Tax filing may be delayed

Just before Christmas, Congress passed the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This tax act extended many tax cuts, reducing nearly everyone's tax bill. However, due to the late passage of the bill, the IRS need time to adjust to the new law. Please see the link below for more information.

If you file Form 1040 and itemize your deductions on Sch. A (i.e. you claim mortgage interest, property taxes, and/or charitable contributions) you won't be allowed to file your return until mid- to late-February. This will delay a potential refund for many taxpayers.

You will still be able to prepare your tax return before that date, so don't wait to make an appointment to come have your taxes prepared. We just won't be allowed to file the return until given the go-ahead by the IRS.

http://www.irs.gov/newsroom/article/0,,id=233449,00.html

Can I deduct my moving expenses?

Are my moving expenses deductible?

People commonly wonder whether they can deduct moving expenses and, if so, how much? The rules about moving expenses are fairly expansive but, in a nutshell, there are three criteria that determine if the expenses are deductible or not.

1- The move must be closely related to the start of work. As a general rule, if you move within a year of reporting to a new job and your new home is closer to your new job than your old home is to your new job, you probably meet this requirement.

2- The move must pass the distance test. This test requires that your new job be at least 50 miles farther from your former home than your old job was from your former home. For example, if your old job was 8 miles from your old home, your new job must be at least 58 miles away from your old home.

3- Your new job must pass the time test. This test requires that you work full-time in your new area for 39 weeks of the first 12 months after arriving in the area.

For each of the above criteria, there are additional details, exceptions, etc. that govern who may or may not deduct moving expenses. If you have moved for work, give Brandon or Bruce a call and we would be happy to help you figure out how to best use your moving expenses on your tax return.

Below is a link to a more detailed explanation of deductible moving expenses:

Moving Expenses

Free review of prior tax returns

We are now offering a new service! We are offering to review your prior three years of tax returns for free. Our review could help determine possible missed deductions, or simply give you some peace of mind. Contact Brandon - brandon@ulrichcpa.com or 801-627-2100 - for assistance.