Archive for the ‘Tax’ Category

IRS Releases Form to Help Small Businesses Claim New Health Care Tax Credit

Tuesday, September 7th, 2010

The Internal Revenue Service today released a draft version of the form that small businesses and tax-exempt organizations will use to caluculate the small business health care tax credit when they file income tax returns next year.  They also announced how eligible tax-exempt organizations – which do not generally file income tax returns – will claim the credit during the 2011 filing season.
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Moving Soon? Let the IRS Know

Tuesday, September 7th, 2010

If you changed your home or business address, notify the IRS to ensure that you receive any refunds or correspondence. Although the IRS uses the postal service’s change of address files to update taxpayer addresses, notifying the IRS directly is still a good idea.There are several ways to do this. (more…)

Gift Taxes

Monday, September 6th, 2010

If you gave any one person gifts in 2010 that were valued at more than $13,000, you must report the total gifts to the Internal Revenue Service. You may have to pay tax on the gifts.

The person who receives your gift does not have to report the gift to the IRS or pay gift or income tax on its value.

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Movement to Repeal 1099 Rule in Healthcare Law Gains Momentum

Friday, September 3rd, 2010

As you may already know, tucked away in the new health-care law is a mandate that beginning in 2012,  small businesses and charities must file 1099’s for every vendor they have purchased goods or services from in excess of $600.   This new mandate applies to everyday purchases, like shipping costs, supplies, even Internet and phone service.  That means if you’re a business owner, you will need to get the tax ID numbers for almost everyone you deal with and keep track of all your expenses:  a daunting task.   Furthermore, if your business has more than 250 vendors that qualify to get 1099s, you will have to enroll in electronic 1099 filings with the IRS.

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A SIMPLE Retirement Plan for the Self-Employed

Thursday, September 2nd, 2010

Of all the retirement plans available to small business owners, the SIMPLE plan is the easiest to set up and the least expensive to manage.These plans are intended to encourage small business employers to offer retirement coverage to their employees. SIMPLE plans work well for small business owners who don’t want to spend time and high administration fees associated with more complex retirement plans. (more…)

Federal Tax Due Dates for September 2010

Wednesday, September 1st, 2010

September 10

Employees Who Work for Tips – If you received $20 or more in tips during August, report them to your employer. You can use Form 4070.

September 15

Individuals – Make a payment of your 2010 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment date for estimated tax in 2010.

Corporations – File a 2009 calendar year income tax return (Form 1120 or 1120-A) and pay any tax due. This due date applies only if you made a timely request for an automatic 6-month extension.

S corporations – File a 2009 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you made a timely request for an automatic 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1.

Corporations – Deposit the third installment of estimated income tax for 2010. A worksheet, Form 1120-W, is available to help you make an estimate of your tax for the year.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in August.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in August.

 

Don’t Overlook Tax Credits for College

Tuesday, August 31st, 2010

The IRS has sent out a reminder you can still take advantage of the American Opportunity Tax Credit, a tax credit that will help many parents and college students offset the cost of college.  This tax credit is available through December 31, 2010 and can be claimed by eligible taxpayers for college expenses paid in 2009 and 2010.

Here are six important facts from the IRS about the American Opportunity Tax Credit: (more…)

Basic Hints to Help New Small Business

Thursday, August 12th, 2010

Folks starting a small business are often challenged by their new tax filing requirements. It can be overwhelming to learn about federal tax responsibilities.

The following is a list of basic tips to avoid potential problems: (more…)

Tax Benefits for Job Seekers

Wednesday, August 11th, 2010

Some folks – especially these days – are polishing their resumes and attending career fairs in search of employment. If you are searching for a job this summer, you may be able to deduct some of those expenses on your tax return.

Here are six things you need to know about deducting costs related to your job search. (more…)

Payroll Tax Holiday – New Details on 2010 HIRE Act

Wednesday, August 11th, 2010

Linda Chiappone, Senior Tax Manager 
In March, the President signed into law the “Hiring Incentives to Restore Employment Act of 2010” (the 2010 HIRE Act), the centerpiece of which is a payroll tax holiday and up-to-$1,000 tax credit for businesses that hire unemployed workers. Here’s an overview of these new hiring incentives and some new details that carry important guidance on these new payroll tax breaks.   (more…)