by Harrison Maina, Ajabu Africa News, posted January 11, 2011:Updated 01/12/11, 8pm
LOWELL, Mass.,This is it. After twelve months of hard working, the tax season is here with us once again. And to most people, this is the one time in the year when they have a real chance of getting a lump sum of money that can be used to wipe off a few problems, both here in America and in the motherlands.
For others, this is the season to get enough refunds that they can use to jump start some investment goals.
Regardless of the goals and aspirations, there are a few new changes that have occurred to the American tax refund regulations that you need to be aware of even before approaching your tax preparer for this once a year bonanza that is possible only if you do not owe Uncle Sam.
“The tax law changes imposed this year has more benefits to individuals and the families that you should know about when you file your taxes,” said Jimmy Muiruri, a tax professional who will be helping clients file their taxes for the sixth year in a row, and this was during an interview with Ajabu Africa News.
One of the main changes in this year’s tax filing laws is the Tax Relief and Job Creation Act signed into law December of 2010.
The law provides a temporary increase in EITC (Earned Income credit) and expands the credit for workers with three or more qualifying children. These changes are temporary and apply to 2009, 2010, 2011 and 2012 tax years.
“This means that there is a limit of income set to qualify for this credit, and it is good to be aware of this before you file your taxes,” said Muiruri, a certified and authorized tax professional.
“There has also been a new increase of the individual’s exemptions that will help reduce tax bracket as part of the deduction,” he added.
According to Muiruri, many individuals have high expectations and worries as well when they file their taxes.
“In filing income tax, most people worry if they will be audited by the IRS, and that creates fear & panic .This comes as a result of not giving accurate information to the person preparing your income tax and like to get more refund that is beyond the norm and always causes red flag for audit,” said Muiruri.
When I file taxes for my clients, I will guide and help them eliminate what might not be needed in their income tax return that might cause them to be examined for penalties,” added the man, who packs a solid reputation with none of his clients getting audited in the past.
“I continue to do the right thing for various communities that leave my clients with no fear of getting examined by the Internal Revenue Service and stay worry free from audit, as long as the client provides us with the correct information".
Jimmy Muiruri, an Authorized Tax Professional
Muiruri, with the relevant experience having worked with HR Block, a reputed tax preparation firm, said that the other thing that causes panic among individuals filing taxes is how much of the refund they are entitled to get.
This comes as a result of pushing the deductions to the limit that leaves no tax paid to the government, hence you get audited.
He said that many factors are considered to know how much one should get back in their refunds. “One of the most important factors to know in your tax filing is your filing status,” said Muiruri.
“This determines what you get as a refund and you can never compare your refund with that of another person because the filing status might not be the same and hence most of us wonder why their friends got more.”
He added that the other important factor that we should not forget about is the allowance exemptions.
“In order to boost your refund at the end of the year and not to owe the IRS, you should make sure to change the withholdings allowance found on the form W4 mostly filed when starting a new job and put (0) or even add more $$ into it. This means the federal government will withhold enough money from you throughout the year especially if you are working so many hours mostly known as “doubles” hence being with no chances of owing”.
Among the different types of filing status Muiruri identified are: single, married filing Joint, married filing separate and the head of household.
When using either of the mentioned status, it determines how much credits you will get depending on your (AGI) Annual Gross Income to boost your refund when doing deductions if you have not phased out. Phasing out is when you can’t take any deduction because you earned too much for that year. “Remember the more you earn the more taxes you pay”
“When you come to my office, I will spend enough time with you to make sure you walk out having all the information that you need regarding how taxes affect your day today living,” said Muiruri who will be serving his old clients and new clients at the Ajabu Ventures Offices in Lowell located at 297 West 6th Street, in partnership with Ajabu Financial Associates.
Ajabu Financial Associates (website) is a spin-off by Ajabu Ventures, and strives to bring relevant and correct financial information to many readers based on solid research. This is in order to maintain integrity and avoid empower readers to know what to ask for when dealing with financial salesmen and women.
In many cases, a lot of sales people are usually interested in making a sale for a product or a service that may not be appropriate to an individual or family so as to maximize on commissions payable, leaving hapless people suffering with debilitating, long term financial consequenses that may take years to unwind, or never.
“We all would like to have that big refund. Well, that’s my job. I will make sure you take home that big refund by maximizing your deductions,” promised the tax man.
If it is your first time to file taxes, or if you are looking for a new tax preparer, or have issues with your prior taxes filed and do not know how to solve them, Muiruri promises to handle your taxes with utmost integrity just as he has done with several hundred clients annually with good results for a period of 6 years.
He further promised a 30% discount for interested clients who will file their taxes early from the 1st of January 2011 to the 15th of February, 2011, a 20% discount for all students and a further 20% discount for all current and previous customers of Ajabu Media Communications, whether in the New England or from other states.
For clients who are far from Lowell, out of state or those who are squeezed of time, a dedicated fax line has been established on which clients can fax their W-2s and get on the phone with Muiruri for any specific details that may be needed.
Jimmy Muiruri is available to answer any questions that an interested person would like to know. Readers can call to schedule an appointment or simply walk in for consultation at 297 West 6th street, Lowell, MA 01850.
The office opens from 8am – 8pm Monday through Saturday starting today, Tuesday January 11, 2011.
For further information, please call: (978) 674-8470, or fax your W-2s to: (978) 674-8471
Email: Jimmy@AjabuFinancial.com
THIS UPDATED VERSION CORRECTS THE PREVIOUS VERSION.
