Here's what W. Scully, CPA, P.C. is about!

Our Motto:







"Service, Quality, Integrity"




Wednesday, April 7, 2021

Owe Back Taxes


Do you owe taxes to the IRS and can't pay by the due date?

The IRS wants you to pay on time, and imposes significant penalties on you if you don't. Plus, they can take aggressive collection actions against you. #taxdebt #IRS #wagegarnishment #taxhelp #taxaudit #taxpenalties #gettaxhelp #taxpenalties

Monday, February 22, 2021

COVID related pension withdrawals

What can you do about the tax on your “coronavirus-related distribution” realized on or after January 1, 2020, and before December 31, 2020? #COVID #taxrelief #taxreturns

Monday, January 25, 2021

EIP 2nd round

Wayne Scully, CPA (00:03):
Hey, it's Wayne with W Scully CPA PC focused on fixing America's tax problems. I've been getting calls from my clients. They've been asking me about the second round of the stimulus checks, the one you've been hearing on the news. They're going to give us $600 and stuff like that. So, I want to make a quick video about this and pass it on to you, because like I said, I've been getting calls about it. And I figured this might just be a quick way to get it out there.

Wayne Scully, CPA (00:29):
Here's the deal, the treasury was directed to issue an additional $600 in IEP, based on the same criteria for the first IEP. And by the way, IEP means, Economic Impact Payment. And some of the conditions to get that, or eligibility requirements are as follows. Right? AGI, that's your Adjusted Gross Income has to be $75,000, if you're single, 150,000, if you're married, filing jointly, and 112,000, if you're head of household. Right? So, if your AGI exceeds those thresholds, then the payments are reduced and about by 5% of the amount of that exceeds this AGI by. And you also need a valid social security number. If you don't, you won't get that payment. And by that I mean, it has the say, "Valid for employment."

Wayne Scully, CPA (01:18):
So, the other thing is, if you're someone's dependent, you won't get the payment either. And if you are a dead, you won't get the payment. And I hope you're not dead because then I'd be crazy talking to some dead people. But anyway, all jokes aside, if you're a non-resident alien, you also won't get this payment.

Wayne Scully, CPA (01:36):
So those are some of the general eligibility requirements to get the payment. As far as when the payment goes out, most of them start going out on January 4th. Some people probably had it queued, meaning it was just sitting there suspended. But the disbursement would have actually hit your account, meaning the funds, the actual availability of those funds, would have hit your account starting January 4th. And it should go through per the treasury. It should go through the payments, I mean, should happen until the middle of January.

Wayne Scully, CPA (02:07):
Now, we know that goes already. This is the IRS we're dealing with. Everything is already backed up with the Coronavirus and everything. Things are just slower, right? They were slow before, they're even worse now. So, expect those payments to probably happen until the end of February... end of January, sorry. And so, by the time you get to February 12, which is the date that the returns are starting to get processed by the IRS, that's the date they have set out that they're going to start processing returns. Then, if by then you haven't gotten the payment, what you would do is, you would apply for a credit. And I'll talk about that later.

Wayne Scully, CPA (02:43):
So paper checks will take a little longer. They have to be mailed and it takes some time for you to get them in the mail. And sometimes they get lost. So just be aware of that. Okay? Don't expect to get that check right away, if it's going by mail. All right. And some people also get debit cards, which again, will go by a mail. The good thing about debit cards, obviously, you activate the card and you use it. Right? You don't have to deposit a check into your account and wait for it to clear. Right?

Wayne Scully, CPA (03:11):
Okay. The other thing is, don't call the IRS, if you're not getting this payment, if you haven't seen your payment. It's now January 31st and you haven't seen your payment. Where is my payment? You're going crazy, you're pulling your hair out your head. Listen, if you call the IRS and you speak to an agent, they will not be able to give you any more information that's not already on the website. And the website you need to know is www.irs.gov. Right? www.irs.gov. And if you go to that website, you'll see a payment link there where you can check the status of your payment. Okay?

Wayne Scully, CPA (03:45):
If you don't see a payment going out there, it says something like, "Not available" or, "No status available" or whatever, then you know you will have to get what's called, the Recovery Rebate Credit. All right. That's the credit that they have set up just for people who haven't gotten their payment, that were supposed to get a payment. They'll be able to qualify for that recover rebate credit. So, if the date has come, you haven't gotten your tax return, when you... I'm sorry, you haven't gotten the rebate, the check, the stimulus check in the mail, then you will get the credit on your tax return, via this Recovery Rebate Credit.

Wayne Scully, CPA (04:24):
Okay? All right. So one other thing before I go, I wanted to kind of talk a little bit about the retirement plans and people took money out. So if you took money out in 2020, out of your retirement plan, and it's because of COVID, you will be able to get the penalties waived. There's normally a 10% penalty when you take your retirement funds out early, meaning, before the age of 59 and a half. You're now able to get that money... that penalty waived. Okay? So that's huge. $40,000 taken out of the account, you're talking about $4,000. So, that's huge, right? It's waived.

Wayne Scully, CPA (05:02):
And then, as far as the actual disbursements to you from the retirement account, if you pay it back within a certain timeframe to [weirs 00:05:12], all right? You get... either get the tax you paid back, or you get not... you get a tax repaid back basically. Right? You pay the tax on that money now, but then when you pay it back within that period of time, you then get that credit back on that year's tax return. So, just want to kind of give you that extra bit tidbit there.

Wayne Scully, CPA (05:32):
So if you have any questions about this or anything I've said so far, call your tax advisor or a tax preparer. And if you have none, give me a call. My name is Wayne Scully and I'm with W Sculley CPA PC focused on fixing America's tax problems. Our firm specialize in tax resolution matters, and we serve clients virtually. Make an appointment by visiting www.wscullycpa.com. That's www.wsculleycpa.com or call me toll free (855) 254-1892. Okay? Please give me some love, comment on this video, like it, share it. Okay? And guys, take care for now, until next time.

Wednesday, May 20, 2020

Tax free Smartphones

                                                  Get your cellphone, tablets, etc., 100% tax-free even if you aren't a traditional employee....

Friday, February 14, 2014

Tax Prep War Story

Medical Expenses:  

Recently, an individual (let’s refer to him as Mr. X) that has been my client for three years came in to pick up his return.  He happily handed me the remainder of my fee as he entered my office. I was soon to learn the nature of his joyous demeanor.

But first, let us back track a bit.  To date, this individual (who’s 65 years of age) has only been able to file Single status.  Mr. X’s adjusted Gross Income (or AGI) for 2013 was about $56,000.  Also pertinent to this story, is the fact that it’s the policy of W SCULLY CPA PC to send clients an engagement letter and tax organizer to aid in the efficient and effective preparation of their tax return.   

Via a telephone conversation, I was advised that $4,200 of out-of-pocket medical expenses were incurred on account of the fact that he has no medical insurance. I prudently informed Mr. X that the aforementioned expenditure may impact his refund but would be undetermined until all the facts for the tax year are brought to the fore. We spoke no further about the matter.  He dropped off his tax documents while I was out of the office. Based on information presented, the return was prepared and reviewed.  

He happily paid me because he was under the impression that he would be getting $4,200 back from the government.  I disappointingly had to inform him that he had been misled.  I further explained that his medical expenses had to exceed 7.5% of his AGI in order to be considered an itemized deduction.  And that all his itemized deductions must be substantially greater than the standard deduction for his filing status.  In Mr. X’s case, the standard deduction is $7,600.  When we talked about his other potential deductions, we realized that those only amounted to $3,000.  Therefore, he could not itemize his tax return.

Sufficed to say, Mr. X wasn’t very happy and began to complain about this country “…only takes and doesn’t give anything back…” “I am moving back to my country of birth,” he explained.  Apparently, it was his dentist that told him he would be getting the $4,200.  

Lessons learned or affirmed:
·         Insist clients complete tax organizer (some folks don’t like the paperwork even though it’s generally 9 – 11 pages long) ·         Always take time to discuss any and all issues with client ·         Don’t be afraid to give it to them straight (saves the hassle later)  

Clients should:
·         Always complete tax organizers and provide all pertinent info to the preparer ·         Always ask the preparer questions (don’t take tax advice from your dentist) ·         Be reasonable (almost nothing in the code results in a dollar-for-dollar credit or deduction)  

Need more info?  Please contact W Scully CPA PC at 718-938-0387 orwayne@wscullycpa.com.  You may visit us at www.wscullycpa.com or 366 Stuyvesant Avenue, Brooklyn, NY 11233

Saturday, January 25, 2014

IRA Contributions

Check out @wscullycpa's Tweet: https://twitter.com/wscullycpa/status/427042635745067008