Author Archives: Pat Michael

About Pat Michael

US-TaxLaws.com is your best source for professional tax preparation services with more than 30 years experience and thousands of satisfied clients.

IRS TAX SEASON DELAY?

Larger IRS2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume

IR-2013-82, Oct. 22, 2013

WASHINGTON — The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure. Continue reading →

Starting Social Security?

ARE YOU REALLY OLD ENOUGH TO START RECEIVING SOCIAL SECURITY?  

I’m sure you know that the earlier you start Social Security, the amount you receive differs greatly across 62-66-70, considered the “key ages”.

  • Early Benefit.  Start receiving at age 62.  If you start at age 62 your benefit is reduced by 25% (from what your earnings history makes you eligible for). On top of that, if you start between 62 and 66 – the deduction is prorated over the 48 months.  THIS IS YOUR BENEFIT FOR LIFE.  There is an earnings limit until you turn 66.  Then it stops.
  • Normal Benefit.  Age age 66, you receive the “normal amount, with yearly inflation adjustments.  No earnings limits apply.  In fact, earnings will now increase your benefit slightly.
  • Delayed Benefit.  For every month you delay after age 66, your benefit increase – but – NOT AFTER AGE 70.  The annual figure is about 8%.  No earnings limit apply.

2014 Tax Season IRS Update

2014 Tax Season to Start Later Following Government Closure; IRS Sees Heavy Demand As Operations Resume

Larger IRSIR-2013-82, Oct. 22, 2013

WASHINGTON — The Internal Revenue Service today announced a delay of approximately one to two weeks to the start of the 2014 filing season to allow adequate time to program and test tax processing systems following the 16-day federal government closure. Continue reading →

New IRS Healthcare Law Website for Individuals and Businesses

The IRS has launched a new Affordable Care Act Tax Provisions website at IRS.gov/aca to educate individuals and businesses on how the health care law may affect them.

small IRS logo for blogging

The new home page has three sections, which explain the tax benefits and responsibilities for individuals and families, employers, and other organizations, with links and information for each group. The site provides information about tax provisions that are in effect now and those that will go into effect in 2014 and beyond.

Topics include premium tax credits for individuals, new benefits and responsibilities for employers, and tax provisions for insurers, tax-exempt organizations and certain other business types.

Visitors to the new site will find information about the law and its provisions, legal guidance, the latest news, frequently asked questions and links to additional resources.

Several other federal agencies have a role in implementing the health care law, including the Department of Health and Human Services, which has primary responsibility. To help locate additional online resources from the Department of Health and Human Services, the Department of Labor and the Small Business Administration, the IRS has issued a new Web-based flyer – Healthcare Law Online Resources (Publication 5093).

Visit IRS.gov/aca for more information regarding the tax provisions of the Affordable Care Act.

May I Refuse to Care for a Child Who is Not Immunized?

A parent who wants to enroll in your family child care program tells you she refuses to immunize her child. What do you do?

Child Care Tax Specialists takes a look at the issues surrounding refusing a child into a Child Care program.  It is complicated, and there are a lot of exemptions.  Child Care Professionals have to know how to handle this kind of situation.

Read the full post at http://childcaretaxspecialists.com/may-i-refuse-to-care-for-a-child-who-is-not-immunized/

Second Half 2013 Tax Questions Just To Be Safe

Pat_003_S_Mid Year Tax Questions You Need To Ask  Yourself

This is a good time to take a look at your present financial picture.  Has your income or withholding changed in a significant way? If you are my client – then I need to know.

√  Most new tax rules affect incomes above $200K.  Will these new rules affect you?  If you aren’t sure how these new rules will affect your taxes, give me a call.

√  Are you sure you are withholding enough to cover your taxes?  Let’s go over your information, and make sure it is where it needs to be.  If it isn’t enough, and you need to make estimated tax payments, I can help you.

√  Significant changes in your income?  If so, it can have a big impact on your taxes.  Don’t get fooled by the “graduated tax rate”.  10% income increase can result in a 20% increase in your taxes.  Don’t wait on this, call me ASAP so we can be sure you are covered.

√  Life-Changing Events?    Divorce, Marriage? New Child?  All these shape how the government looks at you.  If there are job changes, home sale, moves, launching a new business, loss of a job or starting a new one, these are all important events that impact your financial profile.  Let me know about any of these.

√  Unscheduled Income?  Unemployment benefits, social security or pension, sale of an investment property or rental …. all of these can affect your tax rate also.  Let me know as early as possible so we can factor them in.

When it comes to taxes, I’m in a “need-to-know” capacity.  I need to know about anything that can affect your tax rate so you aren’t caught off-guard.

Have a great Autumn!

Small Business Health Care Tax Credit

This credit helps small businesses and small tax-exempt organizations afford the cost of covering their employees and is specifically targeted for those with low- and moderate-income workers. The credit is designed to encourage small employers to offer health insurance coverage for the first time or maintain coverage they already have. In general, the credit is available to small employers that pay at least half the cost of single coverage for their employees. Continue reading →

Reduce Your Taxes with Miscellaneous Deductions

IRS Summertime Tax Tip 2013-15, August 5, 2013

small IRS logo for bloggingIf you itemize deductions on your tax return, you may be able to deduct certain miscellaneous expenses. You may benefit from this because a tax deduction normally reduces your federal income tax.  Here are some things you should know about miscellaneous deductions:

Deductions Subject to the Two Percent Limit.  You can deduct most miscellaneous expenses only if they exceed two percent of your adjusted gross income. These include expenses such as: Continue reading →

What Information Will The IRS Disclose to HHS On Your Healthcare?

The IRS will disclose taxpayer information to assist the HHS in determining healthcare eligibility.  How will this affect you? 

On Aug. 13, 2013, the Department of the Treasury and the IRS issued final regulations with rules for disclosure of return information to the Department of Health and Human Services that will be used to carry out eligibility determinations for advance payments of the premium tax credit, Medicaid and other health insurance affordability programs. For additional information on the final regulations, see our questions and answers.

Continue reading →

Latest News on Same-Sex Marriage & Income Tax

Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples Continue reading →

Deadline for some same-sex marrieds is September 15, 2013

The IRS has released FAQs clarifying the Revenue Ruling 2013-17 .

Here is a link to the complete IRS FAQ. that make it clear that same-sex married couples must file extended 2012 returns by September 15, 2013, to file as single.

For tax year 2013 and going forward, same-sex spouses generally must file using a married filing separately or jointly filing status.

For tax year 2012 and all prior years, same-sex spouses who file an original tax return on or after Sept. 16, 2013 (the effective date of Rev. Rul. 2013-17), generally must file using a married filing separately or jointly filing status.

For tax year 2012, same-sex spouses who filed their tax return before Sept. 16, 2013, may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status.

For tax years 2011 and earlier, same-sex spouses who filed their tax returns timely may choose (but are not required) to amend their federal tax returns to file using married filing separately or jointly filing status provided the period of limitations for amending the return has not expired.

A taxpayer generally may file a claim for refund for three years from the date the return was filed or two years from the date date the tax was paid, whichever is later.

For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html.the tax was paid, whichever is later.
For information on filing an amended return, go to Tax Topic 308, Amended Returns, at http://www.irs.gov/taxtopics/tc308.html.

 

Affordable Care Act Tax Provision for Large Employers – Beginning October 1, 2013

In 2015 large employers will have annual reporting responsibilities concerning whether and what health insurance they offered to their full-time employees.

Some of the provisions of the Affordable Care Act, or health care law, apply only to large employers, generally those with 50 or more full-time equivalent employees.

Coverage

  • Beginning Oct. 1, 2013, if you have 50 or fewer employees, you can purchase affordable insurance through the Small Business Health Options Program (SHOP).
  • To learn more about market reforms and various plan requirements, visit HealthCare.gov Reporting

Reporting

  • Effective for calendar year 2015, you must file an annual return reporting whether and what health insurance you offered your employees. This rule is optional for 2014. Learn more.
  • Effective for calendar year 2015, if you provide self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover.This rule is optional for 2014. Learn more.
  • Beginning Jan. 1, 2013, you must withhold and report an additional 0.9 percent on employee wages or compensation that exceed $200,000. Learn more.
  • You may be required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.

Payment & Provisions

  • Effective for calendar year 2015, you may have to make a payment if you do not offer adequate, affordable coverage to your full-time employees, and one or more of those employees get a Premium Tax Credit. Learn more.
  • If you self-insure, you may be required to pay a fee to help fund the Patient- Centered Outcomes Research Trust Fund

Affordable Care Act Provisions for Small Employers, Beginning October 1, 2013

Some of the provisions of the Affordable Care Act, or health care law, apply only to small employers, generally those with fewer than 50 full-time employees or equivalents.

If you have fewer than 50 employees, but are a member of an ownership group with 50 or more full-time equivalent employees, you are subject to the rules for large employers.

Coverage

  • Beginning Oct. 1, 2013, if you have 50 or fewer employees, you can purchase affordable insurance through the Small Business Health Options Program (SHOP).
  • To learn more about how the Affordable Care Act may affect your business, visit HealthCare.gov.

Reporting

  • Effective for calendar year 2015, if you provide self-insured health coverage to your employees, you must file an annual return reporting certain information for each employee you cover. This rule is optional for 2014. Learn more.
  • Beginning Jan. 1, 2013, you must withhold and report an additional 0.9 percent on employee wages or compensation that exceed $200,000. Learn more.
  • You may be required to report the value of the health insurance coverage you provided to each employee on his or her Form W-2.

Payments & Credits

 

IT IS IMPORTANT TO CHOOSE A TAX PROFESSIONAL, SUCH AS AN ENROLLED AGENT, WHO KEEPS UP WITH THE RULES AND REGULATIONS AND USES THIS EXPERTISE TO DO THE BEST JOB POSSIBLE FOR EVERY TAXPAYER. 

R. Patrick Michael, EA, continues to provide tax preparation and financial consultation services since 1978.  Pat can be reached at  619-589-8680

 

Questions and Answers on Employer-Shared Responsibility Provisions Under the Affordable Care Act

Transition Relief for 2014 Under §§ 6055 (§ 6055 Information Reporting), 6056 (§ 6056 Information Reporting) and 4980H (Employer Shared Responsibility Provisions)

small IRS logo for bloggingNOT-129718-13
Notice 2013-45

 

I. PURPOSE AND OVERVIEW

This notice provides transition relief for 2014 from (1) the information reporting requirements applicable to insurers, self-insuring employers, and certain other providers of minimum essential coverage under § 6055 of the Internal Revenue Code (Code) (§ 6055 Information Reporting), (2) the information reporting requirements applicable to applicable large employers under § 6056 (§ 6056 Information Reporting), and (3) the employer shared responsibility provisions under § 4980H (Employer Shared Responsibility Provisions). Continue reading →

IRS Invites Public Comment on Recommendations for 2013-2014 Guidance Priority List

The Dept. of Treasury and IRS invite public comment on recommendations for items that should be included on the 2013-2014 Guidance Priority List.

The Treasury Department’s Office of Tax Policy and the Service use the Guidance Priority List each year to identify and prioritize the tax issues that should be addressed through regulations, revenue rulings, revenue procedures, notices, and other published administrative guidance. Continue reading →

IRS revises Guidance on W-2 reporting of Group Health Insurance Costs

Employers need to understand the latest IRS pertaining to the ACA, what their obligations are and have systems in place for tracking and calculating reportable costs. For many, the reporting requirement became effective for the 2012 tax year— but for qualifying small employers (filing less than 250 W-2’s) many of these obligations will take effect for the 2013 tax year.   Continue reading →

IRS Offers Businesses Voluntary Classification Settlement Program

Back in July we wrote about businesses that have treated workers as 1099 contractors (“Are you making a mistake with your 1099 Contractors?”), and pointed out that if the IRS determines that your workers are not 1099 contractors, but actually “employees”, you may be faced with unexpected payroll taxes and penalties. The IRS has created the VCSP program for businesses that want to voluntarily reclassify their workers as employees. Continue reading →