Child and Dependent Care Credit - 10 Things you should know

Ten Things to Know About the Child and Dependent Care Credit


If you paid someone to care for your child, spouse, or dependent last year, you may be able to claim the Child and Dependent Care Credit on your federal income tax return.(I.E. Form 1040)

Below are 10 things the Internal Revenue Service (IRS) wants you to know about claiming a credit for child and dependent care expenses.

1. The care must have been provided for one or more qualifying persons. A qualifying person is your dependent child age 12 or younger when the care was provided. Additionally, your spouse and certain other individuals who are physically or mentally incapable of self-care may also be qualifying persons. You must identify each qualifying person on your tax return.

2. The care must have been provided so you – and your spouse if you are married filing jointly – could work or look for work.

3. You – and your spouse if you file jointly – must have earned income from wages, salaries, tips, other taxable employee compensation or net earnings from self-employment. One spouse may be considered as having earned income if they were a full-time student or were physically or mentally unable to care for themselves.

4. The payments for care cannot be paid to your spouse, to the parent of your qualifying person, to someone you can claim as your dependent on your return, or to your child who will not be age 19 or older by the end of the year even if he or she is not your dependent. You must identify the care provider(s) on your tax return.

5. Your filing status must be single, married filing jointly, head of household or qualifying widow(er) with a dependent child.

6. The qualifying person must have lived with you for more than half of 2010. There are exceptions for the birth or death of a qualifying person, or a child of divorced or separated parents. See Publication 503, Child and Dependent Care Expenses.

7. The credit can be up to 35 percent of your qualifying expenses, depending upon your adjusted gross income.

8. For 2010, you may use up to $3,000 of expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

9. The qualifying expenses must be reduced by the amount of any dependent care benefits provided by your employer that you deduct or exclude from your income.

10. If you pay someone to come to your home and care for your dependent or spouse, you may be a household employer and may have to withhold and pay social security and Medicare tax and pay federal unemployment tax. See Publication 926, Household Employer's Tax Guide.

Missing a W-2, Here is what to do

Here is What to do If You Are Missing a W-2


Before you file your 2010 tax return, you should make sure you have all the needed documents including all your Forms W-2. You should receive a Form W-2, Wage and Tax Statement, from each of your employers. Employers have until January 31, 2011 to send you a 2010 Form W-2 earnings statement.

If you haven’t received your W-2, follow these four steps:

1. Contact your employer If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been returned to the employer because of an incorrect or incomplete address. After contacting the employer, allow a reasonable amount of time for them to resend or to issue the W-2.

2. Contact the IRS If you do not receive your W-2 by February 14th, contact the IRS for assistance at 800-829-1040. When you call, you must provide your name, address, city and state, including zip code, Social Security number, phone number and have the following information:

• Employer’s name, address, city and state, including zip code and phone number

• Dates of employment

• An estimate of the wages you earned, the federal income tax withheld, and when you worked for that employer during 2010. The estimate should be based on year-to-date information from your final pay stub or leave-and-earnings statement, if possible.

3. File your return You still must file your tax return or request an extension to file April 18, 2011, even if you do not receive your Form W-2. If you have not received your Form W-2 by the due date, and have completed steps 1 and 2, you may use Form 4852, Substitute for Form W-2, Wage and Tax Statement. Attach Form 4852 to the return, estimating income and withholding taxes as accurately as possible. There may be a delay in any refund due while the information is verified.

4. File a Form 1040X On occasion, you may receive your missing W-2 after you filed your return using Form 4852, and the information may be different from what you reported on your return. If this happens, you must amend your return by filing a Form 1040X, Amended U.S. Individual Income Tax Return.

Form 4852, Form 1040X, and instructions are available at http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

If you have further questions or need assistance from a licensed professional New York CPA contact
David C Egan, CPA
718-227-6035

Benefits of Using Outsourced Accountants

Generally accounting refers to the occupation of auditing and maintaining records, financial report preparation, and business consulting. At the present time, for any business, accounting has its own necessity which cannot be over shadowed by the cost.

For any professional business to be monitored smoothly, routine accounting is a recommended. Business sectors like retail, construction, medical, insurance and banking are just some of the business types which benefit greatly from an outsourced CPA (Certified Public Accountant).

In today's modern era, business accounting is computerized.  Usually with a common software like Quickbooks.  If you use Quickbooks, make sure your accountant is QuickBooks certified so he or she may help you in your day to day operations. This will ensure that your financial data, as entered by your accountant, is sound and accurate. The success rate of any business is directly proportional to the accuracy in its financial accounting system.

There are a number of advantages of Accounting such as:

• It enables sound financial decisions.
• A specific sector or product's performance can be monitored easily.
• It grants access to the productivity and solvency of a business.
• It provides aid in preparation of annual financial reports.  Which are required by some banks, bonding companies, or factors.

Hiring an outsourced CPA will allow you to focus in on your business.  If you would like to speak with a licensed CPA please call 718-227-6035.

Choosing an Accountant For Your Real Estate Business

You are picky about the doctor you see when something is wrong. You don't want an MD who specializes in orthopedics if the problem lies in your back. Similarly, you wouldn't look to a large animal veterinarian when your hamster starts wheezing. And you wouldn't go to a medieval historian for information on the colonization of America or the formation of Austin. You would go to a specialist. You would find a professional who has been trained in that particular area, for that is the only way you would get the date you need. And if you're pick about those things, why wouldn't you be picky about the accountant you choose for your real estate home business?
Managing the accounts for a real estate business is difficult. To begin with, the business is a privately owned one. This fact brings with it its own taxes and tax reductions. If it is an in-home operation, items within the house, including the space itself can be written off. You can deduct your pad of paper, your laptop computer and the chair you spin on when you're trying to think. You can deduct the phone you use to make calls and the miles you drive to see clients. But you also have to follow certain rules. An accountant specializing in real estate will know the rules, know about the deductions and be able to handle them in a way best suited for your company. One who isn't won't.
Further, you need an accountant who will understand the varying payments received. Agents get commissions for sales as well as buys, and receive different fees depending on what they are certified as, as well. An accountant who specializes in real estate will know all this; one who isn't won't.
Convinced yet? Good. But how should you go about finding one?
You can very simply Google "Austin Texas Real Estate Accountant" but that will produce a lengthy list of anyone who has managed to get on Google's radar with a Web site. And how can you be certain that you have found someone reputable? Is being on page one of the search results a good sign or should you persevere and scan the selections through all eight pages? Neither. You should rely on the same thing that drives many clients to your door: reputation.
You want an accountant who not only says he knows what he is doing, but actually does know and can prove it. Therefore, to find him, talk to your contacts in real estate. See who they use to balance their ledgers, pay the bills and submit the taxes. Chances are, even if they don't have the cream of the crop, they know who does or who is. You should be able to find the real estate accountant for you. Doing so will make you a better real estate agent, as you will have the confidence and relief of knowing that a competent employee is in the background crunching numbers while you show the Browns from outside Texas a beautiful home just inside Austin.

About the Author: Joe Cline writes articles for Lakeway real estate. Other articles written by the author related to Austin real estate and Rollingwood real estate can be found on the net. Article Source: http://EzineArticles.com/?expert=Joe_Cline

Staten Island CPA

David C. Egan, CPA
465 Belfield Avenue
Staten Island, NY 10312

P 718-494-4321
F 718-227-6067

Staten Island CPA blog address is : www.statenisland-cpa.blogspot.com  Free informational blog concerning tax advice and tax updates for both individuals and small businesses in hte NY / NJ metro area.

Staten Island Accountant - Local CPA working with the NY, NJ. NYC metro area.  Clients include nationwide distribution centers, nationwide online retailers, mid-sized closely held businesses, large union contractors, real estate investment companies, and other commercial clientel.

Staten Island Accountant

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Goldenthal & Suss CPA's and Consultants, P.C.
465 Belfield Avenue
Staten Island, NY 10312

P 718-227-6035
F 718-227-6067

www.gosucpa.com

Staten Island Accountant - Local Accountant Serving the NY / NJ metro area.  Specializing in small business taxation.  Experts in corporate taxation.

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