Partner, Kelli Strube and Jeni Masters took a break from tax season to assist with a Habitat build this last Saturday. Others on are staff are looking forward to their turn to participate in late March. Jeni commented, that she “just couldn’t describe how good it feels to hammer those nails!”
With the IRS not releasing their updated tax forms or accepting returns until after January 30th this year, folks are having to wait even longer for their long-anticipated refunds. Once these returns start flowing in the coming weeks, the next question is often: Where’s My Refund? Taxpayers can access this information at IRS.gov. The information required in order to check your refund status is: Your social security number, filing status and the exact dollar amount of the refund you are expecting. Have a copy of your tax return in front of you, and the process is quick and easy.
The American Taxpayer Relief Act of 2012 (ATRA), signed into law on January 2, 2013, extended the charitable IRA rollover provision, allowing taxpayers ages 701/2 or older to donate up to $100,000 ($200,000 per couple) of their IRA assets to a public charity for 2013. This effectively avoids the federal tax on otherwise RMD distributions. If certain circumstances are met, the charitable donation can be elected for the 2012 tax year, BUT one must elect to do so by January 31, 2013. If you have questions concerning this, give our office a call at 817-545-1277.
IRS Announces Simplified Option for Claiming Home Office Deduction Starting This Year; Eligible Home-Based Businesses May Deduct up to $1,500;
WASHINGTON — The Internal Revenue Service today announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the business use of their homes.
In tax year 2010, the most recent year for which figures are available, nearly 3.4 million taxpayers claimed deductions for business use of a home (commonly referred to as the home office deduction).
The new optional deduction, capped at $1,500 per year based on $5 a square foot for up to 300 square feet, will reduce the paperwork and recordkeeping burden on small businesses by an estimated 1.6 million hours annually. To view the entire articles, click here: read full article
Our staff of tax professionals are available to help you develop a tax strategy in these changing times. Call our office today to schedule your free 30 minute consultation!
Kelli Strube communicated the following in a memo to some of our clients this morning. McIlvain and Associates can be your trusted resource to answer questions and to help to ensure your compliance as these decisions are being made in Washington.
“Regarding payroll processing, a few changes are now in effect based on Congress’s decisions of late. If we handle your payroll processing, we will make sure the software is updated and the new payroll calculation is correct. Most importantly, you may need to go over the new legislation with your employees– they will now have 6.2% social security withholding vs. 2012’s rate of 4.2% (up to a wage limit of $113,700). In addition, employees making over $200,000 will have an additional medicare tax of .9% withheld (total medicare withholding rate of 2.35%).
Individuals making $400,000 ($450,000 if file jointly) will have higher federal tax withholdings, as the new law raised the tax rate from 35% to 39.6% on these employee’s wages.
Under the legislation, you have until February 15th to implement these payroll changes.
If you handle your own payroll processing, let us know if you need our assistance with any implementations.”
Kelli Strube, CPA & Partner – McIlvain & Associates
At this time of year, many of us carve out a little down time to reassess the previous year and then set some lofty goals for the new year. I personally love this season of new beginnings, and I came across a helpful article on goal setting that contains ‘”Seven P’s” worth sharing.
“When you are inspired by the generosity of philanthropists, you aspire to be one of them. However, you have to be rich. In order to be rich you need to do something to bring you the wealth. What you need is a goal to turn your dream into reality. Here are the 7 P’s in goal setting:
1. Passionate: Are you fervently interested in what you intend to do. Not only that, are you able to do it easily and better than other people? Your goal is your inspiration and aspiration.
2. Positive mindset: A positive mental attitude is essential to realize your objectives. You will look at things on the bright side and work diligently towards your goals.”
To read the entire article (and the 5 additional P’s) by Charles Chua, visit: http://www.motivationalwellbeing.com/goal-setting-7-ps.html
HAPPY NEW YEAR!
New Year’s resolutions seem to follow a pattern year after year: Reduce clutter, tackle paperwork, organize finances, and get a jump on taxes. But even the most digitally savvy consumer can amass reams of paperwork by year’s end, from ATM and gift receipts to credit card statements and tax forms. Here’s the skinny on what to keep and what to toss.