Upcoming Due Dates

February 11, 2013
Employees Who Work for Tips
If you received $20 or more in tips during January, report them to your employer

February 15, 2013
Individuals
If you claimed exemption from income tax withholding last year on the Form W-4, you must file a new Form W-4 by this date to continue your exemption for another year

February 28, 2013
All Businesses
Send copies of 1099s and W-2s to governments along with withholding reconciliations

Plan For The Additional Medicare Tax In 2013

While you're engaged in the annual January ritual of repairing and preparing your tax plan, one change to keep in mind is the new additional .9% Medicare tax on your wages and self-employment income.

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I figure there are at least 3 obligatory articles to produce. Individual changes, business changes and health care reform. Last week was individual changes, below are the business changes. I’ll work on health care shortly but in the meantime, if you have more than 50 employees within your company or companies under your control, make sure you are talking to your insurance broker. I hijacked some of the following comments from other sources.

Here is a summary of the changes

• The 50% bonus depreciation is back and better than ever. This was my single biggest fear for our growth clients. Deducting the construction costs of new retail and restaurant locations has allowed for an incredible benefit for growth.
• The Section 41 research tax credit has been extended. Although complex, think about whether you design, develop or improve products, processes, techiques, formulas or software. If you do, we can take a look at using this credit.
• The Work Opportunity Tax Credit for hiring veterans and other individuals who meet specific criteria. The criteria include ex felon, those living in a designated community zone, summer youth employees, and a few others. Look at the instructions for form 5884 at www.irs.gov for more specifics or give us a call.
• The 100% exclusion for gains on a sale of small business stock. Also called section 1202 stock, if you purchased small business stock after 9/27/2010 you will be able to exclude the gain if you hold it for more than 5 years.
• Special tax incentives for businesses located in empowerment zones. Check www.hud.gov/crlocator to see if you are in a zone.

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