|
It All Add$ Up April News
|
Greetings!
Another tax season is behind us. With all the changes in the tax laws, tax codes and challenges with online filing due to delays by the IRS; it's been a challenging tax season for business owners and taxpayers alike. Proper planning is the key phrase throughout this month's newsletter and as your partner in bookkeeping services and tax preparation, Paxton Bookkeeping and Tax Services is committed to staying abreast of new IRS developments. We'd like to take a moment and thank our business clients and tax customers for entrusting their tax returns and tax planning with us. As we move into the next tax season we look forward toward our continued relationship.
We put the AX to your TAX worries!
Lauri
|
10 Key Words When It Comes To
Paying Taxes
With the changes in the tax codes and tax law  s, business owners find it hard to stay abreast of new rulings. Some small business owners think there's only one word (or at least the only one that can be mentioned here) when it comes to filing federal taxes: Confusion. The truth is that there are 10 words you need to know to be sure you pay no more taxes than you're legally required to pay. Be a savvy tax payer and business owner, but don't pay more than your fair share, click here to see what deductions you could be missing. The key point is to plan for 2013. By keeping accurate records throughout the year it helps to prevent costly surprises at tax time.
|
|
Medical Tax Deduction
Insurance premiums take a huge chunk out of a business owner's bottom line. A tax deduction is general  ly available to people who are self-employed. The deduction is for medical, dental or long-term care insurance premiums that self-employed people often pay for themselves, their spouse and their dependents. The insurance can also cover your child who was under age 27 at the end of 2012, even if the child was not your dependent. Health Insurance under Obamacare will affect many business owners in 2013. Be sure to take advantage of any deductions that may be available to you. Read on to see if you may qualify. |
|
Filing an Extension
There are two ways to get a six-month extension if you need extra time: File Form 4868 with IRS adding a check for any additional tax you expect to owe. But be careful not to lowball your estimate.
You can also e-file the 4868 or, for a fee, charge an extension-related tax payment on your credit card through an IRS-approved processor. In both cases, the new due date is Oct. 15. If you can't pay with your extension or when filing your return, file anyway to beat the 5%-a-month late filing levy. Use Form 9465 to set up an installment plan.
The IRS will waive the failure-to-pay penalty for some disaster victim taxpayers this year. Because Congress waited until Jan. to finalize the 2012 tax rules, the filing season started late for filers of many common forms. If these filers make a good faith effort to figure their tax bills with their extension requests but end up owing more taxes when they file, the Service will abate their late-payment penalties if they pay up in full by Oct. 15. See www.kiplinger.com/letterlinks/ftp for a list of affected forms. Finally, be sure to fine-tune your estimated tax payments and withholding payments for next year to avoid a hefty tax bill in 2013.
|
