TAX TIME IS THE RIGHT TIME FOR A FINANCIAL REVIEW

Now is an ideal time to review your financial affairs. You have to gather information to prepare your tax return at this time. Why not take one more step and do something positive for your financial well-being?

CMJ, LLP HIRES TWO

CMJ, LLP is pleased to announce two additions to their staff.

Brian J. Stidd, CPA, is a Senior Associate in the firm’s Accounting, Assurance, and Advisory department. He holds a BBA in Accounting from Siena College in Loudonville, NY, and is a member of the American Institute of Certified Public Accountants and the New York State Society of CPAs. Brian is a native of West Babylon, NY and lives in South Glens Falls.

    

Amy L. Blaszkow joined the firm as an Associate in the firm’s Accounting, Assurance, and Advisory department. She holds a BS and MS in Accounting from Wagner College in Staten Island, NY and is pursuing her CPA designation.  She is a native of Whitesboro, NY and lives in Lake Luzerne.

CMJ, LLP provides financial, tax, and management advisory services for commercial enterprises. They offer specialized services in business valuations, mergers and acquisitions, estate planning, QuickBooks assistance, and retirement plan administration. For more information about CMJ, LLP, contact the firm at (518) 798-3330.

IRS ANNOUNCES BUSINESS MILEAGE RATE FOR 2012

The IRS recently announced that the mileage rate for business driving in 2012 will be 55.5¢ a mile. The rate can be used for cars, vans, pickups, and panel trucks.

RECORDKEEPING IS REQUIRED FOR CHARITABLE DEDUCTIONS

Get the documentation you'll need for all your 2011 charitable contributions, or you risk losing your deduction. Even gifts under $250 require a bank record or a receipt from the charity.

GATHER DOCUMENTS FOR YOUR 2011 TAX RETURN

Gather the items you need to file your 2011 tax return: W-2s, 1099's, and other forms you receive from your employer, broker, bank, etc. If you detect errors, contact the sender immediately for a corrected copy.

DO YOUR CHILDREN NEED TO FILE A 2011 TAX RETURN?

Check your children's need to file a 2011 tax return. A return is needed if wages exceeded $5,800, the child had self-employment income over $400, or investment income exceeded $950. If the child had both wages and investment income, other thresholds apply.

DON'T FORGET THE "NANNY TAX"

If you paid a household worker, such as a gardener, housekeeper, or nanny, more than $1,700 in 2011 (or will pay more than $1,800 in 2012), you may be liable for payroll taxes on the wages paid. For details or filing assistance in meeting your nanny tax obligations, give us a call at (518) 798-3330.

WHY EVERY CHILD SHOULD HAVE A ROTH IRA

What if your child could invest tax-free money today, and in 40-50 years take the proceeds out tax-free? Would you be interested? Almost anyone who receives compensation can open up a Roth IRA account. 

2012 TAX LAW CHANGES IN BRIEF

* PAYROLL TAX CUT for employees extended through February
  29, 2012. (Social security tax rate on wages up to
  $110,100 will be 4.2% rather than 6.2%.)
* ADOPTION TAX CREDIT decreases to $12,650 for adoption
  of an eligible child.
* SECTION 179 maximum deduction decreases to $139,000,
  with a phase-out threshold of $560,000.
* STANDARD MILEAGE RATE for business driving remains at
  55.5¢ a mile. Rate for medical and moving mileage
  decreases to 23¢ a mile. Rate for charitable driving
  remains at 14¢ a mile.
* ESTATE TAX top rate remains at 35%, and the exemption
  amount increases to $5,120,000. The ANNUAL GIFT
  TAX EXCLUSION remains at $13,000.
* 401(k) maximum salary deferral increases to $17,000
  ($22,500 for 50 and older).
* SIMPLE maximum salary deferral remains at $11,500
  ($14,000 for 50 and older).
* IRA CONTRIBUTION LIMIT remains at $5,000 ($6,000 for
  50 and older).
* KIDDIE TAX threshold remains at $1,900 and applies up
  to age 19 (up to age 24 for full-time students).
* NANNY TAX threshold increases to $1,800.
* TRANSPORTATION FRINGE BENEFIT limit decreases to $125
  for vehicle/transit passes and increases to $240 for
  qualified parking.
* SOCIAL SECURITY taxable wage limit increases to
  $110,100. Retirees under full retirement age can earn
  up to $14,640 without losing benefits.
* HSA CONTRIBUTION limit increases to $3,100 for
  individuals and to $6,250 for families. An additional
  $1,000 may be contributed by those 55 or older.

HIGHLIGHT JANUARY TAX DEADLINES ON YOUR CALENDAR

* January 17 - Final 2011 individual estimated tax payment is due, unless your 2011 tax return is filed and taxes are paid in full by January 31, 2012.

* January 17 - Due date for calendar-year trusts and estates to pay final installment of 2011 estimated tax.

* January 31 - Employers must furnish employees with W-2 statements for 2011. 1099 information statements for 2011 must be furnished by payers. (Deadline for 1099-B and consolidated statements is February 15.)

* January 31 - Employers must generally file 2011 federal unemployment tax returns and pay any tax due.

LAST-MINUTE 2011 DEAL REACHED ON PAYROLL TAX CUT

On December 23, 2011, Congress finally approved a two-month extension of the payroll tax cut for American workers.

TO SUCCEED IN BUSINESS, HAVE A PLAN

Taking a trip without a map may get you lost, and trying to run a business without a plan is likely to have the same result.

A business plan is a map, your company's written guide into the future. Not only does a good plan let you know where you are and where you're headed, it provides potential lenders and investors with a portrait of your company.  Each plan will differ, but certain items are essential.