If you paid a household worker, such as a gardener, housekeeper, or nanny, more than $1,700 in 2011 (or will pay more than $1,800 in 2012), you may be liable for payroll taxes on the wages paid. Failure to pay the payroll taxes can lead to substantial penalties. Click on the following link for a [...]
The IRS recently announced that the mileage rate for business driving in 2012 will be 55.5¢ a mile. The rate can be used for cars, vans, pickups, and panel trucks. Companies that don’t want to keep track of the actual costs of using a vehicle for business purposes may use this standard mileage rate instead. [...]
Get the documentation you’ll need for all your 2011 charitable contributions, or you risk losing your deduction. Even gifts under $250 require a bank record or a receipt from the charity. Related articles What kind of recordkeeping system do I need? Part 1 (taxtipsselfemployed.wordpress.com) Heed the rules for deducting charitable contributions (knowtaxes.com) Not All Giving [...]
Gather the items you need to file your 2011 tax return — W-2s, 1099s, and other forms you receive from your employer, broker, bank, etc. If you detect errors, contact the sender immediately for a corrected copy. Related articles Do Your Children Need to File a 2011 Tax Return? (knowtaxes.com) Completing Unfiled Tax [...]
Check your children’s need to file a 2011 tax return. A return is needed if wages exceeded $5,800, the child had self-employment income over $400, or investment income exceeded $950. If the child had both wages and investment income, other thresholds apply. Contact us for any filing assistance you may need. Related articles Should I [...]
Now is an ideal time to review your financial affairs. You have to gather information to prepare your tax return at this time. Why not take one more step and do something positive for your financial well-being? The following suggestions will get you started on your financial review: * Hold a discussion with your [...]
In December 23, 2011, Congress finally approved a two-month extension of the payroll tax cut for American workers. The agreement was reached after weeks of partisan bickering. Though both Democrats and Republicans wanted a one-year extension of the tax cut, they could not agree on how to pay for a year-long extension and settled on [...]
* January 17 – Final 2011 individual estimated tax payment is due, unless your 2011 tax return is filed and taxes are paid in full by January 31, 2012. * January 17- Due date for calendar-year trusts and estates to pay final installment of 2011 estimated tax. * January 31 – Employers must furnish employees [...]