Here are some tips on using the IRS Data Retrieval Tool:

• Benefits The IRS Data Retrieval tool is an easy and secure way to access and transfer tax return information directly onto the FAFSA form, saving time and improving accuracy. Also, the increased accuracy reduces the likelihood of being selected for verification by the school’s financial aid office.
• Eligibility Criteria Taxpayers who wish to use the tool to complete their 2012 FAFSA form must:
• have filed a 2011 tax return;
• possess a valid Social Security Number;
• have a Federal Student Aid PIN (individuals who don’t have a PIN, will be given the option to apply for one through the FAFSA application process);
• have not changed marital status since Dec. 31, 2011.
• Exceptions If any of the following conditions apply to the student or parents, the IRS Data Retrieval Tool can not be used for the 2012 FAFSA application:
• an amended tax return was filed for 2011;
• no federal tax return for 2011 has been filed ;
• the federal tax filing status on the 2011 return is married filing separately; a Puerto Rican or other foreign tax return has been filed.
• Alternatives If the IRS Data Retrieval Tool can not be used and if the college requests verification documentation, it may be necessary to obtain an official transcript from the IRS. To order tax return or tax account transcripts, visit www.irs.gov and select  Order a Transcript  or call the Transcript toll-free line at 1-800-908-9946.

In addition to helping reduce the time and effort involved in completing and submitting the FAFSA form through the IRS Data Retrieval Tool, the IRS offers money-saving information to college students and their parents.  Important information regarding tax credits and deductions for qualifying tuition, materials and fees is available at the IRS Tax Benefits for Education: Information Center and in IRS Publication 970, Tax Benefits for Education both of which are available at www.IRS.gov.

Links:

IRS Data Retrieval Tool/FAFSA

1. Adjust your withholding Why wait another year for a big refund? Now is a good time to review your withholding and make adjustments for next year, especially if you’d prefer more money in each paycheck this year. If you owed at tax time, perhaps you’d like next year’s tax payment to be smaller. Use IRS’s Withholding Calculator at www.irs.gov or Publication 919, How Do I Adjust My Tax Withholding?

2. Store your return in a safe place Put your 2011 tax return and supporting documents somewhere secure so you’ll know exactly where to find them if you receive an IRS notice and need to refer to your return. If it is easy to find, you can also use it as a helpful guide for next year’s return.

3. Organize your recordkeeping Establish a central location where everyone in your household can put tax-related records all year long. Anything from a shoebox to a file cabinet works. Just be consistent to avoid a scramble for misplaced mileage logs or charity receipts come tax time.

4. Review your paycheck Make sure your employer is properly withholding and reporting retirement account contributions, health insurance payments, charitable payroll deductions and other items. These payroll adjustments can make a big difference on your bottom line. Fixing an error in your paycheck now gets you back on track before it becomes a huge hassle.

5. Shop for a tax professional early If you use a tax professional to help you strategize, plan and make financial decisions throughout the year, then search now. You’ll have more time when you’re not up against a deadline or anxious for your refund. Choose a tax professional wisely. You are ultimately responsible for the accuracy of your own return regardless of who prepares it. Find tips for choosing a preparer at www.irs.gov.

6. Prepare to itemize deductions If your expenses typically fall just below the amount to make itemizing advantageous, a bit of planning to bundle deductions into 2012 may pay off. An early or extra mortgage payment, pre-deadline property tax payments, planned donations or strategically paid medical bills could equal some tax savings. See the Schedule A instructions for expenses you can deduct if you’re itemizing and then prepare an approach that works best for you.

7. Strategize tuition payments The American Opportunity Tax Credit, which offsets higher education expenses, is set to expire after 2012. It may be beneficial to pay 2013 tuition in 2012 to take full advantage of this tax credit, up to $2,500, before it expires. For more information, see IRS Publication 970, Tax Benefits for Education.

8. Keep up with changes Find out about tax law changes, helpful tips and IRS announcements all year by subscribing to IRS Tax Tips through www.irs.gov or IRS2Go, the mobile app from the IRS. The IRS issues tips regularly during summer and tax season. Special Edition tips are sent periodically with other timely updates.

The IRS emphasizes that each household’s financial circumstances are different so it’s important to fully consider your specific situation and goals before making large financial decisions.

You can find forms and publications at www.irs.gov or order them by calling 800-TAX-FORM (800-829-3676).
Links:

• IRS Withholding Calculator
• Publication 919, How Do I Adjust My Tax Withholding? (PDF)
• 2011 Form 1040 (Schedule A) (PDF)
• Publication 970, Tax Benefits for Education (PDF)

1. Make Charitable Contributions – If you itemize deductions, your donations must be made to qualified charities no later than Dec. 31 to be deductible for 2011. You must have a canceled check, a bank statement, credit card statement or a written statement from the charity, showing the name of the charity and the date and amount of the contribution for all cash donations. Donations charged to a credit card by Dec. 31 are deductible for 2011, even if the bill isn’t paid until 2012. If you donate clothing or household items, they must be in good used condition or better to be deductible.

2. Install Energy-Efficient Home Improvements – You still have time this year to make energy-saving and green-energy home improvements and qualify for either of two home energy credits. Installing energy efficient improvements such as insulation, new windows and water heaters to your main home can provide up to $500 in tax savings. Homeowners going green should also check out the Residential Energy Efficient Property Credit, designed to spur investment in alternative energy equipment. The credit equals 30 percent of the cost of qualifying solar, wind, geothermal, or heat pump property. For details see Special Edition Tax Tip 2011-08, Home Energy Credits Still Available for 2011 on the IRS.gov website.

3. Consider a Portfolio Adjustment – Check your investments for gains and losses and consider sales by Dec. 31. You may normally deduct capital losses up to the amount of capital gains, plus $3,000 from other income. If your net capital losses are more than $3,000, the excess can be carried forward and deducted in future years.

4. Contribute the Maximum to Retirement Accounts – Elective deferrals you make to employer-sponsored 401(k) plans or similar workplace retirement programs for 2011 must be made by Dec. 31. However, you have until April 17, 2012, to set up a new IRA or add money to an existing IRA and still have it count for 2011. You normally can contribute up to $5,000 to a traditional or Roth IRA, and up to $6,000 if age 50 or over. The Saver’s Credit, also known as the Retirement Savings Contribution Credit, is also available to low- and moderate-income workers who voluntarily contribute to an IRA or workplace retirement plan. The maximum Saver’s Credit is $1,000, and $2,000 for married couples, but the amount allowed could be reduced or eliminated for some taxpayers in part because of the impact of other deductions and credits.

5. Make a Qualified Charitable Distribution – If you are age 70½ or over, the qualified charitable distribution (QCD) allows you to make a distribution paid directly from your individual retirement account to a qualified charity, and exclude the amount from gross income. The maximum annual exclusion for QCDs is $100,000. The excluded amount can be used to satisfy any required minimum distributions that the individual must otherwise receive from their IRAs in 2011. This benefit is available even if you do not itemize deductions.

6. Don’t Overlook the Small Business Health Care Tax Credit – If you are a small employer who pays at least half of your employee health insurance premiums, you may qualify for a tax credit of up to 35 percent of the premiums paid. An employer with fewer than 25 full-time employees who pays an average wage of less than $50,000 a year may qualify. For more information see the Small Business Health Care Tax Credit page on IRS.gov.

And here is one final tip to remember: you should always save receipts and records related to your taxes. Good recordkeeping is a must because you need records to prepare your tax return, and it will help you to file quickly and accurately next year.

For more year-end tax information and to access all IRS forms and publications, visit the IRS website at http://www.irs.gov.

From the days when Ron Popeil began shilling his Pocket Fisherman and Veg-O-Matic, television viewers have been ordering amazing products from those inescapable infomercials. These five classic products that have made it under the tree for years by now and new ones on late-night TV sure to become hits this year. You can thank us when you’re looking for those last-minute gifts on your list.

The Snuggie: How many times have you been sitting in your living room in the winter, keeping the heat down to conserve energy and lower your electric bill and found yourself wishing you had a blanket with arms that still allows you to perform all kinds of tasks such as eating popcorn or reading your Kindle? Snuggies hit the airwaves in 2008 in several basic colors, and while some laughed at the commercials of people wearing Snuggies to football games, millions were being sold. Snuggies now come in a variety of colors and prints, including camouflage, and children’s and adult Snuggies now sell from under $10 to twice that depending on the pattern. For $5.99, you can give your dog a Snuggie too!

The Chia Pet: Ch-ch-ch-chia! The jingle for this little ceramic planter set shaped like all sorts of cute animals has been in the collective memory for decades (it was launched in 1977). Like the fabled Sea Monkeys advertised in the backs of old comic books, most people don’t know exactly what to make of the Chia Pet. Is it a decorative plant or artful ceramic? Maybe it’s both. Chia Pets come in a wide variety of shapes and sizes, from the classic puppies and kittens to pigs, donkeys and even Scooby Doo or Homer Simpson. One of the latest creations is a President Obama Chia. Chia Pets range in price from $15.99 and up. (It’ll cost you $19.99 to grow your Chia hair on President Obama.)

The Clapper: Clap on, clap off, clap on, clap off … The Clapper! Sometimes the infomercial is just as memorable as the product, and The Clapper, while being a handy and unique product, also had one of the most memorable commercials (why, that elderly woman clapped and fell right to sleep without ever having to leave her bed to turn off the light). The Clapper remains one of the most popular infomercial gifts, as it is good for almost anyone, including the elderly. It’s also handy for turning on and off those Christmas lights without having to crawl back behind the tree. The Clapper Plus will handle two lamps or appliances and costs around $25.

The Ove Glove: How many times have you put on a bulky oven mitt, only to have the heat sear right through to your hand? Enter The Ove Glove, a five-fingered glove that allows you to grab a hot pan up to 540 degrees and get it out of the oven safely. A great gifts for husbands who grill or do Dutch oven cooking. The Ove Glove is a classic infomercial gift and can be found for $15.99.

The Garden Claw : Every half-serious gardener needs a tool that cultivates, aerates and weeds – one that would practically take the back-breaking part of the work out of gardening! Enter the Garden Claw, a device that claims to do all of the above, making grandma’s or dad’s gardening a little less work next spring. The Garden Claw now has a mini-me product, the Mini-Claw, which works in rock gardens, plant boxes, greenhouses and other smaller gardening areas. The Garden Claw is sold at major retailers for as low as $27.

Pillow Pets: One of the newer infomercial products on the list, these reversible pillows go from pillow at night to a snuggly friend during the day. There are several to choose from, including a dog in his dog house and a penguin in an igloo. They sell for less than $20, putting them under the threshold for a reasonably small gift.

Forever Lazy: If putting a blanket over your body that has holes for your arms isn’t enough and you would rather completely wear your blanket as a piece of clothing, the Forever Lazy may be the right gift for you and your loved ones. Like those one-piece pajamas many of us wore on Christmas morning when we were kids, these have the benefit of flaps in the front and back so you don’t have to undress completely when nature calls. Priced online at $29.99 plus shipping and handling, there is usually a promotion going on that will give you two for the price of one.

Aluma Wallet: Really, who knew scam artists could be passing by you on a crowded street and pick up information from the electronic strip on your credit and debit cards! Enter the Aluma Wallet, which protects the electronic information held on your cards while providing a stylish look in four colors. Available for men and women, a side benefit to this wallet is that it is also crush-proof. Pay $10.99 plus shipping and handling and the company will include a second one for the additional shipping cost.

OrGreenic Kitchenware:  The thing that’s always been a little scary about the traditional non-stick cookware is that if it overheats, the fumes can kill birds and other small pets in the home. When the non-stick coating peels, it can also be harmful when little bits of it get into your food. Enter OrGreenic Kitchenware, which uses a “green” ceramic non-stick coating that is not only more environmentally friendly to produce, but supposedly safer for you and your family. The Web site offers two 9-inch sauté pans for $19.99 plus an additional shipping charge for the second. The purchase comes with a cookbook.

Kelli lives in Grapevine with her husband Gary, has a son attending medical school and a daughter in her first year of college.  As our firm continues to grow, we are excited about the benefit Kelli’s vast experience will provide to our current and future clients.

1. Don’t panic. Many of these letters can be dealt with simply and painlessly.
2. Each letter and notice offers specific instructions on what you need to do to satisfy the inquiry.
3. If you receive a correction notice, you should review the correspondence and compare it with the information on your return.
4. If you agree with the correction to your account, usually no reply is necessary unless a payment is due.
5. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the botom tear-off portion of the notice. Mail the information to the IRS address shown in the lower left part of the notice. Allow at least 30 days for a response.
6. Most correspondence can be handled without calling or visiting an IRS office. However, if you have questions, call the telephone number in the upper right corner of the notice. Have a copy of your tax return and the correspondence available when you call.
7. It is important that you keep copies of any correspondence with your records.
8. Of course, our office is also available to assist you. Simply fax the notice to us at 817-540-1440 and we will advise you of the proper action.

Here are seven things the IRS wants you to know about deducting costs related to your job search.

1. To qualify for a deduction, the expenses must be spent on a job search in your current occupation. You may not deduct expenses you incur while looking for a job in a new occupation.
2. You can deduct employment and outplacement agency fees you pay while looking for a job in your present occupation. If your employer pays you back in a later year for employment agency fees, you must include the amount you receive in your gross income, up to the amount of your tax benefit in the earlier year.
3. You can deduct amounts you spend for preparing and mailing copies of your résumé to prospective employers as long as you are looking for a new job in your present occupation.
4. If you travel to an area to look for a new job in your present occupation, you may be able to deduct travel expenses to and from the area. You can only deduct the travel expenses if the trip is primarily to look for a new job. The amount of time you spend on personal activity compared to the amount of time you spend looking for work is important in determining whether the trip is primarily personal or is primarily to look for a new job.
5. You cannot deduct job search expenses if there was a substantial break between the end of your last job and the time you begin looking for a new one.
6. You cannot deduct job search expenses if you are looking for a job for the first time.
7. The amount of job search expenses that you can claim on your tax return is limited. You can claim the amount that is more than 2 percent of your adjusted gross income.  You figure your deduction on Schedule A.

For more information about job search expenses, see IRS Publication 529, Miscellaneous Deductions. This publication is available on www.irs.gov.  For any questions relating to your specific circumstance, feel free to call our office at 817-545-1277.