New Earned Income Credit Requirements to Verify Eligibility
In theory the Earned Income Credit is a commendable idea. The Earned Income Credit is meant to assist those whose income is below a certain level with a tax refund "bonus" and on the face of it that is what it has done.
The problem has been the enormous amount of fraud that the program has engendered.
There are many situations where a married couple, who have lived together all year, have chosen to have one spouse file head of household, claim the children and receive a great deal more refund than they would have if they had filed married, joint. This enables the spouse to appear to be a single parent with little income and therefore receive a hefty Earned Income Credit. This is fraud but it is also common.
The other consideration is that many individuals who are living together have literally chosen not to marry because it would make such a large difference in their refund. In our view, tax law should definitely not be legislated in such a way that it discourages two individuals who otherwise would marry from doing so.
Pronto Tax Class In-Person!
Become a Tax Professional and Earn Some Extra Cash!
Why Take the Pronto Tax Class?
1. The fastest way to become a professional, paid tax preparer.
2. Low cost and money back guarantee. Only $199 includes all books and supplies, full refund if you decide class isn't for you.
3. Live classroom experience with instructor Andy Frye who has personally prepared approximately 10,000 tax returns.
4. Class limited to 10 students so that all students receive extensive personal attention. Your success is our priority.
5. Pronto Income Tax of California, Inc. is a CTEC-Approved Qualifying Education Provider
6. The market for tax and accounting services in California is $15 billion per year. Get a piece of the action.
7. Hands-on income tax training, not just book learning. We'll do dozens of practice tax returns in class, live!
What does a tax preparer do when it's not tax season?
The short, somewhat facetious answer is: not much!
Or at least that was the short answer. For many years, the huge bulk of work in the tax business was during tax season, and the rest of the year Pronto was just open to make sure that if any clients had any questions or problems, we take care of our clients (often at little or no cost, mind you).
But now...things are a bit different and we actually do work fairly hard year round. Not as hard as we work during tax season, naturally, but we are definitely keeping busy. Our Monrovia, Carson, and West L.A. locations are open five days per week year round to serve you. Our East L.A. office is open by appointment.
Here are some of the services that Pronto Income Tax offers in the off-season:
-- Tax problem resolution. For example, this post-season we have already prepared three Offers-In-Compromise to help people settle their tax debt for less than they owe. Do you know someone who has a tax problem that they don't think is fixable? Let us have a shot at it, we have a proven track record of getting results.
-- Bookkeeping. So many business owners struggle to stay organized with their bookkeeping. It is just so hard to keep track of everything financial when you are busy running your actual business, trying to get customers, trying to keep customers happy. Bookkeeping is such a hassle! That's why Pronto has been working to develop a SIMPLE bookkeeping system that ANY business owner can use to keep great records of income and expenses. Best of all, the cost is only $40 per month!
-- Notary Public. We maintain notary public service in all of our locations. We also offer mobile notary public services, for example if you are a senior citizen and you neeed a notary to come to your home, we will do it. So if you need a notary public, call Pronto at 310-577-7530 and we will do our best to meet your needs.
Big thanks to CPA Trendlines, a research company that recently provided us with some great statistics for this tax season. Here are a few highlights from the CPA Trendlines report:
-- Fewer tax returns filed overall this year, the result of our unemployment problem (many people who were working before didn't work in 2010, thus no need to file income tax).
-- Number of taxpayers choosing to electronically file their tax return rather than file by mail up another 6.3 percent this year. No doubt this increase in e-filing is partly due to the new requirement by IRS that tax professionals who file more than 100 returns per year do all electronic filing unless there is reasonable cause not to for a particular taxpayer. More e-filing is good news for the environment! Less dead trees (though still far too many).
-- Number of self-prepared tax returns up by 8.9 percent. People be loving the TurboTax, there is no denying it. As we've noted before in this space, tax professionals better MAKE SURE that they are providing value to each and every client or else that client WILL choose the Do-It-Yourself (DIY) route. And this increased self-preparation trend despite the fact that reports suggest that the average time spent on self-preparing a tax return was 21 hours (one of the more outrageous stats we've heard in a while).
-- Also despite the self-preparation trend, tax professionals are keeping plenty busy. The number of taxpayers choosing to use a tax preparer for 2010 tax preparation was up 4.8 percent versus tax year 2009. With 12 days left to go in tax season, more than 40 million people have chosen to use a tax pro rather than DIY it.
-- Average refund for tax year 2010 down 0.6 percent from $3,004 to $2,985.
Thanks again to CPA Trendlines for giving us this great report. It is always interesting to see some numbers on what is going on with tax season.
We hope this info helps YOU make a great decision about how to manage your own tax situation.