WASHINGTON — The Internal Revenue Service today reminded small business owners who work from a home office that there are two options for claiming the Home Office Deduction. The Home Office Deduction is often overlooked by small business owners.
As part of National Small Business Week (April 30-May 6), the IRS is highlighting a series of tips and resources available for small business owners.
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The Internal Revenue Service released the 2018 inflation-adjusted limitations for health savings accounts Thursday.
In Revenue Procedure 2017-37, the IRS said the annual contribution limitation on deductions for an individual with self-only coverage under a high deductible health plan is $3,450. For calendar year 2018, the annual limitation on deductions for an individual with family coverage under a high deductible health plan is $6,900. HSAs typically require high deductibles, but they allow people to set aside money from their paychecks on a pre-tax basis for medical expenses.
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In this video, Entrepreneur Network partner Brittney Castro explains three good ways you can spend the money you get from your tax refund. The first way is to fund an IRA, so you can invest your money into retirement. To maximize the investment, Castro stresses the importance of meeting with a financial planner for this step to decide which kind of IRA would be best for you.
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WASHINGTON — Tax day has come and gone for most people, but some taxpayers may still be dealing with their taxes. The IRS offers these tips for handling some typical after-tax-day issues:
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HUDSON VALLEY, NY — Early-bird taxpayers have already collected their income tax returns, while procrastinators have an extra weekend to submit their tax returns in 2017. Because of a holiday in the nation’s capital, the filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date, which falls on a Saturday.
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The Internal Revenue Service said Wednesday it has a total of $1 billion worth of unclaimed tax refunds waiting for people who have not filed a 2013 income tax return.
The IRS estimates half the refunds are over $763, while the other half are less than that amount. Taxpayers can claim their refunds by filing a 2013 federal return by Tuesday, April 18, 2017, the filing deadline for this year.
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The joys of homeownership are many: Your own house is a place to make sweet memories, build a financial nest egg, and whittle down your tax bill. Wait, what? Yep, it’s true: Your home can save you a bundle on April 15.
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One of the advantages of operating your own business is hiring family members. However, the employment tax requirements for family employees may vary from those that apply to other employees. Click Below, to learn more about operating a husband and wife business.
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The IRS has become more strict with 1099 filings by assessing harsher penalties. The penalties associated with missing the deadline or not filing 1099s can range from $30 to $100 per form, with a maximum fine of $500,000 per year. If the IRS determines there is intentional disregard of the requirements, the penalty can reach as high as $250 per form, with no maximum. For the 2016 calendar year, 1099s are due on January 31, 2017.
IRS Form 1099-MISC summarizes income from all non-employee compensation. You must send out a Form 1099-MISC to all contractors you have hired and paid $600 or more during the year; this includes any partnerships or LLCs you may have contracted throughout the year. Note: Form 1099 is not required to be issued to Corporations (“Inc. or Corp”). However, a Form 1099 must be issued to all lawyers and law firms you have hired, regardless if they are incorporated.
Federal Form 1099-MISC must be issued under the following conditions:
- If you paid at least $600 in:
- Services performed by someone who is not your employee;
- Attorney and legal fees;
- Prizes and awards;
- Other income including punitive damages and deceased employee’s wages;
- You paid at least $10 in royalties, broker payments in lieu of dividends or tax-exempt interest;
- Direct sales of at least $5,000 of consumer products to a buyer for resale anywhere other than a permanent retail establishment;
- Director’s fees and other remuneration, including payments made after retirement;
- You withheld any federal income tax under the backup withholding rules regardless of the amount.
In order to ensure a timely filing of Form 1099, we will need complete information as soon as possible. If you haven’t done so yet, please obtain a completed Form W-9 (Request for Taxpayer Identification Number) from each independent contractor who received payments of $600 or more during the current year.
Additional information that is needed to prepare Form 1099-MISC is the dollar amount paid in 2016 and the state in which the service was performed. Typically, this is the home state of the payer; however, if services were received in various states, please specify the state for tax filing purposes.
If you have any questions, please feel free to contact our office.
RotenbergMeril is a CPA firm with offices in the NY/NJ Metropolitan Area. According to both the NJBiz Journal and New Jersey Business Magazine, we are ranked as one of the top accounting firms based in Northern New Jersey, servicing clients across the USA and worldwide. The firm is PCAOB registered and a member of both the Center for Public Company Audit Firms, the Employee Benefit Plan Audit Quality Center, and the Forensic Valuation Services (FVS) section of the American Institute of Certified Public Accountants. RotenbergMeril has a dedicated Litigation Support and Valuation Services Group.