Tag: Tax

  • 5 Social Security tax truths

    1. Social Security tax can be a big number if you’re an employee

    As an employee, your wages are hit with the 12.4% Social Security tax up to the annual wage ceiling. Half the Social Security tax bill (equal to 6.2%) is withheld from your paychecks. The other half (also 6.2%) is paid by your employer, so you never actually see that half. Unless you understand how the tax works and closely examine your pay stubs, you may be blissfully unaware of how much the Social Security tax actually costs.

    The Social Security tax wage ceiling for 2013 is $113,700, and it rises to $117,000 next year. If your wages meet or exceed the ceiling for 2013, the Social Security tax hit for this year is a whopping $14,099 (12.4% x $113,700 = $14,099). Once again, half of that will come out of your paychecks, and your employer will pay the other half.

    If your wages meet or exceed the ceiling for 2014, the Social Security tax hit for next year will be an even-more-whopping $14,508 (12.4% x $117,000 = $14,099).

    2. It can be an even bigger number if you’re self-employed

    While many employees may be blissfully unaware of the full magnitude of the Social Security tax, because they only pay half the bill, self-employed folks (sole proprietors, partners, and LLC members) know the unmitigated truth all too well. That’s because the self-employed must pay the entire 12.4% Social Security tax hit out of their own pockets, based on their net self-employment income. The fact that companies don’t owe any Social Security tax on amounts paid to independent contractors is a big reason why they often prefer to engage independent contractors instead of hiring employees.

    For 2013, the Social Security tax self-employment income ceiling is $113,700 (same as the wage ceiling for employees). So if your self-employment income for this year is $113,700 or more, you owe the $14,099 maximum Social Security tax hit (12.4% x $113,700 = $13,243).

    For 2014, the Social Security tax self-employment income ceiling is $117,000 (same as the wage ceiling for employees). So if your self-employment income for next year is $117,000 or more, you will owe the $14,508 maximum Social Security tax hit (12.4% x $117,000 = $14,508).

    3. There’s a disconnect between Social Security tax and benefits

    While the Social Security tax ceiling increased by 2.9% from 2013 to 2014, recipients’ benefits only increased by 1.5%. This strange phenomenon has occurred in many years and it’s just one more thing to not like about the Social Security tax.

    4. The tax ceiling keeps going up

    The Social Security Administration’s latest projections (issued in June of this year) for the Social Security tax ceilings for 2015 and beyond are listed below. However, the actual ceilings will probably be higher because the number for 2014 was already underestimated by $1,500. Here are the projected ceilings.

    Year Projected Social Security Tax Ceiling
    2015 $118,500
    2016 123,600
    2017 130,500
    2018 137,700
    2019 144,900
    2020 152,100
    2021 159,000
    2022 165,600
    If these numbers pan out, the maximum Social Security tax hit on wages or self-employment income in 2022 would be a whopping $20,534 (12.4% x $165,600). And that’s assuming our beloved Congress doesn’t increase the tax rate, which could easily happen. I think there’s also a chance that the ceiling will be increased beyond the numbers you see here or even entirely removed in an attempt to put the system on a sounder financial footing. If there’s no ceiling, you would owe Social Security tax on every dollar of wages or self-employment income up to infinity.

    5. There’s no account with your name on it and insolvency is looming

    Some people think the government has set up an account with their name on it to hold the money to pay for their future Social Security benefits. After all, that must be where all the Social Security taxes on people’s wages and self-employment income go. Right? Wrong! There are no individual accounts. All you actually have is a promise from the government, for what it’s worth.

    Meanwhile, the Social Security Administration’s most recent report on the system’s financial status (dated May 31, 2013) projects insolvency in 2033. In that year, the program is projected to only have enough revenue from the Social Security tax to pay about 77% of the promised benefits, and the percentage will continue to fall in later years. (Source: Congressional Research Service study dated Oct. 10, 2013.) If you think Obamacare is a political quagmire, just wait until the politicians are forced to get serious about fixing Social Security.

    The Bottom Line

    It’s not a pretty picture. The Social Security tax hit on many folks will continue to go up (maybe way up), and the odds of actually receiving the benefits you’ve been promised are diminishing. The truth hurts.

    By Bill Bischoff at www.marketwatch.com

  • Tax Tips for Extension Filers

    Autumn is upon us, and if you chose to file a tax extension this year, October 15 is your target date…your zero hour…your deadline. Your six-month grace period is coming to an end.
    If it feels as though the past few months have flown by, don’t fret, there is still time to submit your tax return without incurring any additional penalties or interest. We’ve compiled a short list of last-minute tax tips for you extension filers needing to get your returns filed with the IRS by October 15th.

    Electronic vs. Paper
    It may come as a small surprise, but October 15th is the tax deadline for electronically filing your tax return. You are still eligible to file a paper tax return after October 15th, but you will incur those nasty interest charges and late penalties.
    The best decision you could make at this point is to go ahead and e-file your tax return by the 15th. By doing so you will remain within your six-month grace period. There’s no sense in giving the IRS a reason to take more than you owe.

    Double Check Personal Information
    This is it – your last chance to make sure everything contained within your tax return is true and accurate. There are no additional extensions after October 15th.
    Don’t panic, but don’t forget to review your personal information. Make sure your name, birthday, address, and social security information is correct. Also include all W-2s and 1099s, when entering your information.

    IRAs
    October 15th is also the final deadline to fund your SEP-IRA if you requested an automatic extension. If you’ve forgotten about this little deadline, you still have time to make some deposits. Just remember to update your tax paperwork after you’ve funded these accounts, because, although it’s 2013, you’re actually funding your accounts for the 2012 tax year.

    Preparing for the Future
    It’s easy to get stuck in a rut, especially when that rut is filing for a tax extension year after year. Let’s face it, when you file your taxes in October, the last thing you want to think about is preparing for next year’s taxes. But no matter how much you want to forget about taxes, April is always right around the corner.
    Let this be an encouragement for you to get organized this year. The middle of November is a great time to begin gathering your thoughts and your records for the upcoming tax season. And if you would like to save more on your 2013 taxes, use this time to make some year-end financial maneuvers to get yourself in a better position for next year.

    Blog taken from Turbotax

  • Don’t Forget About These

    Don’t Forget About These Miscellaneous Tax Deductions

    You filed for a tax extension, and bought yourself a bit of time to get your final tax return into the IRS. The clock’s been ticking and the October 15th tax deadline is approaching.

    Hopefully, you’ve spent this time gathering your documents: The W-2s, home mortgage interest, etc. You know, those “usual suspects” for the itemized deductions you’re permitted to take to get a bigger tax refund.
    Today, we’ll discuss job related tax deductions that you may not be thinking about.

    Un-reimbursed employee expenses – IRS regulations permit you to deduct such out of pocket expenses if they are ‘ordinary and necessary’ to your job function.
    “Ordinary” meaning that it’s a commonly accepted practice in your trade or business, and ‘necessary’ in the sense that it’s appropriate and helpful to your job. Bringing a client to a local baseball game might be an accepted form of client entertainment. Flying he and his wife to the Superbowl? Not likely to pass. Items that are commonly in this category include professional journal subscription costs, work-related classes, and licenses.

    Work clothes and uniforms – That beautiful suit you wear to the office? Sorry, not a deduction. The IRS is talking about a uniform, such as a police officer might wear to work, or the fireproof shirt, pants, and headgear a welder might use on the job.
    The common sense test should be used here. A costume, uniform, or protective gear required by your job are part of this allowable deduction. Nice clothes you wear to work are not deductible, even if your employer requests you wear a suit every day.

    Expenses for searching for a new job in your profession – Looking for a new job? You can deduct certain expenses, but only if you are looking for a job in the same field. Unfortunately, if you’d like to change occupations, no deduction is permitted. The allowed expenses include employment agency or headhunter fees, the cost of producing and mailing resumes to prospective employers, and travel/transportation expenses.

    @TURBOTAX

  • Tax Tips if You Traveled for Charity Work

    Tax Tips if You Traveled for Charity Work

    Were you particularly generous this summer by donating not only your money but also your time? If so, keep reading to see if some of your charitable nature might be rewarded by an increased tax deduction next April.

    What Kind of Charity Work Qualifies for a Possible Travel Tax Deduction?
    Travel expenses for work you do for a qualified charity can be deducted. A qualifying charity is a 501(c)3 organization.
    Basically, any charity that you could deduct your cash contribution to is eligible. Visit this web site to verify if the charity to which you’ve donated your time or money is a qualifying organization.

    What Kind of Travel Expense Can Be Deducted?
    Any travel expenses you incur in reaching the destination of your volunteer work can be deducted. This can range from airfare, if you are teaching English to underprivileged children in Asia, to the mileage you drive to the site where you are helping build a house a few miles from home.
    If you use your own car for traveling for charity work, you can deduct 14 cents a mile. Meals and lodging while away on a charitable endeavor are also deductible travel expenses.

    What if I Do Some Volunteer Work While I’m in Hawaii? Can I Deduct the Cost of That Trip?
    Yes, but only if that was the reason you went on the trip in the first place. In other words, you could fly from New York to Hawaii and deduct the entire cost of the trip if you were in the islands a week, did volunteer work for seven days, and hung out in Waikiki Beach for a couple of hours one afternoon.
    However, if you did the reverse—spent seven days in Waikiki Beach and then worked at a food pantry for a couple of hours when the weather turned (e.g., became partly cloudy)—no part of your trip to Hawaii would be deductible.
    In IRS-speak, your volunteer work must be real and substantial for the related travel expenses to be deductible. In lay terms, use common sense.

    What About The Value of My Time? Can I Deduct My Normal Hourly Rate?
    No way. Even if you are a $400/hr attorney donating your legal time to help a non-profit get formed, your deduction is limited to actual expenses you incur in assisting the charity, not what you could otherwise bill for your efforts.

    this summer

    Turbo Tax Article By: Michael Rubin

  • Special tax treatment available for Major Disaster Victims

    Special tax treatment available for major disaster victims

    Shawnee and Moore residents are not thinking about taxes today. They’re still trying to salvage what they can from the deadly tornadoes that ripped apart their central Oklahoma towns just more than a week ago.

    And they might have to be looking later today for storm-study shelter as twisters are again forecast in the area, as well as into neighboring Tornado Alley states.
    But when things finally do calm down a bit, folks who sustained storm damage in federally declared major disaster areas need to look at their tax situation. In these cases, they might be able to take advantage of special tax treatment that could net them added tax refund money now, instead of next filing season.
    The mechanics of getting tax refund cash months early to help pay for critical repairs is today’s Weekly Tax Tip.
    And today, in the wake of the recent tornado outbreak and in advance of the upcoming Atlantic hurricane season, the Internal Revenue Service issued a reminder for folks to, among other things, keep a backup set of records (tax returns, as well as bank statements, insurance policies, etc.), preferably in electronic form, that can help in applying for storm relief programs.
    Disasters abound: Unfortunately, there’s no escaping disaster. That sad fact means that I’ve written many, many times both here at the ol’ blog and on Bankrate about this special disaster tax benefit, and I use that word advisedly because I know there is absolutely no benefit connected to losing your home or business.
    So if this post doesn’t apply to you or your friends and family, I apologize for boring you.
    But I also beg your indulgence. Not only is this important information for people who do need to file an amended tax return to get refund money ASAP to rebuild, but I also must admit to a personal fascination with the meaner side of Mother Nature.
    Part of that is because my relatives seem to be disaster magnets, and I’m not just talking about feuding cousins at family reunions.
    My parents survived the deadly 1954 Ozona, Texas, flash flood, precipitated, literally, by 24 inches of rain in 24 hours from Hurricane Alice moving inland. My dad, at my mother’sscreaming insistence, even was able to hook up their small mobile home and pull it to higher, dry land.
    Two of my aunts lived in towns hit by major tornadoes, Lubbock, Texas, in 1970 and Omaha, Neb., in 1975.
    The Lubbock aunt was on holiday in Mexico City in 1985 when that city suffered a major earthquake.
    My youngest aunt is still in Florida despite dealing with the aftermath of several hurricanes and tropical storms. She and her husband are hardier than the hubby and I. Two ‘canes, Jeanne and Frances, within three weeks in 2004 drove us out of the Sunshine State and back home to Texas.
    And since we’ve been here we’ve had our own brush with another type of natural disaster. On Labor Day weekend 2011 and for days afterward, we anxiously watched smoke rise from the neighborhood across the canyon west of our house where a raging wildfire was destroying other people’s homes.
    That fire near miss is as close to that kind of disaster as we ever want to be!
    Here’s hoping that all y’all also are able to avoid a hard hit when Mother Nature turns into Mommy Dearest.
    But if you do ever encounter major natural disaster damage, be sure to use the tax code to your advantage to get as much help as you can.
    @TURBOTAXShawnee y residentes Moore no están pensando en los impuestos hoy. Todavía están tratando de salvar lo que puedan de los devastadores tornados que destrozaron sus ciudades centrales Oklahoma simplemente hace más de una semana .

    Y puede ser que tengan que estar buscando el día de hoy en busca de refugio temporal – estudio como tornados se prevé de nuevo en la zona , así como en la vecina Tornado Alley estados.
    Pero cuando las cosas finalmente hacen calmarse un poco , personas que sufrieron daños por tormentas en las principales zonas de desastre declarado por el gobierno federal tienen que mirar a su situación fiscal . En estos casos , puede ser capaz de tomar ventaja de un tratamiento fiscal especial que podría neto ellos añaden el dinero de reembolso de impuestos ahora, en lugar de la próxima temporada de impuestos .
    La mecánica de obtener impuestos mes efectivo reembolso temprano para ayudar a pagar las reparaciones críticas es Extremidad del impuesto semanal de hoy.
    Y hoy, a raíz de la reciente oleada de tornados y antes de la próxima temporada de huracanes en el Atlántico , el Servicio de Impuestos Internos emitió un recordatorio para la gente a , entre otras cosas , mantener un conjunto de copia de seguridad de registros ( declaraciones de impuestos , así como los bancos declaraciones, pólizas de seguros , etc), preferiblemente en formato electrónico , que pueden ayudar en la aplicación de programas de alivio de la tormenta .
    Los desastres abundan: Desafortunadamente , no hay desastres escapar . Esa triste realidad quiere decir que lo que he escrito muchas, muchas veces , tanto aquí en el blog el viejo y el Bankrate acerca de este beneficio fiscal especial de desastres, y utilizo esa palabra con conocimiento de causa , porque sé que no hay absolutamente ningún beneficio conectado a perder su casa o negocio .
    Así que si este artículo no se aplica a usted o sus amigos y familia , me disculpo por aburriendo .
    Pero también pido su comprensión . Esto no sólo es información importante para las personas que necesitan presentar una declaración de impuestos enmendada para obtener la restitución de dinero lo antes posible para la reconstrucción , pero también debe admitir una fascinación personal con el lado más malo de la Madre Naturaleza .
    Parte de eso se debe a que mis familiares parecen ser imanes de desastre , y no estoy hablando sólo de un feudo primos en las reuniones familiares .
    Mis padres sobrevivieron al mortal 1954 Ozona , Texas, inundación , precipitado , literalmente , por 24 pulgadas de lluvia en 24 horas por el huracán Alice moviéndose tierra adentro. Mi padre , ante mi insistencia mother’sscreaming , aún era capaz de conectar su pequeña casa móvil y tire de ella a lo superior, la tierra seca .
    Dos de mis tíos vivían en ciudades afectadas por grandes tornados, Lubbock , Texas, en 1970 y Omaha , Nebraska, en 1975.
    El Lubbock tía estaba de vacaciones en la Ciudad de México en 1985, cuando la ciudad sufrió un terremoto de gran magnitud .
    Mi tía más joven aún se encuentra en Florida a pesar de hacer frente a las secuelas de varios huracanes y tormentas tropicales . Ella y su marido son más resistentes que el marido y I. Dos ‘ bastones, Jeanne y Frances , dentro de tres semanas en 2004 nos llevó fuera del estado de la Florida y el hogar de Tejas espalda.
    Y ya que estamos aquí hemos tenido nuestro propio pincel con otro tipo de desastre natural. El fin de semana del Día del Trabajo de 2011 y durante varios días , nos miramos ansiosamente humo se elevan desde el barrio a través de la barranca al oeste de la casa , donde un incendio forestal que rabia estaba destruyendo las casas de otras personas.
    Ese fuego por poco es lo más cercano a este tipo de desastres , ya que nunca queremos ser !
    Aquí está la esperanza que todos ustedes también son capaces de evitar un duro golpe cuando la madre naturaleza se convierte en Mommy Dearest .
    Pero si alguna vez encuentras grandes daños desastre natural, asegúrese de usar el código de impuestos a su ventaja para conseguir toda la ayuda que pueda.

  • Tax Deductions for Newlyweds

    Congratulations on getting married! As you two embark on this journey together, I wanted to share some tax deductions that can help you come tax time. One thing that you may not be familiar with is exactly how tax deductions help you.
    Tax deductions lower your family’s taxable income and may help you lower your tax burden. Taking the tax deductions that you’re entitled to as newlyweds can help you get your finances in the right place.
    First of all, you have to make sure that your names and your social security numbers on your tax return are what’s on record with the Social Security Administration.
    If you haven’t already contacted them and submitted a form for your name change, then do so as soon as possible. In that same vein, make sure your employer has the correct information so your W-2s are accurate.
    New Changes, New Deductions
    With marriage comes changes to your household. Some of the tax deductions may apply to you, while others may not. The important thing is to make sure you both sit down and discuss how you’ll be handling your taxes.
    Standard Versus Itemized Deductions
    Before you were married you may have taken the lower standard deduction, but now would be a great time to check and see if you have enough eligible expenses to itemize.
    In general, you to want to itemize your deductions when your total eligible deductions exceed your standard deduction. Currently the standard deduction for those married filing jointly is $11,900.
    When we used TurboTax to file our tax return, it automatically checked our tax deductions to see which would give the bigger deduction.
    Married with Children
    If your family will be growing with one or more children becoming legally a part of your household, then you may qualify for some additional exemptions for dependents.
    You can claim an exemption worth $3,900 per child when you file your taxes. Please keep in mind that you must provide a social security number for your dependents when you claim them on your tax return.
    Review your Finances, Together
    Finally having two heads reviewing your finances is better then one, so look over your expenses to see if there are any tax deductions or breaks you have overlooked in the past or you’ll qualify for this year.
    Personal Property Taxes: In North Carolina we pay property taxes for our vehicles in the summer and our house at the end of the year. While it’s chunk of money out of our family budget, the good news is that state and local property taxes are deductible. Keep your receipts so you know how much to deduct.
    Charitable contributions: Have you thought of sharing your special day by donating? For many people, their wedding wardrobe, decorations, and other items are only used for one day and then packed away, sometimes forgotten in the attic. Why not see if you can part with a few of these dear items afterward and support worthy causes close to your heart?

    Felicidades por casarse ! Como ustedes dos se embarcan en este viaje juntos , quería compartir algunas deducciones fiscales que pueden ayudarle a llegar la temporada de impuestos . Una cosa que es posible que no esté familiarizado con es exactamente como las deducciones fiscales que ayudan .
    Las deducciones fiscales reducen su familia , la base imponible del AM y pueden ayudarle a reducir su carga fiscal . Tomando las deducciones fiscales que usted, Aore derecho a que los recién casados ??puede ayudarle a conseguir sus finanzas en el lugar correcto .
    En primer lugar , usted tiene que asegurarse de que sus nombres y sus números de seguridad social en su declaración de impuestos son lo que , el AM en el registro con la Administración del Seguro Social.
    Si usted refugio , AOT ya en contacto con ellos y enviar un formulario para su cambio de nombre , y luego hacerlo lo más pronto posible . En esa misma línea, asegúrese de que su empleador tiene la información correcta para que sus formularios W-2 son exactas.
    Nuevos cambios, nuevas deducciones
    Con el matrimonio viene cambios en su hogar. Algunas de las deducciones fiscales pueden aplicarse a usted, mientras que otros no. Lo importante es asegurarse de que tanto sentarse a discutir cómo usted, Äôll estar manejando sus impuestos.
    Deducciones estándar Versus Detallada
    Antes de casarse que haya tomado la deducción estándar más baja, pero ahora sería un buen momento para comprobar y ver si tiene suficientes gastos elegibles para detallar .
    En general , usted quiere detallar sus deducciones en el total de las deducciones admisibles superan su deducción estándar. Actualmente, la deducción estándar para los casados ??con declaración conjunta es $ 11,900 .
    Cuando utilizamos TurboTax para presentar nuestra declaración de impuestos, que comprueba automáticamente nuestras deducciones fiscales para ver lo que le daría el descuento más grande.
    Matrimonio con hijos
    Si su familia estará creciendo con uno o más hijos sea legalmente una parte de su casa , entonces usted puede calificar para algunas exenciones adicionales para dependientes.
    Usted puede reclamar una exención por valor de $ 3,900 por niño cuando presente su declaración de impuestos . Por favor, tenga en cuenta que debe proporcionar un número de seguro social para sus dependientes cuando se les reclama en su declaración de impuestos.
    Revise sus finanzas , junto
    Por último tiene dos cabezas revisar sus finanzas es mejor que uno, para mirar por encima de sus gastos para ver si hay algunas deducciones de impuestos o roturas que ha pasado por alto en el pasado o que , Äôll calificar para este año .
    Impuestos sobre Bienes Muebles : En Carolina del Norte que pagamos impuestos a la propiedad para nuestros vehículos en el verano y nuestra casa al final del año. Mientras que , el AM cantidad de dinero fuera de nuestro presupuesto familiar , la buena noticia es que los impuestos a la propiedad estatal y local son deducibles. Guarde sus recibos para que sepas lo mucho que deducir .
    Donativos : ¿Has pensado en compartir su día especial con la donación ? Para muchas personas, su vestuario de boda , decoraciones y otros objetos se utilizan sólo por un día unad luego guardó, a veces olvidado en el ático. ¿Por qué no ver si puedes parte con algunos de estos elementos después queridos y apoyar dignas causas cercanas a su corazón?

  • !!!TIME SENSITIVE – VITAL TAX UPDATE!!!

    TAX UPDATE
    !!!TIME SENSITIVE – VITAL TAX UPDATE!!!

    The IRS is requiring reporting and taxation on all FOREIGN owned BANK ACCOUNTS and ASSETS by citizens and permanent residents of the U.S. Requirements are specific, deadlines are set, penalties for noncompliance are atrocious, and negligence is not tolerated. .

    Technology improves our lives with information but it also makes this big world we live in much smaller. It has improved the IRS’s ability to track your personal information, not only within the United States but also abroad. If you have any ties to foreign lands, including citizenship, bank accounts, land, property or any other intangible/tangible assets, it is essential you read the below information. Then pinpoint what may apply to you, and immediately thereafter contact our office so we can work together to meet all deadlines and filing requirements.

    FBAR – FOREIGN BANK ACCOUNT REPORTING
    • Compliance Requirement: Any signer on a foreign bank account not opened in the United States, including any accounts setup by relatives, that you are a signer on even though it may not be your nt and you have access to, and at any time during the year has had a balance that exceeded $10,000 U.S. dollars.
    • Reporting Requirement: Complete form TD F 90-22.1
    o To file form correctly, 12 monthly statements are needed for the tax year being reported on to determine the highest balance in the account during the year. The financial institution’s address, account number, and type of currency must accompany these statements.
    o The IRS does have the ability to look back 6 years on foreign accounts. If there was a filing requirement within the last 6 years that was not met, back years must be filed under the amnesty program setup by the IRS.
    • Deadline: June 30th – the form must be RECEIVED NOT MAILED to the Detroit IRS office for processing by the deadline date each year.
    • Penalty For Failure to Preparer: Could result in a penalty as high as 300% of the highest account balance in the past 6 years

    FATCA – Foreign Account Tax Compliance Act
    • Compliance Requirement: Foreign bank or financial accounts that you have signing authority over that include foreign cash, foreign stocks, foreign bonds, foreign mutual funds, financial interest in a foreign partnership, trust, corporation or any other entity, foreign real estate, foreign collectibles, and foreign business or personal property that include cars, antiques, jewelry, art, machinery, fixtures & equipment.
    • Reporting Requirement: Form 8938 for assets that value exceeds $50,000 for single and $100,000 for married. There is no dollar value threshold for the reporting of foreign trusts, partnership or corporations because these must be reported in all cases. In addition, forms 8939, 3520, 5471, 8621, 8865 & 8891 may need to be filed depending upon the type of income, the source, and location of the asset.
    • Deadline: Immediately – the newly released forms require both a 2011 and 2012 filing requirement.

    The intent of the US government in enforcing the foreign bank and asset reporting requirements is to discourage tax cheats from hiding un-reported income overseas and to crack down on money laundering. This includes money laundering that supports terrorism.

    The U.S. Government forced UBS (United Bank of Switzerland) which is a large financial institution here and aboard to turn over account information on all Americans and permanent residents of the United States. So far, year to date the IRS has imposed $5.2 Billion dollars in fines and are only 20% along in the processing of these accounts. With legislation of the federal government and the number of foreign banks doing business (75% of the World’s banking goes through the U.S.) in the U.S. there is no telling how far the reach of the IRS is. Therefore it is ESSENTIAL immediate action is taken to comply with foreign income and asset reporting. We look forward to serving you in meeting all past and current tax law and compliance filings.
    ACTUALIZACIÓN TRIBUTARIA
    ¡¡¡ Momento delicado – ACTUALIZACIÓN TRIBUTARIA VITAL !

    El IRS está requiriendo informes y de los impuestos en todas las cuentas de bancos extranjeros de propiedad y los bienes de los ciudadanos y residentes permanentes de los Estados Unidos son los requisitos específicos , se establecen plazos, sanciones por incumplimiento son atroces , y la negligencia no se tolera . .

    La tecnología mejora nuestras vidas con la información, sino que también hace que este gran mundo en que vivimos mucho más pequeño. Se ha mejorado la capacidad del IRS para hacer un seguimiento de su información personal , no sólo dentro de los Estados Unidos, sino también en el extranjero . Si usted tiene algún vínculo con el extranjero , incluyendo la ciudadanía , las cuentas bancarias , la tierra , la propiedad o cualquier otro activo intangible / tangible , es fundamental que lea la siguiente información. A continuación, determinar lo que puede aplicarse en su caso , e inmediatamente después ponerse en contacto con nuestra oficina para que podamos trabajar juntos para cumplir con los plazos y requisitos de presentación .

    FBAR – EXTERIOR CUENTA BANCARIA DE INFORMES
    • Exigencia de Cumplimiento : Cualquier firmante de una cuenta bancaria extranjera no se abrió en los Estados Unidos , incluidas las cuentas de la configuración de los familiares , que son uno de los firmantes en el a pesar de que no puede ser su noche y usted tiene acceso a , y en cualquier momento durante la el año ha tenido un saldo que superó $ 10.000 dólares.
    • Requerimiento de informes: Llene el formulario TD F 90-22.1
    o Para someter formulario correctamente , se necesitan 12 declaraciones mensuales para el año fiscal que se informa para determinar el mayor saldo en la cuenta durante el año . La dirección de la institución financiera , el número de cuenta y tipo de moneda deben acompañar estas declaraciones.
    o El IRS tiene la capacidad de mirar hacia atrás 6 años en cuentas en el extranjero . Si había un requisito de presentación dentro de los últimos 6 años que no se cumplió , de nuevo año debe ser presentada en el marco del programa de instalación de amnistía por el IRS.
    • Fecha límite: 30 de junio – el formulario debe ser recibido no enviados por correo a la oficina de Detroit del IRS para el procesamiento de la fecha límite cada año .
    • multa por no Preparador: Podría resultar en una multa de hasta el 300% del saldo de la cuenta más alta de los últimos 6 años

    FATCA – Ley de Cumplimiento Tributario de Cuentas Extranjeras
    • Exigencia de Cumplimiento : bancos extranjeros o las cuentas financieras que tienen autoridad sobre las que incluyen dinero extranjero en efectivo , acciones extranjeras , bonos extranjeros , fondos de inversión extranjeros , el interés financiero en una sociedad extranjera , fideicomiso, corporación o cualquier otra entidad , los bienes inmuebles en el exterior , la firma extranjera coleccionables, y las empresas extranjeras o propiedad personal que incluyen automóviles , antigüedades , joyas , obras de arte , maquinaria , instalaciones y equipos.
    • Requerimiento de informes: Formulario 8938 para los activos de dicho valor sea superior a $ 50,000 para una sola y $ 100,000 para casados ??. No existe un umbral valor en dólares de la información de los fideicomisos extranjeros, asociaciones o corporaciones ya que estos deben ser reportados en todos los casos . Además , es posible que deba presentar los formularios 8939 , 3520 , 5471 , 8621 , 8865 y 8891 , dependiendo del tipo de ingreso , la fuente , y la localización de los activos.
    • Plazo : De inmediato – las formas recién liberados requieren tanto de un 2011 y 2012, requisito de presentación .

    La intención del gobierno de EE.UU. en la aplicación de la banca extranjera y los requisitos de presentación de informes de activos es desalentar evasores de impuestos de su escondite ingreso no comunicados en el extranjero y para tomar medidas enérgicas contra el lavado de dinero . Esto incluye el lavado de dinero que apoya el terrorismo .

    El Gobierno de EE.UU. obligó a UBS ( United Bank de Suiza) , que es una gran institución financiera aquí ya bordo a entregar información de la cuenta de todos los estadounidenses y residentes permanentes de los Estados Unidos. Hasta ahora , el año hasta la fecha el IRS ha impuesto $ 5.2 mil millones de dólares en multas y son sólo el 20 % a lo largo de la elaboración de estas cuentas. Con la legislación del gobierno federal y el número de bancos extranjeros que realizan negocios ( 75 % de la banca en el mundo pasa a través de los EE.UU. ) en los EE.UU. no se dice en qué medida el alcance del IRS . Por eso es que se tomen medidas inmediatas imprescindible tener en cuenta los ingresos extranjeros y presentación de informes de activos. Esperamos poder servirle a usted en el cumplimiento de todas las leyes tributarias anteriores y actuales y presentaciones de cumplimiento.

  • Affordable Care Act Tax Provisions

    Effect of Sequestration on Small Business Health Care Tax Credit
    Pursuant to the requirements of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, certain automatic cuts took place as of March 1, 2013. These required cuts include a reduction to the refundable portion of the Small Business Health Care Tax Credit for certain small tax-exempt employers under Internal Revenue Code section 45R. As a result, the refundable portion of your claim will be reduced by 8.7 percent. The sequestration reduction rate will be applied until the end of the fiscal year (Sept. 30, 2013) or intervening Congressional action, at which time the sequestration rate is subject to change.

    Update:
    The Health Care Law generally has no new impacts to the Form 1040 series for the 2012 returns that individuals may be currently filing. However, if you received a health insurance premium rebate during 2012, check irs.gov/aca under Medical Loss Ratio to see if you are one of the few people who needs to include it on your 2012 return. If you do not have a tax filing requirement, you do not need to file a 2012 federal tax return to establish future eligibility or qualify for future financial assistance to purchase health care coverage through an exchange. To find out if you have to file a federal tax return for other reasons, use the IRS Interactive Tax Assistant.
    If you are seeking information about how to obtain health care coverage or financial assistance to purchase health care coverage for you and your family, visit the Health and Human Services website, HealthCare.gov.

    Efecto del secuestro de créditos impositivos para pequeñas Salud Negocios
    De conformidad con los requisitos de la Ley de Presupuesto Equilibrado y Control del Déficit de Emergencia de 1985, según enmendada, ciertos recortes automáticos se llevaron a cabo el 1 de marzo de 2013. Estos cortes requeridos incluyen una reducción de la porción reembolsable del crédito tributario Small Business Health Care para ciertos pequeños empleadores exentos de impuestos bajo la sección 45R Código de Impuestos Internos. Como resultado, la parte reembolsable de su demanda se reducirá en un 8,7 por ciento. La tasa de reducción del secuestro se aplicará hasta el final del año fiscal (30 de septiembre de 2013) o intervenir la acción del Congreso, momento en el que la tasa de captura está sujeta a cambios.

    Actualizar:
    La Ley del Cuidado de la Salud en general no tiene nuevas consecuencias de la serie Forma 1040 para las declaraciones de 2012 que los individuos pueden actualmente presentación. Sin embargo, si usted recibió un reembolso de la prima de seguro de salud durante el año 2012, visita irs.gov / aca en Medicos Siniestralidad para ver si usted es una de las pocas personas que tiene que incluir en su declaración de 2012. Si usted no tiene un requisito de declaración de impuestos, usted no tendrá que presentar una declaración de impuestos federal 2012 para establecer la elegibilidad futura o calificar para recibir asistencia financiera en el futuro para comprar cobertura de salud a través de un intercambio. Para averiguar si usted tiene que presentar una declaración de impuestos federales por otros motivos, utilice el Asistente de Impuestos del IRS Interactive.
    Si usted está buscando información acerca de cómo obtener la cobertura de atención de salud o asistencia financiera para comprar cobertura de salud para usted y su familia, visite el sitio web de Salud y Servicios Humanos, HealthCare.gov.

  • Tax season is behind us!

    Now that tax season is behind us, at least for the majority, I want to take this opportunity to thank you for your business & patience while our office and staff went through the learning curve of our new software.  While there were errors in the initial release, in addition to Congress changing laws in January retroactive to 2012, which caused the software to then be obsolete, we are definitely confident in the many future benefits the changes will bring.  We value all of our clients and appreciate all the great comments that we received on our Facebook, Google, and Yelp pages.  Thank you all for taking the time to post.

     

    As part of our services, we want to keep clients well educated not only on the constantly changing tax laws, but other important aspects that may affect you and your family.  One such involving all the talk about Obama Care and the new requirements and penalties included in not having health insurance.  Most likely you have lots of questions.  Attached is a diagram that I believe will answer many of these questions.  For any additional questions, we can directly refer you to an expert in the area.  As always, feel free to contact us.

     

    Bill Slattery

     Ahora que la temporada de impuestos está detrás de nosotros, al menos para la mayoría, quiero aprovechar esta oportunidad para darle las gracias por su negocio y paciencia mientras nuestra oficina y el personal hizo a través de la curva de aprendizaje de nuestro nuevo software. Si bien hubo errores en el lanzamiento inicial, además de cambiar las leyes en el Congreso con carácter retroactivo a enero de 2012, lo que provocó que el software luego obsoletas, definitivamente estamos seguros de los beneficios futuros de los cambios traerán. Valoramos a todos nuestros clientes y apreciamos todos los buenos comentarios que recibimos en nuestro Facebook, Google y las páginas de Yelp. Gracias a todos por tomarse el tiempo para escribir.

    Como parte de nuestros servicios, queremos mantener a los clientes una buena educación no sólo en las leyes fiscales cambian constantemente, pero otros aspectos importantes que pueden afectar a usted y su familia. Uno de ellos implica todo lo dicho sobre Obama Care y los nuevos requisitos y sanciones incluidas por no tener seguro de salud. Lo más probable es que usted tiene un montón de preguntas. Se adjunta un diagrama que creo que va a responder a muchas de estas preguntas. Para cualquier consulta adicional, que se puede consultar directamente con un experto en el área. Como siempre, no dude en ponerse en contacto con nosotros.

    Bill Slattery

  • Tax Changes in Congress’ Fiscal Cliff Legislation

    Here is a summary of the provisions included in the bill –

    Tax rates beginning January 1, 2013

    A top rate of 39.6% (up from 35%) will be imposed on individuals making more than $400,000 a year, $425,000 for head of household, and $450,000 for married filing joint.

    2% Social Security reduction gone

    AMT permanently patched

    A permanent AMT patch, adjusted for inflation, will be made retroactive to 2012.
    Fiscal Cliff Legislation
    Dividends and capital gains

    The maximum capital gains tax will rise from 15% to 20% for individuals taxed at the 39.6% rates (those making $400,000, $425,000, or $450,000 depending on filing status, as noted above).

    Itemized deduction and personal exemption phase-outs

    The Pease itemized deduction phase-out is reinstated, and personal exemption phase-out will be reinstated, but with different AGI starting thresholds (adjusted for inflation): $300,000 for married filing joint, $275,000 for head of household, and $250,000 for single.

    Estate tax

    The estate tax regime will continue to provide an inflation-adjusted $5 million exemption (effectively $10 million for married couples) but will be applied at a higher 40% rate (up from 35% in 2012).

    Personal tax credits

    The $1,000 Child Tax Credit, the enhanced Earned Income Tax Credit, and the enhanced American Opportunity Tax Credit will all be extended through 2017.

    Other personal deductions and exclusions

    The following deductions and exclusions are extended through 2013:

    • Discharge of qualified principal residence exclusion;
    • $250 above-the-line teacher deduction;
    • Mortgage insurance premiums treated as residence interest;
    • Deduction for state and local taxes;
    • Above-the-line deduction for tuition; and
    • IRA-to-charity exclusion (plus special provisions allowing transfers made in January 2013 to be treated as made in 2012).

    Business provisions

    • The Research Credit and the production tax credits, among others, will be extended through 2013;
    • 15-year depreciation and §179 expensing allowed on qualified real property through 2013;
    • Work Opportunity Credit extended through 2013;
    • Bonus depreciation extended through 2013; and
    • The §179 deduction limitation is $500,000 for 2012 and 2013.

    Here is a summary of the provisions included in the bill –

    Tax rates beginning January 1, 2013

    A top rate of 39.6% (up from 35%) will be imposed on individuals making more than $400,000 a year, $425,000 for head of household, and $450,000 for married filing joint.

    2% Social Security reduction gone

    AMT permanently patched

    A permanent AMT patch, adjusted for inflation, will be made retroactive to 2012.
    Fiscal Cliff Legislation
    Dividends and capital gains

    The maximum capital gains tax will rise from 15% to 20% for individuals taxed at the 39.6% rates (those making $400,000, $425,000, or $450,000 depending on filing status, as noted above).

    Deducción detallada y exención personal eliminaciones graduales

    El Pease deducción detallada eliminación se restablezca, y se restablecerá la exención personal de eliminación, pero con diferentes AGI umbrales de partida (ajustado por inflación): $ 300.000 para articular casado, $ 275,000 para el cabeza de familia, y de $ 250.000 para una sola.

    Impuesto de propiedad

    El régimen del impuesto sobre el patrimonio seguirá proporcionando una inflación ajustada por $ 5.000.000 exención (de hecho, $ 10 millones para las parejas casadas), sino que se aplica a una tasa superior al 40% (frente al 35% en 2012).

    Las deducciones personales

    El Crédito Tributario por Hijos $ 1000, el Crédito Tributario por Ingreso del Trabajo mejorada, y el Crédito de la Oportunidad Americana mejorado todos serán extendidos hasta el 2017.

    Otras deducciones personales y exclusiones

    Los siguientes deducciones y exclusiones se extienden hasta el 2013:

    • Aprobación de la gestión de la exclusión residencia principal calificada;
    • $ 250 deducción maestro por encima de la línea;
    • Primas de seguro hipotecario considerarán interés residencia;
    • Deducción por impuestos estatales y locales;
    • Deducción por Encima de la línea de la matrícula, y
    • Exclusión (más disposiciones especiales que permiten las transferencias realizadas en enero de 2013 para ser tratados como hizo en 2012) IRA a la caridad.

    Disposiciones negocios

    • El Crédito de Investigación y los créditos fiscales a la producción, entre otros, se extenderán hasta el 2013;
    • 15 años de amortización y § 179 por gastos permitidos en bienes raíces calificado hasta el 2013;
    • Crédito de la Oportunidad de Trabajo extendió hasta el año 2013;
    • Bonus depreciación extendió hasta el 2013, y
    • El § 179 limitación de la deducción es de $ 500.000 para 2012 y 2013.