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Archive for January, 2009

Pay Stub Loans/Tax Returns


OK. Every year around this time I undoubtedly receive several phone calls that goes something like this: ” Hi. I have my last paycheck stub of the year and I’d like to go ahead and file my tax return. I really need the money. My company probably wont give me my W2 until the very last minute (Jan 31st). When can I come in and get that done?” My typical response is, we’re not allowed to submit your tax return without your official W2. “Well, that ‘other big chain tax store’ (we won’t mention any names, but you know who they are) will do it, OR, the guy down the street at such and such company did it for my co-worker.”

I want to say it loud and clear. You must have a valid and current W2 in order to file your income tax return. If, by Feb 15th, after exhausting every effort to get your W2 from your employer has failed, then and only then can we submit a “Substitute W2” form based on that last paycheck stub.

I want to help clarify some of the confusion out there. We all know that certain companies have huge advertising budgets. You may hear something on TV that sounds something like this: “Bring in your last pay stub and let us see if you qualify for up to $1000.” The only reason they ask for the paystub is for proof of income. What you are applying for has nothing to do with a tax return! It is merely a line of credit! PERIOD! If you have a decent credit score and proof of income, they will open up a line of credit (aka- A Loan) for UP TO $1000. It may not be the full $1000. You may only qualify for $400, for example. Just depends. They will pre-load these funds on a Debit Mastercard for you and say, “Have a nice day.”

There is an initial cost associated with this line of credit and that does not include the high interest that you will pay when the loan needs to be repaid by the Feb 15th due date!

Don’t take my word for it. Call these companies and ask the right questi0ns. These are NOT BASED on your anticipated tax refund!!! It’s just kind of easy for it to sound that way in the advertisements, if you’re not paying close attention.

I hope that this helps clear up some of the confusion.

As licensed tax professionals, we must adhere to a code of ethics. We are not allowed to submit a tax return without a W2, if you were an employee.

Feel free to call us with any questions at 954-583-8534. You may also visit our website at www.efileflorida.com for more informative tips and articles.

Categories: Strictly TAXES!

IRS Mileage Rates Adjusted for 2008


The standard mileage rate for business use of a car, van, pick-up or panel truck is 50.5 cents per mile from Jan. 1, 2008, to June 30, 2008, up 2 cents from 2007. The rate is 58.5 cents for each mile driven during the rest of 2008.

From Jan. 1, 2008, to June 30, 2008, the standard mileage rate for the cost of operating a vehicle for medical reasons or as part of a deductible move is 19 cents per mile, down a penny from 2007. The rate is 27 cents from July 1 to Dec. 31.

The standard mileage rate for using a car to provide services to charitable organizations is set by law and remains at 14 cents a mile. Special rates apply to the Midwest disaster area.

Visit our website at http://www.efileflorida.com for more up to the minute informative tips and articles. If you would like to schedule and appointment for professional income tax preparation, call us at 954-583-8534. New customers, mention this blog and recieve a $25 discount!

Categories: Strictly TAXES!

Expiring Tax Breaks Renewed


Several popular tax breaks that expired at the end of 2007 were renewed for tax-years 2008 and 2009. As a result, eligible taxpayers can claim:

The deduction for state and local sales taxes on Form 1040 Schedule A , Line 5
The educator expense deduction on Form 1040, Line 23 or Form 1040A, Line 16
The tuition and fees deduction on Form 8917 and
The District of Columbia first-time homebuyer credit on Form 8859

In addition, the residential energy-efficient property credit is extended through 2016. In general, solar electric, solar water heating and fuel cell property qualify for this credit. Starting in 2008, small wind energy and geothermal heat pump property also qualify.

The non-business energy property credit for insulation, exterior windows, exterior doors, furnaces, water heaters and other energy-saving improvements to a main home is not available in 2008 but will return in 2009.

Visit our website at www.efileflorida.com for more up to the minute informative tips and articles. If you would like to schedule and appointment for professional income tax preparation, call us at 954-583-8534. New customers, mention our blog and recieve a $25 discount!

Categories: Strictly TAXES!
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