For GPS (Global Position Satellite) users, our office is at: N 44 55.910 W 093 40.157

Tulberg & Greenslit's office is located on Langdon Bay. The bay is the summer home of a number of Blue Herons like the one pictured to the left. This one was fishing when its picture was taken. It grabs fish with its beak.

Tulberg & Greenslit offers the public, except for commercial and non-emergency governmental entities, free use of its primitive boat launch (pictured here) for those wishing access to the bay.

Langdon Bay or Lake, is known for its abundance of bullheads and carp. There are smaller panfish in it as well. And during the Spring of 2007, there was a personally confirmed sighting of a loon.

College Students

If you have children in college, it is important that their and your returns are done to save you as a family, the most money. Who claims the child’s exemption, can cause a big difference in total taxes paid. Education Deductions and Credits generally follow the child's exemption. The parent’s tax rate will usually be higher, meaning that they will benefit more by claiming the exemption. Full time students under 24 can generally be claimed by their parents. 

How long to keep tax records?

You must keep your records for as long as they are important to federal and state tax law. For most cases that is 3 years from when the return is filed, or 2 years from when the tax is paid, whichever is later.

Most states expect you keep them longer so you should add on another year to cover that. The statute of limitations is longer still if you materially understate your income.

Certain records relating to costs should be kept as long as you own the asset. Examples of these types of assets are: Personal residences (improvements too), Stock and mutual fund costs (after tax accounts), investment and rental real estate, and business assets.

Direct Deposits

If you are getting an income tax refund, a direct deposit makes sense. We simply enter your bank routing and account numbers onto your return. The refunds are then deposited into your bank account rather than being mailed. On average this gets you your refunds a week earlier. There are no fees or charges associated with a direct deposit. Many of our clients use direct deposit and they have been pleased with the security, convenience, and faster refunds.

Are Social Security benefits taxable?

It depends. There are three elements that go into answering this question. Your Social Security benefits, your income not counting Social Security, and the threshold amounts for your filing status. The threshold amounts are $0 for Married Filing Seperate, $25,000 for Single and Head of Household, and $32,000 for Married Filing Joint. 

A percentage of your Social Security is added to your other income and if this number exceeds the threshold amount, some of your Social Security is taxable. As much as 85% of your Social Security can be subject to taxation. We at Tulberg and Greenslit can discuss with you any options you may have to minmize the taxation of your Social Security benefits.  

Employee's Health Insurance
 
Our clients who are employees often ask us if they can deduct their health insurance premiums? If your premiums are deducted from your wages, the answer is often no. Most larger employers have in place a plan that in effect gives you your deduction upfront, and this is what you want. Employers with qualified benefit plans have done the extra paper work that gives you the best tax deal. We can usually determine if you are paying your insurance with pre-tax money if you bring us a check stub showing the deduction.

Tax Scams - How to Recognize and Avoid Them

"To help the public recognize and avoid abusive tax schemes, the IRS offers an abundance of educational materials. Participating in an illegal scheme to avoid paying taxes can result in imprisonment and fines, as well as the repayment of taxes owed with penalties and interest. Education is the best way to avoid the pitfalls of these “too good to be true” tax scams."

More from the: IRS

Understanding Vehicle Financing

With prices averaging more than $20,000 for a new vehicle and $9,500 for a four-year-old vehicle, most consumers need financing or leasing to acquire a vehicle. In some cases, buyers use “direct lending:” they obtain a loan directly from a finance company, bank or credit union. In direct lending, a buyer agrees to pay the amount financed, plus an agreed-upon finance charge, over a period of time. Once a buyer and a vehicle dealership enter into a contract and the buyer agrees to a vehicle price, the buyer uses the loan proceeds from the direct lender to pay the dealership for the vehicle.

Consumers also may arrange for a vehicle loan over the Internet.

The most common type of vehicle financing, however, is “dealership financing.” In this arrangement, a buyer and a dealership enter into a contract where the buyer agrees to pay the amount financed, plus an agreed-upon finance charge, over a period of time. The dealership may retain the contract, but usually sells it to an assignee (such as a bank, finance company or credit union), which services the account and collects the payments.

For more from the Federal Trade Commision click here: Facts for Consumers

How to obtain missing tax documents

Your employer should be able to send you a copy of your W-2. They are required by law to keep them for at least 4 years. Some employers will charge a nominal fee for the copy.

1099s are used to report: interest, dividends, brokerage trades, self-employment income, and other types of income. Banks and brokerages should be able to send you copies of these 1099s or you may be able to download them from their web site. If you worked as a consultant or independent contractor and made more than $400, you should receive a 1099-MISC. Copies of these should be obtainable from the payer.

The IRS receives copies of all these forms. You can request copies of your tax documents from them. You can call the IRS at 1-800-829-1040 and request your income transcript for a particular year. We can also make this call for you if you authorize us to do so. Fill out form 8821 and send it to us, or give us a call.

Hiring your children is good business

Tulberg & Greenslit generally discourages early distributions from Retirement and Individual Retirement Accounts (IRAs). The taxes on these distributions can be high. We are available to discuss your options and estimate the taxes you will owe if you are considering using your retirement funds before age 59 ½.

A good summary of the IRS’s rules for early distributions is available: HERE