Prabhakar Jain is the owner of PJTax services, that offers tax preparation for individuals and small business owners. He has worked in HR block for more than 20 years and has recently branched out on his own.  He also prepares taxes for small businesses, which include Partnerships, Corporations, etc.

Tell us a little  about your professional background
I   have worked in manufacturing for 30 Years.  I have used Lean, Six Sigma, Statistical Engineering, SPC, DOE, Quality Assurance, Auditing, etc. over my 30 years of manufacturing carrier.  I have also worked for H&R Block for over 20 Years.  I started at H&R Block because I needed the extra money, but continued to work, because I enjoyed doing Taxes and meeting People.  I have also taught Tax classes at H & R Block for several years.  Along with Individual taxes, I have entertained 1040 NR, Partnership, Corporation, Estate returns.  As a tax preparer, I have always tried to explain various portions of the Forms to a Tax Payer, so that they have a knowledge as to what is being reported on the tax forms, and why it is important.

With so many changes, tax payers are confused. What must they pay attention to while filing taxes this year?

Key Tax Provisions
TAX RELIEF FOR INDIVIDUALS AND FAMILIES
•    â€œMaking Work Pay” Tax Credit
•    Economic Recovery Payment to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits
•    Refundable Credit for Certain Federal and State Pensioners
•    Increase in Earned Income Tax Credit
•    Increase Eligibility for the Refundable Portion of Child Credit
•    â€œAmerican Opportunity” Education Tax Credit
•    Computers as Qualified Education Expenses in 529 Education Plans
•    Refundable First-time Home Buyer Credit
•    Sales Tax Deduction for Vehicle Purchases
•    Temporary Suspension of Taxation of Unemployment Benefits
•    Extension of AMT Relief for 2009

Any changes for the small business owner?

TAX INCENTIVES FOR BUSINESSES
•    Extension of Bonus Depreciation
•    Election to Accelerate Recognition of Historic AMT/R&D Credits
•    Extension of Enhanced Small Business Expensing
•    5-Year Carry back of Net Operating Losses for Small Businesses
•    Delayed Recognition of Certain Cancellation of Debt Income
•    Incentives to Hire Unemployed Veterans and Disconnected Youth
•    Small Business Capital Gains
•    Temporary Small Business Estimated Tax Payment Relief
•    Temporary Reduction of S Corporation Built-In Gains Holding Period from 10 Years to 7 Years
REINVESTMENT IN RENEWABLE ENERGY
•    Long-term Extension and Modification of Renewable Energy Production Tax Credit
•    Temporary Election to Claim the Investment Tax Credit in Lieu of the Production Tax Credit
•    Removal of Dollar Limitations on Certain Energy Credits
•    Tax Credits for Energy-Efficient Improvements to Existing Homes
•    Tax Credits for Alternative Refueling Property
•    Plug-in Electric Drive Vehicle Credit
•    Parity for Transit Benefits

Tips on how to slash you tax bill
Save in 401k.  Charitable Contributions.  This is part of Tax planning, and mostly it is done during the year.  At this time, IRA’s (5,000, or 6,000 if over 50) or similar options may still be available.

New changes to the tax policy
The final recovery and reinvestment plan contained approximately $287 billion in tax cuts for families and businesses, with a particular focus on creating jobs in the green energy, highway, and school building sectors. The tax cuts included a $400‐per‐worker tax credit – known as Making Work Pay credit – to put cash in the hands of America’s working families in the next few months. Additional Finance Committee provisions included providing a one‐time, $250 payment to seniors, veterans, and retirees, and approximately $177 billion more in investments to create jobs in health information technology, to help out‐of‐work Americans keep their health care coverage and find new employment, and to give aid to struggling state economies. The legislation also included a major expansion of Trade Adjustment Assistance to help American firms avoid layoffs due to international competition, and to help workers negatively affected by trade stay on their financial feet and retrain for new, good‐paying jobs here at home.

Tax perks one should not miss
It depends on individual to make the choice.  For example, a $400‐per‐worker tax credit – known as Making Work Pay credit – to put cash in the hands of America’s working families in the next few months.  You have a choice to take that every week, or claim it at the end of the year as tax refund.  Having this knowledge is important.  A tax Professional can help you recognize these opportunities.

Any other information you may like to add for our reader?
These are tough economic times.  401k savings are taking a big hit since late 2007.  Most people are delaying their retirement because the funds are not sufficient.  A good financial planning is a key to a better retirement.

What is the best way to get in touch with you for the services of your company.
You can reach us at 508 615 9560, E-Mail PJsTaxServices@Gmail.Com, or visit us at 420 Boston turnpike Rd, Suite 302, Shrewsbury, MA 01545.

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