Watson CPA Group - Knowledgebase


General Tax Questions
Can I pay my taxes with a credit card?
By Jason Watson (Google+) There are several options but predominantly there are two- EFTPS: The Electronic Federal Tax Payment System is a free service from the US Department of the Treasury. All federal taxes can be paid using EFTPS. You can make payments via their web site, a voice response...
16 Oct, 2012 Views: 0 Comments: 0
Are there automatic filing extensions for military personnel?
By Jason Watson (Google+) A person serving in the Red Cross or under the direction of the military while in a qualified combat zone receives the same treatment as military personnel. When individuals serve in a qualified combat zone, the filing deadline increases by 180 days after the latter of...
12 Nov, 2014 Views: 0 Comments: 0
Tax Brackets Misconceptions- Should I earn more money?
By Jason Watson (Google+) There is a misconception out there about tax tables, and how your income is taxed. Let’s make some assumptions about the tax rate for each income bracket (data is for tax year 2011)- Up to $8,500 taxed at 10% $8,501 to $34,500 taxed at 15% $34,501 to $83,600...
16 Oct, 2012 Views: 0 Comments: 0
What is the marriage penalty and how does it affect our tax returns?
By Jason Watson (Google+) There are probably several marriage penalties we can discuss such as who gets to park in the garage, who gets the most cabinet space in the bathroom, etc. but we are here to say that the marriage penalty as it relates to taxation is all but over, for most people. There...
16 Oct, 2012 Views: 0 Comments: 0
Can I deduct my cell phone charges?
By Jason Watson (Google+) Yes, and you have always been able to. However, the Small Business Act of 2010 removed cell phones as “listed property” and therefore the recordkeeping requirements have eased. Previously, each individual phone call needed to be logged, and the essential business...
03 Oct, 2018 Views: 0 Comments: 0
Can I deduct the purchase of my cell phone or tablet?
By Jason Watson (Google+) Perhaps. There are three options- Section 179: There is a provision in the tax code allowing you to deduct the entire purchase provided the property was new when purchased and you used it more than 50% of the time for business. You can take a Section 179 deduction...
30 Oct, 2012 Views: 0 Comments: 0
Can I deduct internet expenses?
By Jason Watson (Google+) Yes. Here is a snippet from a 2012 Tax Court Memo 2012-272- A taxpayer may deduct the cost of home internet service pursuant to section 162 if the expense is ordinary and necessary in the taxpayer’s trade or business. See Fessey v. Commissioner, T.C. Memo....
30 Oct, 2012 Views: 0 Comments: 0
If my employer provides a cell phone, is that income?
By Jason Watson (Google+) Typically No. Since cell phones have been removed from the 'listed property' provision of the tax code, the IRS has been wrestling with how to deal with employer-provided cell phones as a fringe benefit. In many cases if your employer provides you with a benefit, such...
30 Oct, 2012 Views: 0 Comments: 0
Roth IRAs for High Income Earners
By Jason Watson (Google+) When it comes to saving for retirement, making too much money means that Uncle Sam shuts the door on many of your tax breaks. Specifically, for those who want to invest in Roth IRAs, once the income limits have been reached eligibility for contributions are reduced or...
13 Sep, 2014 Views: 0 Comments: 0