Tax
26.01.2011
Applications and Software, Apps, News, Services, Tax
The IRS announced it has released its first smartphone application, IRS2GO. The app allows people to check their refund status, get daily tax tips, and follow the IRS news feed on Twitter all through their Apple or Android platform smartphones.
To check a refund status, users will need their social security number, filing status, and expected refund amount from their 2010 tax return. Per the IRS website, sensitive information such as social security numbers will be masked and encrypted for security. If you e-file your return you can use the app to check the status of your refund within 72 hours of the IRS’s acceptance of the return. Paper filers will have to wait 3-4 weeks.
The app will also let users subscribe to Tax Tips. The IRS issues tax tips daily during the filing season and periodically during the rest of the year. The tips are designed to be easy to understand and provide users with information on tax planning and preparation.
Finally, if you are so inclined, you can follow the IRS Twitter news feed, @IRSnews. The Twitter feed provides the latest news, tax law changes, and information on IRS programs in short, timely messages.
The app is free and can be downloaded from the Apple App Store or the Android Marketplace.
17.01.2011
News, Nonprofit, Services, Tax
The Internal Revenue service issued new guidance January 13, 2011 that allows for additional small nonprofits to file a simpler tax form that contains far less information than was previously required. Small nonprofits may be able to file Form 990-N also known as an e-Postcard for their 2010 annual information reporting as long as they receive less than $50,000 per year. Read more
05.01.2011
News, Services, Tax
Following the recent law changes passed in late December 2010, the IRS issued News Release IR-2010-126 announcing a delay in processing certain tax returns in order to allow the IRS time to revise applicable tax forms and update its processes for the law changes. If you fall into any one of the three categories below you can expect the filing of your tax return to be delayed until mid to late February:
•Taxpayers claiming itemized deductions on Schedule A.
•Taxpayers claiming the Higher Education Tuition and Fees Deduction. However, the IRS emphasized that there will be no delays for taxpayers claiming other education credits such as the American Opportunity Tax Credit and Lifetime Learning Credit.
•Taxpayers claiming the Educator Expense Deduction. This deduction is for kindergarten through grade 12 educators with out-of-pocket classroom expenses of up to $250.
The delay affects both paper and electronically filed returns. The IRS is expected to announce a specific date when it will begin processing tax returns impacted by the law changes. For more information and updates, visit www.irs.gov.
22.12.2010
News, Services, Tax
A.k.a., the Bush tax cuts extender act (as we like to call it) was signed into law by President Barrack Obama this past week with some sweeping tax cuts, extensions, and new provisions for both individuals and businesses. Some of the highlights of the new act are:
The current income tax rates will be retained for two more years (2011 and 2012) with a top rate of 35% on ordinary income and 15% on qualified dividends and long-term capital gains
The payroll tax on social security was dropped 2%, from 6.2% to 4.2% for employees and self-employed workers. For the self-employed, this makes the rate 10.4% versus 12.4%. Including medicare the new “self-employment tax” rate is 13.3%
The “AMT patch” has once again been passed, basically indexing the AMT exemption amount for inflation for 2010 and 2011. This typically results in several thousand dollars in tax savings for those taxpayers affected by AMT
Several key tax credits were extended including the Child Tax credit, rules expanding the availability of the Earned Income Credit for low earnings families, and the American Opportunity Tax Credit (credit for higher education expenses)
Businesses can now write off 100% of their equipment and machinery purchases, effective for property placed in service after September 8, 2010 and through December 31, 2011. For 2012, the 50% bonus depreciation has been reinstated as well
Other items such as the sales tax in lieu of state income tax deduction, the $250 out-of-pocket expenses for teachers deduction, and the research credit have all been extended two more years (through 2012)
The estate tax will be reinstated for 2011 and 2012, with a top tax rate of 35% and an exemption amount of $5 million per individual. This is a major change from previous discussions in Washington and probably is the singlest biggest item in the bill. Additionally for taxpayers who died in 2010, the estate has the option of choosing the original 2010 rules (no estate tax and limited basis step-up) or the 2011 rules ($5 million exemption and full income tax basis step-up).
There are many changes to tax law for the next two years but these are some of the highlights. As always if you have any specific questions about how the new law pertains to your specific tax situation, please do not hesitate to contact your LMGW advisor at once!
10.12.2010
News, Personal Finance, Tax
California and federal incentives for buying certain clean vehicles are still available. California currently offers a rebate of up to $5,000 per light duty vehicle to individuals and businesses who purchase or lease a new eligible zero emissions or hybrid electric vehicle. Certain zero emissions commercial vehicles are eligible for a rebate of up to $20,000. The rebates are available on a first come first serve basis and apply to qualified vehicles purchased or leased after March 15, 2010. For more information on eligible vehicles, rebate amounts and to apply for rebates visit www.energycenter.org. Read more