To best be prepared for your Manhattan income taxes, now may be a good time to evaluate the expenses you incur as an employee in connection with your work. While your employer may be reimbursing you for some of these expenses, there may be others for which you are bearing the cost yet not utilizing the NYC income tax benefit. Through proper substantiation, it is possible that you may be able to obtain greater reimbursement from your employer. Alternatively, you may be entitled to deduct such expenses as miscellaneous itemized deductions on your income taxes in New York.

In order to be reimbursed and/or deducted, the trade or business expenses  on your New York City income taxes must be ordinary, necessary, and reasonable. They also must be properly substantiated. Examples of qualifying expenses include:

•    Travel, transportation, meal, or entertainment expenses
•    Safety equipment, small tools, or supplies
•    Uniforms required by your employer that are not suitable for everyday wear
•    Required protective clothing
•    Dues to professional organizations
•    Subscriptions to professional journals
•    Certain job hunting expenses
•    Certain expenses for the business use of your home
•    Computer costs
•    Work-related educational expenses

You may also benefit from a review of the business expenses related to the use of your home. If you qualify for the home office deduction on your New York  income tax return, you may be able to deduct part of your home’s normal operating expenses, such as utilities and insurance. The Manhattan tax saving opportunities available to you are dependent not only on the type of work you do at home, but where in your home you perform it.

The rules for deducting these expenses, as well as substantiating your deduction, vary according to the type of expense involved. To make your New York tax preparation go as smoothly as possible, it is important to retain all records and receipts that document the time, place, and business purpose of each expense. Don’t hesitate to call our firm of experienced NYC accountants to schedule a consultation.

About us: MEDOWS CPA, PLLC is a boutique New York CPA NY Firm serving the needs of Individuals & Small Businesses in New York City and throughout the nation.  We work with the self-employed, freelancers, LLC, C-Corporations and S-Corporations to help them with their accounting and tax needs.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses

The following came across our emails from New York State.  The new program will apply to people and companies who have actual bills outstanding from New York State.   If you have not filed your state taxes this will not apply:

Save up to 80% of the penalty and interest on your New York State tax debts

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The governor recently signed legislation authorizing the PAID (Penalty and Interest Discount) program. PAID gives taxpayers with older unpaid bills the chance to save up to 80% of the penalty and interest they owe. Bills less than three years old are not eligible under this program.

The program will start January 15, 2010. To take advantage of the program’s savings, eligible taxpayers must make all payments by the program’s expiration date, March 15, 2010. If they don’t pay in full by that date:

• the opportunity for these savings will be lost forever
• any unpaid tax debts will continue to accrue interest at the full statutory rate.

Why PAID is good for you

• You can save:
  • 80% of accrued penalty and interest on unpaid bills issued on or before December 31, 2003
  • 50% of accrued penalty and interest on unpaid bills issued after December 31, 2003 and on or before December 31, 2006.
• Unpaid tax bills are bad for your credit rating and can lead to liens and other enforcement actions.
• We’re increasing our efforts to collect unpaid bills. If you act now and pay what you owe, you can take advantage of the savings and avoid collection actions.

In January 2010, we’ll mail letters to taxpayers who qualify for the PAID discounts, inviting them to participate in the program.

As of January 15, 2010 you’ll be able to use this site to participate in the program, including checking to see if you have eligible bills.

About MEDOWS CPA, PLLC: We are a boutique CPA firm located in New York City  (Manhattan), dedicated to helping small business owners, freelancers and individuals.  In addition, we also provide CPA services to people outside of the state and country.

Jonathan Medows, CPA

MEDOWS CPA, PLLC

http://www.medowscpa.com

http://taxblog.medowscpa.com

info@medowscpa.com

A Unique, Boutique New York CPA Firm Serving the Needs of Individuals & Small Businesses