Want to see what your taxes would look like if the Bush tax cuts are left to expire? What about what they would look like under President Obama's proposed tax structure? This website will give you a quick look at just some of the main changes between the different administrations.
Bottom line, if the Bush tax cuts are allowed to expire for everyone, we are all looking at some major tax increases. Fortunately, I don't think anyone expects this to happen in an election year. This will bode well for lower income brackets, but I don't think anyone expects much relief for the higher income brackets.
So check it out, and see how politics can really impact your bottom line (to the tune of thousands if you have multiple kids)
Link
The treasury department has issued a ruling that beginning in 2011 most businesses will be required to use the EFTPS federal wire transfer system for payment of their employment taxes. There is a small exemption for those who pay in less than 2,500 per quarter.
So if you are still taking your federal tax deposit to the bank with form 8109, you should go ahead and get the EFTPS set up for your business so that you can hit the ground running in 2011. It is free and saves you a trip to the bank. However, it is a sign of the times when the federal government won't accept legal tender that it creates, that the rest of the business world uses daily without complaint, for payment of its own taxes.
By the way, the penalty for paying with a check rather than using the electronic transfer system is steep. Failure to use EFTPS when required results in a "failure-to-deposit" penalty of up to 15% of the amount required to be electronically deposited, even if the taxes are timely paid by paper. I would hope they would show grace during the transition.
Source 1
Source 2
So if you are still taking your federal tax deposit to the bank with form 8109, you should go ahead and get the EFTPS set up for your business so that you can hit the ground running in 2011. It is free and saves you a trip to the bank. However, it is a sign of the times when the federal government won't accept legal tender that it creates, that the rest of the business world uses daily without complaint, for payment of its own taxes.
By the way, the penalty for paying with a check rather than using the electronic transfer system is steep. Failure to use EFTPS when required results in a "failure-to-deposit" penalty of up to 15% of the amount required to be electronically deposited, even if the taxes are timely paid by paper. I would hope they would show grace during the transition.
Source 1
Source 2
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Here are a few notes on the federal COBRA Premium assistance program under the American Recovery and Reinvestment Act.
- Eligible workers pay 35 percent of the premium to their former employers.
- The employer receives a payroll tax credit on form 941/944 for the other 65%.
- To qualify you must have been involuntarily separated from your job between Sept. 1, 2008, and May 31, 2010.
- This subsidy is reduced if your filing status is single and your modified adjusted gross income exceeds $125,000 ($250,000 if you file a joint return). If your modified adjusted gross income exceeds $145,000 ($290,000 for joint filers), you do not qualify for the subsidy.
- For assistance-eligible individuals, the qualifying event must occur on or before March 31, 2010, and the COBRA subsidy may apply for up to nine months. (03/1710)
- An employer may reduce its payroll tax deposits during a quarter by the amount of subsidy provided during the quarter. However, in all cases, credit for the subsidy must be claimed on the employer’s payroll tax return.
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Mark your calendar, because in a few weeks you will be free from NC's sales tax, even if it is only on certain items, and only for a few days.
When: August 6-8, 2010
What Qualifies: Clothing, footwear, and school supplies of $100 or less per item; school instructional materials of $300 or less per item; sports and recreational equipment of $50 or less per item; computers of $3,500 or less per item; and computer supplies of $250 or less per item will be exempt from sales tax.
Source
When: August 6-8, 2010
What Qualifies: Clothing, footwear, and school supplies of $100 or less per item; school instructional materials of $300 or less per item; sports and recreational equipment of $50 or less per item; computers of $3,500 or less per item; and computer supplies of $250 or less per item will be exempt from sales tax.
Source
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Maybe you have received the email or heard the rumor going around that the new health care law is going to make your employer provided health care benefits a taxable benefit in the future. I know I have personally heard this rumor many times from different clients or acquaintances.
Well fortunately it is FALSE. The new health care law does require that your tax free benefits be printed on your W-2, but it is for informational purposes only, and not as additional income. It would be similar to the way your employer reports the retirement contributions on your W-2. It's purpose is twofold (as far as I can tell).
1. It proves to the IRS that you are covered under a health plan, and that you are not subject to the penalties that are assessed against the uninsured.
2. It proves to the IRS the value of your employer benefits, becuase insurance companies that provide high dollar "Cadillac Plans" will have to pay a tax beginning in 2018 on those plans. Note the insurance company pays the tax, not the employee (but don't kid yourself if you don't think that cost won't get passed on to the customer).
So the good news is that this benefit will continue to be a tax free benefit (as long as employers can afford to provide it). The bad news is that employers and payroll preparers will have a new task each year as they prepare the W-2 forms.
Link
Well fortunately it is FALSE. The new health care law does require that your tax free benefits be printed on your W-2, but it is for informational purposes only, and not as additional income. It would be similar to the way your employer reports the retirement contributions on your W-2. It's purpose is twofold (as far as I can tell).
1. It proves to the IRS that you are covered under a health plan, and that you are not subject to the penalties that are assessed against the uninsured.
2. It proves to the IRS the value of your employer benefits, becuase insurance companies that provide high dollar "Cadillac Plans" will have to pay a tax beginning in 2018 on those plans. Note the insurance company pays the tax, not the employee (but don't kid yourself if you don't think that cost won't get passed on to the customer).
So the good news is that this benefit will continue to be a tax free benefit (as long as employers can afford to provide it). The bad news is that employers and payroll preparers will have a new task each year as they prepare the W-2 forms.
Link
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By now you have probably heard that the new health care act passed by Congress will require businesses to send a multitude of new 1099's that they were not required to send in the past. Exemptions for corporations and suppliers under the old law have been removed beginning in 2012.
One congressman has seen the potential mountain of paperwork and burden this is going to create for taxpayers as well as the IRS who has to process all this info. He is introducing a bill that will repeal the 1099 mandate and restore the old rules. I think this is a bill that everyone can get behind.
One congressman has seen the potential mountain of paperwork and burden this is going to create for taxpayers as well as the IRS who has to process all this info. He is introducing a bill that will repeal the 1099 mandate and restore the old rules. I think this is a bill that everyone can get behind.
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If you have a binding contract on a home but weren't able to close by the June 30th deadline, you are in luck. Congress extended the Homebuyer credit deadline to September 30th. More details can be found here or at irs.gov
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