Join Us For Our October QuickBooks Class!

Are you new to QuickBooks, and want to learn more? Or perhaps you use QuickBooks, but need a refresher on ways to use the software more efficiently! Join us on October 24th at 10:00am as Kim Fourman, CPA and QuickBooks ProAdvisor, takes you through a Beginners guide through QuickBooks. For more information, or to sign up, please contact Pam Burnett!

Year-End Gifts to Charity

Charity - canstockphoto16357066As a reminder for individuals and businesses making year-end gifts to charity, we wanted to make you aware that several important tax law provisions have taken effect in recent years. Some of the changes taxpayers should keep in mind include: [Read more…]

Avoid Tax-Time Surprises!

Still Time to Act to Avoid Surprises at Tax-Time

Even though only a month remain in 2014, you still have time to act so you aren’t surprised at tax-time next year. You should take steps now to avoid owing more taxes or getting a larger refund than you expect.  Here are some actions you can take to bring the taxes you pay in advance closer to what you’ll owe when you file your tax return:

  • Adjust your withholding.  If you’re an employee and you think that your tax withholding will fall short of your total 2014 tax liability, you may be able to avoid an unexpected tax bill by increasing your withholding. If you are having too much tax withheld, you may get a larger refund than you expect. In either case, you can complete a new Form W-4, Employee’s Withholding Allowance Certificate and give it to your employer. Enter the added amount you want withheld from each paycheck until the end of the year on Line 6 of the W-4 form. You usually can have less tax withheld by increasing your withholding allowances on line 5. Use the IRS Withholding Calculator tool on IRS.gov to help you fill out the form.
  • Report changes in circumstances.  If you purchase health insurance coverage through the Health Insurance Marketplace, you may receive advance payments of the premium tax credit in 2014. It is important that you report changes in circumstances to your Marketplace so you get the proper type and amount of premium assistance. Some of the changes that you should report include changes in your income, employment, or family size. Advance credit payments help you pay for the insurance you buy through the Marketplace. Reporting changes will help you avoid getting too much or too little premium assistance in advance.
  • Change taxes with life events.  You may need to change the taxes you pay when certain life events take place. A change in your marital status or the birth of a child can change the amount of taxes you owe. When they happen you can submit a new Form W–4 at work or change your estimated tax payment.
  • Be accurate on your W-4.  When you start a new job you fill out a Form W-4. It’s important for you to accurately complete the form. For example, special rules apply if you work two jobs or you claim tax credits on your tax return. Your employer will use the form to figure the amount of federal income tax to withhold from your pay.
  • Pay estimated tax if required.  If you get income that’s not subject to withholding you may need to pay estimated tax. This may include income such as self-employment, interest, or rent. If you expect to owe a thousand dollars or more in tax, and meet other conditions, you may need to pay this tax. You normally pay the tax four times a year. Use Form 1040-ES, Estimated Tax for Individuals, to figure and pay the tax.

QuickBooks – 1099 Printing Issue

QBPA Advanced LogoFor tax season 2013, the Internal Revenue Service has updated the 1099-MISC form layout slightly.  Anyone who prints their own 1099-MISC forms from QuickBooks, please be aware that the only QB version that will print correctly is 2014.  The IRS will not accept forms that are printed incorrectly.   [Read more…]

Voluntary Classification Settlement Program

On December 17, the IRS released Announcement 2012-45 and Announcement 2012-46,  providing additional information on the Voluntary Classification Settlement Program (VCSP). Information had previously been provided in Announcement 2011-64. The VCSP is a new program developed by the IRS that allows taxpayers to voluntarily reclassify their workers as employees for future tax periods for employment tax purposes.

The VCSP is available for taxpayers who want to voluntarily change the prospective classification of their workers. The program applies to taxpayers who are currently treating their workers (or a class or group of workers) as independent contractors or other nonemployees and want to prospectively treat the workers as employees. Exempt organizations and government entities may participate in VCSP if they meet all of the eligibility requirements:

  • A taxpayer must have consistently treated the workers as independent contractors or other nonemployees, and must have filed all required Forms 1099 for the workers to be reclassified under the VCSP for the previous three years to participate. However, there is a temporary expansion for eligibility which is discussed here
  • The taxpayer cannot currently be under employment tax audit by the IRS and the taxpayer cannot be currently under audit concerning the classification of the workers by the Department of Labor or by a state government agency.
  • If the IRS or the Department of Labor has previously audited a taxpayer concerning the classification of the workers, the taxpayer will be eligible only if the taxpayer has complied with the results of that audit and is not currently contesting the classification in court.

[Read more…]