Half Year Status

The year is half over. Are you on track with your family financial plan? Do you even have one? I can help!

Every family needs a Family Financial Plan. It acts as a road map to where you are headed. It incorporates all the significant events that may occur during your trip through life; from having children, buying a home, paying for college, taking care of parents and eventually retiring. Without planning for these events you may end up disappointed.

Whether you are just starting out or mid-career or contemplating retirement having a plan, setting goals and objectives and taking positive steps towards accomplishing your plan is essential. Will you achieve all your goals? Probably not, but by going through the planning process you and your family can get more realistic about the future and improve your chances of having a happy one.

Contact me to get the Family Financial Plan process started. Just one hour of you time that won't cost you anything can make a significant difference in your future!

Reg Baker, CPA PFS
http://www.regbaker.com/

Family Planning Question

Why do most families spend more time planning their vacations than their financial futures?

Incredible as this may seem, and I have heard this many times of the years, most families will put more time and effort into planning a vacation than they will their family's financial futures.

Is it because they are not comfortable with subject of family finance? Is it because they are afraid of the results (or lack of results) if they ever penciled out their financial futures?

Having a family financial plan (no matter how brief) is better than having no plan at all. No one ever started out having everything they needed or wanted. They needed to work towards their goals and objectives. Without a clear definition of what these goals and objectives are there is no target to aim for, nor direction or focus for your efforts.

A plan can be started very simply over a cup of coffee (or two) and a 60 minute discussion of options. Overtime, and a few more 60 minute meetings, a real family plan can take shape and develop into a very useful tool.

If you would like a free cup of coffee, with no pressure, to kick around some family planning ideas, let me know. I am always available for second opinions!

Reg Baker, CPA PFS

www.regbaker.com

Child Care Expenses - What's Deductible?

Child care expenses for work: summer camp to after-school programs to babysitting: what's deductible and what's not

With school out for the summer, working parents will not only need to arrange care for their children while at work, but how to do so in a cost effective way. For parents facing a summer season that requires juggling childcare and work (or finding work), the IRS provides a few tax breaks that can help make this balancing act a little less painful to the pocket. From the cost of day camp to summer school, how do you determine what kind of childcare is deductible and what is not? Let's take a look.

Child and dependent care credit:

The child and dependent care credit is a popular credit that, in part, enables you and your spouse (if married) to reduce your taxes by the cost of certain qualifying expenses you incur to have someone care for your child or children who are under age 13 so that you can work or look for work. While the credit applies to a wide range of childcare services, there are a variety of popular childcare services that do not qualify. Not only are there limits on the types of care and services that qualify, but the credit is also subject to income and percentage limitations as well.

Eligibility and amounts:

For 2009, you can claim up to $3,000 of expenses paid in the year for one qualifying individual, or $6,000 for two or more qualifying individuals, under the dependent and child care credit. However, as discussed below, the credit can only be taken for up to 35 percent of qualifying expenses. This means that you essentially will not be able to claim the full $3,000/$6,000 amount. Additionally, to be eligible for the credit, you and your spouse must meet certain conditions, including:

• You and your spouse (if married) must have earned income from wages, salaries, tips, other taxable compensation, or net earnings from self-employment for the year;

• The expenses must be made for children age 13 or younger;

• The expenses must have been incurred to enable you and your spouse to work or look for work (unless you or your spouse is a full-time student or incapacitated);

• The care payments must be made to someone you and your spouse cannot claim as a dependent; and:

• Your child must have lived with you for more than half of the year.

Percentage and more restrictions:

Another restriction limits the actual credit amount you can take to a percentage of your expenses. Depending on your income, the credit can reach up to 35 percent of your expenses. Thus, the potential maximum credit you can claim for 2009 is only $1,050 (35 percent of $3,000) for the care of one qualifying child, and $2,100 for the care of two children under the age of 13. The credit falls to 20 percent as your income level rises (at $43,000 adjusted gross income, the credit falls to 20 percent of expenses). Additionally, the child and dependent care credit is nonrefundable, meaning that any excess credit can not be carried over and used in later years to reduce your tax bill.

Comment. The $3,000 and $6,000 credit amounts must be further reduced by any child and dependent care benefits that your employer provides and that you exclude from your income.

Camp to day care, what expenses qualify?

To qualify for the credit, expenses must be incurred for the "care" of your child. With the dollar and percentage limitations, the child and dependent care credit will likely not pay for all of the expenses you incur to have someone care for your child (or children) when you're at work, or looking for work this summer. The IRS considers expenses are "for care" if their main purpose is the individual's well-being and protection.

Expenses that do not qualify for the child and dependent care credit:

• Kindergarten (the IRS considers both full-time and part-time kindergarten a non-qualifying educational expense);

• Overnight camp;

• Summer school;

• Tutoring programs; and

• Private school.

Expenses that qualify for the child and dependent care credit:

• Day camps or similar programs (even if the camp specializes in a particular activity, such as reading, writing, tennis, or computer skills);

• Nursery school, pre-school, or similar programs for children below the kindergarten level;

• Expenses for before- or after-school care of a child in kindergarten or higher may be expenses for care;

• Fees you paid to an agency to obtain services of a care provider; and

• Indirect expenses, such as application fees, agency or pre-school deposits, that you paid for purposes of obtaining child care.

Flexible Spending Accounts:

Instead of taking the child care credit, consider taking advantage of a flexible spending account that covers dependent care expenses. Employers who allow medical flexible spending accounts usually have one for dependent care as well. Contributions are pre-tax and, unlike the child and dependent care credit, they are not limited by adjusted gross income. If you take the credit, however, you can't double dip and pay for the expenses through a flexible spending account.

Some employers go one step better for their employees than sponsoring a dependent care flexible spending account: they provide on-the-premises day care facilities. If set up properly, it can be a win-win for employers and employees.

If you have questions on the type of child care that qualifies for the child and dependent care credit, a flexible spending account or other tax benefit, please contact me.

Reg Baker, CPA PFS
http://www.regbaker.com/

Samll Business Picking Up

Small Business Shows Sign of Life!

NFIB survey shows small-biz optimism highest since Sept 2008! Job openings 16 month high! Vegas left out; but it’s a start!

Vegas seems to always lead the nation in a slow down and lag the nation in a rebound. It's all discretionary spending; gets cut first and replaced last.

The NFIB survey shows that small businesses nationwide are feeling better about a recovery. Let's hope it sticks and spreads to every business in the country!!

A Quote to Remember!

Something we all must keep in mind as we move forward in life and business.

"Never confuse motion with action". --Benjamin Franklin

Cost of Children

COST OF CHILDREN IS HIGH

Parents – It costs over $200,000 to raise a child to the age of 18, not including college expenses! Are you ready?


Google or Bing “Cost of Children” and get more information than you will ever need.

Contact me if you want to start doing some planning.  It is never too early or too late!

Reg Baker, CPA PFS
http://www.regbaker.com/

Tanning Cost Increase Coming!

IRS Issues Regulations on 10-Percent Tax on Tanning Services Effective July 1

WASHINGTON — The Internal Revenue Service today issued regulations outlining the administration of a 10-percent excise tax on indoor tanning services that goes into effect on July 1.

The regulations were published today (June 11, 2010) in the Federal Register.

In general, providers of indoor tanning services will collect the tax at the time the purchaser pays for the tanning services. The provider then pays over these amounts to the government, quarterly, along with IRS Form 720, Quarterly Federal Excise Tax Return.

The tax does not apply to phototherapy services performed by a licensed medical professional on his or her premises. The regulations also provide an exception for certain physical fitness facilities that offer tanning as an incidental service to members without a separately identifiable fee.

Contact me with any questions!

Rge Baker, CPA

IRS Audits

Hi Gang!

I am getting reports from clients that the IRS is poking around looking for tax dollars. If you receive an IRS audit letter contact me ASAP!

As we all know, the Fed's are under some very heavy pressure to figure a way to reduce the deficit. Of course cutting programs and related expenditures is not an option for the the current administration so the only other option is to collect more taxes. This has been building for some time and the IRS letters are apparnetly going out to anyone that might be willing to just pay up.

Most of these IRS letters are mass mailings triggered by a computer program with preset conditions. For example, a few years back tax payers were receiving automated IRS letters if they received a form 1099. The letter stated that the IRS could not agree the form 1099 to their tax return. Well for taxpayers that receive multiple form 1099's the IRS will never be able to tie the individual 1099 amounts to the tax return. But this rattled many tax payer cages and many just paid up the requested extra tax payment without pushing back. That is expensive for the taxpayer and a good revenue source for the IRS.

If you receive an audit type letter from the IRS, please get it to me ASAP. We'll discuss the options and decide what the best course of action is. I can get involved and handle this situation for you and hopefully reduce or eliminate any additional tax, penalties and interest.

Reg Baker, CPA PFS
http://www.regbaker.com/

Powerful & Moving!

This is powerful. Especially for a Vietnam Veteran like me who saw way too much at a very young age......

http://www.nragive.com/ringoffreedom/index.html

Please pass this on for all those that are still in harms way.

Reg Baker, CPA

New State President for CPA's

I am officially the State President of the Nevada Society of CPA's. I am looking forward to a very interesting and productive year.

Please contact me with any thoughts or ideas on how to improve the Nevada Society of CPA's and increase value to its members.

Reg Baker, CPA PFS
(702) 283-0784
http://www.regbaker.com/

IRS Open House!

Open House Saturday June 5 to Help Taxpayers Solve Problems and Respond to Notices

WASHINGTON — The Internal Revenue Service will once again host a special nationwide open house on Saturday, June 5 to help taxpayers solve tax problems and respond to notices from the IRS.

Approximately 200 IRS offices, at least one in every state, will be open June 5 from 9 a.m. to 2 p.m. local time. IRS staff will be available on site or by telephone to help taxpayers work through their problems –– especially recently received tax notices –– and walk out with solutions.

“We’ve helped thousands of taxpayers resolve their problems the same day at these open houses,” IRS Commissioner Doug Shulman said. “If you have a question regarding a notice, a problem with your taxes or difficulty resolving a tough tax issue, we encourage you to come in and work with us.”

IRS locations will be equipped to handle issues involving notices and payments, return preparation, audits and a variety of other issues. At a previous IRS open house on May 15, close to 7,000 taxpayers sought and received assistance. About 97 percent of the taxpayers who came in for help had their issues resolved the same day.

At the June 5 open house, someone who has received a notice seeking additional information can speak with an IRS employee to get a clear explanation of what is necessary to satisfy the request. A taxpayer who cannot pay a tax balance due can discuss with an IRS professional whether an installment agreement is appropriate and, if so, fill out the paperwork then and there. Assistance with offers-in-compromise — an agreement between a taxpayer and the IRS that settles the taxpayer’s debt for less than the full amount owed — will also be available. Likewise, a taxpayer struggling to complete a certain IRS form or schedule can work directly with IRS staff to get the job done.

The open house on June 5 is the second of three events scheduled after tax season this year. The first was held on May 15. The next event, previously scheduled for Saturday June 26, will be held later this fall. Details regarding that event will be available later.

IRS Open House Locations are:

Las Vegas: 110 City Parkway
Las Vegas, NV 89106

Reno: 200 S. Virginia St.
Reno, NV 89501

Honolulu: 300 Ala Moana Blvd.
Honolulu, HI 96850

For more locations follow this link:
http://www.irs.gov/localcontacts/article/0,,id=220631,00.html
 
Please contact me if I can help!

Guest Blogger - Even Now Are You Leading Inspired?

Mercedes Warrick is a good friend of mine and a master of maximizing internal energy. Mercedes is my Guest Blogger today and offers a very insightful blog. Enjoy!

Even Now Are You Leading Inspired?

In one of the most deeply impacted economic regions in the country, Las Vegas professionals are taking emotional hits amplified by feeling the painful impact of a severe financial realignment.

CPAs, CFOs, attorneys, and human resources executives are the lead professionals when deciding who stays and who goes. Loss of employees often also means deciding which essential service stays and which get cuts. These hard decisions are not only affecting the people losing their jobs. These hard choices affect the professionals making the decisions as well.

Recently I had lunch with two of my executive friends, both having had a crucial year of layoffs and heart break. Making choices that were critical to their companies’ imminent survival, they have had to make the tough people decisions that have influenced families and lives. As their stories unfolded I watched these compassion filled men agonize. It is not a view that many see and it was humbling that they let me in a little.

Watching as their body language gave way to their inner feelings; the tough exterior only a façade both are saying that, “life is too short.” One is changing directions totally, seeking to build up people while leading a profession towards recovery. The other, a recognized expert and leader, is in for the “long haul.” He is seeking to build up his work family, re-fortifying trust in an industry and company that is going through a huge identity crisis. Each asks me, “So what are you doing now?”

After spending many years in executive level marketing and corporate communications ~ which I loved ~ and now 3 or so years basically basking in Zen; I quietly say, “I am empowering leaders to lead at the speed of ZEN.”

“What does that mean?” each asked.

It means that even as you are going through this tough time you take an internal inventory and take care of what you need. Simply, are you asking?

What am I learning?

How am I growing? Becoming more compassionate? Standing in my courage?

Am I being true to my values and beliefs?

What inspires me? Soothes me? Comforts me? Even now…

How am I making sure that “this action, idea or belief” is showing up in my life now?

Abraham Maslow simply stated that we have a hierarchy that moves us through a continuum of satisfaction, safety, love, esteem, self actualization, a vision of the personal self and free will. Maslow stated that we must satisfy the lower levels before we can move to a personal utopia.

We are dynamic and the Zen, the place where our soul resides within us, allows for inner reflection. New seeds of desire, wants and inspirations are planted during these hard environments. And, whether we decide to stand our ground or bring new metamorphosis and change, when we lead from a dynamic sense of Self it inspires the people around us to move through their change gracefully, be courageous and transform too. So even as they are losing a job or maybe doing two or three times more work ~ often in fear ~ of what has happened to a family member or friend, your leadership is being noted. Your compassion and your stance present an energy that is dynamic and influential.

So where are you and how are you taking are of Self? Are you emerging? Changing direction? Standing your ground? Leading at the speed of Zen means having a communion with your inner Self knowing that within every time of recycling, room is made for planting. Are you…?

Educating Your Self!

Living Seeking Information and Knowledge

Growing Your Self!

Living with Awareness, Seeking Know- How

Motivating Your Self!

Living Seeking Action, Consistency & Living Inspired. Leading Inspired!

Live Every Moment, Every Day

***

This article may be reprinted with the following credit listed.

Mercedes Warrick is The Intuitive CEO™ at The Achievement Sanctuary®. After a life changing event she decided that life is too precious and now energizes leaders, emerging entrepreneurs and professionals to live inspired, lead inspired…. Leading at the speed of ZEN! Contact Mercedes at: mercedes@TheAchievementSanctuary.com or visit www.TheAchievementSanctuary.com

Mercedes Warrick
Intuitive CEO™
@ The Achievement Sanctuary™

I am Dedicated to Energizing Your Success!

For speaking engagements, 9 Breaths for Conscious Living

1-hour mini seminars, private consultations....

(702) 348-8800

www.TheAchievementSanctuary.com

Join me on Linked In: http://www.linkedin.com/in/mercedeswarrick