Scheduling and Paying Taxes Electronically

Scheduling and Paying Taxes Electronically

I just don’t seem to be writing as many checks as I used to.  And I don’t want the panic of being on vacation with no checkbook when my estimated taxes are due.  The solution that works for me is to schedule my estimated tax payments to come directly from my bank account on the appropriate dates.  No more checks getting lost in the mail or visits to the post office if the payment needs to be sent by certified mail.  Now I just have to be sure that come the due dates there are sufficient funds in my account.  These are not the only way to pay taxes, but they are free and easy ways to schedule payments in advance of the due date.
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What You Need to Know About the SECURE Act

What You Need to Know About the SECURE Act

Late last year, Congress passed bipartisan tax legislation that President Trump promptly signed into law on December 20, 2019.  The legislation included the “Setting Every Community Up for Retirement Enhancement (SECURE) Act”, which is mainly intended to expand opportunities for individuals to increase their retirement savings.  The awkwardly named Act, which went into effect on January 1, 2020, introduces many significant changes that may affect you, your family, and your estate. 
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Parking Tax Repealed for Non-Profits

Parking Tax Repealed for Non-Profits

On December 20, 2019, Congress repealed Section 512(a)(7), commonly referred to as the “parking tax”,
imposed on fringe benefits of non-profit organizations pursuant to the 2017 Tax Act.  The provision required tax-exempt employers to increase their unrelated business taxable income (“UBTI”) by amounts paid for qualified transportation fringe benefits provided to employees, including the provision of parking and public transportation benefits.  Read more

Finally, a New W-4

Finally, a New W-4

The Tax Cuts and Jobs Act (TCJA) made significant changes in the way an individual’s tax liability would be computed, from changing the tax rates to eliminating the deduction for dependents. Many taxpayers were surprised at the disconnect between their withholding for 2018 and their tax liabilities since Form W-4, the instructions to employers on how much to withhold from an employee’s pay for federal income taxes, hadn’t been revised to reflect those changes.
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Don’t be the victim of a tax scam

Don’t be the victim of a tax scam

Earlier this month the best bit of tax scamming I’ve seen in my career crossed my desk. While there are many red flags on the document below, at first blush it’s the real deal, a balance due notice from the IRS. And not an outrageous bill; something you might consider paying without consulting your tax preparer. Don’t do it. Whenever you receive a notice, your preparer should be copied for an opinion on how to deal with it.
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This is not a scam!

This is not a scam!

The IRS has announced that it will conduct special “compliance efforts” for businesses and individuals in various communities. The purpose is to meet face-to-face with taxpayers with ongoing tax issues. These meetings will take place in areas where the Service’s resources have not been adequate to address these issues.
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New Jersey Adopts Market-Based Sourcing For Corporate Taxpayers

New Jersey sealOne of the latest trends in state and local corporate income tax has been the adoption of market-based sourcing for the sales of services.  In 2018, new state legislation made significant changes to the New Jersey Corporation Business Tax Act, including the implementation of market-based sourcing for services beginning in 2019.

The New Jersey Corporation Business Tax Act imposes tax on domestic and foreign corporations having a taxable status in New Jersey based on the portion of net income allocable to New Jersey.  In order to properly determine the net income allocable to New Jersey, corporate taxpayers doing business both within and outside New Jersey must source their revenue to the appropriate state.
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IRA Rollover to make HSA Contribution

IRA rollover to HSA is a tax-free contributionHealth Savings Accounts (HSAs) are one of the best retirement and investment tools for various reasons.  A HSA is a savings account set up for the sole purpose of paying the qualified medical expenses of the account’s beneficiary or the beneficiary’s dependents or spouse. The HSA can be funded with before-tax employer contributions and/or employee contributions.  Employee contributions are tax deductible.  The contributions may be invested and grow-tax free in the account.  Qualified distributions from the HSA to pay medical expenses are not taxable income.
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Household Employees

household employeeHow do you determine if an individual who is hired to do household work is considered a household employee or an independent contractor? Per the IRS guidelines, an individual who works around your home is considered a household employee if you can control the type of work they do and how they do it. This applies to babysitters, cooks, maids, nannies, caregivers, gardeners, etc. unless the worker is customarily engaged in an independently established trade or business.

Once you’re able to identify you have a household employee, the employee will need to fill out Forms W-4 and I-9 so the correct taxes can be deducted from their paychecks. Keep in mind a household employee can elect out of having income taxes withheld from their pay. These two forms do not need to be submitted to the IRS. They are kept for the employer’s records.
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