You don't usually think of fall as a major tax filing time, but there are several important tax deadlines coming up this September and October. Check the deadlines below to see if any apply to you or your business.
September 15 - Due date for third quarter installment of 2014 individual estimated income tax.
September 15 - Filing deadline for 2013 tax returns for calendar-year corporations that received an automatic extension of the March 17 filing deadline.
September 15 - Filing deadline for 2013 partnership tax returns that received an extension of the April 15 filing deadline.
October 1 - Generally, the deadline for self-employed individuals and small businesses to establish a SIMPLE retirement plan for 2014.
October 15 - Filing deadline for 2013 individual income tax returns that received an extension of the April 15 filing deadline.
October 15 - Deadline for undoing a 2013 conversion of a regular IRA to a Roth IRA by switching the Roth back to a regular IRA without penalty.
If you need more information or filing assistance, contact our office.
If you (or someone in your family) gets married here's some advice that can help avoid headaches at tax time.
Name and address.
If you take a new married name, contact the Social Security Administration to notify it of the change and to obtain a new social security card. If you have a new address after the wedding, notify the IRS so your tax forms, tax refunds, and IRS notices will arrive at the right location. File a change of address on IRS Form 8822.
Send a little time with your tax adviser to evaluate your tax situation as a married couple. Depending on your income levels and deductions, you and your spouse could be hit by the "marriage penalty". This results in higher taxes than the combined taxes you would owe as singles. In some cases you could pay lower taxes as a married couple. It's important to find out as early as possible, while there are still a few months left in the tax year to adjust your withholding if necessary.
As a newly married couple, it is important to update your estate plan. This might be as simple as preparing a basic will. You may want to change the beneficiary designations on insurance policies, IRAs, and 401(k) plans to include your new spouse. You might also decide to change your bank accounts to joint ownership.
Taxes are not the most romantic thing for newlyweds to think about, but look upon it as an essential part of setting up your new household.
Please call if you would like assistance in reviewing your tax situation.
During warm summer days, you may be tempted to forget about serious things like taxes. But that could lead to a higher 2014 tax bill. Here are just a few summertime tax-saving ideas to consider.
* If spring cleaning left you with outgrown clothing and household items you no longer use, donate them to charity. Items in good used condition qualify for a deduction.
* If you and your spouse work, consider sending your children to a summer day camp. The cost may qualify for the dependent care tax credit.
* Do you own a boat or recreation vehicle? Are you thinking about buying one? As long as the vehicle has sleeping space, a bathroom, and cooking facilities, you may be able to claim it as a second home and deduct the interest payments on your loan.
* If you have vacation/rental property, you can control your tax deductions by changing the number of days you use your vacation home. In planning your vacations, be sure to find out how many days of personal use will lead to the best tax deductions on your property.
* If you operate an unincorporated business, consider hiring your children to work for you this summer. You can deduct reasonable wages paid to them for the work they perform, and there's no social security tax on their wages if they are under age 18.
* Summer is great for entertaining customers or clients. Keep records of the cost, the date, who was entertained, and what the business purpose was. Your tax deduction is limited to 50% of your cost.
* Combine business with your summer travel, and you may be able to take a tax deduction for the business portion of your costs.
By all means, enjoy your summer. But don't forget taxes. Give us a call if you would like to discuss tax-cutters suited to your specific situation.
A new web page and service from the IRS allows you to get a record of your past tax returns, also referred to as transcripts. IRS transcripts are often used to validate income and tax filing status for mortgage applications, student and small business loan applications, and during tax preparation. You can download and print your transcript immediately, or request the transcript be mailed to your address on record. This site is only available to the taxpayer so your tax professional can’t access your information from this site.
Here is a listing of the specific pieces of information you can download from the “Get Transcript” site:
The IRS announced today that “due to the current lapse in appropriations, IRS operations are limited.”
The key points of their announcement are:
For the complete news release please click the link below.
The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.
The ruling implements federal tax aspects of the June 26th Supreme Court decision invalidating a key provision of the 1996 Defense of Marriage Act.
“Today’s ruling provides certainty and clear, coherent tax filing guidance for all legally married same-sex couples nationwide. It provides access to benefits, responsibilities and protections under federal tax law that all Americans deserve,” said Secretary Jacob J. Lew. “This ruling also assures legally married same-sex couples that they can move freely throughout the country knowing that their federal filing status will not change.”
Under the ruling, same sex couples will be treated as married for all federal tax purposes, including income and gift and estate taxes. The ruling applies to all federal tax provisions where marriage is a factor, including filing status, claiming personal and dependency exemptions, taking the standard deduction, employee benefits, contributing to an IRA, and claiming the earned income tax credit or child tax credit.
Any same-sex marriage legally entered into in one of the 50 states, the District of Columbia, a U.S. territory, or a foreign country will be covered by the ruling. However, the ruling does not apply to registered domestic partnerships, civil unions, or similar formal relationships recognized under state law.
Legally-married same-sex couples generally must file their 2013 federal income tax return using either the “married filing jointly” or “married filing separately” filing status.
Individuals who were in same-sex marriages may, but are not required to, file original or amended returns choosing to be treated as married for federal tax purposes for one or more prior tax years still open under the statute of limitations.
There is no specific ruling today regarding California’s Registered Domestic Partner statutes and how that status will be interpreted by the IRS. We expect to have a ruling on that before the end of this year.
The Obama administration announced a one-year delay in a central requirement of the new health care law that required large companies provide coverage for their workers or face fines of up to $3,000 per employee. This delay was welcomed by spokespersons for various business groups and for large businesses. As we've mentioned before businesses that have less than 50 full-time equivalent employees were not subjected to these requirements in the first place. The link below is to an article from yesterday's news that provides more information about the announcement.
Beginning January 1, 2014, taxpayers who complete a like-kind exchange of California property for property located out of state will be required to file an information return with the FTB. The information return must be filed for the year in which the exchange is completed and each subsequent year that the gain or loss is deferred.
If the taxpayer fails to file an information return, and a required tax return is not filed, the FTB may estimate net income and assess tax, interest, and penalties.
(R&TC §18032, 24953 added by AB 92)
Happy Valentine’s Day to all you lovers out there. Say is today the day you're going to “pop the question”? Best wishes to you and yours! But wait…let’s talk taxes first. Suppose you were married today (instead of the single bliss you now enjoy) would the taxes that you and your sweetie now pay be more or less after you are married? Sorry to rain on your joy but it is something you may want to think about. Good news, however, is at hand. The Tax Policy Center, a non-profit organization, has a “marriage penalty calculator” available for you so you can calculate exactly what the penalty for being married will be based on your return and your sweetie’s return. And guess what, it’s called a “marriage penalty calculator” but it could turn out that you owe less taxes being married, making it a “marriage bonus” in the tax world. Check it out and let us know if it is a penalty or a bonus. If you're already married you can play along as well it's just
For the first time this tax season, the IRS's "Where's My Refund?" online tool will provide personalized refund timelines for taxpayers. Here is your link: http://www.irs.gov/Refunds
Jeremiah K. Murphy, CPA is an accounting firm providing tax services, audits and business consulting.