Greene Publishing, Inc.

By Mark Buescher, C.P.A.
Guest Columnist

If you have driven by our office on Range Avenue recently, you have probably noticed the lights on until eight or nine o’clock each evening. The reason is obvious – it’s tax season. It’s the time of year that everyone is frantically gathering up last year’s income and expenses in order to file their tax returns.

North Floridians are like everyone else. We all want to save money when it comes to filing our income taxes. Even though 2011 has past, you may still be able to trim your tax bill this year.

The 2011 Form 1040 reflects a number of new tax breaks along with some of our old favorites. Some are straightforward. Others are complex. But they all provide an opportunity to save money. Here are a few reminders.

First, consider maximizing your 2011 IRA contribution. You have until April 17, 2012, to make deductible 2011 contributions. The maximum 2011 contribution is $5,000. But if you were age 50 or older last year, you can contribute up to $6,000.

Look into itemizing deductions if you usually take the standard deduction. Search for allowable deductions that you might have overlooked, such as the restored deduction for state and local sales taxes. Since Floridians generally pay no state income tax which would be deductible in lieu of the sales tax, the deduction for sales tax is even more valuable.

Medical deductions are allowable to the extent they exceed 7.5% of adjusted gross income (AGI). Don’t forget items such as eyeglasses, hearing aids, and even Lasik eye surgery. Also, you can deduct mileage for 2011 medical appointments at 19 cents per mile through June 30, 2011 (23.5 cents per mile after July 1, 2011), plus parking and toll fees.

Other items you do not want to overlook include tax preparation fees, safe deposit costs, and certain investment advice. They all qualify as miscellaneous itemized deductions, subject to a two-percent AGI limit.

There are several types of deductions for education expenses that are often overlooked. One of the biggest is student loan interest. Up to $2,500 of student loan interest is deductible whether you itemize or not.

Another education related provision available for 2011 is the deduction of up to $4,000 for qualified tuition and school expenses. This deduction was slated to expire but was extended through the Tax Relief Act passed in December 2010. Qualifying amounts for you, your spouse, and dependents may be deductible, subject to income limits.

If you’re a teacher or teacher’s aide, you can deduct up to $250 for classroom supplies, including computers and accessories, that you purchased with your own money. This deduction was recently extended as well.

If you made energy-saving improvements to your home, check into the credit of up to 10% of your cost (30% of certain types of solar and wind energy systems). Although this credit was recently extended, it is subject to a $500 limit for amounts spent in 2011. But keep in mind, a credit is more beneficial than a deduction. A credit is a dollar for dollar reduction of your taxes.

For those of you who changed jobs in 2011, make sure you didn’t have excess social security taxes withheld. You may claim a credit for the excess on your Form 1040 if you paid over $4,486.

Also, do not forget several new benefits available through the health care legislation passed in 2010. For 2011, a self-employed person who paid for health insurance may be able to include in his health insurance deduction any premiums paid to cover his child who was under age 27, even if the child was not his dependent.

Another benefit under the new health care law is the small business health insurance credit. The new tax credit is available to eligible small employers who make qualifying contributions to buy health insurance for their employees. In general, the new credit is 35% of premiums paid.

These are just a few basic tax-saving ideas. Opportunities abound if you just dig below the surface.

Mark Buescher, CPA is owner and principal of Buescher and Ruff, LLC, a local full service accounting firm in Madison, specializing in tax preparation, business consulting and audit and assurance services. Tax laws contain varying effective dates and numerous limitations and exemptions that cannot be summarized easily. For details and guidance for your specific situation, contact your tax advisor.

By Diann Douglas
Guest Columnist

Since it’s National Nutrition Month for the month of March, we will continue to explore simple dietary changes that can make a big difference in your health. This week let’s look at the latest recommendations on sodium. Revised every five years, USDA Dietary Guidelines for Americans now recommends Americans consume less than 2,300 mg. of sodium each day. It goes further to ask consumers to work toward an intake of 1,500 mg. For adults over 51 years of age and people with diabetes or hypertension, USDA strongly recommends the intake need to be at the 1,500 mg. level. This means consuming less than one teaspoon of salt each day in all of the food you eat.

Sodium is an essential nutrient needed by the body in relatively small quantities. The health concern is that most Americans consume a high intake of sodium in their diets which over time can lead to higher blood pressure. According to the research review by the Dietary Guidelines committee, on average, the higher a person’s sodium intake the higher the blood pressure. Keeping blood pressure in a normal range reduces risk of heart disease and kidney failure.

In the American diet, sodium is consumed as salt, an ingredient used in curing meat, baking, and enhancing the flavor of food. The salt added in cooking and at the table only account for a small amount of sodium in our diets. Most of the sodium in our diet comes from processed foods.

Americans love to eat out, so be aware restaurant foods are usually very high in sodium. Your food may not taste salty, but don’t let that fool you. Sometimes a restaurant meal can have over 2,000 mg. of sodium. It’s the sauces, fries and condiments that have hidden sodium.

If you are interested in a healthful meal plan to reduce sodium intake, a proven researched based diet is the Dietary Approaches to Stop Hypertension (DASH). DASH emphasizes consuming fresh vegetables, fruit and low-fat milk product, whole-grains and lean meats. When this meal plan is followed it also reduces the intake of saturated fats. In several DASH studies, participants were able to reduce their blood pressure and improve their blood lipids which reduced their risk of heart disease. The point is to choose fresh foods whenever possible and prepare them with ingredients other than sodium.

Learn to read nutrition labels and identify the amount of sodium in the foods you buy and eat. If a label claims to be low in sodium, it should have no more than 140mg. Products claiming to be “very low sodium” must have 35mg or less. When a label claims to be “reduced sodium” it only has to be 25% lower than the original version, so may still be high in sodium. Look at the percent of daily value, if it is less than 5%, the food is low in sodium.

How does all of this information translate into daily food choice? Here is a list of eating tips to reduce your intake of sodium:

Eat less processed foods such as deli meat, salty snacks and crackers, processed cheese, canned soups and meats, pickle, relishes and other condiments.

Learn to cook with herbs and spices which add wonderful flavors to your food.

Cut back on salt used in cooking pasta, rice and noodles. Use half the amount you would normally use. If you are making cooked cereal like oatmeal, leave the salt out.

Cook fresh vegetables instead of canned and use seasoning other than salt.

Buy “low-sodium” versions of canned goods when available.

Make your own salad dressings and omit salt as an ingredient.

Use no-salt – added ketchup or low sodium soy sauce.

When eating out, be selective. A grilled chicken sandwich can have as much as 1000 mgs. of sodium.; whenever possible, order food without sauces and extra cheese.

To learn more about how to reduce sodium intake, call the Extension office for a free copy of “Nutrition for Health and Fitness: Sodium in Your Diet.”

The University of Florida Extension/IFAS Extension – Madison County is an Equal Employment Opportunity Affirmative Action Employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to race, color, national origin, sex, age, religion, political beliefs or disability.