FUTA Surtax Expired

The .2% Federal Unemployment Tax (FUTA) surtax expired on June 30, 2011 bringing the FUTA tax rate before state unemployment credits to 6%. FUTA is paid on the first $7,000 of wages paid per year per employee. Now that the surtax has expired employers will be required to separately track FUTA taxable wages before July 1, 2011 and after June 30, 2011 since the FUTA rate is different between the two periods.

The IRS will be revising Form 940, the Employer’s Annual Federal Unemployment Tax Return. There have also been talks in Congress about making the surtax permanent but so far no legislation has been passed.

App for Tracking Tax-Deductible Donations

Ever made a donation of goods to a charity and wondered how to track and value those donated items?  Now there is an App for that.  UDoGood, available on the Apple AppStore allows you to track your donations of clothing, household items, cash, etc.  UDoGood is a simple way to document, photograph and record your charitable donations.  UDoGood also gives suggestions for determining the fair market value of your donations. At the end of the year you can email your list of donated goods to your tax preparer or to yourself. Read more

IRS Increases Standard Mileage Rate

IR News Release 2011-69 announced that the IRS has increased the mileage rate for the second half of 2011.

Effective July 1, 2011 through December 31, 2011 the mileage rate for business travel is 55.5 cents per mile. Medical and moving mileage will increase to 23.5 cents per mile. The rate for charitable mileage remains unchanged at 14 cents per mile. Read more

The Importance of a Deed of Reconveyance

Imagine the shock and frustration of being told that you do not qualify for a mortgage on a second home because your principal residence shows an outstanding mortgage that you paid off 7 years ago. This recently occurred with one of our clients and significantly delayed the purchase of their second home. They spent several months seeking a resolution that was only complicated by the fact the mortgage had changed lenders several times and the mortgage company that showed a lien had been acquired by another company.  Read more

2012 HSA Inflation Adjustment

The IRS recently issued Rev. Proc. 2011-32 increasing the limits on contributions to HSA accounts for 2012. The new limits are $3,100 and $6,250 for self only and family coverage, respectively. The prior limits (2010 and 2011) were $3,050 and $6,150. Contributions can be made up until the due date of the return (not including extensions) to be counted for the tax year. The new contribution limits are effective January 1, 2012.