Best New Local Tax Preparation Service in Fort Wayne, Indiana

Andrea Seltzer wanted to create a tax and accounting service that would have a personal touch. She wanted to place the essential ingredients of familiarity mixed with expertise into the equation of great customer service when she opened the doors to Legacy Accounting.
Mission accomplished!
In order to enable customers to get the best tax preparation Seltzer knows that it is important that they become aware changes in tax laws too. She attends tax school every summer to become aware of every new change in tax laws and regulations.
Seltzer passed on the following tips about social security in order to help those consumers become more aware of this area of tax law

The Social Security benefits you received in 2010 may be taxable. You should receive a Form SSA-1099 which will show the total amount of your benefits. The information provided on this statement along with the following seven facts from the IRS will help you determine whether or not your benefits are taxable.
1. How much '" if any '" of your Social Security benefits are taxable depends on your total income and marital status.
2. Generally, if Social Security benefits were your only income for 2010, your benefits are not taxable and you probably do not need to file a federal income tax return.
3. If you received income from other sources, your benefits will not be taxed unless your modified adjusted gross income is more than the base amount for your filing status.
4. Your taxable benefits and modified adjusted gross income are figured on a worksheet in the Form 1040A or Form 1040 Instruction booklet.
5. You can do the following quick computation to determine whether some of your benefits may be taxable:
'¢ First, add one-half of the total Social Security benefits you received to all your other income, including any tax exempt interest and other exclusions from income.
'¢ Then, compare this total to the base amount for your filing status. If the total is more than your base amount, some of your benefits may be taxable.
6. The 2010 base amounts are:
'¢ $32,000 for married couples filing jointly.
'¢ $25,000 for single, head of household, qualifying widow/widower with a dependent child, or married individuals filing separately who did not live with their spouses at any time during the year.
'¢ $0 for married persons filing separately who lived together during the year.
7. For additional information on the taxability of Social Security benefits, see IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits. Publication 915 is available on this website or by calling 800-TAX-FORM (800-829-3676).
Links:
'¢ Publication 915, Social Security and Equivalent Railroad Retirement Benefits
Seltzer told me it is also important to understand what income might not be taxable. Here is a listing compiled by the IRS?

Adoption Expense Reimbursements for qualifying expense
Child support payments
Gifts, bequests and inheritances
Workers' compensation benefits
Meals and Lodging for the convenience of your employer
Compensatory Damages awarded for physical injury or physical sickness
Welfare Benefits
Cash Rebates from a dealer or manufacturer

Some income may be taxable under certain circumstances, but not taxable in other situations. Examples of items that may or may not be included in your taxable income are:
'¢ Life Insurance If you surrender a life insurance policy for cash, you must include in income any proceeds that are more than the cost of the life insurance policy. Life insurance proceeds, which were paid to you because of the insured person's death, are not taxable unless the policy was turned over to you for a price.
'¢ Scholarship or Fellowship Grant If you are a candidate for a degree, you can exclude amounts you receive as a qualified scholarship or fellowship. Amounts used for room and board do not qualify.
'¢ Non-cash Income Taxable income may be in a form other than cash. One example of this is bartering, which is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.
All other items'"including income such as wages, salaries, tips and unemployment compensation '" are fully taxable and must be included in your income unless it is specifically excluded by law.
These examples are not all-inclusive. For more information, see Publication 525, Taxable and Nontaxable Income, which can be obtained at http://www.irs.gov or by calling the IRS at 800-TAX-FORM (800-829-3676).
Link:
Publication 525, Taxable and Nontaxable Income (1178.2KB)

Andi Selzer
Legacy Accounting
2727 Pine Manor Ct
Fort Wayne, IN 46809
Office: 260-755-6991
Fax: 260-755-0109