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Tax Tips Newsletter
Serving you since 1993
May 2013 - Vol 8, Issue 5
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Greetings!
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Summer is just around the corner. It may be a good time to evaluate your tax situation for 2013. Please let me know if you would like to schedule a tax projection.

We will be starting to work on returns for clients whose information is in the office, but on extension. If you have not gotten your information in yet, please do so. This is a good time of year for us to work on them. Even if you are only missing a K-1 we can still get everything else done.

I will be on vacation this week, May 12 - 19. I'll be checking my e-mails while I am gone. The office is open if you need to contact any of my staff.

Many thanks for your referrals. I appreciate your confidence in my staff and me.

If you're responsible for a nonprofit (tax-exempt) organization, have financial accounts in a foreign country, or need to pay some or all of your 2013 taxes through quarterly estimates, the following deadlines could be important for you:

MAY 15 Deadline for calendar-year tax-exempt organizations to file annual reports with the IRS. If the organization has gross receipts below $50,000, it can file an E-postcard rather than a longer version of Form 990.

JUNE 17 * Second installment of individual estimated tax for 2013 is due.

* Second quarter 2013 estimated tax payment is due for calendar-year corporations.

JUNE 28 The Foreign Bank Account Report (commonly called FBAR) must be filed if you have assets in a foreign account and the total value exceeds $10,000 at any time during the year. The FBAR is an annual information form, filed separately from your federal income tax return. The 2012 FBAR must be received (not just postmarked) by the Treasury Department no later than June 28, 2013. No extension is available, and penalties for failing to file are steep. You can also file electronically.

Please contact my office soon if you need assistance with any of these filing responsibilities.
Planning
It's midyear, and December is still a long way off - or is it? The bad news is time flies, and year-end will arrive sooner than you think. The good news is you still have time to identify opportunities to minimize your 2013 tax bill and to put plans into action.

The place to start is with an estimate of your 2013 income, sorting income into various categories such as wages, investments, retirement plan distributions, passive income, and active business income. Different tax rules apply to different kinds of income.

For instance, this year you'll pay an additional 0.9% Medicare tax on wages and self-employment income when the combined total of those items exceeds $250,000 on a joint return or $200,000 if you're filing as a single.

Two more reasons: The top tax rate on long-term capital gains is increased this year to 20% when you're in the top ordinary income tax rate (39.6%). And a 3.8% Medicare surtax may apply to net investment income, such as interest, dividends, and capital gains, if your adjusted gross income (AGI) exceeds $250,000 for couples or $200,000 for singles.

Another incentive to do an early income projection is the return this year to limits for higher-income taxpayers on personal exemptions and itemized deductions. These limits apply once your AGI exceeds $300,000 for marrieds or $250,000 for singles.

For guidance in your midyear assessment and tax-savings suggestions suited to your individual situation, contact my office. Put time on your side if you want to manage your tax bill for 2013.
Tax Tip of the Week: Has your tax refund gone astray? If you are expecting a refund on your 2012 tax return and have not received it or if you received a different amount than on your return, there's a problem. Read this article for info on what to do.

Business Tip of the Month: Do you have opportunities to expand your business? Some things may look viable but may just be the thing that moves your company into financial chaos. Read this article for some good advice about what to look for when opportunities arise to grow your business.

Financial Tip of the Month : Is the settlement statement of a mortgage loan too overwhelming for you to understand? Well, you're not alone but it does pay to go through each charge and ask questions. It is possible to be overcharged by just a few dollars or up to hundreds of dollars. Don't be afraid to go over the statement with your broker. It's your money!

Fraud Alert: The scam artists will go after anything of value and use anything to get something of value away from you. Apparently, frequent flyer miles have attracted the fraudsters as there is value in those miles! Read this article to be aware of what you can do so that you won't lose or be scammed out of those miles that you've collected.

https://www.facebook.com/pages/Linda-L-Heineman-CPA/266124360085715?ref=tn_tnmn

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Sincerely,
Linda Heineman
Linda L. Heineman, CPA

phone: 626-577-0979