1. Maryland Quality Teacher State Tax Credit – is for Maryland taxpayers who work in public schools in the state of Maryland that paid for graduate level courses in order to maintain their professional certification. The credit can be used to reduce their Maryland state income tax up to $1,500 for each qualifying spouse.
2. Lifetime Learning Credit – All American taxpayers regardless of profession can use the lifetime learning credit to reduce their tax bill, if they paid college tuition. If you are taking the Maryland state teacher’s tax credit you will also qualify for the Lifetime Learning Credit because you will have paid college tuition. Your household may qualify for the American opportunity credit if you have someone that is in the first four years of their college education. This credit can be more advantageous depending on how much tuition was paid. Regardless of which credit you use in order to take either credit you will need to file a form 1098-T which would have been mailed to you or made available online by January 31, from the university or universities where the tuition was paid.
3. Educator Expenses – All American teachers, teacher’s aides, principals and counselors can reduce their taxable income by up to $250 for expenses paid out of pocket for classroom activities or supplies. If both spouses are teachers they may each deduct $250 for a total of up to $500.

Additional advice for rental property owners

If you own a rental property, make sure you depreciate the purchase price of your property minus the value of the land using the real estate tax assessment for the property to determine the ratio of land to property. Then list by year all the purchases and improvements that you made for your property since you bought the property. This list should include everything that would be capable of being used for at least 3 years, including flooring, furniture, carpets, water heaters, siding, bathroom tile and windows to give you some examples. List each item separately. You may depreciate the assets at different speeds depending on service life.

Depreciation is a cashless expense that lowers your tax bill and increases your refund substantially. This is a different kind of expense from paying for repairs or supplies which you can deduct separately. These purchases or additions increase the value or service life of the property and when depreciated over time can also reduce your taxes significantly.

References:

http://www.irs.gov/publications/p527/ch03.html

http://www.irs.gov/taxtopics/tc458.html

http://www.irs.gov/publications/p970/ch03.html

http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Income_Tax/Filing_Information/Determine_Tax_Credits_and_Deductions/Quality_Teacher_Incentive_Credit.shtml

Back Taxes = Cash Refund

For many people filing tax returns that were never submitted to the IRS can be like finding a new untapped well of money that they did not know was sitting on their property. But so many every year decide not to file and get back money that is owed to them. What most people also do not realize is that they can file a late return for a refund as far back as three years ago. In these cases combined there can be more than $10,000 left sitting on the table.

With a free consultation we will determine if you are eligible for a refund before proceeding. After the consultation if you choose to proceed, we will immediately begin the process of preparing your back taxes for a refund. If it is determined that you may owe taxes, we can also help you in properly filing your back taxes so that your tax due is the least amount allowable.

Once your back taxes are filed, you will be eligible for small business loans, federally guaranteed mortgage loans, government contracts, student loans, a wide variety of employment opportunities that require your taxes to be filed.  These doors are now opened up to you whether you receive a refund or are making payments to pay your taxes on a payment plan with the government.

Getting right with your taxes has an entire array of positive effects ranging from expanded opportunities to psychological relief to large sums of money. Contact us today to schedule a free consultation to determine what your opportunities are.

Federal Government Contractor

The process of getting certified for government contracting involves submitting a business plan which includes a two year pro forma operating statement and a one year cash flow projection. These projected financial statements are based on your current business activity. These statements must be updated every year.

As part of getting certified for government contracting you will have to have your taxes current and have current books for business activity.

Give us a call for a free consultation so that we can get you on your way to securing government contracts.

Smart Accounting

Those who practice smart accounting succeed and flourish, those who do not miss out on profits due to waste, overpaying or penalties, they miss out on tax deductions they qualify for and deserve as regulations change and they have lower productivity due to lack of efficiency and waste. These reasons alone pay for the cost of an accountant. In addition you will benefit from sound advice from a professional that works with many different businesses and gets to see the inner workings of so many different companies down to the nuts and bolts all of which he accounts for financially to get the big picture of a company’s financial health and growth potential. This kind of perspective is invaluable and is one of the many reasons why accountants rank highest as businesses’ most trusted source of advice.

Contact us, so that we can get your business on its way to its most profitable levels possible.