If you, your spouse or a dependent are heading off to college in the fall, some of your costs may save you money at tax time. You may be able to claim a tax credit on
your federal tax return. Here are some key IRS tips that you should know about education tax credits:
Our community is well known for giving and caring. Many of you have already donated to disaster relief and many may be planning to. It is a sad reality that cyber-criminals eagerly exploit tragic circumstances in order to take advantage of and steal from new targets. In the aftermath of Hurricane Harvey and Hurricane Irma, a number of new scams have cropped up, including:
The FBl and the IRS are warning the public to be on alert for a phone scam that spoofs, or fakes the FBl’s name on the recipient’s voice-mail.
Scammers have targeted residents around the region, claiming to be the FBI stating they are an “officer” of the FBI , Department of Tax and Crime Investigation. The intended victim is told that this is their final notice and that their physical address is under investigation and an arrest warrant has been issued under their name.
The public is reminded that the FBI does not call private citizens threatening arrest or requesting money and to never give out unsolicited requests for personal information to callers that you don't know. Individuals receiving such calls can file a complaint through the FBl’s Internet Crime Complaint Center at www.IC3.gov.
If you’re a C corporation or partnership that sponsors a qualified pension, profit sharing, 401(k) plan or a Simplified Employee Pension Plan (SEP) or Savings Incentive Match Plan for Employees (SIMPLE) IRA plan, please note that the due date for making employer contributions to these plans has changed.
In order to be deductible for the 2016 taxable year, employer contributions for these plans for 2016 have to be made by the due date or extended due date of your 2016 tax return. Since certain tax return due dates have changed for tax years starting in 2016, the time limit for making retirement plan contributions has changed as well.
The number of small business for sale in the US is growing. Business selling websites like Bizbuyandsell.com and Businessesforsale.com are reporting record high numbers. AARP states that as the Baby Boomer generation ages they are looking to sell to businesses and retire in record numbers as well. Often there is no family member willing or able to take over a business and the business goes out to the general market. There is another option.
As we approach the end of the year, this is the time to conduct year-end tax planning in order to optimize your tax position and minimize the amount of penalties and interest that may be due on your 2016 tax return filing. Year-end tax planning is more than just looking at your income and expenses for the year, it is about looking forward, understanding your business performance, finding positive ways to both help the performance of your company and optimize your tax position in the future.
In the information age we are all reliant on personal computers and devices. These devices contain our vital information. Cyber threats are real. The IRS has issued a set of instructions that will help you keep those threats at bay. At GMG CPA we are here to help. We wanted to share the information with you. We support efforts to combat identity theft and and fraudulent returns.
North Carolina storm victims will have until March 15, 2017, to file certain individual and business tax returns and make certain tax payments, with similar relief expected soon for Hurricane Matthew victims in other states, the Internal Revenue Service announced today. All workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization also qualify for relief.
If you are a over 65 and qualify you can still benefit from this tax credit for 2016. In 2014 the IRS published these rules:
If you plan to claim a deduction for your medical expenses, there are some new rules this year that may affect your tax return. Here are eight things you should know about the medical and dental expense deduction:
Last year, the Protecting Americans from Tax Hikes (PATH ) Act made permanent a number of expiring tax extenders. Although that legislation thankfully made planning for 2016 a little more certain, there are still a handful of tax provisions that are due to expire at the end of this year.
PATH addressed many critical extenders, such as Section 179 expensing and the research tax credit. With those necessary provisions handled, the stakes this year are much lower. It’s unlikely that the House and Senate will take any action before they adjourn for several weeks leading up to the November elections.
The Joint Committee on Taxation published a comprehensive list of expiring tax provisions for 2016 and coming years. Here are a few that are commonly taken by individual taxpayers.
For many businesses, the business is a family affair. There comes a time when a business owner wants to pass the torch to a younger generation. However, transferring business ownership even within a family can be problematic. Succession planning has become an industry in itself. Why? Successfully transferring a family business has proven more difficult than any other exit path because it involves family dynamics.
The U.S. Department of Labor (DOL) published the final rule revising the “white collar” overtime exemption regulations on May 18, 2016. This publication was the result of a process that began in March 2014 when President Obama directed the Secretary of Labor to review and “modernize” the current overtime regulations. In the final rule, the DOL estimates that the changes will impact 4.2 million white collar workers.
The IRS estimates more than twelve million Americans owe back taxes in some form. There are a variety of reasons that people and businesses fall behind on their taxes. These reasons can be extremely personal; illness, divorce or other financial issues can trigger a number of issues that result in an unpaid tax bill. At GMG we are here to help.
Tax time can be one of the most stressful times of year. A 2014 survey sponsored by the American Psychological Association found that nearly three-quarters of Americans cited money as a significant source of stress. Money is also consistently among the top causes of marital contention, says Olivia Mellan, a psychotherapist and financial self-help author based in Washington, D.C. (Web MD)
The purpose of retirement plans such as the 401(k) and Individual Retirement Account (IRA) is to save money for your retirement years. As such, the IRS imposes a penalty of 10 percent for early withdrawals taken from qualified retirement plans before age 59½. Qualified retirement plans include section 401(k) plans, 401(k) plan, tax-sheltered annuity plans under section 403(b) for employees of public schools or tax-exempt organizations, and individual retirement accounts.
Does the IRS owe you money?
If you didn't file a federal tax return three years ago for the 2012 tax year and were due a refund, you must file that old paperwork by this year's April filing due date to get your money. In North Carolina it April 18 2016. If you don't, then Uncle Sam gets to keep your refund. And that could be a sizable amount.
Almost $1 billion unclaimed refunds: The Internal Revenue Service Federal says that it has income tax refunds from three years ago totaling more than $950 million.April 2013 was when those tax year 2012 returns were due. More than 1 million folks neglected to file those forms then.
"A surprising number of people across the country overlook claiming tax refunds each year. But the clock is ticking for taxpayers who didn't file a 2012 federal income tax return, leaving nearly $1 billion in refunds unclaimed," said IRS Commissioner John Koskinen.And don't worry about getting hassled by the IRS. There's no penalty for filing a late return if you're due a refund.But if you don't file for your refund within three years of the original due date, then you forfeit the money. The three year claim period is the law. If no return is filed to claim a refund within three years, the money becomes the property of the U.S. Treasury.
For the unfiled 2012 tax returns, the absolute final deadline is this April. Your 2012 forms must be filled out -- by hand; no e-filing of old returns -- properly addressed, and in the U.S. Postal system in time to be postmarked by April 18 or 19.
In North Carolina there are 29,700 people with unclaimed refund averaging $619.00. That’s a total of 24, 469,000 dollars that is unclaimed. "We especially encourage students and others who didn't earn much money to look into this situation because they may still be entitled to a refund," Koskinen said.