A holistic approach to your 2009 tax return

Often the same income and expense items may be treated differently for tax purposes — and entered in different parts of your tax return — depending on your overall business and financial activities.

Let’s look at unreimbursed employee expenses, such as professional dues, continuing professional education, subscriptions and certain travel expenses. Many people automatically deduct these expenses on Schedule A, where they’re subject to the 2% floor for miscellaneous itemized deductions.

But what if in addition to your regular job you also do some consulting or own a business? If the expenses also benefit these other ventures, a greater portion may be deductible on Schedule C or some other part of your return.

To maximize your deductions and other tax benefits, each item should be considered in light of your overall circumstances and entered in the place where it will have the best impact. A professional tax advisor can be invaluable in determining the most appropriate place to deduct each expense.

In today’s tough economy, every dollar counts. But many businesses lose out on thousands of dollars in tax savings every year by failing to claim tax credits to which they’re entitled. One such overlooked credit is the Work Opportunity tax credit (WOTC). This article explains what the credit entails, which employees are eligible and more.

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For many people, tax planning is something they begin to think about in December. During the year, they concentrate on running their business and managing their investments. Then, late in the year, they make a series of last-minute moves — such as accelerating expenses, deferring income or shifting income to family members — in an effort to reduce their tax bills. By failing to start planning early and look at the big picture, however, these taxpayers often miss opportunities to increase their overall wealth. This article explores a holistic approach that begins in January and considers the overall impact of various tax, business and financial planning decisions and identifies the strategies that are most likely to enhance net worth.

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In this article, we briefly look at Roth IRA conversions, shareholder loans and the deductibility of certain job expenses.

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