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Start a New Career As A Registered Tax Professional - Earn and Work From a Home Office

Individuals interested in becoming a tax professional can do so before June of 2011, to delay having to pass the new IRS Competency Exam until 2013. The IRS Exams will start in the summer of 2011, and once the testing begins, all unregistered tax preparers will have to pass at least one of the Exams before registering with the IRS.

The new testing and registration of tax professionals is for regular tax preparers. The IRS now requires all tax preparers who perform tax preparation for a fee, to register and pass the new exams by 2013.

If you are already registered with the IRS prior to the start of the Competency Exams, you will have until December of 2013 to pass one of the Exams, or work under a Registered Tax Professional who will need to sign the tax returns you complete (there are different levels of testing, tax preparation for individuals and tax preparation for small businesses).

Passing the new test is a concern for many tax professionals. Even tax pros with years of experience are watching to see what the exams will include. Less than half the individuals taking the Enrolled Agent Exam, pass the first time. And it will be interesting to see how difficult the Competency Exams will be.

An Enrolled Agent is registered to practice before the Internal Revenue Service. Hourly wages for an experienced, established EA, can range from $75 to $150 (California) per hour, and are comparable to Attorney hourly fees. You do NOT have to have a college degree, or even attended college to sit for the enrolled agent exam.

Of course, like with any other Federal testing, there will be tax schools who will promise you to passing grade when you sign for their classes. Regardless if you are taking the Tax Preparation Exam (Competency Exams) or the Enrolled Agent Exam there are schools who can help you prepare. These best of these programs are responsible for individuals going from $15 an hour job to $150 per hour as an Enrolled Agent.

Individuals who have a special love for numbers and how numbers can paint, or change a picture, usually are happy in the tax industry. The down side, for some, is that taxes is law, and you must have a good relationship with learning and applying tax laws in your profession. A healthy respect for the Department of the Treasury and a willingness to learn dozens of new tax laws each year is a part of the normal procedure.

Liking people is a necessary part of the job, but not mandatory. People sign up with grumpy tax professionals all the time, as long as they are good at what they do! Being patient with people is necessary and the ability to help people without passing judgment is crucial. A strong work ethic helps because there are so many ways to mess up in this type of position. Failure to comply with Federal Tax Professional laws can result in serious consequences. The income is good, especially after you build up your client base. Understanding how to market yourself and your services can go a long ways in building your annual income.

To view more information on becoming a registered tax preparer, visit irs.gov and click on "tax professional."

To learn more about attending an accredited home based and online class, visit http://taxeswilltravel.com and click on "Become a tax professional" Put your future in high gear and become an Independent Contractor for the Department of Treasury.

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Home Based Business Tax: Great Advantages and Benefits

The great advantages and benefits of the home based business tax that come from running a home business has now gotten even better. Many of us got into the home based business industry driven by the need to make extra income. With just a small space for our computer and other home office supplies, along with a couple of hours, and a great knowledge about the internet and the niche our business is in, we have been able to generate a sizeable income to supplement our daily needs, and maybe a little something for a vacation perhaps.

As the home based business industry grew to epic proportions, the government has seen its importance in helping the economy and has promoted the rise of work at home entrepreneurs by providing tax breaks.

Before you apply these tax breaks when you file your next taxes, you should first consider these four aspects to see if you qualify for the home based business tax.

First you need to have a dedicated area in your home as your office and it should be used exclusively for that purpose and regularly utilized. Second, your home business should show that it was built to realize profits, and not just to avail of the tax breaks. Its structure should show that it is designed for generating profits. You should also be able to prove that you consistently and regularly work on your business for at least four or five times each week and devote no less than one to four hours each day.

Some of the deductibles that you can claim include; your office equipment, communication fees, website costs and fees, promotional materials, internet access, computer, meals, dental and medical, and a number of others as long as you are able to prove that they were solely utilized for business purposes.

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Article Source: [http://EzineArticles.com/?Home-Based-Business-Tax:-Great-Advantages-and-Benefits&id=6000624] Home Based Business Tax: Great Advantages and Benefits

Home Based Business Tax Deductions: Lower Some of Your House Expenses

Did you even know that you can get some home based business tax deductions because of your business that you operate out of your personal home? In fact, you can even get some tax breaks from that last vacation you took. But if you don't want to go to jail for tax fraud, you need to be able to know first what you can legitimately declare as deductions and be able to prove it.

First and foremost, before you go on a tax deduction rampage, you should first be able to qualify. Your home based business should have a structure and plan that will show that it's operating for profit. You dedicate at least an hour a day for it, and four to five days of your week is spent on your business. And also, you should have a part of your home dedicated solely for your business.

Now to the good part, what areas can you claim home based business tax deductions? Most anywhere, your electricity, gas, all your startup costs for your home based business, mortgage interest, heating, air conditioning, phone bill, internet fees, fuel, meals, and lots more.

What's important is that you can present proper documentation and proof that you incurred those expenses because it was needed for your business and without the business those expenses wouldn't have happened. With your utility bills, you can only claim a portion of the expenses as deductibles, depending on the consumption of your home based business. So, remember to keep all your receipts, keep your records complete and well managed, and consult with a tax expert first before you submit your taxes. With all of these tips to guide you, you should easily be able to claim home based business tax deductions.

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Article Source: [http://EzineArticles.com/?Home-Based-Business-Tax-Deductions:-Lower-Some-of-Your-House-Expenses&id=6000767] Home Based Business Tax Deductions: Lower Some of Your House Expenses

Prep for Tax Time All Year Long

Don't wait until the last minute to try to get all of your tax information in order, prep for tax time all year long with some basic organizational strategies. This can be one of the smartest and most important things you ever do. Tax time does not have to be stressful and when you plan ahead throughout the entire year instead of waiting till the last minute, it can make all the difference. One way that you can do this is by creating folders that allow you to store and organized important tax documents all year long. You can easily make folders for all of your important tax information throughout the year. For example you may have one folder for medical expenses, one for home maintenance, mileage, and additional income. Receipts and documentation for all of these expenditures and incomes should be placed in the folders as they arrive. By keeping up with your basic paperwork throughout the year you can easily be ready for tax time without any hassle or searching for documents.

Tax time doesn't have to be stressful and is only made so my being disorganized throughout the year. If you are a homeowner then you are aware that any expenses and income related to your home will be applied at tax time, therefore you don't just scatter home repair receipts all over the place. You keep them together and are ready when the time comes. Small business owners and self employed individuals have to track their income throughout the year and often pay quarterly taxes and income tax. Good record keeping is a must to avoid paying in too much or too little. This will be a very smart move and once you get a routine down, it will be easy to maintain it year after year.

If you usually have to pay in something at tax time set up a savings account to add to through the year to keep from having to come up with a large amount all at once at tax time. Being prepared for tax time is not difficult or even "taxing" it's just a matter of being organized, having a place for everything and everything in its place. By making simple changes to your organization and filing throughout the year you can not only be prepared for tax time, but may also come to dread it a little less.

It's just that easy!

About the Author:

Lisa Mason is a [http://www.freelancewriter4hire.com/]freelance writer with a specialty in Internet content and SEO articles and the author of How to Earn a Living Writing for the Internet. She has written thousands of articles, hundreds of ebooks and thousands of website pages and related content in more than 10 years as a professional writer.

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Article Source: [http://EzineArticles.com/?Prep-for-Tax-Time-All-Year-Long&id=5817568] Prep for Tax Time All Year Long

What to Do With Your Tax Return

Many Americans look forward to tax time because of the refund they anticipate getting. Some purposely manage their affairs precisely to receive a large return and view it as a form of savings. But when the check arrives, what should you do with your tax refund? There are numerous possibilities but the options that make the most sense involve accomplishing something you would otherwise not be able to achieve.

Pay Off Credit Debt

With credit card interest skyrocketing, paying off or paying down credit card debt can drastically improve your financial situation. You'll save on the months of interest you would have paid. You'll also reduce or eliminate your monthly payment, freeing your money for other things.

Create an Emergency Fund

Financial advisers are fond of recommending an emergency fund that can carry you and your family through 1 to 3 months of your living expenses in the event you lose your job or your income is otherwise interrupted. This is large amount of money and is difficult for many to put together without a windfall like a tax refund.

Education

Set up a college fund for your children or grandchildren. Go back to school and improve your own job skills. In either case, you'll be making an investment in the future. Even simple things like a continuing education class in your field is a great way to use your tax refund for education.

Evaluate Your Mortgage

You can prepay your mortgage which can reduce the amount of interest you pay over the course of the loan. If you have a higher interest rate, refinancing the loan may be to your advantage and your refund could cover the costs of refinancing. Taking care of this when you have extra money is better than waiting until it becomes a financial necessity.

Home Repair or Upgrade

Many home repairs are costly, putting them beyond economically-stressed homeowners' reach. Some repairs such as adding insulation can have tax benefits for next year. Keeping your home in good repair can reduce other operating costs and protects one of the largest investments you own.

As you can see, there are many great things you could do with your tax return if you get one. You can use this as a much-needed opportunity to put away some savings or pay off something you've been working on for awhile. When you take advantage of this opportunity and use it smartly, it will pay off in the long run.

About the Author:

Lisa Mason is a [http://www.freelancewriter4hire.com/]freelance writer with a specialty in Internet content and SEO articles and the author of How to Earn a Living Writing for the Internet. She has written thousands of articles, hundreds of ebooks and thousands of website pages and related content in more than 10 years as a professional writer.

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Article Source: [http://EzineArticles.com/?What-to-Do-With-Your-Tax-Return&id=5817326] What to Do With Your Tax Return

Organizing Tax Documents

Whether you are scrambling to get your documents together for last year's taxes or just planning to do things better for this year, the key to a less stressful tax return is organization. Being organized doesn't have to mean complicated filing systems but it does mean you have to give up the "file pile" mentality. There are some simple steps you can take to simply the tax preparation process while keeping your sanity.

Most people can use a 3-folder system. Income, deductions and investments are the three major categories you will need. This is a great way to stay organized so that you can always find what you need when you need it. If you have others, make folders for them as you deem appropriate. Let's look at what goes into each folder.

Income

Create one file for all sources of income. This file should hold pay stubs, tips, dividends, distributions, rental income. If you have numerous sources, you may want to have several folders and group them logically. Each folder should have a tally sheet where you record each item as you file it. It makes it easier to total everything at year's end then to wade through the stacks of paper. If you've been diligent, all the documents are in one place for reference and the details are entered on the tally sheet for easy processing.

Deductions

Store anything that can be deducted such as mortgage interest, child care expenses, medical expenses, non-refundable work-related expenses. As with income, it may be easier to manage with multiple folders. Tally sheets for each category of expense can reduce compilation time come April. While you may not feel like taking the time, it will pay off once you see how much time you save later.

Investments

IRAs, Roth contribution records and distribution records if you've started collecting from various plans are all important documents. Grouping them by how they are taxed: tax-deferred, non-taxable and taxable invests, can simplify the process.

When it is time to do the prep work, review each folder, total the numbers for each category and fill in the blanks on your itemized return. Match W2s and 1099s with your records, checking for any discrepancies. A little preparation all year long can save headaches at filing time.

Taxes do not have to bring you stress and worry. When you take some time throughout the year to prepare, it makes it all easier when tax time comes around.

About the Author:

Lisa Mason is a [http://www.freelancewriter4hire.com/]freelance writer with a specialty in Internet content and SEO articles and the author of How to Earn a Living Writing for the Internet. She has written thousands of articles, hundreds of ebooks and thousands of website pages and related content in more than 10 years as a professional writer.

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Article Source: [http://EzineArticles.com/?Organizing-Tax-Documents&id=5817243] Organizing Tax Documents

Tax Information for New Home Based Businesses

If you own a company, you will need to file business income tax returns. If your operate out of your home and do not have any employees besides yourself, preparing taxes just became a lot easier. That said, there is basic but important tax information you should know before getting started, including tips on how to make the job simpler.

Tax Deductions

When launching a start-up, many business owners question what costs they can and cannot deduct. A simple rule to follow is that tax deductions need to be both ordinary expenses and necessary expenses to the business.

There are several areas where owners can deduct expenses. Some examples include supplies, advertising, travel and meals, insurance, repairs, rent, wages, etc. You can also deduct the business use of your home and car. For a specific breakdown of all deduction categories, review IRS Publication 535, which can be accessed online at the IRS website.

Keeping written receipts and good records of your expenses throughout the year will make your life easier come tax time. Use a separate credit card for business expenditures than your personal credit card. For people who do not use a bookkeeper, it is good idea to invest in a simple accounting program like Quick Books Pro or Quick Books Simple Start to organize both income and expenses so that preparing income tax returns does not become overwhelming.

Income Tax Return Forms

The income tax forms needed for a particular business will vary, depending on the structure of that business (a sole proprietorship, corporation, s corporation, limited liability company or partnership). The forms can be downloaded and printed from the IRS website, along with instructions for filling them out.

Those who run a sole proprietorship or limited liability company use a 1040 individual income tax return form along with a Schedule C, profit or loss from business. Corporations use form 1120 while S corporations use form 1120-S. Partnership companies use form 1065.

Tax Preparation Software

A tax professional can be hired to complete company tax returns, or you can do them yourself. Just like personal tax return software, there is do-it-yourself tax preparation software for businesses. There is even home and business software packages which include both programs for preparing personal returns and corporation business returns. Getting multiple programs together usually offers a cost savings and are a good resource for home based operations.

Well known companies like Intuit (Turbo Tax) and H&R Block (Tax Cut) have combination home and business software that can be purchased for less than $100. For those who prefer not to download anything, Tax Act has a tax prep solution that can be completed online without having to download any software.

Tax return preparation by a field professional can cost upwards of $500, so there is a big cost savings to doing the work yourself. That said, tax consultants may know about certain tax deductions that you would otherwise miss, and they can of course save you a lot of time filling out forms.

For more resources and tips on home business taxes and deductions, see [http://homeandbusinesssoftware.com/turbotax-home-and-business-software-2010.html]Home and Business Tax Return Software and [http://www.homebusinesscenter.com/tax.html]Home Business Tax Deductions.

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Why You HAVE To Have a Home Based Business THIS YEAR

Everyone's doing it nowadays and there are ample good reasons. Working from home that is. More Americans own home based businesses now, than ever before, in history. So much so that congress has enacted new laws and tax breaks that specifically target home based businesses. In fact, it is rumored that, due to recent tax code changes, there are now more tax advantages for home based businesses than for any other type of business in the country. These new tax laws present some unique opportunities to those with the intestinal fortitude to reach out and grab them. Industry experts and tax accountants are now asserting that everyone in America would benefit from the unique tax advantages of working for themselves, out of their own home.

Let's look at just a few of the great reasons to own a home based business, even if you have a real job.
Tax advantages: There are several but the main ones are that you can write off a percentage of your mortgage or rent and portions of your utilities as well. In some instances, you can write off services such as your internet bill and trash pickup. Always check with a tax professional before just taking my word for it as every situation is different.
Freedom: Got a sick kid? Grandpa needs a ride to the doctor's appointment? Just don't feel like making that excruciating trek into work today? No problem. You're the boss and YOU decide when to work and when not to. This leaves you time to spend more with your spouse or family and even spend a little time on yourself.
Lower Startup Costs: You already have a place to live, right? Why spend tons renting a space and turning on all those utilities when you already have one. The # 1 reason more Americans don't work for themselves is startup capital and working from home requires very little.
"It's not how much you make but how much you keep": Most of the money you produce working in the public sector helps make others rich. Working for yourself means YOU get to keep everything you charge (well, all the profit, anyway). Combine this with the tax breaks that are out there and you typically will bring home more by doing it yourself.
Opportunity, Opportunity, Opportunity: With so many businesses going bust during the recent difficult financial and economical times, there are plenty of niches that need to be filled. It doesn't take much research to find a business model that is right for you.

The simple fact is that, even if you have a full-time job, the time is right to own a home based business. Even with the bad rap that a lot of Internet-based businesses have gotten over the years, there are still buckets of Americans who are involved. Do they see something that you don't? None of them were born with some sixth sense that makes them successful. They are (or were) normal time card punching folks like the rest of us who saw the need & advantages of working for themselves and decided to make a go of it. There simply wouldn't be this many of us doing it if we were not successful.

So don't be afraid! Grab your sunscreen and floatie and dive in! The water is fine.

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Taxes - Do I Have To Pay Them? A Home Business Question Worth Looking Into

When you do a job, you are handed a paycheck or given one that is directly deposited into your bank account. On that check stub, you see a number of deductions for the taxes that you have paid on this income. However, when you work from home as an independent contractor or on a freelance basis, you don't always get that. You may be responsible for paying the taxes on your income for yourself. The question, do I have to pay taxes on what I earn can depend on a number of factors and is something that would have to be answered on an individual basis.

Do I Have to Pay Taxes on a Child Care Business That is Subsidized?

Many people who start child care businesses in their own home will have several children who are paid for through the state. There are a number of different programs that are meant to help people get an education or keep employment by providing them with child care while they are doing those things. Each state has different programs but it still counts as income to the child care provider. Both the parent and the child care provider will have to include the amount of child care that is paid and how many hours of care is provided on their tax forms at the end of the year.

Do I have to Pay Taxes if I Don't Make a Lot of Money?

The amount of money that you have to make before it is considered taxable income is a tricky question to answer. Before you think that you can just forego the taxes, there are a lot of things you need to consider. If you don't pay taxes when you are supposed to you can be subject to penalties and fines, and could also include jail time. And, consider this: if the IRS does find that you did not pay taxes for one year they may go ahead and audit you for other years as well.

If you do pay your taxes however, you may find that you are not making enough money to keep your bills paid or feed your family. At this point, you may need to consider whether working from home is a good idea or if you need to switch to a higher paying job until your business can bring in more money.

Do I have to Pay Taxes: Speaking to a Tax Expert

For the answers to all of your specific tax questions, it is important to talk to a qualified expert. It is important that you consider talking to a tax pro when you are getting ready to open a new business or change jobs as well as when your business expands or has an exceptionally good (or bad) year. Making sure that you understand your tax responsibilities, especially when you are self employed is important and will keep you from having trouble later down the road.

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Article Source: [http://EzineArticles.com/?Taxes---Do-I-Have-To-Pay-Them?-A-Home-Business-Question-Worth-Looking-Into&id=5763217] Taxes - Do I Have To Pay Them? A Home Business Question Worth Looking Into

Tax Time Tip For Small Biz: Scan As You Go

It's an annual ritual most of us despise. Tax time is upon us again. Whether you're due a refund or have to pay Uncle Sam, reconnecting with our filing cabinets is still among the most dreaded tasks that most tax filers face.

Sloppy Record Keeping

Unless you're a CPA or work for the IRS, chances are you're holding on to random scraps of paper; receipts for purchases that don't qualify you for a write-off of any kind; and/or other official looking financial documents from decades gone by.

Americans tend to be pack-rats at heart when it comes to paper management. But shoving too much paper in the filing cabinet out of convenience could come back to haunt you when you sit down and do your taxes. Evaluate what paper needs to meet the shredder.

The tax code is too hard for most of us to crack, which is fine for the average taxpayer without too many exemptions. But small business owners and the self-employed will likely face additional scrutiny from Uncle Sam this year because the economic hangover we're just now emerging from means a majority of businesses have unemployment, stimulus and/or refinancing situations to account for during 2010.

Scan As You Go

You may have already made your New Years Resolutions for 2011, but taxpayers would be wise to add another one to the mix: When preparing your taxes, scan as you go. That is to say that keeping too much paper for too long can create ongoing liabilities years after you've long forgotten about tax season 2011.

Go through your paper records carefully, determine which ones are tax-dependent, make a pile to rel=nofollow [http://www.copyscan.com/business_services/scan-shred/]scan and shred the rest. Not only will you have a good head start for next year's taxes, but you'll be better organized as well. Less paper usually means less stress for business owners and self-employed taxpayers.

Emancipation Day Irony

According to the IRS, taxpayers will have until Monday, April 18 to file their 2010 tax returns and pay any taxes due because Emancipation Day, a holiday observed in the District of Columbia, falls this year on Friday, April 15. By law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have three extra days to file this year. But if you're filing a Schedule A, you'll have even more time to wade through and edit all the extra paperwork you may be facing.

In addition to the Emancipation Day extension, the IRS has also enacted a waiting period for taxpayers claiming exemptions - But the agency has not yet announced when those filing a Schedule A can send in their documents.

Taxpayers requesting an extension will have until Oct. 17 to file their 2010 tax returns.

Offshore Accounts On The Radar

The IRS expects to receive more than 140 million individual tax returns this year, with most of those being filed by the April 18 deadline. Of those who file, those who fall under a certain tax filing status may find themselves audited - Among them, taxpayers and corporate entities that maintain offshore bank accounts.

In a statement on its Web site, the IRS cautioned taxpayers with foreign accounts to properly report income from these accounts and file the appropriate forms on time to avoid stiff penalties.

"The IRS has made important strides at stopping tax avoidance using offshore accounts," said IRS Commissioner Doug Shulman in a statement on the IRS Web site. "We continue to focus on offshore tax compliance and people with offshore accounts need to pay taxes on income from those accounts." [http://www.recordshred.com]recordSHRED is the secure document and product destruction leader in South Florida. Headquartered in Fort Lauderdale, recordSHRED was founded in 2003 and specializes in business and residential shredding services.

Article Source: [http://EzineArticles.com/?Tax-Time-Tip-For-Small-Biz:-Scan-As-You-Go&id=5745530] Tax Time Tip For Small Biz: Scan As You Go