Frequently Asked Questions

In the mid 1980s the alternative minimum tax was introduced to make sure high earners paid their fair share of taxes. Unfortunately over the years, as a result of inflation, more and more individuals are subject to this tax computation. The Alternative Minimum tax is almost like a flat tax in that it limits the tax deductions one can take. If the alternative minimum tax calculation, computed on IRS form 6251, results in a higher tax than the regular income tax computation, then you pay the alternative minimum tax. Certain deductions may trigger the alternative minimum tax including, but not limited to, deductions such as real estate taxes, state taxes and interest on home equity loans , and miscellaneous investment or job expenses.

Finding out the status of your refund is easy. Just Go to the IRS website at Where's My Federal Refund?

No - Consumer - non business debt is not an allowable deduction.

No - Income averaging has not been available for over 25 year.

No- That was an old rule than has not existed since the 1980s. Currently, if you are single and live in your home for 2 out of the last 5 years, you can exclude up to $250,000 of the gain. A married couple filing jointly can exclude up to $500,000 of the gain. Any gains that exceed these amounts would be taxed at the capital gains rate.

Yes. All income recived by you must be reported on your tax return regardless if you did not receive a 1099-Misc.

For 2013:
The Tax between 0 and 8,925 = 10%,
between $8,925 and $36,250 the Tax = 870 plus 15% over 8,925,
between $36,250 and $87,850 the Tax = 4,868 plus 25% over 36,250,
between $87,850 and $183,250 the Tax = 17,443 plus 28% over 87,850,
between $183,250, and $398,350 the Tax = 43,843 plus 33% over 183,250,
between $398,350, and $400,000 the Tax = 43,843 plus 33% over 398,350 over $400,000 the Tax = 116,163.75 plus 39.6% over 400,000.
For 2012:
The Tax between 0 and 8,700 = 10%,
between $8,701 and $35,350 the Tax = 870 plus 15% over 8,700,
between $35,351 and $85,650 the Tax = 4,868 plus 25% over 35,350,
between $85,651 and $178,650 the Tax = 17,443 plus 28% over 85,650,
between $178,651, and $388,350 the Tax = 43,843 plus 33% over 178,650,
over $388,351 the Tax = 112,863 plus 35% over 388,350.

If you are not electronically filing and if you are filing and not enclosing a check or money order then file at the IRS Center Fresno CA 93888-0002: if you are filing and enclosing a check or money order then the address is IRS Center PO Box 802501 Cincinnati OH 45280-2501

If your total assets at the end of the year is less than $10 million and Schedule M-3 is not filed Mail return to Department of the Treasury, Internal Revenue Service, Cincinnati OH 45999. If your total assets at the end of the year is more than $10 million and Schedule M-3 is filed Mail return to Department of the Treasury, Internal Revenue Service, Ogden, UT 84201 Form 1065, less than $10 Million -Dept of the Treasury, IRS, Cincinnati OH 45999-0011- Form 1065, $10 Million or more-Dept of the Treasury, IRS, Ogden, UT 84201-0011