lima branch
711 Dean Ave., Lima, OH 45804
Tel: 419.222.2001
Fax: 419.222.1570
Bluffton Branch
113 N. Main St., OH 45817
Tel: 419.369.9001
Fax: 419.369.1570

General Tax Topics

These articles discuss topics that apply to the average taxpayer.  You will find information about refunds, the child credit, the AMT and much more.  If you have a tax-related issue that is not covered in this section, please call our office for more information.

Is Your Withholding Enough?
Thursday, June 11, 2015

Our "pay-as-you-go" tax system requires that you make payments of your tax liability evenly throughout the year. If you don't, it's possible you could owe an underpayment penalty. Some taxpayers meet the "pay-as-you-go" requirements by making quarterly estimated payments. However, when your income is primarily from wages, you meet...

Avoiding Underpayment Penalties
Thursday, June 11, 2015

has provided several means of assisting taxpayers in meeting the "pay-as-you-go" requirement. These include:

  • Payroll withholding for employees;
  • Pension withholding for retirees; and
  • Estimated tax payments for self-employed individuals and those with other sources of income not covered by withholding.

When a taxpayer fails to prepay a safe...

Keeping Old Tax Records
Thursday, June 11, 2015

Taxpayers often question how long records must be kept and the amount of time IRS has to audit a return after it is filed.

It all depends on the circumstances! In many cases, the federal statute of limitations can be used to help you determine how long...

Understanding Your Marginal Tax Rate
Thursday, June 11, 2015

Ever wonder what the term "tax bracket" means? It refers to the top marginal tax rate that individuals are being taxed, not the average. Knowing your marginal rate is important, because any increase or decrease in your taxable income will affect your tax at your top marginal rate. Thus, if...

Keep a Low Audit Profile
Thursday, June 11, 2015

According to a recent news article in a large metropolitan newspaper, the IRS may be auditing fewer returns but they are getting smarter about choosing those they do audit. Their goal, of course, is to focus scrutiny on the most "audit worthy" returns – those with potential for big adjustments....

Years of inflation and the Alternative Minimum Tax (AMT) pose a growing tax threat
Thursday, June 11, 2015

Your tax will be the higher of the tax computed the regular way or the Alternative Minimum Tax. Anticipating when the AMT will affect you is difficult, because it is usually the result of a combination of circumstances. In addition to those items listed above, watch out for transactions involving...

Child Credit
Thursday, June 11, 2015

The Child Credit was first introduced in 1998, when taxpayers were allowed to claim a $400 tax credit for their qualified children who were under the age of 17 at the end of the tax year. Per prior tax law changes, the child credit has increased to $1,000, and the...

Get a Big Refund this Year?
Thursday, June 11, 2015

The IRS estimates that approximately 70 million Americans annually receive tax refunds averaging around $1,800.  If you are among those who received a refund, you are probably celebrating. While some consider a large refund cause for celebration, it's actually a financial mistake that becomes particularly costly for those who get...

Understanding Adjusted Gross Income (AGI) Limitations & Phase Outs
Thursday, June 11, 2015

AGI is the acronym for Adjusted Gross Income. It is generally the sum of a taxpayer's gross income less adjustments that are permitted by law (but before deductions and exemptions). Those who file Form 1040 can find their AGI at the bottom of page 1 of the tax return. Many...

Can't Pay Your Tax Liability?
Thursday, June 11, 2015

If you are unable to pay your tax liability, there are some things you need to know. Most importantly, don't let your inability to pay your tax liability in full keep you from filing your tax return properly and on time. Why? Because there is a "failure to file" penalty...