DOG TAX

MR. BROWN DOG MEETS TAX CPA

Mr. Brown Dog: I want you to prepare my tax return.

Taxxcpa: OK. I need to ask a few questions first.
Mr. Brown Dog: Bow Wow

Taxxcpa: What is your address, Social Security Number, phone number, fax # and email address?
Mr. Brown Dog: Bow Wow

Taxxcpa:What is your date of birth? Are you over 65 years old?
Mr. Brown Dog: Bow Wow

Taxxcpa: What is your occupation?
Mr. Brown Dog: Watchdog I can growl pretty threatening
Taxxcpa: What is your filing status? Single, MFJ, MFS, Head of HH or qualifying widower?
Mr. Brown Dog: Bow Wow

Taxxcpa: Do you have any dependents? I need their names, Social Security numbers and Dates of birth.
Mr. Brown Dog: Bow Wow

Taxxcpa: Do you have any children under age 18 who received more than $ 1600 in investment income?
Mr. Brown Dog: Bow Wow

Taxxcpa: Did you buy or sell your principal residence?
Mr. Brown Dog: Bow Wow

Taxxcpa: Did you get any tax-exempt interest or dividends from municipal bonds or mutural funds?
Mr. Brown Dog: Yes and I noticed that there was a new box on my Form 1099 that shows the tax free money. Why is that on there since it’s tax free?

Taxxcpa: It may affect how much of your social security is taxable or it may affect the Alternate Minimum tax or some such nonsense.

Taxxcpa: Did you roll over a retirement plan into another plan? The code on the Form 1099’s from retirement accounts have codes that will let me know if it is taxable.
Mr. Brown Dog: Bow Wow.

Taxxcpa: Is there anything else I need to know before we get started?

Mr. Brown Dog: Well, I converted my traditional IRA to a Roth IRA
I sold some stocks and bonds and I bought a rent house.
I have an office in my home.
I have some expenses for traveling on an out-of-town job.
I had to move here from a couple of hundred miles away due to a job change.
I had to pay a lot of money for day care so my wife could work.
I paid some tuition for the courses I’m taking to get my MBA.
Also I had some student loan interest

Taxxcpa: Did you have any medical expense?
Mr Brown Dog:Do I get to deduct my Veterinarian bills?
Taxxcpa: It depends. Are you a farm animal?
Mr. Brown Dog: Bow Wow


Taxxcpa: Did you pay any estimated tax
Mr. Brown Dog: Yes, I used to send in Form 1040ES, but this year I used EFTPS and had it drafted out of my bank account.

Taxxcpa: Did you draw any social security?
Mr. Brown Dog: Yes I get $ 1200 per month.

Taxxcpa: I need the amount on your Form 1099SSA. Your taxable SS includes both the $ 1200 per month plus the medicare they deduct which they consider part of your income.
Mr. Brown Dog: How can they tax me on the medicare money I never see?

Taxxcpa: It is the same as if they didn’t deduct it and paid you more, then you bought some health insurance with the money—it would all be income and you could deduct your health insurance as an itemized deduction.

Mr. Brown Dog: Then I ought to be able to take it off my return as an itemized deduction.
Taxxcpa: You can deduct it. But unless it is over 7½ % of your Adjusted Gross Income it won’t help your tax return.