October Extension Due Date Rapidly Approaching

Article Highlights • October 15 is the extended due date for filing 2012 federal individual tax returns.  Late-filing penalty for individual federal returns is 5% of the tax due for each month, or part of a month, for which a return is not filed, up to a maximum of 25% of the tax due. A separate penalty applies for filing a state return late. If you could not complete your 2012 tax return by the normal April filing due...

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October 2013 Due Dates

October 2013 Individual Due Dates October 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding,...

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Don’t Overlook the Credit for Small Employer Health Insurance Premiums

The tax law provides a credit for small business employers in 2010, 2011, 2012, and 2013 that pay the health insurance premiums for their low- to moderate-income workers.  This refundable credit can be as much as 35% of the insurance premiums paid by the employer.  To qualify for the credit, the employer can’t have more than 25 full-time equivalent employees, and the average wage of the employees cannot exceed $50,000 for the year. ...

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Preparing for the New Surtax

As part of the Affordable Care Act (the new health care legislation), a new tax kicks in this year. The official name of this tax is the Unearned Income Medicare Contribution Tax, and even though the name implies it is a contribution, don’t get the idea that it is voluntary or that you can deduct it as a charitable contribution. It is actually a surtax levied on the net investment income of taxpayers in the higher income brackets. And although...

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Back-to-School Tax Tips for Students and Parents

Article Highlights Sec. 529 plans allow very large sums of money to be put away for a child’s college education with the earnings accumulating as tax-deferred and tax-free, if used for qualified college education expenses. Coverdell Education Savings Accounts allow $2,000 a year to be set aside for a child’s education. Earnings are tax-deferred and tax-free if used for qualified education expenses. Coverdell...

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ACA Employer Letter (Employee Notification) Requirement

Article Highlights •              Employers must give employees health care notification. •              Affects employers with one or more employees and a gross income of $500,000 or more. •              Notices due October 1, 2013. •              New Employees...

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Who Claims The Child?

Claiming a child can provide significant tax benefits. When couples divorce or separate, or even if the parents were never married, the question arises: who gets to claim the kids?  This sometimes presents a nightmare for tax preparers. This is because often both parents will claim the same child, and in this modern era of e-filing, the first one to file and claim the child will be accepted for e-file and the second to file will be rejected...

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Who Gets Your IRA

The designated beneficiary listed on your IRA account beneficiary form determines who gets your IRA. This is true even if your will or trust names different beneficiaries. You may have filled out that beneficiary form long ago and no longer remember who you designated as your beneficiary. Perhaps your family circumstances or marital status have changed. Whenever your family circumstances change, you need to review your beneficiary designations....

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Partnership, S-Corp and Trust Extensions End September

    Article Highlights   September 16 is the extended due date for partnership, S-corporation, and trust tax returns. Late-filing penalty for partnerships and S-corporations is $195 times the number of partners or shareholders during any part of the taxable year, for each month or fraction of a month. Late-filing penalty for trust returns is 5% of the tax due for each...

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September 2013 Business Due Dates

September 16 - Corporations File a 2012 calendar year income tax return (Form 1120 or 1120-A) and pay any tax, interest, and penalties due. This due date applies only if you timely requested an automatic 6-month extension. September 16 - S Corporations File a 2012 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you requested an automatic 6-month extension. September 16 - Corporations...

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September 2013 Individual Due Dates

September 1 - 2013 Fall and 2014 Tax Planning Contact this office to schedule a consultation appointment.  (601)649-5207 September 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during August, you are required to report them to your employer on IRS Form 4070 no later than September 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips...

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