It's time to think about taxes

Those attending the North Augusta Chamber of Commerce breakfast, A.M. Connection, last week got a taste of what's in store with their taxes this year.

Andrea Usry, CPA with SME (formerly known as Serotta, Maddocks Evans), offered a few tips on

She first talked about some of the expiring provisions that are still available on the 2011 tax returns, but some may go away for next year. She mentioned deductions for mortgage insurance premiums, school teacher expenses, qualified IRA distributions, state and local sales tax, etc.

Usry also gave some tips on things to make life easier when filing. "Canceled checks are no longer considered a good substantiation for charitable donations," she said.

She pointed out that taxes must be paid at the regular rate on the adult's tax return when dealing with investment income greater than $1,900 made in the name of children.

Also regarding children, Usry said there is a child tax credit for $1,000 each as well as other credits for adopted children, particularly special needs kids.

In the realm of "shifting income," Usry said gifts up to $13,000 are not subject to gift tax. "And if you have a family business, hire your children," she said, suggesting, for example, if a child in the family is used in the business's advertisements, a salary can be paid to that child.

She detailed some education strategies as well as job strategies for reducing taxes. If you are changing careers, you cannot deduct job search expenses, but if you're looking for a job in the same line of work, you can," she said.

To homeowners Usry pointed out the interest on up to $100,000 in home equity loans is tax deductible.

At the same time, she said when looking at home energy incentives, "don't let tax breaks be your guide." Usry noted the tax break might pay for the replacement of one window, but the cost would far outweigh that.

Finally, Usry said the key "takeaways" in getting ready for tax season are:

Partner with a CPA

Organize your data

Plan for tax savings year-round.

Introducing Usry was the Chamber's chair for this year, Michelle Bennett, also with SME.

The sponsor for the breakfast was Costco of Augusta. On hand to share some of the business's features was Mark McFerrin with Costco marketing.