Posts Tagged ‘tax free’

Get Ready, Get Set, Get Shopping!

Monday, August 1st, 2016

2016 Tax Free Holiday Is Aug. 5-Aug. 7

2016 Sales Tax Holiday | Rea & Associates | Ohio CPA Firm

This weekend when you are out back-to-school shopping, don’t be afraid to fill the cart with a little bit more! Friday, Aug. 5-Sunday, Aug. 7 is Ohio’s sales tax holiday! Read on to find out which items will be exempt from sales and use tax.  Don’t forget to share this post and/or this photo to remind friends and family of this event!

Will you be one of the many shoppers flooding stores this weekend in search of some great back-to-school bargains? If so, then your shopping trip got a whole lot better! This year’s Sales Tax Holiday will take place Friday, Aug. 5-Sunday, Aug. 7.

Read Also: Five Things You Didn’t Know About Ohio’s Tax Holiday

Without the burden of paying sales tax on a variety of items, shoppers will be able to make their dollars go a little further, which is especially great for those looking to fill their closets with the latest back-to-school fashions and their desks with school-time necessities.

This year during the sales-tax holiday, according to the Ohio Department of Taxation, the following items will be exempt from sales and use tax:

  • Clothing priced at $75 per item or less;
  • School supplies priced at $20 per item or less; and
  • School instructional material priced at $20 per item or less.

If you have Sales Tax Holiday questions, including how the tax free holiday works, how coupons and discounts are handled, and what products are eligible for the exemption, check out this helpful FAQ page, or you can call 800-304-3211.

By Lisa Beamer, CPA (New Philadelphia office)

Looking for more ways to save money, check out these articles!

Three College Savings Account Tips You Can’t Afford To Ignore

From Toddler To Teen And Beyond: Tax Breaks For Families

Make Traveling For Charity Part Of Your Summertime Tax Savings Strategy

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Work or Pleasure?

Thursday, June 30th, 2016

Make Traveling for Charity Part Of Your Summertime Tax Savings Strategy

Travelling for Charity - Ohio CPA Firm

Transportation to and from the job site via plane, train or automobile are deductible on your next tax return if you will be volunteering your time and talents this summer. This includes any transportation costs accrued for travel between the airport or train station and your hotel. Read on to learn more!

In addition to planning a fun family get-away this summer, you might want to carve out some time to donate your services to a noble cause as well. For all of you summertime volunteers, listen up and make plans to use some of your travel expenses to help lower your tax bill. Here’s how.

Read Also: Can My Summer Daycare Expenses Earn A Tax Credit?

  • Make sure you are volunteering your services to qualified charities. If you want to deduct your expenses, the IRS needs to know that the charity you are working with is legit. There are several great online resources that can help you determine if the organization you are helping out is qualified. The IRS’s EO Select Check tool and Guidestar are two of my favorites.
  • Track all out-of-pocket expenses. If you are making necessary purchases that are not directly connected with the services you are performing and are not considered personal living or family expenses; and these expenses were directly result of the volunteerism opportunity, then you may be able take a deduction on your tax return. Keep in mind that you also can’t receive reimbursement by any other means. The ability to deduct out-of-pocket expenses, particularly travel expenses, has huge savings implications. Some of the types of expenses you can deduct include:
    • Lodging
    • Meals
    • Transportation to and from the job site via plane, train or automobile. This includes any transportation costs accrued for travel between the airport or train station and your hotel.
  • Roll up your sleeves and make a big impact. If you are only tagging along or if your duties are minimal, you are not going to be able to make a claim on your tax return. According to the IRS, your charity work must be “real and substantial throughout the trip.” In other words, don’t dillydally!

Now that you know what to do to, let’s take a look at what not to do – or rather, what is not tax deductible.

  • Travel expenses for tagalongs are not deductible. Meaning, only the expenses for the individual(s) volunteering their services can be written off at tax time. For example, if you decided to take your children along on the trip but they will not be logging volunteer hours, you cannot deduct their portion of the travel expenses.
  • Your time and services are valuable, but you can’t deduct the value of your time and services. This is particularly true for those who are donating professional services, including medical, financial and legal. You also can’t deduct the income you may have lost while you were working as an unpaid volunteer for a qualified charity.
  • You cannot package work and play into a single deductible expense. That’s not to say that you can’t enjoy yourself or go out to the beach after a long day of building schools in a third-world country; but if a significant part of your trip is reserved solely for recreational purposes or a vacation, your claim will be denied.

For more information about potential summertime tax savings, email Rea & Associates. You may be surprised by how much you can save when you’re on a mission to do work for those in need!

By Maribeth Wright, CPA (Cambridge office)

Check out these articles for more summertime tax strategies:

School’s Out For Summer, But Tax Credits Are Still In

The Do’s And Don’ts Of Summertime Tax Prep

How To Become A Millionaire

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