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| The recently enacted “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” is a sweeping tax package that includes, among many other items, an extension of the Bush-era tax cuts for two years, estate tax relief, a two-year “patch” of the alternative minimum tax (AMT), a two-percentage-point cut in employee-paid payroll taxes and in self-employment tax for 2011, new incentives to invest in machinery and equipment, and a host of retroactively resuscitated and extended tax breaks for individuals and businesses. Here’s a look at the key elements of the package: (more…) |
Archive for December, 2010
What the New Tax Law Means to You and Your Business
Wednesday, December 22nd, 2010Payroll Tax Cut to Boost Take-Home Pay for Most Workers
Friday, December 17th, 2010|
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| Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.The new law also maintains the income-tax rates that have been in effect in recent years.
Instructions have been released by the IRS to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011. Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011. The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but not later than Jan. 31, 2011. For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2011. |
IRS Announces 2011 Standard Mileage Rates
Tuesday, December 14th, 2010|
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The Internal Revenue Service issued the 2011 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.Beginning on Jan. 1, 2011, the standard mileage rates for the use of a car, van, pickup or panel truck will be:
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously. Taxpayers always have the option of calculating the actual costs of using their vehicles rather than using the standard mileage rates. For more about the which method is better for your business read Getting The Most From Auto Expenses. |
How QuickBooks Helps You Destress at Tax Time
Monday, December 13th, 2010|
Chris Blach, QuickBooks ProAdvisor |
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The reasons for putting off tax preparations are endless – and understandable. But when we procrastinate on this tedious job, tax filing deadlines mean marathon sessions grappling with tax records. Not only is this unpleasant, but it also makes it more likely you’ll make potentially costly mistakes on your return. Conscientious daily work habits – including a diligent eye on tax issues – can help prevent this painful scenario. QuickBooks offers many built-in tools to help you minimize the tax-time terrors. (more…) |
Filing Status – What You Need to Know
Thursday, December 9th, 2010|
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| Your federal tax filing status is based on your marital and family situation. It is an important factor in determining your standard deduction and your correct amount of tax, and whether you must file a return.
Your marital status on the last day of the year determines your status for the entire year. If more than one filing status applies to you, you may choose the one that gives you the lowest tax obligation. There are five filing status options:
We can definitely help you determine which filing status is best for your situation. Just call us up or send an email. |
Ensuring Your Family’s Security with an Estate Plan
Thursday, December 9th, 2010|
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| No matter what your net worth, you should have an estate plan in place. Such a plan ensures that your family is cared for and your assets maximized upon your death. An estate plan consists of your will, health care documents, powers of attorney, life insurance coverage, and post-mortem letters.
For those of you with an estate plan already, good for you! But we have additional advice: make it a priority to review the plan every two years to see whether it needs updating. Here are the life events that necessitate an update to your plan:
Here are some of the action steps you may need to take when you update:
Because of the recent amendments to the estate tax laws, many estate plans may need to be revised. Give us a call for a review of your situation. |
How to Prepare for a Successful Retirement
Wednesday, December 8th, 2010|
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| As you approach retirement, it’s vital that you pay attention to key financial questions. Here are some of the items you should check:
Health Insurance. Are you among the lucky few who will continue to be covered after retirement? If not, you’ll need to replace the coverage. If you will be eligible for Medicare, you may want to start checking up on “Medigap” coverage.
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Financial Tips for December 2010
Monday, December 6th, 2010|
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| Make Charitable Contributions Consider making charitable contributions before year-end both to obtain the maximum tax deduction and to fulfill any charitable programs or commitments you may have established. Buy a New Car Examine Investments Pay Tax-Deductible Expenses Evaluate Your Progress |
Your Pension Plan – Small Changes for 2011
Friday, December 3rd, 2010|
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In 2011, dollar limitations for pension plans and other retirement-related items will either remain unchanged, or the inflation adjustments for 2011 will be small. Check out what to expect in the new year…. (more…) |
Who Benefits from Health Care Reform
Wednesday, December 1st, 2010|
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 There’s plenty of debate about whether the new health care reform bill is good for America. Whatever your views, it looks like the Affordable Care Act – a massive piece of legislation passed by Congress in March – is here to stay.The majority of Americans without health insurance are the owners or employees of small businesses. For many of these individuals, health insurance has been unaffordable for themselves, their families, and their employees.But the new legislation is set to change that. It makes it less expensive to purchase insurance – and it provides tax credits for small business owners who do.And, because the aim of the bill is to get the vast majority of Americans at least minimally covered, the Act imposes tax penalties on those who don’t purchase insurance. If you own a small business or are a sole proprietor, read on for an overview of how the bill affects you. (more…) |
