Note of Clarification: If taxpayers submit a tax return with an expired ITIN, they will experience a delay in processing and certain credits such as the Child Tax Credit and the American Opportunity Tax Credit may not be allowed unless the ITIN is renewed. Taxpayers are not, however, prohibited from filing a tax return. (Added…
To be eligible for the Premium Tax Credit under the Affordable Care Act, all of the following must apply: • Your income must be between 100% and 400% of Federal Poverty Line (see below) for a given family size. • You cannot be claimed as a dependent. • If married, you must file a joint…
If you’re looking for things to do to get ready for the upcoming filing season or want to check your list against another, I have one for you. Please see “Preparing for the 2016 Filing Season,” The article was written before passage of the extenders and appropriations tax package. Here is a list of links…
A corporate tax professional asked me recently what they could do to increase their annual raise! Their expectations were set higher than the bonus they received and they felt like their accomplishments went unnoticed. Most companies raises are set to reflect two variables including the company’s success and the individual’s contributions. However, these methods are…
Several federal bills enacted in 2015 included tax changes. One of these was P.L. 114-41(7/31/15), the Surface Transportation and Veterans Health Care Choice Improvement Act. Given the title, we might think that any tax change involved transportation, such as the gasoline excise tax. Wrong! This bill does not increase the gasoline excise tax. Its main…
It’s easy to think about startup businesses and consider the success or horror stories, but what about the average startups? The hard and bleak reality is that the majority of small business startups fail. So, to avoid being like the average startup, you need to create a plan for success. Choose the Right Entity One of…
December 1 – Employers During December, ask employees whose withholding allowances will be different in 2016 to fill out a new Form W4 or Form W4(SP). December 15 – Social Security, Medicare and Withheld Income Tax If the monthly deposit rule applies, deposit the tax for payments in November. December 15 – Nonpayroll Withholding If…
For the past few years, year-end tax planning has been challenging due to the lateness of action by Congress. This year is no different because of uncertainty over whether Congress will extend any of the many expired or expiring tax provisions. However, regardless of what Congress does later this year, solid tax savings can still…
If you are considering installing a solar electric system or solar hot water system for your home, there are tax issues you should consider when making your decision. First of all, there is a very lucrative non-refundable federal tax credit for 30% of the cost of the system with no maximum. So for example, if…
Internal Revenue Service Advisory Council (IRSAC) held its annual public meeting this week and released its annual report for 2015 to the IRS Commissioner. The report includes recommendations on a wide range of tax administration issues. The IRSAC is an advisory group to the entire agency. The IRSAC’s primary purpose is to provide an organized…
