| Important Filing Dates | |
- September 15 - 3rd quarter individual estimated tax payments are due
- September 15 - Extended corporation and partnership entities are due
- October 15th Extended individual tax returns due
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January 15, 2011 Final 2010 Individual Estimated Tax Due
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December 1, 2010 Tax appointment calendar for the 2010 tax season is open
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December 15 2010 Tax Organizers available on request
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The South Bay Tax Report
August 31 2010
We're still waiting for summer here in Hermosa Beach and, since it's not been that warm down at the beach, we've stayed here in the office, searching for information and tips to pass along to you. As always, call us if you have questions or thoughts - we love to hear from you
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Did You Know....???
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The top 1% of the taxpayers in the United States had about $1.42 million in average adjusted gross income and paid 22% of that (or about $312,000) in income tax
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The median income for US taxpayers was about $109,000 and those taxpayers paid about $15,200 in income tax
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While rules regarding taxation of estates have undergone a major change this year, you can still gift $13,000 per person each year with no tax impact to you or the recipient of the gift
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It may make sense for you to convert your IRA, SEP-IRA or other tax - deferred savings plan to a Roth - IRA. The decision is complex - be sure to consider your current tax bracket, your future tax brackets and the available funds you have to pay the tax in making the decision
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The Mortgage Forgiveness Debt Relief Act of 2007 provides that a taxpayer may exclude from income up to $2 million of qualified principal residence debt for discharges incurred on or after January 1, 2007 and before January 1, 2013
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If you've not filed your 2009 individual tax return, you have until October 15th to finish, review, sign, and mail that return - get to it!
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You can make arrangements for an installment agreement to pay amounts you owe the Internal Revenue Service by visiting their website - www.irs.gov
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Form 1099 -
A Potential Nightmare!
The Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act have been much discussed on their impact on health care, but those new laws also have major tax ramifications.
Currently, businesses that may issue Forms 1099 only report nonemployee compensation paid to independent contractors to which they make payments of $600 or more during the calendar year. However, the new laws mandate that - starting January 1, 2012 - businesses will be required to issue a Form 1099 to EVERY vendor to which they make payments totaling $600 or more during the calendar year. Penalties of $50 for each required form that is not issued can be assessed.
If you run a business, take steps now to make sure your accounting and recordkeeping system can comply with the new requirements.
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 American Opportunity Credit can help pay first four years of college
More parents and students can use a Federal education credit to offset part of the cost of college tuition. This credit modifies the existing Hope credit for 2010 making it available to many more taxpayers. The maximun credit is $2,500 per student and key features are
(1) tuition, fees, materials and books generally qualify;
(2) the credit is equal to 100% of the first $2,000 spent and 25% of the next $4,000 spent;
(3) the full credit is available for taxpayers whose modified adjusted gross incme is $80,000 or less ($160,000 for joint filers);
(4) 40% of the credit is refundable.
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Small Business Health Care Tax Credit
The new Federal health reform law gives a tax credit to certain small employers that provide health care coverage to their employees. The credit program is effective with tax years starting in 2010. Small employers are those that have fewer than 25 full time equivalent employees. The credits are based on the amount of health care premiums paid by the employer and the credits can be as much as 35% of the employer's premium expenses. |
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Get Tax Credit for summer day camp costs $$$
Many working parents must arrange for care of their children under 13 years of age during the sumer time. A popular solution with good tax consequences is a day camp program.
Unlike overnight camps, the cost of a day camp may count as an expense towards the Child and Dependent Care Credit. Be sure to monitor how much you spend and obtain the full name, address and Federal ID number of the camp to take advantage of this credit at tax time.
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 IRS Relief for Small Nonprofits
If you work with a small not-for-profit organization, you may want to know that the IRS has announced relief for those who may have missed their deadline for filing Form 990N or Form 990EZ.
The IRS recently indicated that they are extending the deadline to October 15th for organizations that have $25,000 or less in gross receipts - these organizations must file Form 990-N by that date.
Larger organizations, those with gross receipts under $250,000 may file their delinquent returns and pay a small ($100 - $500) penalty as long as they do so by October 15th.
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New Business Hiring Credits
The hiring incentives in the Restore Employment (Hire) Act, signed in March 2010, provided business with payroll tax relief, a worker retention tax credit and enhanced Sec. 179 expensing for 2010.
The Act provides relief from the employer share of the social security taxes on wages paid for qualified employees.
Employers are also eligible for a tax credit up to $1,000 per new employee if certain conditions are met.
If you have questions please contact us at (310) 376-0455
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 Contact Us
Visit our website:
Certified Public Accountants
1097 Aviation Blvd
Hermosa Beach CA 90254
(310) 376-0455 (310) 379-4523 fax
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