Yearly Archives 2016

The IRS provides an on-line tax calendar for self-employed workers and small business owners.  The calendar can be filtered for monthly or semi-weekly payroll depositors and will show general and excise tax due dates.  You can access the IRS on-line tax calendar here. IRS calendar reminders can be installed by clicking here.  Reminders can be set up for 1 week or 2 weeks before each tax due date. The IRS Calendar Connector allows access to due dates on your desktop and will update automatically as new due dates are added.  The IRS Calendar Connector can be installed by clicking here.
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Beginning on Jan. 1, 2017, the standard mileage rates used for deductions for the use of a vehicle (car, van, pickup, or panel truck) will be: 53.5 cents per mile for business miles driven, down from 54 cents for 2016 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016 14 cents per mile driven in service of charitable organizations The business standard mileage rate cannot be used for more than four vehicles at the same time. The business standard mileage rate  cannot be used for a vehicle after using any depreciation method under
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The IRS will begin accepting electronic tax returns on January 23, 2017.  The deadline to file tax returns or extensions is April 17th, 2017.  If you are expecting a refund, it will take longer this year due to increased security measures implemented by the IRS. Free and low cost tax filing can be done through my website by clicking here.  
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Resources for self-employed workers and small business owners are available on the IRS website.   Information can be found about filing and paying business and employment taxes as well as answers to questions about setting up your business, keeping records, and deducting expenses/claiming tax credits. You can access the IRS small business and self-employed business center here.  
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Since we are nearing the end of the year, it’s a good time to think about what types of records need to be kept.  Generally, tax records  should be kept for 7 years.  The list below can be used as a guide for the types of records that need to be kept: Alimony—If you receive or pay alimony, you should keep a copy of your written separation agreement or divorce decree as well as the maintenance or support decree. If you pay alimony, you need to keep your former spouse’s Social Security number. Home Business—If you have a home office
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IRS 2017  annual inflation adjustments have been announced.   The adjustments for 2017 that will affect the most taxpayers include: The standard deduction for married filing jointly rises to $12,700 up $100 from 2016. For single taxpayers and married individuals filing separately, the standard deduction rises to $6,350 in 2017, up from $6,300 in 2016, and for heads of households, the standard deduction will be $9,350 for tax year 2017, up from $9,300 for tax year 2016. The personal exemption for tax year 2017 remains as it was for 2016: $4,050.  However, the exemption is subject to a phase-out that
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The new due date for filing Forms 1099-MISC Using Box 7 is January 31, 2017.   Box 7 on Form 1099-MISC is used to report non-employee compensation payments. Other 1099-MISC forms are due by February 28, 2017 if they are paper filed or by March 31, 2017 if they are electronically filed. If you need an extension to file Form 1099-Misc, a 30-day extension must be requested by the due date of the return. Under certain hardship conditions, an additional 30-day extension can be requested. Click here for more detailed information about electronically filing Form 1099-MISC.
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Employers are required to file their W-2 and W-3 copies to the Social Security Administration by January 31 in 2017.  In the past, employers had until the end of February to file W-2s if they were paper filing and until the end of March if they were electronically filing.  Extensions of time to file W-2s and W-3s is no longer automatic.  The SSA may grant one 30 day extension in extraordinary circumstances or catastrophe.  
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Frequently asked questions about IRAs and employee sponsored retirement plans can be found here. More information about the different types of retirement plans can be found here. A side-by-side comparison of common features of traditional and Roth IRAs can be found here. Information about the type of distributions that can be rolled over, types of plans and IRAs that may accept rollovers and tax consequences can be found here.  
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Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by depositing the payment in another retirement plan or IRA within 60 days. You can also have your current financial institution or plan administrator directly transfer the payment to another plan or IRA. Why should you roll over your IRA? When you roll over a retirement plan distribution, you generally don’t pay tax on it until you withdraw it from the new plan. If you don’t roll over your payment, it will be taxable (other than qualified Roth distributions and any amounts already taxed). You
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