2018 Estimated Income Tax Refund Dates

2018 Estimated Income Tax Refund Dates

Are you expecting a tax refund for 2017? The IRS started processing returns on January 29. If you’re one of the millions of Americans who are asking, “When can I expect my income tax refund?” we have the answer. It depends on a couple of things, but the good news is that there are several tools to help find out. First of all, taxpayers who use a professional, such as a CPA or EA, can ask that professional for an estimated date. Taxpayers who’ve already filed can also go to the Internal Revenue Service’s website, which has a tool designed specifically for that called, “Where’s My Refund?” [For the latest information on deductions and tax brackets in the 2018 GOP tax reform, go to this article: www.cpapracticeadvisor.com/12387105 or our index of articles about the tax reform law: www.cpapracticeadvisor.com/12390237.] There are also apps for Apple, Android and other devices that help track refund status. Note: The IRS will not start processing returns with the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) until mid-February 2018.   IRS Accepts between these dates Direct Deposit Sent Paper Check Mailed 1/29/18 – 2/2/18 Friday 2/9/18 Friday 2/9/18 2/5/18 – 2/12/18 Friday 2/16/18 Friday 2/16/18 2/10/18 – 2/15/18 Friday 2/23/18 Friday 2/23/18 2/15/18 – 2/24/18 Friday 3/2/18 Friday 3/2/18 2/24/18 – 3/3/18 Friday 3/9/18 Friday 3/9/18 3/3/18 – 3/10/18 Friday 3/16/18 Friday 3/16/18 3/10/18 – 3/17/18 Friday 3/23/18 Friday 3/23/18 3/17/18 – 3/24/18 Friday 3/30/18 Friday 3/30/18 03/24/18 – 3/31/18 Friday 4/6/18 Friday 4/06/18 03/31/18 – 4/7/18 Friday 4/14/18 Friday 4/14/18 4/7/18 – 4/14/18 Friday 4/20/18 Friday 4/20/18 4/14/18 – 4/21/18...
Recent CA Fires and Property Tax Relief

Recent CA Fires and Property Tax Relief

Are you a resident of California affected by the recent fires? There have been emergency proclamations in the counties of Santa Barbara, San Diego, Los Angeles, and Ventura. The state of emergency has caused building owners to ask about whether property taxes need to be paid if a building is burned down. Thankfully, the answer to that question is no. Revenue and Taxation Code section 170 says that if a fire occurs (or an earthquake or flooding) and causes damage, you are eligible for property tax relief if your county has an ordinance that allows it. The good news is that every county in California, except Fresno, has adopted an ordinance for disaster relief. Property tax relief applies to owners of real property, business equipment and fixtures, orchards or other agricultural groves, and to owners of aircraft, boats, and certain mobile homes. The property taxes will be reduced for whatever portion of the property that is damaged or destroyed. In order to qualify for property tax relief, you must file a claim with your county assessor within the time specified in your county ordinance, or 12 months from the date of damage or destruction, whichever is later. The loss estimate must be at least $10,000 of current market value in order to qualify. You can find the form for reassessment for property damaged or destroyed on your county’s website. They will instruct you on the steps afterwards. Now you may wonder in the case that your house was destroyed in a Governor-labeled disaster, “Can I buy another house in the same county or a different county and transfer the...
Deductibility Guidelines for Charitable Donations

Deductibility Guidelines for Charitable Donations

Do you enjoy making donations to charities and having the benefit of a tax write-off for your contribution? It’s important to understand the tax provisions that apply to these donations, especially contributions of clothing, household items, and monetary giving. Rules for Clothing and Household Items Clothing and household items must generally be in good condition including furniture, furnishings, electronics, appliances, and linens. Guidelines for Monetary Donations A taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank, and credit card statements which should show the name of the charity, the date, and the amount paid. Donations of money include those made in cash or by check, electronic funds transfer, credit card and payroll deduction. For payroll deductions, the taxpayer should retain a pay stub, a Form W-2 wage statement or other document furnished by the employer showing the total amount withheld for charity, along with the pledge card showing the name of the charity. These requirements for the deduction of monetary donations do not change the long-standing requirement that a taxpayer obtain an acknowledgment from a charity for each deductible donation (either money or property) of $250 or more. However, one statement containing all of the required information may meet both requirements. Contributions are deductible in the year made. Thus, donations charged to a credit card before the end of this year count for that year even if the credit card bill isn’t paid until later. If checks are postmarked by December 31, they still qualify...
2017 Federal FUTA Credit Reduction Rates Announced

2017 Federal FUTA Credit Reduction Rates Announced

Are you an employer who must take into consideration the credit reduction when filing your FUTA tax return for 2017? A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. If a state has outstanding loan balances on January 1 for two consecutive years and does not repay the full amount of its loans by November 10 of the second year, the FUTA credit rate for employers in that state will be reduced until the loan is repaid. This year there are only two locations that must pay higher taxes above the regular FUTA rate for 2017. These are California and the Virgin Islands. Each must pay an additional 2.1% tax for each employee’s wages up to the $7000 limit. The Virgin Islands is also subject to the Benefit Cost Rate (BCR) additional credit reduction formula for having passed five consecutive January 1’s with an outstanding federal advance. The BCR add-on is an additional 1.1%. The standard FUTA tax rate is 6.0% on the first $7,000 of subject wages, but employers may receive a credit of 5.4% when they file their Form 940 Employer’s Annual Federal Unemployment Tax Return, to result in a net FUTA tax rate of 0.6% (6.0% – 5.4% = 0.6%). The FUTA credit reduction is reported on the annual 940 tax return. Any increased FUTA tax liability due to a credit reduction is considered incurred in the fourth quarter and is due by January 31 of the following year. If you...
10 Big Tax and Accounting Issues

10 Big Tax and Accounting Issues

Entrepreneurs usually aren’t surprised by the amount of work it takes to get a business up and running and become successful. But these same small business owners are often blindsided by the time and effort required for tax and accounting issues. It’s an important aspect that is often overlooked. Specifically, the following ten issues are critical to small business owners and might even “make or break” the operation. 1. Form of business: The business may be formed as a C corporation, a pass-through entity like an S Corporation, limited liability company (LLC) or partnership, or a sole proprietorship. Generally, C corps provide greater protection from creditors, but result in “double taxation” on earnings. 2. Estimated taxes: As with individual taxpayers, businesses must take a “pay-as-you-go” approach with tax liability, reporting and paying taxes on a quarterly basis. This applies regardless of the form of business ownership. 3. Ordinary and necessary expenses: The tax law provides current deductions for numerous “orderinary and necessary” business expenses ranging from paper clips to office furniture. But the law is also ridled with numerous special rules and requirements. 4. Independent contractors: Employers must pay payroll taxes on employee wages, but not on amounts paid to independent contractors, such as most outside workers hired for specified projects. The IRS often contests the employment status of workers. 5. Inventory valuation: The company must value the items included in its inventory. Initially, the value is the cost, but these figures are being constantly updated as items gets sold and restocked, with accompanying tax results. 6. Section 179/ depreciation: Under Section 179 of the tax code, a company...
ACA: IRS Releases 2017 Reporting Forms

ACA: IRS Releases 2017 Reporting Forms

Are you up to date with your knowledge on your company’s reporting requirements? An article shared by CalChamber informs employers about the 2017 Affordable Care Act (ACA) tax reporting forms and instructions. With no changes to the Affordable Care Act (ACA) on the horizon, employers must remember their reporting requirements. The Internal Revenue Service (IRS) recently released final forms and instructions for 2017 ACA tax reporting, as detailed below. It is federally mandated that employers with 50 or more full-time or full-time equivalent employees must report information about the health care coverage, if any, they offer. The updated forms and instructions to do so are: File 2017 Form 1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns with the IRS; Furnish 2017 Form 1095-C Employer-Provided Health Insurance Offer and Coverage to each full-time employee and file with the IRS; and Review the IRS’s Instructions for Forms 1094C and 1095-C for guidance. For employers that sponsor self-funded minimum essential coverage plans, the required forms and their instructions are: File 2017 Form 1094-B Transmittal of Health Coverage Information with the IRS; Furnish 2017 Form 1095-B Health Coverage to the enrollee and file with the IRS; and Review the IRS’s Instructions for Forms 1094-B and 1095-B for guidance. Deadlines For 2018, the deadline to furnish the 2017 Form 1095-B or Form 1095-C to the employees or individuals is January 31, 2018. The deadlines to file ACA forms with the IRS depend on whether you are filing a paper form or filing electronically. The deadline to paper file all 2017 Forms 1095-C or 1095-B, as well as the appropriate transmittal Form...

Pin It on Pinterest