Smart Disaster Planning Steps

Too often natural disasters strike and serve as reminders that it's important for both individuals and businesses to protect themselves against the potential financial consequences of such events. A few smart steps we recommend include making electronic backups of important records, including your insurance policies, tax returns, bank and credit card account information, and vital records.  It is

critical that you store this backup in a separate location that will be easy to access if your area suffers damage.  You should also take the time to take pictures or videos of your home or business and store them separately in case you need to make an insurance claim.

If you run a business, you must consider how you will get up and running again after a disaster. It's a good idea to develop contingency plans that will enable employees to work from home or elsewhere if your location is damaged or inaccessible. Both businesses and families should consider using phone trees or other methods to maintain contact in an emergency. Review your contact and contingency plans every year to be sure they are up to date.

Want further advice on protecting your family's or business's financial well-being in case of a disaster? We can help. Contact us today with all your financial questions.

Seeking a Job? You May Be Able to Deduct the Expenses

Did you know that if you are trying to find work in your current occupation, the costs of your search, including expenses for preparing and sending resumes, employment agency fees and related travel

expenses, should be deductible?

The deductions aren't available in all cases. For example, you're not eligible to use them if you are seeking employment in a new field or if this will be your first job.  If it's been a long time since you left your last job, your costs also may not qualify.  Don’t try to navigate the rules on your own. If you want to learn more about these deductions, or ask any questions about your tax situation, contact us today.

Don't Be Taken in by Phony IRS Requests

The phone rings. The caller says they are from the Internal Revenue Service and they claim you owe taxes and must submit payment through a wire transfer or prepaid debit card. Or you receive

an email supposedly from the IRS asking you to share your bank account, credit card or Social
Security number.  What should you do?

The sad truth is that many scammers pretend to be IRS agents as part of identity theft or other criminal activity. If you receive a surprising or suspicious communication purportedly from the IRS, we would urge you to call us immediately. We can help you identify a bogus request for information and work with you to respond to a legitimate IRS contact.  You can also call the IRS directly at 800-829-1040 to verify any communication you receive.

Related articles

• Effingham officials warn of IRS impersonators during tax season (wjcl.com)

Wish You Had a Coach for Your New or Growing Business?

Are you launching a business or product line? You may have relied on us for years for timely and personalized tax advice, but you may not be aware that we help business owners start and expand their companies every day with several types of services. In fact, we frequently serve as a business

coach or mentor for owners seeking help in their strategic planning, setting up payroll
or other systems or selecting the best accounting software, among other projects. Due to our extensive contacts in the community, we can also recommend attorneys and bankers to work with your business.

We've seen the many kinds of challenges they face and we know how to implement the right solutions. And we're  business owners ourselves! Be sure to contact us to learn more about how we can help you achieve your business goals.

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• 6 Tips for Managing Small Business Finances (succeedasyourownboss.com)

DOMA Decision's Impact on Financial Planning for Same-Sex Couples

If you are a member of a married same-sex couple, then the U.S. Supreme Court's decision to strike down the Defense of Marriage Act could have a substantial effect on many aspects of your financial life. You may want to consider, for example, filing an amended income tax return if

you now qualify for deductions or credits available to married  couples under federal law. Since same-sex couples are now eligible for the estate tax exemption available to surviving spouses, it may also be time to review your estate planning.   

Those are just a few of the changes affecting qualifying same-sex couples. If you have questions about the decision's  impact and what it means to your financial situation, be sure to contact us today.

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• Same-Sex Marriage Now Legal in 32 States and Washington, D.C. (legalzoom.com)

Do You Qualify for the Health Care Premium Tax Credit?

Individuals and families can buy private health insurance through Affordable Insurance Exchanges, which are marketplaces where individuals can find private health insurance.  (This is a new program created by the Affordable Care Act.)  If you purchase health insurance through an exchange, you may be eligible for a tax credit that will make your coverage more affordable.

The credit is aimed at middle-income individuals and families. A larger credit is available for older individuals whose coverage costs may be higher. The credit will be refundable, which means it can be used by people who pay little or no federal income tax. You can arrange for the credit to be paid to your insurer in advance so that you have little or no out-of-pocket costs.  Are you eligible for the credit? We can help you find out and work with you to make the best use of your health insurance dollars. Call us today with all your questions about health care finance or any other financial concerns.

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• 800,000 people affected by HealthCare.gov tax problem - HHS (bnowire.com)

The End of the Line for some Popular Credits and Deductions

Did you know that while many tax rules are permanent, others are written to expire at some point in the future? These expiring items are often granted a temporary extension, but a significant number of popular "extenders" terminated  at the end of 2013, including both credits and deductions. A number of credits for qualified energy home improvements and appliance purchases will no longer be available, along with the credit against health insurance premiums previously granted to certain taxpayers. Teachers will no longer be able to take the $250 deduction for out of pocket classroom supply purchases, and the deduction for qualified tuition and related expenses is set to disappear.

How will the end of these and other credits or deductions affect you? And what other tax law changes could have an impact on your finances? Contact our office to find out the answers. We can offer the advice and planning recommendations you need to minimize your tax bite and enhance your overall financial situation.

Take the Uncertainty out of Health Care Reform

If you're not sure what the new health care law means to you, you're not alone. A poll by the Kaiser Family Foundation revealed that just over a third of the public had tried to find out more information about the law-the Affordable Care Act-in recent months. About half of the respondents to the survey said they remain confused about the law and its provisions.

If you have questions we can provide the answers you need. Among other things, our individual clients should be aware of the Shared Responsibility Provision that becomes effective on January

1, 2014. Under the provision, people of all ages, including children, must either have minimum essential health coverage, qualify for an exemption or make a payment when they file their tax return. We can help you understand whether your coverage meets the law's requirements, how gaps in coverage will be treated and what circumstances qualify for an exemption. Contact us today to find out how the health care law will affect you.

Documenting Your Charitable Donations

Many people make donations to charities whose work they support, but if you are planning to take a tax deduction for your gift, you must have the proper paperwork. Assembling the right documentation can also be tricky because the requirements vary based on whether the donation is cash and on the value of your gift. If you donate less than $250 in cash, for example, a canceled check, credit card statement or similar record may be sufficient, but if you give more, you will need a written acknowledgement from the charity. An additional tax fo1m-and possibly an appraisal-may be needed for non-cash donations, depending on their value. Of course, the organization itself must also qualify as a charity under IRS rules.

We can offer advice that will make it possible for you to fund the causes you believe in and qualify for the deductions you deserve. We can also help you incorporate charitable giving into your long-term tax and estate planning. Be sure to contact us with all of your questions on charitable giving or any other financial concern.