Monthly Archives April 2016

Non Profit Organizations are required to annually file the appropriate tax return for their organization. Non Profit Organizations with annual gross receipts under $50,000 should file Form 990-N. Non Profit Organizations with annual gross receipts under $50,000 may choose to file Form 990 or Form 990 EZ. If so, these returns must be fully completed and filed before the due date to avoid penalty. Non Profit Organizations with annual gross receipts under $200,000 and assets under $500,000 should file Form 990-EZ or Form 990. Non Profit Organizations with annual gross receipts over $200,000 and assets over $500,000 should file Form
More

April 18 was this year’s tax day. What happens if a taxpayer didn’t file or pay their taxes? If the taxpayer is due a refund there is no penalty to file a late tax return. If the taxpayer requested an extension of time to file their income tax return by the tax due date and they paid at least 90 percent of the taxes they owe, they may not face a failure-to-pay penalty. However, the remaining balance must be paid by the extended due date. Interest will be owed on taxes paid after the April 18 due date. If the
More

Taxpayers who aren’t ready to submit their tax return can get an automatic six-month extension to file by filing Form 4868 with the IRS. Taxpayers who file extensions have until Oct. 17 to file their return. If the taxpayer is due a refund, there is no penalty for fling late. If the taxpayer has a tax liability, it must be estimated on Form 4868 and should also be paid. If the liability isn’t paid, penalties and interest will begin to accrue on April 19, 2016. Taxpayers can figure their late penalty and interest amounts by using the IRS Calculator. Tax
More

Taxpayers who don’t have taxes withheld and who expect to owe at least $1000 in taxes when they file their tax return should make estimated tax payments throughout the prior tax year to meet their tax obligations and avoid penalties. This includes tax payers who are self-employed and also taxpayers who have retirement or investment income. Taxpayers can figure the amounts of their estimated payments by estimating their income and then deducting expenses and credits that they can claim. Once the amount is figured, it should be divided into 4 payments that should be paid quarterly. The due dates for
More

Medical and Dental Expenses can only be deducted if they exceed 10% of a taxpayer’s adjusted gross income and the taxpayer itemizes their deductions on Schedule A.  If the taxpayer or their spouse is age 65 or older, then the total medical and dental expenses only need to exceed 7.5% of their adjusted gross income in order to claim the deduction.  This temporary threshold for taxpayers age 65 and older applies through December 31, 2016. Most medical and dental expenses that taxpayers pay themselves can be counted in the total.  Travel expenses for medical care can also be counted.  The
More