It's Almost the 4th of July!

Summer is in full swing. We've just about finished our annual season of "June gloom" here in Hermosa Beach - these are the days when the cloud cover hangs around most of the day while much of Los Angeles County is warm and sunny.

We here at Wayland & Vukadinovich use these cloudy days to respond to your emails, take more classes on new tax strategies, and work hard to reduce your tax liability.

We may be beach rats but we're serious about our tax skills!

Our Top 10 Tax Tips of the Summer

Well, we're not David Letterman but we did compile a list of the Top 10 Summer Tax Tips:

10 - Be sure to maximize all pre-tax programs at work such as 401k plans and flexible spending accounts;

9 - Explore the use of a health savings account - it can reduce your medical insurance costs AND can make some of your medical expenses tax deductible;

8 - Review your IRA and SEP accounts for IRS compliance. The IRS will begin to pay closer attention to your IRA or other tax deferred accounts, making sure that you only contribute the correct amount to your IRA/Roth and that you take all required minimum distributions each year. Significant penalties can be assessed if you don't follow the rules.

Many of you may be making ROTH contributions despite the fact that your income is above the Roth contribution threshold - the IRS will be looking for you!

7 - Explore the purchase of solar panels or  solar electrical systems. The IRS and certain states provide huge tax breaks for such purchases;

6 - Wear comfortable shoes at graduations (okay, we know that's not a tax tip but we've been to a few graduations this year and our feet appreciate the suggestion);

5 - Consider opening 529 accounts for your children or grandchildren. When they graduate, you'll need those comfortable shoes;

4 - If you've not refinanced (and gauging by the document requests you submitted to us, all of you have!), consider doing so. If you have refinanced in the last 18 months, contact your loan advisor;

it may be time to go thru that - painful - process again;

3 - Check in with your financial planner, your insurance agent and estate planning attorney to let them know about any recent changes in your personal situation. Changes in marital status, dependents, grandchildren, health status are important!

2 - Use sunscreen. We know, it's not tax related but it's important - but not tax deductible - and we put it on, even here at the world headquarters of

Wayland & Vukadinovich LLP;

1 - Review your estimated tax payments or withholding to make sure you're not in for a surprise at year-end.  

The New Health Care Law

Tax Implications for Individuals

The "new" health care law has been in the news these last few days. Let's summarize some of the tax implications of the new law:

For 2012, the law requires your employer to disclose the cost of health insurance benefits provided to you. This new requirement WILL NOT affect the taxes you pay as the value of the health insurance is not included in your taxable wages and is not FICA taxed.

If you earn more than $200,000 as an individual, or if you earn more than $250,000 and file a joint return with your spouse, you will see an increase in part of your Medicare Part A tax rate starting in 2013. The tax rate will increase from 1.45% to 2.35% but you will pay the increased rate only on your portion of your earnings that is over $200,000 for individuals or over $250,000 for a couple.

Taxpayers earning less than $200,000 (or $250,000 for a couple) WILL NOT pay higher taxes on their investment income. Starting in 2013, if you earn more than $200,000 as an individual or $250,000 if you file a joint tax return, you will pay a 3.8% tax on your net investment income. Net investment income includes interest, dividends, annuities, royalties, rents and capital gains. It DOES NOT include Social Security, pensions, or IRAs.

Social Security has gone Digital!

The Social Security Administration has gone digital.

The federal retirement program, which last year stopped mailing out estimated benefit statements to everyone who has paid into the system, launched an Internet tool this month that can be used to view several aspects of your personal status

(and no, we don't mean your Facebook status!).

Here's what's up:

Go to www.ssa.gov/mystatement

to create your online account. You must have a Social Security number, email address, US mailing address, AND be at least 18 years old.

If you have a problem or don't want to do it from a PC, you can enroll at a local Social Security office.

If you're worried about those nasty hackers, you can add extra security by requesting that a code be sent to your cellphone whenever you want to log in, and you will need to enter that code online.

Once in the site, you can review your annual earnings history and see estimates of what your monthly Social Security benefit will be when you decide you've had enough and you want to retire.

California is looking for tax evaders!

I'd like an electronic copy of my return!

Many of you are refinancing, and you'd like us to provide a copy of your return electronically. We're happy to provide it - at no cost - but we will only provide that copy to YOU; we cannot provide it directly to your loan broker or banker unless you provide us written authorization with an original signature.

Requests for electronic returns usually take 24 hours - some requests can be completed sooner, some a bit later, but contact Gina in our office should you need an electronic copy of your return.  

 Electronic Reminder Notices

We here at Wayland & Vukadinovich are always looking for ways to go paperless.

We're using "Smart Vault," our cloud based electronic file storage system, to provide you with copies of tax documents.

Starting July 1st, we'll be sending out electronic remiders for outstanding invoices you may have

rather than sending paper reminders.

Enjoy the July 4th mini-holiday!