March 2010 LIVING IN AMERICA-TAX WRITE OFFS YOU DIDN'T KNOW

The most popular tax write offs are to participate on the retirement paland and health savings account offered by your employer. Avoid early withdrawal on traditional IRAs (subject to additional 10% tax) and other qualified retirement plans except when you use it as a first time home buyer, certain medical or educational expenses, or if you are disabled.

Gambling winnings are always taxable income reported on line 21 of Form 1040. You may NOT use Form 1040A, Form 1040. You can not deduct gambling losses that are more than your winnings and provide receipts , tickets, statements or other records showing both your winnings and losses.

If your Social Security benefits were your only income for 2009, your benefits are not taxable and you probably do not need to a file a federal tax income return. If you received income from other sources, your benefits will be taxed unless your modified adussted gross income is more than the base amount for your filing status.

Quick computation whether some your benefits may be taxable: First, add one half of the total social security benefits you received to all your other income, including tax exempt interest and other exclusions income. Then, compare this total to the base amount of your filing status. If the total is more than your base amount, some of your benefits maybe taxable.

The 2009 base amounts are:
$32,000 for married filing jointly
$25,000 for single, head of household, qualifying widow/widower with dependent child or married filing separately who dinot live together anytime during the year.
$0 for married filing separately who lived together during the year

THE FOLLOWING CAN LOWER YOUR INCOME TAXES:
First $2,400 unemployment compensation deduction
Educator expenses for teachers
Employee business expense not reimbursed by employer
Health savings account deduction form 8889
Moving expenses on form 3903
One half self employment tax
Self-employed SEP, SIMPLE and qualfied plans
Self-employed health insurance deduction
Penalty on early withdrawal of savings
Alimony paid
IRA deduction
Retirement savings contribution credit fomr 8880
Student loan interest deduction 1098-E
Education credit form 8863 1098-T
Tuition and fees deduction
Foreign earned income form 2555
Jury duty pay given to employer
Health savings account & Archer MSA deduction
Health coverage tax credit (HCTC) received 65% of premium paid
Born before Jan 2, 1945 and legally blind deduction
Foreign tax credit credit form 1116
Credit for child and dependent care expenses form 2441
Credit for the elderly or disabled schedule R
Child tax credit
Making work pay and government retiree credit
Earned income credit
First time home buyer credit for ling time resident home buyer credit
Sales or excise tax paid on energy efficient or car deduction between 2/17/2009 & 1/1/2010
Medical and denta deduction in excess of 7.5% of AGI

I am more than willing to assist you for more details on the above topics or if you may have questions on other topics like on Schedule A, Schedule C, Schedule E, 1099-C and 1099-A. Do not hesitate to ask me or you can visit http://www.irs.gov/

Mar Dimes
Tax Preparations, Accounting/Bookkeeping, Payroll and All Tax Reports
tel 916-627-5970

March 2010 COVER STORY-Mar Dimes, Tax Preparation, Accounting/Bookkeeping, Pyroll and All Tax Reports

How long have you been in America?

I have been here in the United States of America for thirty one years, three months and twenty five days on March 1, 2010.

Where is your hometown in the Philippines?

My hometown was a mixture of three cities: I was born in San Manuel, Tarlac; then left for Taguig City where I attended my grade six and graduated elementary school. And moved to Pasay City where I resided during my high school and college days. Then adopted my father's hometown Lipa City Batangas as my third hometown.

What got you into taxation, accounting and bookkeeping?

When I came to the United States of America, I already possessed a degree in Business Administration, major in Accounting from Philippine School of Business Administration, Manila. My first job was as an Accounting Clerk in San Francisco, California. My second job was as a Bookkeeper here in Sacramento. I took the Tax Preparation Course with the Federated Tax Service (no longer exists) and started preparing invidual taxe manually in 1988. I learned hard enough to know more about taxation doing it manually. In 1990 I got employed as an Accountant for a family operated tax reports. Then I became confident doing taxes for individual, partnerships, S corporations and C corporations.

What do you like most about America?

I like America as freedom loving country and its system of government dealing with justice for all and regonizing God above all.

What do you miss the most about living in the Philippines?

I miss the comradeship among my friends, hospitality of my relatives in Batangas and most of all I miss my original hometown San Manuel, Tarlac so much!

Is your family all here in America?

I have one sister left in the Philippines. She decided not to come to the United States because of her boyfriend and eventually became my brother inlaw.

How old are your kids now?

I have only one daughter, Desiree, born on December 1st, married to Michael Burier. She's got us two beautiful granddaughters, Dalaney and Nevaeh.

What do you like to do when you are not working?

I like to be with my wife when not working, who plans all the getaway moves. I love to be with our drandkids who comes to our house during weekends.

If there is one tip you can give to a business owner to simplify taxes what is it?

First, I say honesty is the best policy. Back up all your transactions with genuine documents. Get a professional who can do your books correctly and get your taxes done right with the right price. And that's me!

MAR DIMES

Tax Preparation, Accounting/Bookkeeping, Payroll and All Tax Reports

Experienced since 1990

AFFORDABLE

For individual, partnerships, S Corporations and C Corporations

Honest, Good & Truthful Service, No Malice, No Magic, Get it Done Right

Call 916-627-5970

Possess a degree in Business Administration-Accounting

Tax Preparer CTEC A011014

--MaG--

March 2010 Cover

Wow, we survived Valentines!

How was it for everyone? Mine was eventful thanks to my creative husband, Ezra. I know Wilna of Angels and Creations (February Cover) was super exhausted delivering at least 60 orders all over Sacramento and Roseville area. Recession doesn't really stop us Filipinos from being the romantics that we naturally are which is good and I would say it's healthy!

March and April is Tax Season and we want to make sure that our Filipino Business Owners are saving big bucks while filing their taxes this is why we are featuring a very experienced professional in this area, Mar Dimes. In our LIVING IN AMERICA Section Mar Dimes is also sharing some TAX WRITE OFFS you probably never knew.

In our website we also have launched TAMBAYAN. This is a forum or a message board where we all could discuss issues, make announcements or maybe look for friends. So please join and give us your feedback!

Melanie A Garcia
Creator and Founder, Publisher
http://www.filipinoclassifieds.net/

"My friend, the panda will never fulfill his destiny, nor you yours until you let go of the illusion of control."--Kung Fu Panda Movie