Make a blog

schaumburgcpa

4 weeks ago

Earlier Filing Deadlines in 2017 for Forms W-2 and 1099

Earlier Filing Deadlines in 2017 for Forms W-2 and 1099

Starting in 2017 employers and small businesses face an earlier filing deadline of January 31 for Forms W-2. The new January 31 filing deadline also applies to certain Forms 1099-MISC reporting non-employee compensation such as payments to independent contractors. Also of note is that the IRS must also hold some refunds until February 15.

A new federal law, aimed at making it easier for the IRS to detect and prevent refund fraud, will accelerate the W-2 filing deadline for employers to January 31. For similar reasons, the new law also requires the IRS to hold refunds involving two key refundable tax credits until at least February 15 (also new). Here are details on each of these key dates.

New January 31 Deadline for Employers

The Protecting Americans from Tax Hikes (PATH) Act, enacted last December, includes a new requirement for employers. They are now required to file their copies of Form W-2 submitted to the Social Security Administration, by January 31, as well as Forms 1099-MISC.

In the past, employers typically had until the end of February (if filing on paper) or the end of March (if filing electronically) to submit their copies of these forms. In addition, there are changes in requesting an extension to file the Form W-2. Only one 30-day extension to file Form W-2 is available, and this extension is not automatic.

If an extension is necessary, a Form 8809 Application for Extension of Time to File Information Returns must be completed as soon as you know an extension is necessary, but by January 31. Please carefully review the instructions for Form 8809, and call the office if you need more information.

The January 31 deadline has long applied to employers furnishing copies of these forms to their employees and that date remains unchanged.

Some Refunds Delayed Until at Least February 15

Due to the PATH Act change, some people will be getting their refunds later than they have in the past. The new law requires the IRS to hold the refund for any tax return claiming either the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until February 15.

Please call if you have any questions about the earlier filing deadlines for Forms W-2 or 1099.

Www.SchaumburgCPA.Info is an official blog of Manen Kothari CPA. To ensure compliance with the requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. One should consult their tax advisor before any of the information contained herewith applied to their individual tax situations. SK Tax Associates, Schaumburgcpa.info, or Manen Kothari cannot be held responsible for any general information stated above.

Manen Kothari, CPA serves in Schaumburg, Mount Prospects, Glendale Heights, Bartlett, Barrington and Chicago as well as other areas of Rolling Meadows, Naperville, Des Plaines, Elk Grove Village, Skokie and Addison, Downers Grove CPA. We are also efficient in showing you the detailed deductions that can help you to limit your tax liabilities for the next few years to come as long as we are at union with your business.

Contact us now: 847.524.0001

For More Information Visit:  http://schaumburgcpa.info/

1 month ago

Is Canceled Debt Taxable?

Is Canceled Debt Taxable?

Generally, debt that is forgiven or canceled by a lender is considered taxable income by the IRS and must be included as income on your tax return. Examples include a debt for which you are personally liable such as mortgage debt, credit card debt, and in some instances, student loan debt.

When that debt is forgiven, negotiated down (when you pay less than you owe), or canceled you will receive Form 1099-C, Cancellation of Debt, from your financial institution or credit union. Form 1099-C shows the amount of canceled or forgiven debt that was reported to the Schaumburg IRS Audit. If you and another person were jointly and severally liable for a canceled debt, each of you may get a Form 1099-C showing the entire amount of the canceled debt. Give the office a call if you have any questions regarding joint liability of canceled debt.

Creditors who forgive $600 or more of debt are required to issue this form. If you receive a Form 1099-C and the information is incorrect, contact the lender to make corrections.

Www.SchaumburgCPA.Info is an official blog of Manen Kothari CPA. To ensure compliance with the requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. One should consult their tax advisor before any of the information contained herewith applied to their individual tax situations. SK Tax Associates, Schaumburgcpa.info, or Manen Kothari cannot be held responsible for any general information stated above.

Contact us now: 847.524.0001

For More Information Visit:  http://schaumburgcpa.info/

2 months ago

Ensuring Financial Success for Your Business

Ensuring Financial Success for Your Business

Can you point your company in the direction of financial success, step on the gas, and then sit back and wait to arrive at your destination?

Not quite. You can't let your business run on autopilot and expect good results. Any business owner knows you need to make numerous adjustments along the way - decisions about pricing, hiring, investments, and so on.

So, how do you handle the array of questions facing you?

One way is through cost accounting.

Cost Accounting Helps You Make Informed Decisions

Cost accounting reports and determines the various costs associated with running your business. With cost accounting, you track the cost of all your business functions - raw materials, labor, inventory, and overhead, among others.

Note: Cost accounting differs from financial accounting because it's only used internally, for decision making. Because financial accounting is employed to produce financial planner for external stakeholders, such as stockholders and the media, it must comply with generally accepted accounting principles (GAAP). Cost accounting does not.

Cost accounting allows you to understand the following:

  1. Cost behavior. For example, will the costs increase or stay the same if production of your product goes up?
  2. Appropriate prices for your goods or services. Once you understand cost behavior, you can tweak your pricing based on the current market.
  3. Budgeting. You can't create an effective budget if you don't know the real costs of the line items.
Is It Hard?

To monitor your company's costs with this method, you need to pay attention to the two types of costs in any business: fixed and variable.

Fixed costs don't fluctuate with changes in production or sales. They include:

  • rent
  • insurance
  • dues and subscriptions
  • equipment leases
  • payments on loans
  • management salaries
  • advertising

Www.SchaumburgCPA.Info is an official blog of Manen Kothari CPA. To ensure compliance with the requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. One should consult their tax advisor before any of the information contained herewith applied to their individual tax situations. SK Tax Associates, Schaumburgcpa.info, or Manen Kothari cannot be held responsible for any general information stated above.

Contact us now:  847.524.0001

For More Information Visit:  http://schaumburgcpa.info/

2 months ago

Indian Tax Preparer in Frisco

U.S. assess law is famously entangled both to laymen and the individuals who work in fund yet may not spend significant time in duty arrangement. On account of this current, it's frequently justified, despite all the trouble to enroll the assistance of an assessment master who has a broad expansiveness of learning with respect to the expense code and experience taking care of various business and individual tax planning & preparation circumstances.

There are couple of fundamental choices which charge filers in the U.S. pick while setting up their yearly government forms: documenting charges all alone electronically with the assistance of assessment arrangement programming, enlisting an authorized proficient, for example, an affirmed open bookkeeper Frisco (CPA), or strolling into a customer facing facade impose readiness business. Every one of the three get ready assessments for a charge as a byproduct of master meeting. Furthermore, obviously, the higher the ability required, the higher the expenses.

Tax Associates is one of the fastest growing full service CPA firm providing accounting, auditing, tax and consulting services. We offer – Bookkeeping, tax assessment, US and international Business tax planning & compliance, entity planning, Incorporation, IRS / State representation, sales tax, Frisco payroll and consulting services for diversified industries. Most of the tax benefits that large corporation claims may be overlooked by small businesses. We are committed to make sure that all our clients, small or large businesses, get all tax benefits that they are entitled to.

For this situation, acquiring charge planning programming & Accounting Tx Firm is frequently the most reasonable course. Be that as it may, at last, it's practically identical to documenting your own particular charges. In view of this, numerous filers feel more certain having their duties arranged by a genuine live individual (other than themselves). To this end, numerous filers ponder whether it is ideal to get a CPA or contract an administration like H&R Piece. The answer is (as is run of the mill with money related matters): "It depends."

A Indian CPA is somebody who has had a thorough instruction and has been prepared to meet high expert norms and take after a strict code of morals to get authorized by the American Establishment of Affirmed Open Bookkeepers. CPAs have broad learning and years of involvement with expense law, including state charge law (for instance, a Seattle-or Bellevue-based CPA is required to pass examinations appropriate to Washington state assess codes).

The Human Touch

As you probably are aware, PC innovation has made considerable progress, and most bookkeepers utilize programming to help them carry out their occupations. Yet, there is basically not a viable replacement for having a prepared monetary master looking your assessment form over. This procedure may include requesting extra data that most PC projects skirt, or it might be some basic inquiries that you need to reply. Whichever way working with an accomplished CPA in Frisco on your duties more often than not brings about bigger returns or lower installments.

Consider your auto. You may believe a PC framework to give it a brisk output to search for issues, yet you don't believe the genuine support or repairs to anybody not exactly a qualified technician. Similarly, you need a talented expert handle your expense arrangement. The bookkeeper you do your expenses will have the capacity to approach the correct inquiries and burrow for the correct data to get the most ideal outcomes for you when impose day comes around.

Contact US :- (214) 396-5400 | (855) 720-2488

Visit Us :- http://avyantax.com/

2 months ago

Tax Changes for 2017: A Checklist

Tax Changes for 2017: A Checklist

Welcome, 2017! As the New Year rolls around, it's always a sure bet that there will be changes to current tax law and 2017 is no different. From health savings accounts to tax rate schedules and standard deductions, here's a checklist of tax changes to help you plan the year ahead.

 

Individuals

 

For 2017, more than 50 tax provisions are affected by inflation adjustments, including personal exemptions, AMT exemption amounts, and foreign earned income exclusion.

 

While the tax rate structure, which ranges from 10 to 39.6 percent, remains the same as in 2016, tax-bracket thresholds increase for each filing status. Standard deductions and the personal exemption have also been adjusted upward to reflect inflation. For details see the article, "Tax Brackets, Deductions, and Exemptions for 2017," below.

 

Alternative Minimum Tax (AMT)


Exemption amounts for the AMT, which was made permanent by the American Taxpayer Relief Act (ATRA) are indexed for inflation and allow the use of nonrefundable personal credits against the AMT. For 2017, the exemption amounts are $54,300 for individuals ($53,900 in 2016) and $84,500 for married couples filing jointly ($83,800 in 2016).

 

"Kiddies Tax"


For taxable years beginning in 2017, the amount that can be used to reduce the net unearned income reported on the child's return that is subject to the "kiddie’s tax," is $1,050 (same as 2016). The same $1,050 amount is used to determine whether a parent may elect to include a child's gross income in the parent's gross income and to calculate the "kiddie’s tax." For example, one of the requirements for the parental election is that a child's gross income for 2017 must be more than $1,050 but less than $10,500.

 

For 2017, the net unearned income for a child under the age of 19 (or a full-time student under the age of 24) that is not subject to "kiddie’s tax" is $2,100.

 

Health Savings Accounts (HSAs)


Contributions to a Health Savings Account (HSA) are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent. Medical expenses must not be reimbursable by insurance or other sources and do not qualify for the medical expense deduction on a federal income tax return.

 

A qualified individual must be covered by a High Deductible Health Plan (HDHP) and not be covered by other health insurance with the exception of insurance for accidents, disability, dental care, vision care, or long-term care.

 

Www.SchaumburgCPA.Info is an official blog of Manen Kothari CPA. To ensure compliance with the requirements imposed by the IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein. One should consult their tax advisor before any of the information contained herewith applied to their individual tax situations. SK Tax Associates, Schaumburgcpa.info, or Manen Kothari cannot be held responsible for any general information stated above.

2 months ago

2016 Tax Provisions for Individuals: A Review

2016 Tax Provisions for Individuals: A Review

Many of the tax changes affecting individuals and businesses for 2016 were related to the Protecting Americans from Tax Hikes Act of 2015 (PATH) that modified or made permanent numerous taxes breaks (the so-called "tax extenders"). To further complicate matters, some provisions were only extended through 2016 and are set to expire at the end of this year while others were extended through 2019. With that in mind, here's what individuals and families need to know about tax provisions for 2016.

 

Personal Exemptions

 
The personal and dependent exemption for tax year 2016 is $4,050.

 

Standard Deductions


The standard deduction for married couples filing a joint return in 2016 is $12,600. For singles and married individuals filing separately, it is $6,300, and for heads of household the deduction is $9,300.

The additional standard deduction for blind people and senior citizens in 2016 is $1,250 for married individuals and $1,550 for singles and heads of household.

 

Income Tax Rates


In 2016 the top tax rate of 39.6 percent affects individuals whose income exceeds $415,051 ($466,951 for married taxpayers filing a joint return). Marginal tax rates for 2016--10, 15, 25, 28, 33 and 35 percent--remain the same as in prior years.

Due to inflation, tax-bracket thresholds increased for every filing status. For example, the taxable-income threshold separating the 15 percent bracket from the 25 percent bracket is $75,300 for a married couple filing a joint return.

 

Estate and Gift Taxes

 
In 2016 there is an exemption of $5.45 million per individual for estate, gift and generation-skipping taxes, with a top tax rate of 40 percent. The annual exclusion for gifts is $14,000.

For 2016, the maximum American Opportunity Tax deferral strategies that can be used to offset certain higher education expenses is $2,500 per student, although it is phased out beginning at $160,000 adjusted gross income for joint filers and $80,000 for other filers.

 

Alternative Minimum Tax (AMT)


AMT exemption amounts were made permanent and indexed for inflation retroactive to 2012. In addition, non-refundable personal credits can now be used against the AMT.

For 2016, exemption amounts are $53,900 for single and head of household filers, $83,800 for married people filing jointly and for qualifying widows or widowers, and $41,900 for married people filing separately.

Manen Kothari, CPA serves in Schaumburg, Mount Prospects, Glendale Heights, Bartlett, Barrington and Chicago as well as other areas of Downers Grove, Naperville, Des Plaines, Elk Grove Village, Skokie and Addison. We are also efficient in showing you the detailed deductions that can help you to limit your tax liabilities for the next few years to come as long as we are at union with your business.

 

Please call if you need help understanding which deductions and tax credits you are entitled to.

 

Call now: 847.524.0001

 

For More Information Visit:  http://schaumburgcpa.info/

2 months ago

2016 Recap: Tax Provisions for Businesses

2016 Recap: Tax Provisions for Businesses

Whether you file as a corporation or sole proprietor here's what business owners need to know about tax changes for 2016.

Standard Mileage Rates


The standard mileage rates in 2016 are as follows: 54 cents per business mile driven, 19 cents per mile driven for medical or moving purposes, and 14 cents per mile driven in service of charitable organizations.

 

Health Care Tax Credit for Small Businesses


Small business employers who pay at least half the premiums for single health insurance coverage for their employees may be eligible for the Small Business Health Care Tax Credit as long as they employ fewer than the equivalent of 25 full-time workers and average annual wages do not exceed $52,000 (adjusted annually for inflation) in 2016.

 

In 2016 (as in 2015 and 2014), the tax credit is worth up to 50 percent of your contribution toward employees' premium costs (up to 35 percent for tax-exempt employers). For tax years 2010 through 2013, the maximum credit was 35 percent for small business employers and 25 percent for small tax-exempt employers such as charities.

 

Section 179 Expensing and Depreciation

 

The Section 179 expense deduction was made permanent at $500,000 by the Protecting Americans from Tax Hikes Act of 2015 (PATH). For equipment purchases, the maximum deduction is $500,000 of the first $2.01 million of qualifying equipment placed in service during the current tax year. The deduction is phased out dollar for dollar on amounts exceeding the $2 million threshold amount (indexed for inflation) and eliminated above amounts exceeding $2.5 million. In addition, Section 179 is now indexed to inflation in increments of $10,000 for future tax years.

 

Work Opportunity Tax Credit (WOTC)

 

Extended through 2019, the Work Opportunity Tax Credit has been modified and enhanced for employers who hire long-term unemployed individuals (unemployed for 27 weeks or more) and is generally equal to 40 percent of the first $6,000 of wages paid to a new hire. Please call if you have any questions about the Work Opportunity Tax Credit.

 

We provide traditional accounting and Year end Tax planning to individual and businesses from bookkeeping, payroll processing, sales tax compliance and annual tax returns but our focus is always to go beyond compliance and help our client thrive by providing extended range of services that are rarely offered by most CPA firms. Call the office if you need to file an extension or file for late-filing penalty relief.

 

SIMPLE IRA Plan Contributions


Contribution limits for SIMPLE IRA plans increased to $12,500 for persons under age 50 and $15,500 for persons age 50 or older in 2016. The maximum compensation used to determine contributions increases to $265,000.

 

Please contact the office if you need help understanding which deductions and tax credits you are entitled to.

 

Manen Kothari, CPA serves in Schaumburg, Mount Prospects, Glendale Heights, Bartlett, Barrington and Chicago as well as other areas of Downers Grove, Naperville, Des Plaines, Elk Grove Village, Skokie and Addison. We are also efficient in showing you the detailed deductions that can help you to limit your tax liabilities for the next few years to come as long as we are at union with your business.

Call now: 847.524.0001

For More Information Visit:  http://schaumburgcpa.info/