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Health Savings Accounts (HSAs)

A health savings account (HSA) is a tax-exempt or custodial account set up with a qualified HSA trustee to pay or reimburse certain medical expenses incurred by an individual, his or her spouse, and qualified dependents. The medical expenses must not be reimbursable by insurance or other sources, and distributions from HSA funds will not give rise to a medical expense deduction on the individual’s tax return. Qualifying for an HSA To be eligible, a […]

Guide to Charitable Contributions

Charitable Organizations Qualified charitable organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. Examples of Qualified and Nonqualified Organizations QUALIFIED NONQUALIFIED • Churches, mosques, temples, synagogues. • Country clubs, lodges, fraternal orders, and similar groups, unless they are a qualified charity. • Boy and Girl Scouts, Boys and Girls Clubs ofAmerica, Red Cross, Goodwill, Salvation Army, United Way. • Civic […]

Coverdell Education Savings Accounts

A Coverdell ESA is a trust or custodial account set up in the United States solely for the purpose of paying qualified education expenses for the designated beneficiary of the account. There are certain requirements to set up a Coverdell ESA: When the account is established, the designated beneficiary must be under the age of 18 or a special needs beneficiary. The account must be designated as a Coverdell ESA when it is created. The […]

Payroll Tax Reduction Extended into 2012.

WASHINGTON — Nearly 160 million workers will benefit from the extension of the reduced payroll tax rate that has been in effect for 2011. The Temporary Payroll Tax Cut Continuation Act of 2011 temporarily extends the two percentage point payroll tax cut for employees, continuing the reduction of their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid through Feb. 29, 2012. This reduced Social Security withholding will have no […]

What Schaumburg bookkeeper can do for your business to THRIVE?

Success of our business depends on how extensively we help our client THRIVE in their business. We go beyond compliance and suggest ways to help our clients THRIVE. It’s our responsibility to make a difference not only by providing best client service, maximum tax benefits and personal attention but also by generating unique value for our client’s businesses. “If you can dream it, you can do it.” Once the idea starts materializing, it can be […]

Are you having problems with the IRS!

We’re here to help you resolve your tax problems and put an end to the misery that the IRS can put you through. We pride ourselves on being very efficient, affordable, and of course, extremely discrete. The IRS problems will not just go away by themselves; they just keep getting worse with penalties and interest being added each day. Put us on your side while dealing with IRS, State or Local government agencies. Time is […]

Why You Need CPA ??

Accounting is a very vital part of your organization. Though it does not contribute to your profits, it is the best way to gauge your performance independently as well as how you stack up amongst your peers. Besides, with good accounting, you can always have a tab over your finances allowing you to optimize your growth prospects. Given its importance, it is always better to look for professionals in this field to ensure efficient and […]

2011 IRS Tax Resources for Individuals & Businesses

Publication 17 – for preparation of 2011 Tax Return Form 1040 Instructions – for preparation of 2011 Tax Returns Form 1120-S Instructions – year 2011 Form 1120 Instructions – year 2011 Form 1065 Instructions – year 2011 Form 1041 Instructions – year 2011 Form 990 Instructions – year 2011 We are one of the FASTEST growing CPA firm in Schaumburg. Feel free to  contact us if you have more questions.   ABOUT MANENDRA KOTHARI Manendra Kothari is qualified […]

Credits and Deductions for Taxpayers with Puerto Rican Source Income that is Exempt from U.S. Tax

Bona fide residents of Puerto Rico cannot claim deductions and/or credits allocable to or chargeable against Puerto Rican source income that is excluded from a U.S. tax return. The deductions and credits not attributable to specific income must be divided between excluded income from sources in Puerto Rico and income from all other sources to find the part that can be deducted or credited on a U.S. tax return. Examples of deductions not attributable to […]

2013 TAX DEDUCTION – BUSINESS USE OF HOME

Some expenses are deductible whether or not a taxpayer uses his or her home for business. Others are deductible only if the home is used for business. DEDUCTIBLE REGARDLESS DEDUCTIBLE ONLY IF FOR BUSINESS • Real Estate Taxes * • Mortgare Interests • Casualty losses • Qualified Mortgare Insurance premiums. • Home Owner’s Insurance ** • Rent • Repairs and Maintenance • Security System • Utilities and Services • Depreciations (Deductible after applying deduction limitations […]