Archive for April, 2011

QuickBooks Helps You Make a Statement

Thursday, April 14th, 2011

Chris Blach, QuickBooks ProAdvisor

How do you let customers know they owe you money? Probably by sending invoices. And if your customers are conscientious and pay on time, that might be all you need.

But it might be helpful to do at least part of your billing by dispatching statements. These forms do have their drawbacks. For example, you can’t include sales tax or discounts on them; you can’t group related charges and subtotal them; and your customization options are weaker than in invoices. (more…)

Income Statistics Show Recessions Effect on Taxpayers

Wednesday, April 13th, 2011

IRS has released its winter 2011 issue of the Statistics of Income Bulletin, featuring preliminary data on 140.5 million individual income tax returns that were filed for tax year 2009. The numbers show the financial damage on individual households  by the economic downturn that began in 2008 and accelerated in 2009. (more…)

Spring Cleaning: Tax Records You Can Throw Away

Sunday, April 10th, 2011

Spring is a great time to clean out that growing mountain of tax and financial papers that clutters your home and office. Here’s what you need to keep and what you can throw out without fearing the wrath of the IRS.Let’s start with your “safety zone,” the IRS statute of limitations. This limits the number of years during which the IRS can audit your tax returns. (more…)

Congress Repeals Expanded 1099 Reporting

Friday, April 8th, 2011

The Senate, by a vote of 97-12, passed legislation to repeal the law tucked away in the health-care reform bill that would have resulted in dramatically expanding the volume of 1099 forms that businesses would have to send. Approved earlier by the house, the bill goes to President Obama who is expected to sign it. (more…)

Six Facts about the Alternative Minimum Tax

Tuesday, April 5th, 2011

The Alternative Minimum Tax attempts to ensure that anyone who benefits from certain tax advantages pays at least a minimum amount of tax. The AMT provides an alternative set of rules for calculating your income tax. In general, these rules should determine the minimum amount of tax that someone with your income should be required to pay. If your regular tax falls below this minimum, you have to make up the difference by paying alternative minimum tax.

Here are six facts the Internal Revenue Service wants you to know about the AMT and changes for tax year 2010. (more…)

Financial Tips for April 2011

Tuesday, April 5th, 2011

Review Your Retirement Plans
How much have you accumulated so far? How much do you need to retire comfortably at the desired date? Professional advice may be helpful in determining how much you should be saving and what the best investment vehicles are.

Inventory Your Non-Financial Assets
Perform an inventory of your non-financial assets (e.g., home, furniture, cars, personal belongings). Compare this inventory to your property insurance coverage. Is your insurance adequate for your assets? You may need a rider to your policy for certain items such as jewelry. If some assets are no longer in use, consider selling them or donating them to charity. You may be entitled to a deduction based upon the fair market value of the assets.

Review Budget vs Actuals
Compare March income and expenditures with your budget. Make adjustments as appropriate to your April expenditures. Make sure you have invested your planned savings amount for March.

Schedule Estimated Tax Payments
Add the estimated tax payments for the year to your calendar so you don’t overlook them later. You might want to attach the payment vouchers to your calendar with a paperclip.

Review Retirement Contributions
Review planned contributions for IRAs, SIMPLE Plans, SEPs, and Keoghs for the preceding tax year. Professional advice should be sought to help you determine the maximum amounts deductible, and whether postponing return filing for the preceding year will help determine the amount and timing of the contribution.

Lost Your Job This Year? There Could Be Tax Consequences

Saturday, April 2nd, 2011

Given the current economic conditions, you may be faced with tax questions surrounding a job loss and unemployment issues.

Here are some answers: (more…)

Are You Eligible for a Tax Credit?

Saturday, April 2nd, 2011

A tax credit is a dollar-for-dollar reduction of taxes owed. Some credits are refundable – taxes could be reduced to the point that you would receive a refund rather than owing any taxes.

Here are the credits we will consider when preparing your taxes: (more…)

Last-Minute Tax Advice

Friday, April 1st, 2011

It’s April already. Are your taxes done? If not, here are some stress-relieving ideas: (more…)

Federal Tax Due Dates April 2011

Friday, April 1st, 2011

April 11

Employees – who work for tips. If you received $20 or more in tips during March, report them to your employer. You can use Form 4070.

April 18

Individuals - File an income tax return for 2010 (Form 1040, 1040A, or 1040EZ) and pay any tax due. If you want an automatic 6-month extension of time to file the return, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or you can get an extension by phone if you pay part or all of your estimate of income tax due with a credit card. Then file Form 1040, 1040A, or 1040EZ by October 17.

Household Employers - If you paid cash wages of $1,700 or more in 2010 to a household employee, file Schedule H (Form 1040) with your income tax return and report any employment taxes. Report any federal unemployment (FUTA) tax on Schedule H if you paid total cash wages of $1,000 or more in any calendar quarter of 2008 or 2009 to household employees. Also report any income tax you withheld for your household employees.

Individuals – If you are not paying your 2011 income tax through withholding (or will not pay in enough tax during the year that way), pay the first installment of your 2011 estimated tax. Use Form 1040-ES.

Partnerships - File a 2010 calendar year return (Form 1065). Provide each partner with a copy of Schedule K-1 (Form 1065), Partner’s Share of Income, Credits, Deductions, etc., or a substitute Schedule K-1. If you want an automatic 6-month extension of time to file the return and provide Schedule K-1 or a substitute Schedule K-1, file Form 7004. Then file Form 1065 by October 17.

Electing Large Partnerships – File a 2010 calendar year return (Form 1065-B). If you want an automatic 6-month extension of time to file the return, file Form 7004. Then file Form 1065-B by October 17. March 15 was the due date for furnishing the Schedules K-1 to the partners.

Corporations - Deposit the first installment of estimated income tax for 2011. A worksheet, Form 1120-W, is available to help you estimate your tax for the year.

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

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