It's busy here at Wayland & Vukadinovich

It's year-end tax planning time at Wayland & Vukadinovich. We're taking classes, we're reviewing software, we're working with many of you to reduce your tax hit either this year or next - we're busy!

The office was buzzing last week because the 2013 tax guidebooks hit the mailbox - it doesn't get any more  exciting in a tax preparation office than when those guidebooks wander in!

We wish you a very happy holiday season!

What can I do before year end.....

Well,that's a good question.

As we write (or, actually, as we type this), Congress and the President continue to debate about what to do with next year's tax rates which has a major impact on what you might want to do this year - stay tuned, it's likely that they'll announce something about 10pm on New Year's Eve - just in time for you to make some last minute changes before you head off to your New Year's celebration.

Despite these issues you can still consider -

• Making last minute charitable gifts. If you think Congress may reduce your deduction for charitable  gifts next year, consider making a large donation to a donor-advised fund which allows you to specify where you want the money to go in later years;
• Make gifts up to $13,000 to relatives, friends (or as we always suggest, to us here at Wayland & Vukadinovich - no one every listens to us, but we still try!);
• Prepay state taxes;
• Contribute to the 529 educational savings account you have previously established for your kids;
• Prepay your April property tax installment;
• Accelerate medical expenses if you have already spent large amounts on medical expense this year;
• Review your stock portfolio to harvest possible stock losses or - you may want to take gains this year if you believe rates will increase next year.

Our Appointments....

We can help with preparation of your tax returns several ways

You can -

Email us your information;

Mail us the information;

Send us a completed organizer or

Come in for an  appointment.

If you'd like an appointment, call us sometime after

December 15th

and we will have our appointment book open and ready.

If you'd like one of our long-form organizers

(either the paper or electronic version),

call Gina in our office. Gina, displaying the proper concern about privacy, will grill you to make sure you are who you say you are before she sends you the organizer.

If you've used a paper long-form organizer in the past, consider upgrading to an electronic version - they're easy to use and helpful for us.

Our regular, traditional 1-page organizers, the short-form version, will go out in the mail near year-end.

Standard Mileage Rates Go UP in 2013

Who says the IRS doesn't have a heart?

They've announced that standard mileage rates for use of a vehicle will go up 1 cent per mile in 2013.

For business use of a car, the 2013 rate will be 56.5 cents per mile.

Driving for medical or moving purposes may be deducted at 24 cents per mile, but it appears the IRS won't be charitable for charitable driving as rates for charitable organization driving remains at 14 cents per mile.

Social Security Benefits

If you've been receiving social security benefits, there's news ahead as the Federal government announced that benefits will increase by 1.7% - an average of $19 per month for many people - starting next year.

Social Security payments average $1,131 a month or about $13,570 a year so a 1.7% increase amounts to a $19 increase each month or about $230 a year.

My father used to say that those social security increases he saw were given to him because he was such an exceptional retired person, that he deserved the raise.

Californian's Tax Burden Increases

In November the voters of California passed Proposition 30.

You who have long since left the great state of California can move  past this article.

The proposition increases the sales tax rate by 1/4 of 1 cent for four years.

The proposition also increases personal income tax rates on upper-income taxpayers for seven years STARTING in 2012 - make sure you consider the increase during your tax planning efforts at year end.

Rates (for joint filers) go from 9.3% to 10.3% if your taxable income is between $500,000 and $600,000;

Rates go from 9.3% to 11.3% if your taxable income is between $600,000 and $1 million and

Rates go up from 9.3% to 12.3% if your taxable income is over $1 million.

Can you help me with my refinance?

Once again, rates are headed lower, and once again, you've reached out to us to assist you in your quest for the PERFECT home mortgage interest rate, asking that we provide your banker with electronic copies of your tax returns, letters explaining that South American oil drilling partnership that went bankrupt, and other information that those intrusive underwriters seem to need to refinance.

Remember - we're happy to honor your requests for electronic copies of your documents (usually, at no charge) although we can only provide YOU with a copy as we can't provide copies to 3rd parties without your signed, original, written authorization. Note also that letters and other responses you or your underwriters might ask us to provide will usually generate a billing -

we're thrilled to help but we have to make a living!

Foreign Bank Accounts

This is just another reminder to tell us about any foreign bank accounts for which you have signature authority. These accounts must be  reported to the US Treasury Department and any interest or earnings from the accounts MUST be reported on your US personal income tax returns.

1099s and W-2s

This month is a great time

(okay, not a great time but a really good time)

to review your payroll and outside contractor information to insure that you have everything correct.

You need to issue W2s and 1099s by January 31st and checking addresses, SSNs and other information now makes that process go much easier.

SDI Rates

The 2013 state disability rates have been announced by those great people up at the

Employment Development Department

 (and you thought CPAs were boring!).

In 2013, the rate for SDI taken from your paycheck remains at 1% but the wage base goes to $100,880, up from $95,585 last year.