Join us for our Core Builders Class, a three-day workshop designed for attendees to learn the framework of business. The first session will be held in El Paso on May 8-10, and an identical session will be held in Albuquerque on October 23-25.
For more information, visit our Classes page, or contact Matthew Evans at firstname.lastname@example.org to sign up.
Ready to grow your money? Growing a crop takes good seeds. Financial Coach Greg Pare explains the importance of our behaviors and attitudes towards money and how those affect the quality of money seeds that we are planting.
Auditors and auditees set out each year to have a successful audit. We believe that these three keys will assist you as an auditee in having an efficient, stress-free audit.
Many utilize automated payments coming out of their checking accounts. Is that a convenience factor or opportunity for disaster? And what about automated savings? Personal Finance and Small Business Coach Greg Pare urges you to automate your savings.
"I will be with you." That's the simplest, shortest explanation of the two points that Financial Coach Greg Pare deals with as he visits with couples and individuals all over the world.
The New Mexico State Auditor's Office sent out communication regarding changes to the 2017 State Audit Rule last Wednesday morning. The changes relate to giving an opinion on every fund and due dates for submission for certain entities. Click more to read a full explanation.
Is giving part of your financial plan? It should be IF you’re in position to do so. That’s where Financial Coach Greg Pare urges us to go and the reasons why in this post.
December doesn’t have to be a stressful month financially! Personal Finance Coach Greg Pare reminds us of some extra expenses that might sneak up on us, and he gives tips on how to plan for them in the future.
As you may be aware, there have been several changes in due dates for some federal tax returns, which will be effective for the 2017 filing season or the 2016 tax year for calendar year-end filers. These modifications relate mostly to flow-through entities, including S corporations and partnerships that provide Schedule K-1s (partner’s/shareholder’s share of income, deductions, credits, etc.), containing investment information of partners/shareholders. Click "more" to find out if this will effect you.
I get the whole separation of church and state thing, and I often get on my soap box about how the government should wake up and see the good that charitable organizations do for society and be more supportive of them. Well dig this!
On February 25, the FASB issued the long-awaited new leasing standard (known in the trade as ASU 2016-02 - Leases (Topic 842)). The final standard contains no surprises from what had been previously discussed.
Most people probably don’t give to charities just for tax purposes, but being a CPA it’s in my blood to at least consider it. After all, less taxes equals more giving, right? Following is a tax planning thought if your itemized deductions are right on the bubble of being able to get the tax break.
This year, the last minute extender legislation passed as part of the Consolidated Appropriations Act, 2016 (the Act) contains good news for just about everyone. It makes many of the long-favored tax breaks (so-called extenders) permanent and retroactively extends (some for five years, others for two years) the rest of them, and, for the cherry on top, it throws in a few new tax breaks as well. In fact, about the only downside is that the retroactive extension left precious little time to take advantage of the tax breaks for 2015, but not for future years. Taxpayers will finally be able to determine with relative certainty (as much as there is certainty with taxes) the impact of these tax provisions on their long-term financial and business planning decisions. Click here for a quick summary of the most important tax changes.
Don't forget to choose your depreciation safe harbor elections now, before it's too late. Forms are provided here...
Estates of decedents who died after December 31, 2010 may elect to transfer any unused estate tax exclusion to the surviving spouse. The amount received by the surviving spouse is called the “deceased spousal unused exclusion” (DSUE) amount. Making this election can have a profound effect on the taxation of the estate of the surviving spouse.
The Earned Income Tax Credit (EITC) is a refundable credit primarily for lower-income individuals and couples with qualifying children. The credit first offsets any tax liability of the taxpayer(s), and any credit left over is fully refundable. For 2013, the credit can be as much as $6,044 for a taxpayer with three children. The IRS reports that in the past, 1 in 5 individuals who qualified for the credit failed to claim it.
The credit is based on an individual’s financial, marital, and parental status for the year. The credit increases with earned income until the maximum credit is reached and phases out for higher-income taxpayers. For 2013, the following is the maximum credit, based on the number of children, and the income level at which the credit is fully phased out.
Number of Qualifying Children: None One Two Three
Maximum Credit ……… $487 $3,250 $5,372 $6,044
Totally Phased Out when AGI or Earned Income Exceeds:
Joint Filers $19,680 $43,210 $48,378 $51,567
Others $14,340 $37,870 $43,038 $46,227
Have you received all of your W-2s? These documents are essential for completing individual tax returns. You should receive a Form W-2, Wage and Tax Statement, from all of your employers each year. Employers have until January 31 to provide or send you a 2013 W-2 earnings statement, either electronically or in paper form. If you have not received your W-2, follow these steps:
If you’re like most taxpayers, you find yourself with an ominous stack of “homework” around TAX TIME! Pulling together the records for your tax appointment is never easy, but the effort usually pays off in the extra tax you save! When you arrive at your appointment fully prepared, you’ll have more time to:
If you got married during 2013, don’t forget to notify the Social Security Administration (SSA), IRS, and Postal Service of your address and/or name change. If the SSA does not have the same name as used on your tax return, you may not be able to e-file your returns and your refund could be delayed.
Frequently, taxpayers think that gifts of cash, securities, or other assets that they give to other individuals are tax-deductible and, in turn, the gift recipient sometimes thinks that income tax must be paid on the gift received. Nothing is further from the truth. To fully understand the ramifications of gifting, one needs to realize that gift tax laws are related to estate tax laws.
This subject comes up over and over again and Congress keeps kicking it down the road, not wanting to deal with the political fallout that will result if taxes are increased or benefits are reduced to fund future Social Security benefits. The last change Congress made was to gradually extend the full retirement age from the age of 65 to the age of 67 between 2002 and 2025.
If you receive income in your name that actually belongs to someone else, aside from your spouse if married filing jointly, you are a nominee. This means you must file a 1099 form with the IRS appropriate to the type of income you received and give a copy of it to the income’s actual owner.
One of the most common nominee situations is a joint bank account or brokerage account with all of its income reported under your Social Security (SS) number. You will need to provide the IRS and your account co-owner with a 1099 reporting the co-owner’s share of the income under his or her SS number. Then, when you file your return, you need to show all the income but back out the co-owner’s share as a “nominee amount.”
The type of 1099 to file depends upon the type of income: 1099-INT for interest, 1099-DIV for dividends, and 1099-B for the proceeds from selling stocks and bonds. If the joint account is a brokerage account that has produced interest and dividend income, along with stock or bond sales, the nominee will need to prepare one of each type of 1099 for each co-owner.
You should provide Forms 1099-INT and 1099-DIV as a nominee to the recipients by January 31, while the deadline for Form 1099-B is February 15. To avoid penalties, you need to send copies of the 1099s to the IRS by February 28, on magnetic media or optically scannable paper forms (OCR forms). This firm prepares 1099s in OCR format for submission to the IRS along with the required 1096 transmittal form. This service provides recipient and file copies for your records.
If you have questions about filing 1099s as a nominee, please call this office.
It is becoming increasingly common for couples to live together and remain unmarried, which can lead to potential tax problems when they share the expenses of a home, but only one of them is liable for the debt on that home.