The national average to prepare an itemized Form 1040 with a Schedule A and a state tax return is $246

Don't Mess With Taxes Kay Bell writes: What do you pay your tax preparer to complete and file your tax return?  The national average to prepare an itemized Form 1040 with a Schedule A and a state tax return is $246. That's what the National Society of Accountants (NSA) discovered in a recent survey. It's also the latest featured By the Numbers figure.

If you have a simple tax situation, $246 probably sounds like a lot more than you want to spend to get your taxes done. That's cool. You have lots of tax preparation and filing options, so find the one that works best for you.

But, says the NSA, if a professional tax preparer can catch even one more deduction or credit that you may have missed, the savings could cover the tax pro's fee.

"I think most people would say this is worth the money, especially when you think about how long it will take you to do the return," said NSA Executive Vice President John Ams in a statement announcing the organization's biennial survey of tax preparers.

The NSA collected the tax prep fee data primarily from owners, principals and partners of "Main Street" companies with an average of more than 26 years of experience.

Other forms, rates: If you have simpler filing needs, you'll save, on average, around $100, according to the NSA survey.

The average cost to prepare a Form 1040 and state return without itemized deductions is $143.

As for other forms, the NSA found the following fees:

• $205 for a Form 1040 Schedule C (business) 
• $556 for a Form 1065 (partnership) 
• $759 for a Form 1120 (corporation) 
• $717 for a Form 1120S (S corporation) 
• $468 for a Form 1041 (fiduciary) 
• $628 for a Form 990 (tax exempt) 
• $59 for a Form 940 (federal unemployment) 
• $134 for Schedule D (capital gains and losses)
• $155 for Schedule E (rental income) 
• $185 for Schedule F (farm income)

Regional cost differences: And as with the price of all professional services, fees tend to vary by region, firm size, population, and economic strength of an area.

The NSA broke out the average tax preparation fee for an itemized Form 1040 with a Schedule A and a state tax return in each U.S. census district: 

• New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont = $237
• Middle Atlantic: New Jersey, New York and Pennsylvania = $258 
• South Atlantic: Delaware, District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia = $253
• East South Central: Alabama, Kentucky, Mississippi and Tennessee = $279
• West South Central: Arkansas, Louisiana, Oklahoma and Texas = $226 
• East North Central: Illinois, Indiana, Michigan, Ohio and Wisconsin = $225 
• West North Central: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota = $196
• Mountain: Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming = $233 
• Pacific: Alaska, California, Hawaii, Oregon and Washington = $288

The NSA also notes that nearly 90 percent of accounting firms offer prospective clients a free consultation. Such meetings, says the accounting organization, can be worth well over $100 based on the hourly fees of most tax preparers.

Divorce Tax Tips: Five Most Common Tax Questions

J.E. Cordell, Cordell & Cordell CEO and founder of DadsDivorce.com worte in the Huffington Post:.  IRS forms can come across as a confusing number jumble (1040, 1099, 8332, W-2). What already is a complex and disconcerting process for many is exacerbated by divorce.   Divorce brings considerable changes to the way you file your taxes and which exemptions and deductions you can claim.  Below are the five most frequently asked questions to Cordell & Cordell attorneys about taxes and divorce.

What Is My Filing Status?

Your tax filing status, for most filers, is determined on December 31. If you were still married on that day, then you and your spouse can file a return with the status "married, filing jointly."

This is true even if your divorce began before the end of the year and even if you are living separately and have not relied upon each other's income.

This is a preferred status, and there are many advantages to filing taxes with it, such as the exclusion limits for capital gain on the sale of a principal residence. It may be, and often is, financially beneficial to file with this status even if you are divorced or divorcing.

However, joint filers are -- you guessed it -- jointly liable in the event of an audit.

Can I Claim The Dependency Exemption?

Unless your divorce settlement agreement or divorce decree says otherwise, the right to claim your child as a dependent belongs to the custodial parent.

According to the IRS, this means the parent who has the child more than one-half of the year.

However, if both parents spend one-half of the year equally then it is the parent who pays child support, and, if neither, then it is the parent with the higher adjusted gross income.

Can I Deduct Child Support?

The simple answer is no. However, you might be paying expenses for your children that are deductible.

These include qualifying childcare expenses and certain healthcare expenses for minors, and college tuition and school expenses for adults. Two federal options, which are not often discussed but could be helpful, allow you to deduct up to $8,500 total -- the Tuition and Fees Deduction and the American Opportunity Tax Credit.

Can I Deduct Alimony?

No matter what your settlement agreement/divorce decree calls it, you can deduct payments to your ex under four circumstances.

You can deduct payments that:
1.) Are made pursuant to a written agreement or judgment;
2.) When you are not members of the same household, provided that
3.) The payments are not child support, which is determined, in part, by a three-year payment analysis; and
4.) They cease upon your ex's death.

When you make payments under all of these circumstances, you can probably deduct the payments from your income.

This is one of the benefits of paying alimony, rather than a property settlement payment. Property transfers incident to divorce are not taxable income to the recipient and, therefore, are not tax deductible to the payor.

This means, for example, you could not deduct your monthly payments to pay off your ex's share of the equity in the home you keep.

Can I Deduct Divorce Attorney Fees?

It's unlikely you can deduct your divorce attorney fees. However, some of the costs you incur as a result of your divorce may be deductible.

If you plan to itemize your deductions and your total miscellaneous deductions exceed 2% of your adjusted gross income, then you can deduct three types of fees.

1.) Fees you paid for tax planning (such as your consultation with your CPA during your divorce to determine the best property settlement payout);
2.) Fees you paid to obtain taxable income (such as your attorney fees for collecting spousal support, if you are the recipient); and
3.) Fees you paid for securing an interest in a qualified retirement plan (such as those paid to divide your and your ex's defined contribution plans).

If you do not itemize deductions or your deductions do not pass the 2% adjusted gross income test, then you cannot deduct these fees.

Batchbook and Xero Open Lines of Communication Between Accountants and Marketers

Software Integration Marries Marketing and Financial Data To Promote More Informed Business Teams, Happier Customers and Increased Revenue.   Cloud-based software dynamos Batchbook and Xero recently establishes a product integration help growing businesses champion deeper relationships with customers, vendors and other contacts. Users now can connect data from the global leader in online accounting software with their social CRM for true clarity into the personal nuances that live in their contact database – insight that helps businesses increase revenue.

Team members at small businesses and entrepreneurs who use Batchbook and Xero together will efficiently organize customer data, open invoices and To-Dos in a single place, offering a streamlined view of personal and financial exchanges with their contacts. Benefits include:

●    Enlightened marketing and finance teams! A high level view, without exposing sensitive data, translates to less time searching for facts or figures and more time building relationships with the right people that will grow a business.

●    Happier customers! Tracking ongoing emails, phone calls, meetings and social media interactions offers a historical view to encourage more personalized invoicing and marketing.

●    More paying customers sticking around! A specialized search function allows users to identify inactive customers, to reach out and to keep them from falling through the cracks.

“Our customers have been very eager for an integration with Xero,” said Pamela O’Hara, Batchbook CEO and founder. “Batchbook helps you build better relationships with the right people, and the dialogue around invoices and payment collections is a very important part of that relationship. Whether it’s the small business owner or their bookkeeper behind the balance sheets, this product integration will help them focus on creating more meaningful interactions with their customers and on helping their business evolve.”

“We’re thrilled to connect with Batchbook which has the same conviction to supporting small business as we do at Xero,” said Rod Drury, Xero chief executive and executive director. “Armed with personal and financial information at their fingertips, professionals who utilize both Xero and Batchbook can interact more personally with their customers and suppliers and make more informed and timely business-critical decisions.”

IRS Adds Tumblr to Its List of Social Media Platforms

The Internal Revenue Service has added Tumblr to its list of social media platforms. People who want tax information now have another way of accessing helpful tax tips, videos, podcasts and more at tumblr.  Tumblr is a microblogging platform where users access and share text, photos, videos and other information from their browser, smartphone, tablet or desktop.

The IRS plans to use Tumblr to help share information about important programs to help taxpayers, such as late tax law changes, the Earned Income Tax Credit and Free File. The Tumbler site also makes it easy for partner groups and others to share tax information from the IRS.  “Tax issues touch a wide range of people who use information in many different ways. The IRS Tumblr site provides a new avenue for taxpayers and partner groups to get and share important tax information,” said Terry Lemons, IRS Communications Director. “The new Tumblr platform is part of a larger effort at the IRS to get information to taxpayers when and where they want it.”  The IRS’ growing social media presence already includes YouTube, where viewers can watch IRS channels for short, informative videos in English, Spanish, American Sign Language and other languages. The IRS YouTube channels have more than 100 videos, which have been viewed more than 3.1 million times.  In addition, more than 61,000 people follow the IRS twitter feeds. The latest tax information is available at  @IRSnews or @IRSenEspanol . @IRStaxpros covers news for tax professionals, @RecruitmentIRS provides updates for job seekers, and the Taxpayer Advocate Service has information available @YourVoiceAtIRS.

To protect taxpayer privacy, the IRS only uses social media tools to share public information, not to answer personal tax or account questions. It advises taxpayers to never post confidential information, like a Social Security number, on social media sites.

IRS Releases 2013 Inflation-Adjusted Tax Tables, Personal Exemption Phase Out and Other Amounts Impacted by Year-End Legislation

IRS Releases 2013 Inflation-Adjusted Tax Tables, Personal Exemption Phase Out and Other Amounts Impacted by Year-End Legislation

The IRS has released inflation-adjusted amounts for the 2013 tax year, reflecting the recent enactment of the American Taxpayer Relief Act of 2012, The 2012 Taxpayer Relief Act extended the 2001 and 2003 Bush-era tax cuts for most but not all taxpayers, as well as numerous other tax benefits that otherwise would have expired at the end of 2012. Although the IRS traditionally publishes these inflation-adjusted figures well before the start of each year, the uncertainties surrounding the outcome of "fiscal cliff"negotiations created this unprecedented delay.

2013 Tax Rate Tables

For tax years beginning in 2013, the tax rate tables, as revised to reflect the 2012 Taxpayer Relief Act, are as follows:

Married Joint Filers/Surviving Spouses

$0 to $17,850	10% of taxable income
$17,850 to $72,500	$1,785 plus 15% of excess over $17,850
$72,500 to $146,400	$9,982.50 plus 25% of excess over $72,500
$146,400 to $223,050	$28,457.50 plus 28% of excess over $146,400
$223,050 to $398,350	$49,919.50 plus 33% of excess over $223,050
$398,350 to $450,000	$107,768.50 plus 35% of excess over $398,350
Over $450,000	$125,846 plus 39.6% of excess over $450,000

Heads of Households

$0 to $12,750	10% of taxable income
$12,750 to $48,600	$1,275 plus 15% of excess over $12,750
$48,600 to $125,450	$6,652.50 plus 25% of excess over $48,600
125,450 to $203,150	$25,865 plus 28% of excess over $125,450
$203,150 to $398,350	$47,621 plus 33% of excess over $203,0150
$398,350 to $425,000	$112,037 plus 35% of excess over $398,350
Over $425,000	$121,364.50 plus 39.6% of excess over $425,000

Unmarried individuals (other than surviving spouses or heads of household)

$0 to $8,925	10% of taxable income
$8,925 to $36,250	$892.50 plus 15% of excess over $8,925
$36,250 to $87,850	$4,991.25 plus 25% of excess over $36,250
$87,850 to $183,250	$17,891.25 plus 28% of excess over $87,850
$183,250 to $398,350	$44,603.25 plus 33% of excess over $183,250
$398,350 to $400,000	$115,586.25 plus 35% of excess over $398,350
Over $400,000	$116,163.75 plus 39.6% of excess over $400,000

Married Individuals Filing Separately

$0 to $8,925	10% of taxable income
$8,925 to $36,250	$892.50 plus 15% of excess over $8,925
$36,250 to $73,200	$4,991.25 plus 25% of excess over $36,250
$73,200 to $111,525	$14,228.75 plus 28% of excess over $73,200
$111,525 to $199,175	$24,959.75 plus 33% of excess over $111,525
$199,175 to $225,000	$53,884.25 plus 35% of excess over $199,175
Over $225,000	$62,923 plus 39.6% of excess over $225,000

Estates and Trusts

$0 to $2,450	15% of taxable income
$2,450 to $5,700	$367.50 plus 25% of excess over $2,450
$5,700 to $8,750	$1,180 plus 28% of excess over $5,700
$8,750 to $11,950	$2,034 plus 33% of excess over $8,750
Over $11,950	$3,090 plus 39.6% of excess over $11,950

Personal Exemption

For 2013, the personal exemption amount is $3,900. The exemption begins to phase out for taxpayers with adjusted gross income at or above $250,000 (single filers), $275,000 (heads of households), or $300,000 (joint filers). The exemption amount disappears completely for taxpayers with AGI of $372,501 (single filers), $397,501 (heads of households), or $422,501 (married filing jointly).

Children

Adoption credit. The 2013 adoption credit amount is $12,970, with a phase-out range for taxpayers with modified adjusted gross income between $194,580 and $234,580.

Child tax credit. The value used to determine the amount of the child tax credit that is refundable is $3,000.

Education

AOTC. The 2012 Taxpayer Relief Act extended the American Opportunity Tax Credit. The AOTC begins to phase out for single taxpayers with MAGI above $53,000 ($107,000 for joint filers).

Lifetime Learning Credit. A taxpayer’s MAGI above $53,000 ($107,000 for joint filers) is used to determine the reduction of a Lifetime Learning Credit amount.

Student loan interest. The 2012 Taxpayer Relief Act extended permanently the enhanced student loan interest deduction and phase-out range. For 2013, the maximum $2,500 deduction begins to phase out for single taxpayers with MAGI greater than $60,000 ($125,000 for joint filers). The deduction is phased out completely for taxpayers with income greater than $75,000 ($155,000 for joint filers).

Other Amounts

The AMT exemption amounts for 2013 are increased to $51,900, $40,400, and $80,800 for single filers, married separate filers, and joint filers, respectively. The AMT exemptions phase out for 2013 for taxpayers with alternative minimum taxable income of $115,400, $76,950, and $153,900 for single filers, married separate filers, and joint filers, respectively.

The 2013 maximum earned income tax credit is $6,044 for taxpayers with more than two qualifying children, $5,372 for taxpayers with two qualifying children, $3,250 for taxpayers with one qualifying child, and $487 for taxpayers with no qualifying children.

The monthly limitation on the aggregate fringe benefit exclusion for transportation in a commuter highway vehicle and any transit pass, and for qualified parking, is $245.

The 2013 exclusion amount for determining the amount of the unified credit against the estate tax is increased to $5,250,000.