The U.S. Supreme Court will soon issue its ruling on the health care legislation -- the "Patient Protection and Affordable Care Act" -- passed in 2010. Over half the individual states have challenged the constitutionality of the law that requires individuals to obtain minimum health insurance coverage and penalizes those who don't comply. The law could be upheld or overturned, or the court might strike down select provisions.
Wednesday, May 30, 2012
Friday, May 25, 2012
Spring and summer -- the wedding season is upon us. Before walking down the aisle, take a minute to consider a serious matter.Couples often enter into marriage without ever having had a discussion about financial issues. As a result, they find themselves frequently arguing about money. If you are planning a wedding, here are some steps you can take to get your marriage off to a good financial start.
Tuesday, May 22, 2012
Saturday, May 19, 2012
If your business uses a third-party service provider to handle payroll tax duties, the IRS has three tips for you.
1. Remember that you, the employer, are ultimately the responsible party for the deposit and payment of federal tax liabilities. You may transfer tax payments to the service provider to make the deposits, but you bear the final responsibility for payment.
If the third party fails to make the tax payments, the IRS will look to you for the taxes, plus any penalties and interest due.
2. The IRS will use the address of record for any correspondence related to your account. The IRS strongly suggests you do not change the address of record to that of the payroll service provider. Using your business address will enable you to stay informed of tax matters relating to your business.
3. Choose a payroll service provider that uses the Electronic Federal Tax Payment System (EFTPS). You can register with the EFTPS system to get your own ID number to verify payments.
Wednesday, May 16, 2012
The IRS has published depreciation limits for business vehicles first placed in service this year. Because 50% bonus depreciation is allowed only for new vehicles, these limits are different for new and used vehicles.
* For new business cars, the first-year limit is $11,160; for used cars, it's $3,160. After year one, the limits are the same for both new and used cars: $5,100 in year two, $3,050 in year three, and $1,875 in all following years.
* The 2012 first-year depreciation limit for trucks and vans is $11,360 for new vehicles and $3,360 for used vehicles. Limits for both new and used vehicles in year two are $5,300, in year three $3,150, and in each succeeding year $1,875.
For details relating to your 2012 business vehicle purchases, contact us at (518) 798-3330.
Friday, May 11, 2012
According to the Tax Foundation, April 17, 2012, was not only the day 2011 tax returns were due, it also was Tax Freedom Day for 2012. That means Americans worked 107 days, from January 1 to April 17 to earn enough money to pay their federal, state, and local taxes for 2012.
If the federal government collected enough taxes to meet 2012 federal spending, Tax Freedom Day would have come 27 days later -- on May 14, 2012. And unless Congress acts to prevent tax increases scheduled for 2013, next year's Tax Freedom Day will be eleven days later than in 2012, and the average American household will pay $3,800 more in taxes.
Tuesday, May 8, 2012
If spring cleaning has left you with items that you want to donate to charity, remember that donations of used clothing and household items must generally meet certain requirements to be tax-deductible. First, such items must be in "good used condition or better." Second, a receipt from the charity is required. If the property is valued under $250 and a receipt is not available, such as at unattended drop-off locations, reliable written records are still required.
Thursday, May 3, 2012
* The Obama's 2011 tax return reported adjusted gross income of $789,674. Their tax liability was $162,074, giving them an effective tax rate of 20.5%.
* The average tax refund on returns filed for 2011 was $2,983.
* For this tax filing season, the IRS had 5,000 fewer employees than it had a year ago.
* In 1995, 114,000 IRS employees processed 205 million tax returns. This year, 91,000 employees will process 236 million returns.
* The IRS must update its computers with each tax law change. Between 2000 and 2010, Congress made 4,428 changes to the tax code.
Wednesday, May 2, 2012
If you missed the April 17 tax filing deadline for your 2011 return, the IRS has some advice for you.