Cindy Hockenberry Quotations

You don't know who's more competent than the next guy until you start asking questions.

When you really think about it, when you give up your U.S. citizenship, you give up a lot. It's not as good as it sounds.

More and more people are going to fall into the alternative minimum tax trap unbeknownst to them until they get the nice letter from the IRS that says it appears you are subject to AMT.

I'd be willing to bet this is going to be the No. 1 line on the whole 1040 that gets messed up. There are a lot of partnerships and pass-through entities that qualify ... there are more people affected by this line than you might think.

Because of the way this form used to work, it calculated the tax as if you had received the money over a five-year period. You would divide it into five equal parts and pay taxes on each of those parts which significantly reduced your tax bill.

For this year there's not a lot than anyone needs to worry about.

I would suggest people start out by asking how long they've been in business, what their background is, and do they have a degree, which isn't required. Have they been in the area for a long time? Are they open all year? Do they stand behind their work?

I think it's dangerous any time you spend money before it's in your hand. You never know what's going to happen.

People often wait until the last minute to get this done and realize they can't do it this year. Another reason they should plan early is so they can notify their employees so they can start deferring their money.

It all comes down to whether you're defined as a trader or an investor. There's so much misinformation out there on the distinction, because the IRS hasn't really issued definitive guidelines on it.

June is a good time to sit down with your tax practitioner and review things to date. If you wait until later it is going to be harder to catch up.

That's the sweet spot. Then you know you had your money all throughout the year and weren't giving Uncle Sam an interest-free loan.

Sometimes it is fun to go back and look at old tax records. But for reasons other than nostalgia, it's not necessary to hold on to most of your records for more than three years.

People forget about tax credits and they don't take all the deductions to which they're entitled. That happens all the time.

Now, instead of determining whether you provided half this person's support, the test is, did they provide over half of their own support.

A lot of anxiety is created by people when they think about filing their tax return. It's like going to the dentist. Just do it and get it over with.

They need to make sure their payments are on track. There is nothing worse than realizing come April they have underpayment penalties.

It's like giving yourself a raise and it is really the money-smart thing to do.

It's pretty common for people not to consider all the things they can deduct. They don't realize that maybe they have a vacation home and they don't take the interest because they think they can't.

Tax laws are constantly changing. There have been six major tax bills passed in the last two years alone. Average taxpayers are not likely to be aware of all the changes that may affect their tax return. A tax professional stays abreast of these changes, and, as a result, is in a better position to assist taxpayers with filing accurate returns and claiming all the deductions and credits to which they are entitled.

It used to be, if you sold your main residence, you had to either pay tax on the gain or buy another home that cost more than the home you sold. Because the rules have changed, you no longer have to worry about that gain.

They basically just got rid of the flat definition which said a foster child is any child you care for as your own and cared for the entire year. In a way, a lot more people could qualify for the Earned Income Credit than did before.

The IRS typically assumes you didn't itemize for one reason or another. They almost never notify you if you miss deductions but they will tell you if you miss income.

If you're getting a refund, you'll get that refund sooner.

If you know your itemized deductions will be more than the standard deduction, you can still just use the standard deduction to get an idea in your mind. This will give you the lowest estimate.

If you want to save tax dollars, deferring your funds into a retirement account is probably the best solution. That money grows tax free and (if you take out a traditional IRA) you reduce your taxable income in the year you make the contribution.

Because the consumer did not have to pay the amount, it is income in the eyes of the IRS.

You'd be surprised: Many people think that if they throw their audit letter away it's gone. But it's not. The IRS isn't going to leave you alone. They'll keep at you until they get their audit.

The Earned Income Tax Credit is on a bell curve.

The first thing you should do is to not panic. Sometimes they are just looking for a very specific thing, and if you give them what they are looking for it's no big deal. Just give the IRS what it wants and do it as fast as you can. That way it'll be over fast.