Recent Tax Court decision could wreak ha

Glover v. Comm, a recent tax court decision, presents several issues to Merchant Mariners. Mr. Glover worked for Reinauer Transportation. His tugs pushed oil coastwise as far as Virginia. The tugs wou

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Recent Tax Court decision could wreak havoc on Mariners

State Taxes and Mariners

Suz asked this question So, what about if you live in one state (TN) and work as a merchant mariner in another state (HI), 45 days on/45 days off rotation? Do you pay HI state taxes, or does the payro

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State Taxes and Mariners

Mariner Tax Update January 2011

E-Filing alert! How many times have you read that mariners cannot E-File? How many websites have posted this. Year after year. And then all of a sudden preparers start proclaiming “mariners can

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Mariner Tax Update January 2011

Employee vs. Non-Employee LLC and S-Corp

I’ve been a client of yours for a few years now and I had a general tax question concerning my wife’s job status. She currently works full time for a marketing firm in “Deleted”

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Employee vs. Non-Employee LLC and S-Corp Planning for Mariners and their families

Maritime Tax Preparers and the Alternati

What they don’t want you to know… This video points out the tremendous effect of the AMT on merchant mariners. Seamen taking business deductions and offsets may very well be realizing litt

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Maritime Tax Preparers and the Alternative Minimum Tax

Child Care Credit

by on May 2, 2012 at 3:07 pm

Child or Dependant care

If you work or are looking for work, you may be able to claim the child and dependent care credit.  The credit is generally a percentage of the amount of work-related child and dependent care expenses you paid to a care provider. The percentage depends on your adjusted gross income.

Who Qualifies:

  1. Your filing status is Single, Married Filing Jointly, Head of Household, or Qualifying Widow(er) with a dependent child.
  2. You (and your spouse if Married Filing Jointly) earned income from employment or self-employment.*
  3. You paid someone to provide care for a Qualifying Person, and the care provider was not someone you could claim as a dependent, the parent of your Qualifying Person, your spouse, or your child under the age of 19 (regardless of whether they are a dependent).
  4. You had to pay for child or dependent care so that you (and your spouse if Married Filing Jointly) could work or seek employment.*

*If Married Filing Jointly, one spouse may be exempt from this requirement if they were a full-time student or were physically or mentally incapable of self-care.

A Qualifying Person for the Child and Dependent Care Credit can be one of the following:

  • Any child who is your dependent and was under age 13 when the care was provided
  • Your spouse or dependent age 13 or over, if physically or mentally incapable of caring for themselves
  • Lived with you more than half the year (there are exceptions for death and divorced or separated parents)
in Deduction

Mileage Log

by on April 25, 2012 at 4:21 pm

You are able to deduct standard mileage rates for operating an automobile for business, charitable, medical, or moving expense purposes.

Beginning on Jan. 1, 2012, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 55.5 cents per mile for business miles driven
  • 23 cents per mile driven for medical or moving purposes
  • 14 cents per mile driven in service of charitable organizations

The rate for business miles driven is unchanged from the mid-year adjustment that became effective on July 1, 2011. The medical and moving rate has been reduced by 0.5 cents per mile.

The IRS may require of proof of your log.   This includes the date of travel, name of person driving (if more than one user of the vehicle), destination and the odometer reading at the start and finish of the trip.  You should keep your logs for 3 years in case of an audit. Driving to your first customer and home from your last customer are NOT included in your log.

Here is a link to a free mileage log.


Standard Deductions for 2011

by on January 29, 2012 at 3:09 pm

If you do not qualify for itemize deductions then you will need to take the standard deduction.

Standard deduction amounts -Your standard deduction is based on your filing status and is subject to inflation adjustments each year.

For 2011, the amounts are:
Single     $5,800
Married Filing Jointly   $11,600
Head of Household   $8,500
Married Filing Separately  $5,800
Qualifying Widow(er)  $11,600


in Deduction