE IRA CONTRIBUTION IS NOW A PERMANENT FIXTURE

Category: Individual Tax Planning

Posted: June 2016

There is much uncertainty for individual and business taxpayers, since popular tax credits and deductions for both groups have not been extended beyond their December 31, 2014 expiration dates.

The Individual Tax Planning Steps You Don�t Want to Miss

Category: Individual Tax Planning

Posted: December 2015

There is much uncertainty for individual and business taxpayers, since popular tax credits and deductions for both groups have not been extended beyond their December 31, 2014 expiration dates. However, there are some traditional planning strategies that can be used to minimize your tax bill come April 15, 2016.

Back to School - Education Costs and Credits

Category: Individual Tax Planning

Posted: September 2015

No matter the age of your child (or grandchild), the staggering cost of college is very likely to be a concern.

What to do if you receive a notice from the IRS

Category: Individual Tax Planning

Posted: July 2015

Don�t panic! The IRS mails millions of notices and letters to taxpayers every year, so you are not alone. Here is what you should do.

How To Freeze Identity Theft In Its Tracks

Category: Individual Tax Planning

Posted: May 2015

Are you concerned about identity theft or the reported mega-data breaches that have recently made headlines? You might want to consider placing a credit freeze (also called a security freeze) on your credit reports.

The Affordable Care Act 2015

Category: Individual Tax Planning

Posted: February 2015

When it comes to the health care law � also known as the Affordable Care Act or ACA � and how it may affect your taxes, there are many questions you might have. This information from the Internal Revenue Service offers news on trending topics and answers to questions the IRS is hearing.

Scam Phone Calls Continue; IRS Identifies Five Easy Ways to Spot Suspicious Calls

Category: Individual Tax Planning

Posted: September 2014

Recently, we've had several calls from clients regarding suspicious phone calls from the Internal Revenue Service. The IRS has issued a consumer alert providing taxpayers with additional tips for protecting themselves from these kinds of telephone scam artists.

Proposal 14-1: How It Affects You

Category: Individual Tax Planning

Posted: August 2014

We strive to keep you informed of developments that may have an effect on your business. This month, we detail a proposal seeking to repeal the Personal Property Tax.

Retirement Planning for Small Business Owners

Category: Individual Tax Planning

Posted: May 2012

If you are an entrepreneur who is worried that you will not have a big enough "nest egg" to get through your golden years, you are not alone. Unfortunately, most small business owners do not think of the necessary steps to secure their financial future.