Are you making a payment with your federal tax return this year? If so, here are 10 important things the IRS wants you to know about correctly paying your federal income taxes.
1. Never send cash.
2. If you file electronically, you can file and pay in a single step with an electronic funds withdrawal. If you e-file by yourself you can use your tax preparation software to make the withdrawal. If you use a tax preparer to e-file, you can ask the preparer to make your tax payment electronically.
3. Whether you file a paper return or e-file your return, you can pay by phone or online with a credit or debit card. The company that processes your payment will charge a processing fee.
4. If you file Schedule A, Itemized Deductions, you may be able to deduct the credit or debit card processing fee on next year’s return. This is a miscellaneous itemized deduction subject to the 2 percent limit.
5. Electronic payment options provide another way to pay taxes by check or money order. You can make payments 24 hours a day, seven days a week. Visit IRS.gov and click on the ‘Payments’ tab near the top left of the home page for more details.
6. If you pay by check or money order, make sure it is payable to the “United States Treasury.”
7. Be sure to write your name, address and daytime phone number on the front of your payment. Also, write the tax year, form number you are filing and the first Social Security number listed on your tax return.
8. Complete Form 1040-V, Payment Voucher, and include it with your tax return and payment when mailing it to the IRS. Double-check the IRS mailing address. This will help the IRS process your payment accurately and efficiently. Go to IRS.gov to download and print this form.
9. Remember to enclose your payment with your return but do not staple it to any tax form.
10. For more information, call 800-829-4477 and select TeleTax Topic 158, Ensuring Proper Credit of Payments. You can also find out more in the Form 1040-V instructions available at IRS.gov.
Last Chance to Register for the INC U Event in Las Vegas for May 17-18 from 9am-5pm at the Renaissance Las Vegas. If you’ve never attended an INC U event, you are in for a treat. These are “hands on” events where we review your paperwork and structures and make sure that you are doing everything right, maximizing the use of your structure, and squeezing ever nickel in savings from your plan.
What Will We Be Covering?
New Tax Laws in 2013 and How to Use them to Your Advantage
How to Implement and Fund Businesses
How To Use Multiple Entities
Maximizing Business Structures for Tax Relief and Retirement Planning
How to Bring Your Paper Trail Up to Date
100+ Business Deductions for Your Business
Advanced Retirement Strategies Only Available to Business Owners
How You Can Eliminate Traditional Lenders from Your Business Life
For more information or to register click on the link:http://www.andersonadvisorslv.com/incu
IRS Tax Tips
1. An early withdrawal normally means taking money from your plan, such as a 401(k), before you reach age 59½.
2. You must report the amount you withdrew from your retirement plan to the IRS. You may have to pay an additional 10 percent tax on your withdrawal.
3. The additional 10 percent tax normally does not apply to nontaxable withdrawals. Nontaxable withdrawals include withdrawals of your cost in participating in the plan. Your cost includes contributions that you paid tax on before you put them into the plan.
4. If you transfer a withdrawal from one qualified retirement plan to another within 60 days, the transfer is a rollover. Rollovers are not subject to income tax. The added 10 percent tax also does not apply to a rollover.
5. There are several other exceptions to the additional 10 percent tax. These include withdrawals if you have certain medical expenses or if you are disabled. Some of the exceptions for retirement plans are different from the rules for IRAs.
For more information on early distributions from retirement plans, see IRS Publication 575, Pension and Annuity Income. Also, see IRS Publication 590, Individual Retirement Arrangements (IRAs). Both publications are available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
A tax credit reduces the amount of tax you must pay. A refundable tax credit not only reduces the federal tax you owe, but also could result in a refund.
Here are five credits the IRS wants you to consider before filing your 2012 federal income tax return:
1. The Earned Income Tax Credit is a refundable credit for people who work and don’t earn a lot of money. The maximum credit for 2012 returns is $5,891 for workers with three or more children. Eligibility is determined based on earnings, filing status and eligible children. Workers without children may be eligible for a smaller credit. If you worked and earned less than $50,270, use the EITC Assistant tool on IRS.gov to see if you qualify. For more information, see Publication 596, Earned Income Credit.
2. The Child and Dependent Care Credit is for expenses you paid for the care of your qualifying children under age 13, or for a disabled spouse or dependent. The care must enable you to work or look for work. For more information, see Publication 503, Child and Dependent Care Expenses.
3. The Child Tax Credit may apply to you if you have a qualifying child under age 17. The credit may help reduce your federal income tax by up to $1,000 for each qualifying child you claim on your return. You may be required to file the new Schedule 8812, Child Tax Credit, with your tax return to claim the credit. See Publication 972, Child Tax Credit, for more information.
4. The Retirement Savings Contributions Credit (Saver’s Credit) helps low-to-moderate income workers save for retirement. You may qualify if your income is below a certain limit and you contribute to an IRA or a retirement plan at work. The credit is in addition to any other tax savings that apply to retirement plans. For more information, see Publication 590, Individual Retirement Arrangements (IRAs).
5. The American Opportunity Tax Credit helps offset some of the costs that you pay for higher education. The AOTC applies to the first four years of post-secondary education. The maximum credit is $2,500 per eligible student. Forty percent of the credit, up to $1,000, is refundable. You must file Form 8863, Education Credits, to claim it if you qualify. For more information, see Publication 970, Tax Benefits for Education.
From the IRS…
Most types of income are taxable, but some are not. Income can include money, property or services that you receive. Here are some examples of income that are usually not taxable:
• Child support payments;
• Gifts, bequests and inheritances;
• Welfare benefits;
• Damage awards for physical injury or sickness;
• Cash rebates from a dealer or manufacturer for an item you buy; and
• Reimbursements for qualified adoption expenses.
Some income is not taxable except under certain conditions. Examples include:
• Life insurance proceeds paid to you because of an insured person’s death are usually not taxable. However, if you redeem a life insurance policy for cash, any amount that is more than the cost of the policy is taxable.
• Income you get from a qualified scholarship is normally not taxable. Amounts you use for certain costs, such as tuition and required course books, are not taxable. However, amounts used for room and board are taxable.
All income, such as wages and tips, is taxable unless the law specifically excludes it. This includes non-cash income from bartering – the exchange of property or services. Both parties must include the fair market value of goods or services received as income on their tax return.
The Internal Revenue Service has issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 56.5 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
BOSS Business Services, Acorn Corporate Services, and Anderson Law Group unite and form one new company under its new name: Anderson Business Advisors. Please read below to find out the details:
BOSS Business Services, Acorn Corporate Services along with Anderson Law Group will be merging their companies to become one in order to be a new uniform entity. The company’s new name change will occur before the end of the year and be known as Anderson Business Advisors.
Why the change? For years, the ownership group has been acquiring complementary service companies and discussed merging the various companies together. This summer, they finally agreed to take the plunge and become one. The merge will benefit all three since each company offers an additional service the other does not from tax services to registered agent services.
“We wanted to create a uniform experience for our clients and provide them with the upmost services available for small business owners, and the three companies working together is the best option” says Toby Mathis, President of BOSS Business Services. “The current clients of BOSS Business Services, Acorn Corporate Services and Anderson Law Group will not be affected at all whatsoever, as the transition will be seamless. The only change the clients must be aware of is the new name change: Anderson Business Advisors.”
About BOSS Business Services
BOSS is a repeat Inc. 5000 honoree. Since 1993, BOSS Business Services has been a leader in asset protection planning, tax advice, tax preparation, estate planning and business entity structuring. Our clients are located throughout the nation, as well as throughout the world. We are a “one-stop-shop” for business owners handling everything from pre-formation planning to succession planning. BOSS can form your business, help you keep a paper trail of important decisions and meetings, keep your business books and file any necessary tax returns.
About Anderson Law Group
Anderson Business Advisors is a Seattle-based business planning and consulting firm with a focus on providing high-quality services and resources to small business owners, small businesses, other professionals and individuals. Our consultants consist of attorneys and planners who travel nationwide to speak at conferences and seminars on subject matters concerning asset protection and business planning. We have taught tens of thousands of people how to make better business decisions and properly prepare to meet their goals and we have worked with thousands of clients to help them obtain their goals.
About Acorn Corporate Services
Acorn Corporate Services specializes in Nevada entities, and now offer registered agent services throughout the US. We do this through our relationships with affiliates and partners. The benefit to you is excellent Acorn service at no additional cost and a single place to go to handle all of your registered agent needs.
For more information, contact:
BOSS Business Services
3225 McLeod Dr., Suite 100
Las Vegas, NV, 89121
As many of you know, 2013 will be a big year for Crowdfunding and small business financing. Listen to the BOSS Business Brief where we answer questions from what is crowdfunding? How can small business benefit from it, to what some new rules are.
All in our latest radio show- BOSS Business Brief.