Your tax bill is now due and you may be considering paying the bill with your credit card. Is this a good idea? How does it work?
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DiSabatino CPA Blog
A blog by Michael DiSabatino CPA with topics on Tax Savings, Business, Management and more...
Mike's weekly post usually concentrated on tax saving strategies.
Jan
27
Jan
20
Late filing of S-Corp returns can be costly
The last couple of years, the IRS has been penalizing late filers of Sub S Corporation tax returns. This despite the fact that late filing of the Sub S tax return (1120S), due March 15th, often does not impact the receipt of the taxes due on April 17th. Those that are getting this "gotcha" penalty are often couples and other small firms who have formed a Sub S Corporation to provide legal protection for their small businesses.
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Jan
13
Creating order out of chaos
As important tax records start filling mailboxes, how can you make sure your tax preparation goes smoothly and efficiently this year? Here are some tips.
1. Keep it all in one place. It seems obvious, but how often have you found yourself going through piles of paper looking for that elusive missing 1099 tax form or charitable deduction receipt? If you only do one thing, this is it. Granted if all you do is this, you end up with a massive jumble of paper, but it is better than missing something.
2. Time to sort. The best idea here is to sort your information into the same buckets as your tax return. At minimum sort the information into the basic categories. If you have a lot of something, then sort into sub-detail categories. A basic list of the more common items is here for your use.
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Jan
06
Investment sales reporting changes hit tax returns
After a long transition period, the requirement for brokerage firms and banks to report the cost of investments you sell is now in place. The term the IRS uses for the approved cost is called "basis". This means those 1099-B forms that will start appearing in mailboxes must now include the original cost (or basis) of the investment.
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Jan
05
* PAYROLL TAX CUT for employees extended through February 29, 2012. (Social security tax rate on wages up to $110,100 will be 4.2% rather than 6.2%.)
* ADOPTION TAX CREDIT decreases to $12,650 for adoption of an eligible child.
* SECTION 179 maximum deduction decreases to $139,000, with a phase-out threshold of $560,000.
* STANDARD MILEAGE RATE for business driving remains at 55.5¢ a mile. Rate for medical and moving mileage decreases to 23¢ a mile. Rate for charitable driving remains at 14¢ a mile.
* ESTATE TAX top rate remains at 35%, and the exemption amount increases to $5,120,000. The ANNUAL GIFT TAX EXCLUSION remains at $13,000.
* 401(k) maximum salary deferral increases to $17,000 ($22,500 for 50 and older).
* SIMPLE maximum salary deferral remains at $11,500 ($14,000 for 50 and older).
* IRA contribution limit remains at $5,000 ($6,000 for 50 and older).
* KIDDIE TAX threshold remains at $1,900 and applies up to age 19 (up to age 24 for full-time students).
* NANNY TAX threshold increases to $1,800.
* TRANSPORTATION FRINGE BENEFIT limit decreases to $125 for vehicle/transit passes and increases to $240 for qualified parking.
* SOCIAL SECURITY taxable wage limit increases to $110,100. Retirees under full retirement age can earn
up to $14,640 without losing benefits.
* HSA CONTRIBUTION limit increases to $3,100 for individuals and to $6,250 for families. An additional
$1,000 may be contributed by those 55 or older.
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