Greetings!
Welcome to April, the beginning of spring and the almost end of this tax season. We've been busy preparing returns and appreciate all of the many, many clients that place their trust in our expertise and professionalism. As a way to acknowledge and say thank you to our clients, we're introducing a new feature with this month's newsletter: "Spotlight." We'll take a closer look at one of the organizations, businesses, firms, practices, families or individuals that are a part of our work family. This month The Spotlight is on Have Dreams. Make sure to read the story below about this worthwhile organization. If you'd like to be featured in an upcoming newsletter, please send us an email. Let us know why you or your business deserves acknowledgement ...so we can turn the spotlight on you! Happy Spring! |
Take Tax Credits When They Are Due
Roundup of credits on your 2011 return
 An individual's tax liability may be reduced by certain tax credits.
The list of credits is extensive, but here's a quick review of several common types. Read more. |
Locking in Deductions for Mortgage Interest
Overview of key tax rules for homeowners
 For many individuals, a home is their largest asset. Thus, it's important to maximize the mortgage interest deductions that can be claimed each year.
This roundup has the key rules for clients during tax season.
Read more. |
Spotlight On: Have Dreams
An inside look at one of our clients
Have Dreams helps individuals with autism improve their abilities to learn, function independently, and socialize so that they may realize their full potential and develop into contributing members of their communities.
The organization provides best-practice autism intervention and teaching strategy workshops to educators, therapists, social workers, and parents as a contracted-partner of The Autism Program of Illinois (TAP).
The staff is readily available to families and industry professionals to resolve issues that arise in the home, community, and school.
 | | About Have Dreams |
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How to Reduce Employee Turnover
Practical ideas for business owners Good workers who stay for the long term seem to be a vanishing breed. But finding replacements can result in additional costs, lower productivity and negative morale. What can you do to slow down employee turnover?
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Seven Tips for Naming Beneficiaries
Filling in the full financial picture
 It is important to designate beneficiaries for retirement plans, life insurance policies and other assets. But there are potential pitfalls to avoid in this area.
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What's Ahead for 2013?
By Dave McWilliams, CPA
Starting in 2013, all net unearned income will be subject to a new 3.8 % Medicare tax surcharge on top of any of your other tax liability. This is something that you need to plan for going into 2013.
It won't have an impact for 2012, but you will have an opportunity to maybe make some changes to your investment allocation or choice of investment vehicles.
The tax is subject to interest, dividends, royalty, and annuities. In addition, passive activities, such as rental property, will be subject to this 3.8 % tax as well.
Distributions from IRA, 401(k), and other tax-deferred accounts will not be subject to the 3.8 % surtax.
Going forward into 2013, certain tax exempt income, such as municipal bond interest, should be more advantageous to any investor who is over $250,000 married filing jointly or $200,000 single.
Those items will not be subject to the Medicare tax.
For anyone who started a job by the end of 2011, such as myself, if you participate in a high deductible plan that has the option of making tax-deferred contributions into a HSA account, the rule is that you can't deduct the maximum amount.
In the case of a self covered plan, it's $3,050 and $6,150 for family covered plans.
Normally, you have to pro-rate how many months you've been in the plan over 12 months for the total amount you can defer.
However, if you are a participant in a plan as of December 31, 2011 and stay in the plan through December 2012, you can still make the maximum contribution into the HSA account as if you were a full year participant for 2011.
Additionally, you can still make a contribution for 2011 through the time you have to file your individual tax return in April. | |
Top 5 Reasons to Love Small Business
5. Small businesses make up more than 99.7% of all employees.
4. Small businesses employ about 50% of all private sector workers.
3. Small businesses with employees start-up at a rate of over 500,000 per year.
2. Four years after start-up, half of all small businesses with employees remain open.
1. The latest figures show that small businesses create 75% of the net new jobs in our economy.
(adapted from the U.S. Small Business Administration) |
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