Corporation Tax Deadline

The deadline for filing federal calendar year corporation returns is rapidly approaching. These returns must be filed (e-filed or postmarked) by midnight (local time) on March 15, 2016. The deadline is the same for extensions.

Payment must accompany the return or extension if there are taxes due. An extension of time to file does not extend the time to pay taxes that are due.

March Tax Moves

Hello All, we are now 28 days from our tax filing deadline and some of us still have not had our income taxes prepared.  I wrote this blog for those that are still in need of tax tips this march.

March 17: Happy St. Patrick’s Day! Don’t depend on lucky charms to get you through the filings season. Start your first draft of your IRS return.

March 19: Early spring cleaning — Consider getting rid of all the junk that piled up over the winter. Some of it might make for welcome charitable donations. Just be sure the items meet the IRS “good ” standard. And don’t forget to get that receipt!

March 23: Things are finally warming up, so it’s time to check out your air conditioner. If you got a new energy-efficient one in 2009, be sure to claim the home improvement tax credit, which could save you as much as $1,500. If you didn’t make any energy upgrades to your house last year, don’t despair. This tax break is available for 2010, too.

March 30: Still waiting for your tax refund? Track it down with the IRS’ online refund locater, Where’s My Refund?

February Tax Moves

 

Feb. 1: If you didn’t make your final 2009 estimated tax payment on Jan. 15, you can file your 1040 and pay any due taxes today to ensure you won’t face underpayment penalties.

Feb. 1: also is the deadline for most employers to get workers’ W-2 forms in the mail. It’s usually Jan. 31, but since that date fell this year on the weekend and pushed the deadline to the next business day.

Feb. 8: Be on the lookout for tax forms and statements that are straggling in this week. In addition to your W-2 from work, investment tax statements will be arriving, too.

Set up a system (a filing cabinet drawer or at least a box or envelope to collect them) so everything will be organized and handy when you get ready to file your return.

Feb. 10: Does your job include tips? If so and you received $20 in tips in January, use Form 4070 to report them today to your employer.

Feb. 14: Happy Valentine’s Day! Do you and your better half file a joint return? Most married couples do, but sometimes it’s a good idea, as one presidential nominee learned, to send in separate 1040 forms.

Feb. 15: Today is Presidents Day. Be sure to especially remember Abraham Lincoln, who signed into law an income tax to help pay Civil War costs.

Feb. 15 also is the day you must file a new W-4 with your employer if you claimed exemption from income tax withholding last year and want to continue to do so in 2010.

Feb. 22: Still don’t have your tax documents? It is possible to file your Form 1040 without them. You can file using a replacement W-2 and get the financial information you need even if even if you’re missing some 1099 forms.

Feb. 26: Were you an early filer? You probably did so because you’re getting a refund. You can check the status of you tax cash at Where’s My Refund?

Small Business Tax Calendar — February: Important filing, deposit and record keeping dates your company needs to know.

Fatten Your Paycheck and Still Get a Tax Refund

 

If you usually get a tax refund, but would like to start putting more money in your pocket every month, this blog can help.

Could you use more money in your pocket each month?

The average tax refund for 2008 was almost $2,700.

That means, on average, taxpayers who get refunds let the IRS take about $225 more out of their paychecks each month than the government deserves.

But here’s the good news: You can put an end to that over withholding, fatten your paychecks, and still get a tax refund at tax time.

All you have to do is file a revised 2009 W-4 Form with your employer. The information on the W-4 determines how much federal income tax is withheld from your checks.

The more “allowances” you claim on the form, the less tax is withheld from your pay.

How do you know how many allowances to claim so that your witholding matches your tax bill? Worksheets that come with the W-4 will help. You can also use the IRS Withholding Calculator. 

This method is designed as a rough guide. Goal number one is to get you motivated to grab a W-4 and pinpoint how many allowances you should be claiming. Goal number two is for you to get more of your money as you earn it rather than having to wait for a tax refund next spring

10 Tax tips for the 2010 tax season – Incentives For Individuals

BIG changes coming with tax year 2009 returns:

 Making work pay credit:

   The making work pay credit is a refundable tax credit for 2009

   and 2010, is the lesser of 6.2% of the individuals earned income

   or $400 ($800 for married filing joint)

Economic recovery payment:

   Certain fixed income individuals are receiving a one-time

   recovery payment of  $250 in 2009.

First -time homebuyer credit:

  The first time homebuyer credit, a 2008 credit that has been

  widely publicized by real estate firms was extended and change

  for 2009. For home purchases made after December 31, 2008, 

  the credit has been raised to $8000 (from $7500).

Temporary tax deduction on car purchases:

  This benefit is actually an above the line deduction for the

  state sales tax local sales taxes, and excess taxes paid by a

  purchaser of a new vehicle. To qualify a tax payer

  must have purchased the vehicle for use between February 17

  and December 31, 2009. Deductible taxes can’t exceed the

  portion attributable to the first $49,500 of the price paid.

American opportunity tax credit:

   American opportunity credit is a reworking of the hope  

   education credit and has been enhanced in the following ways:

1.      Amount increased to a maximum of $2500 from 1800

2.      100% of the first $2000 with a maximum $2500 per year allow on qualified payments of $4000

3.      Apply for all for your colleges

Qualified tuition programs (529):

  Changes in qualifying expenses have been made to tax-free  

  college savings plans for 2009 and 2010.  A beneficiary of a

  qualified tuition program can now use distributions to pay for

  computers and computer technology including Internet,

  distributions are tax-free.

Earned income credit (EIC):

   For 2009 and 2010 EIC percentage is increased to 45% of  

   the first $12,750 of earned income credit for taxpayers who

   have three or more children.

Child tax credit:

   In another child related credit the refundable part of the child

   tax credit is increase for 2009 and 2010.  The income threshold

   is now set at $3000 down from $8500. The full

   credit amount is still $1000.

Unemployment compensation:

   Generally a taxpayer’s gross income must include all 

   unemployment compensation benefits receive.  In 2009 only

   up to $2400 of unemployment compensation is excluded from

   gross income.

Transit benefits:

   Transit passes Van pooling qualified parking and other qualified

   transportation fringe benefits are not typically including in the

   employee income up to certain dollar amount. In March 2009

   this dollar amount was increased to $230 ( up from $120 ) per

   month for transit  passenger and pooling.