In This Issue
Your QuickBooks Audit
Tax Laws for Same Sex Marriages
PA Sales Tax Compliance
Deduction Questions?
Lauri Paxton
Lauri Paxton
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It All Add$ Up February News


In month's issue of It ALL Add$ Up, find out why you should consider auditing your QuickBooks Accounts and learn about the important tax laws for same sex legally married couples.  Be sure to read up on Pennsylvania's Sale Tax Compliance. 

We put the AX to your TAX worries!
                      
Lauri
IS IT TIME FOR A QUICKBOOKS CHART OF ACCOUNTS AUDIT?

QuickBooks Audit
Audit Your Chart of Accounts
Many business owners use QuickBooks to maintain their accounting records.  However over the course of the past year, perhaps business structure and/or offerings have changed.  Did you take the time to adjust your chart of accounts and add new entries into Cost of Goods Sold?

Perhaps you have packaged services differently or added new product lines.  Have those offerings been grouped appropriately to review profitability?  Your chart of accounts should be designed to fit your business.  Read on to see why this is important.
TAX LAWS FOR SAME SEX LEGALLY MARRIED COUPLES

From employee benefits, to tax considerations, same sex couples may have different rules and laws they must follow.  According to information from a recent Kiplinger Letter, "All legally married same-sex couples must file federal tax returns as married, even if the couple lives in a state that doesn't formally recognize their marriage." This means they will file their 1040s using joint or married-filing-separate status. But the rules for state tax filings depend on the law of the state where they reside.  Those living in states that OK their marriage will file state returns as married.  This affects residents of Calif., Conn., Del., D.C., Hawaii, Ill., Iowa, Maine, Md., Mass., Minn., N.J., N.M., N.Y., R.I. and Vt. Ditto for N.H.'s tax on interest and dividends.  The same goes for same-sex marrieds residing in Colo., Mo., and Ore., even though these three locales currently prohibit same-sex marriage in their states. Utah has flip-flopped, but now gives these couples a choice to file returns as married.

Twenty Three states require same-sex married couples to file separate returns: Ala., Ariz., Ark., Ga., Idaho, Ind., Kan., Ky., La., Mich., Miss., Mont., Neb., N.C., N.D., Ohio,
Okla., PA., S.C., Va., W.Va. and Wis. Also for Tenn.'s tax on interest and dividends.

So for same sex married couples living in Pennsylvania, separate state returns are required. 
PENNSYLVANIA SALES TAX COMPLIANCE

Sales Tax Sales tax can be added into QuickBooks to calculate the appropriate tax for your business.  With so many different municipality taxes and online sales it can be challenging to know what to tax and at what rate.  These tax rates must be set up manually in QuickBooks for each tax.  The challenge with Pennsylvania's tax law is in knowing which rate to charge.   The best way to do that if you're unsure is to contact your local tax office.  See why Forbes states that Pennsylvania's state tax laws are so complicated.
NOT ALL RECEIPTS ARE DEDUCTIONS

If your receipts aren't adding up or you have questions on year end deductions, capital equipment purchases or need to get caught up on your bookkeeping for year-end, contact us at (724) 359-5022.   

I hope you find these tax tips helpful.  If you have a topic you would like addressed, drop me a line.

 

Sincerely,
 Lauri

Lauri Paxton 
Paxton Bookkeeping and Tax Services