Understanding the Health Insurance Mandate

Beginning in 2014, the Affordable Care Act will impose the new requirement that all people in the United States, with certain exceptions, have minimum essential health care insurance or they will be subject to a penalty. How this will affect your family will depend upon a number of issues. Already Insured If you have insurance through Medicare, Medicaid, or the Veterans Administration, then you will not be subject to the penalty. You will...

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Are You Required to File 1099s?

Article Highlights: A business that pays an independent contractor $600 or more in a year must file Form 1099-MISC. Form W-9 is used to collect the independent contractor’s data. Deadlines for issuing 2013 1099-MISCs are January 31, 2014 (to independent contractors) and February 28, 2014 (to the IRS). If you use independent contractors to perform services for your business and you pay them $600 or more for the...

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Revising Your W-4? Seek Professional Advice First

Article Highlights: Form W-4 is used to establish payroll-withholding amounts. Incorrectly completed W-4s can result in under-withholding and unexpected year-end tax liability. The IRS’s W-4 calculator is only suitable for simple returns. Commonly encountered problems in getting the W-4 completed to establish the proper amount of withholding. This time of year, many employers will request updated W-4 forms from their...

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You May Need to File Nominee 1099s

Article Highlights: To avoid taxes on income you share with another person reported under your ID number, you need to file a nominee 1099 form. These rules do not apply to income shared with a spouse. You may need to file one or more 1099s. If you receive income in your name that actually belongs to someone else, aside from your spouse if married filing jointly, you are a nominee. This means you must file a 1099...

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What Happens When Social Security Funds Run Out?

Article Highlights: Without Congressional action, Social Security will become insolvent in 2033. Benefits could shrink to 77% of the current levels and/or payments could be delayed. Individuals need to take proactive steps to supplement Social Security. This subject comes up over and over again and Congress keeps kicking it down the road, not wanting to deal with the political fallout that will result if taxes are increased...

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Stop Tax Identity Theft in Its Tracks

Imagine after sending in your annual tax return, you receive a notice from the Internal Revenue Service saying that another return has already been filed using your name and Social Security number—and claiming a refund. Sound impossible? It can happen if you become one of a growing number of victims of tax return identity theft. According to one estimate, tax-related identity theft cases have soared more than 650% since 2008. At the least,...

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Smart Disaster Planning Steps

Too often natural disasters strike and serve as reminders that it’s important for both individuals and businesses to protect themselves against the potential financial consequences of such events. A few smart steps we recommend include making electronic backups of important records, including your insurance policies, tax returns, bank and credit card account information, and vital records.  It is critical that you store this backup in a...

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Take the Uncertainty Out of Health Care Reform

If you’re not sure what the new health care law means to you, you’re not alone. A poll by the Kaiser Family Foundation revealed that just over a third of the public had tried to find out more information about the law—the Affordable Care Act—in recent months. About half of the respondents to the survey said they remain confused about the law and its provisions. If you have questions we can provide the answers you need. Among other things,...

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Maximize Your Medical Deductions

Article Highlights The medical deduction AGI floor has increased to 10%, up from 7.5%. For taxpayers age 65 or older and their joint-filing spouses, the AGI floor remains at 7.5% until 2017. For all taxpayers subject to the alternative minimum tax (AMT), the AGI floor is 10%. If you itemize your deductions, it may be appropriate to check your year-to-date health care costs and see if it would be beneficial...

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Did You Collect the Needed W-9s?

Article Highlights: ·         The IRS Form W-9 is used to obtain independent contractors’ tax ID numbers. ·         Tax ID numbers are required when filing 1099s. ·         1099-MISCs must be issued to independent contractors that are paid $600 or more during the year for performing services for a trade or business. If...

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