Deposit payroll tax for Oct if the monthly rule applies.
Monday, November 14, 2016
Special Tax Breaks for U. S. Armed Forces
IRS Publication 3, Armed Forces Tax Guide, is a free booklet packed with valuable information and tips designed to help service members and their families take advantage of all tax benefits allowed by law. Here are some of those tax benefits.
- Combat pay is partially or fully tax-free. Service members serving in support of a combat zone may also qualify for this exclusion.
- Reservists whose reserve-related duties take them more than 100 miles from home can deduct their unreimbursed travel expenses, even if they don’t itemize their deductions.
- The Earned Income Tax Credit may be worth up to $6,269 for low-and-moderate-income service members. A special computation method is available for those who receive nontaxable combat pay. Choosing to include it in taxable income may boost the EITC, meaning owing less tax or getting a larger refund.
- An IRA or 401(k)-type plan might mean saving for retirement and cutting taxes too. Service members who contribute to a plan, such as the Thrift Savings Plan, may also be able to claim the Retirement Savings Contributions Credit.
- An automatic extension to file a federal income tax return is available to U.S. service members stationed abroad. Also, those serving in a combat zone typically have until 180 days after they leave the combat zone to file and to pay any tax due.
- Both spouses normally must sign a joint income tax return, but if one spouse is absent due to certain military duty or conditions, the other spouse may be able to sign for him or her. A power of attorney is required in other instances. A military installation’s legal office may be able to help.
- Those leaving the military and looking for work may be able to deduct some job search expenses, such as the costs of travel, preparing a resume and job placement agency fees. Moving expenses may also qualify for a tax deduction.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
Friday, November 4, 2016
Renewing Your ITIN? Things You’ll Need
Some Individual Taxpayer Identification Numbers (ITIN) expire at the end of 2016. The IRS issues an ITIN to those who have a filing or reporting requirement but don’t have and are not eligible to get a Social Security number. If you need to renew your ITIN, you should submit a complete application this fall to avoid delays.
The following list includes the documents you’ll need to renew your ITIN:
1. Form W-7. You must submit a completed Form W-7, Application for IRS Individual Taxpayer Identification Number (Rev 9-2016). You don’t need a completed tax return for the renewal application. You must include the identification documents with the form.
2. Proof of foreign status and identity. Several documents satisfy this requirement. These are:
- Passport. (Note: You can use a passport as a stand-alone document for dependents with a U.S. date of entry. Otherwise, an additional ID from the list below is required)
- National ID card (must show photo, name, current address, date of birth and expiration)
- U.S. driver's license
- Birth certificate (required for dependents under 18)
- Foreign driver's license
- U.S. state ID card
- Foreign voter's registration card
- U.S. military ID card
- Foreign military ID card
- Visa
- U.S. Citizenship and Immigration Services (USCIS) photo identification
- Medical records (only dependents under 6)
- School records (dependents under 14, or under 18 if a student)
3. Dependent requirements. If you need to renew your ITIN, you have the option to renew ITINs for your entire family at the same time. For dependents from countries other than Canada or Mexico or dependents of U.S. military members overseas, a passport with a U.S. entry date may serve as stand-alone identification. Along with the passport, dependent applications require:
- U.S. medical records for dependents under age 6, or
- U.S. school records for dependents under age 18
- U.S. school records for dependents age 18 and over or,
- Rental statement with the applicant’s name and U.S. address or
- Utility bill with the applicant’s name and U.S. address or
- Bank statement with applicant’s name and U.S. address
Source: Internal Revenue Services
contact@officetaxservices.com
(858)247-1680
Wednesday, November 2, 2016
Take steps now to make filing your tax return easier next year
Be sure to make a copy of your 2015 tax return and keep it and all supporting documents for a minimum of three years. Doing so will make it easier to fill out a return next year. In addition, you may need the adjusted gross income amount from your 2015 return to properly e-file your 2016 return.
Check your withholding. This is especially important if you received a large refund or owed a larger than expected amount of tax this year. You can reduce a large refund amount and boost your take-home pay now by claiming additional withholding allowances on the Form W-4 and give it to your employer. If you owed tax, you can have additional tax withheld or make quarterly estimated tax payments to the IRS.
You should not count on getting a refund by a certain date next year, especially when making major purchases or paying other financial obligations. Though the IRS issues most refunds in less than 21 days, some returns are held for further review. In addition, starting next year, some people will get their refunds a little later. A recent tax law requires the IRS to hold the refund for any tax return claiming either the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until February 15. By law, the IRS must hold the entire refund, not just the portion related to the EITC or ACTC.
You may need to renew your ITIN. All ITINs were not used on a federal tax return at least once in the last three years will no longer be valid for use on a tax return as of Jan. 1, 2017. Additionally, all ITINs issued before 2013 will begin expiring this year, starting with those with middle digits of 78 and 79 (Example: (9XX-78-XXXX). All expired ITINs must be renewed before being used on a U.S. tax return. No action is needed by ITIN holders who don’t need to file a tax return next year. Also, there are new documentation requirements when applying for or renewing an ITIN for certain dependents.
The recent tax law change also includes a new requirement for employers. They must now file their copies of Forms W-2 and certain Forms 1099 with the federal government by January 31. The January 31 deadline has long applied to employers furnishing copies of these forms to their employees.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
Tuesday, November 1, 2016
Tax Dates for Small Businesses
11/02/2016
Deposit payroll tax for payments on Oct 26-28 if the semiweekly deposit rule applies.
contact@officetaxservices.com
(858)247-1680
Dates & deadlines for 2017 health insurance
You can enroll in or change 2017 Marketplace health insurance right now.
Important dates to note:
- November 1, 2016: Open Enrollment started — the first day to enroll, re-enroll, or change a 2017 insurance plan through the Health Insurance Marketplace. Coverage can start as soon as January 1, 2017.
- December 15, 2016: Last day to enroll in or change plans for coverage to start January 1, 2017.
- January 1, 2017: 2017 coverage starts for those who enroll or change plans by December 15.
- January 31, 2017: Last day to enroll in or change a 2017 health plan. After this date, you can enroll or change plans only if you qualify for a Special Enrollment Period.
contact@officetaxservices.com
(858)247-1680
Subscribe to:
Posts (Atom)