On March 23, 2010, President Obama signed into law the new health care legislation.  The legislation will affect virtually every individual in one way or another and will significantly impact tax returns in the future.  The following overview of the tax-related provisions of the legislation is based upon the House of Representatives’ version and the one signed by President Obama on March 24, 2010.  At the time this article was prepared, the Senate was taking up the measure, but it is expected to pass without changes since only a simple majority is required. (more…)

Due Date Reminders – Individual

May 2010

May 10 – Report Tips to Employer

If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed. (more…)

As we approach the season for spring house cleaning it may be appropriate for you to really clean house and get rid of all those clothes that no longer fit and all those household items you never use.  They have the potential of providing you with a tax deduction. (more…)

Taxpayers without the ability to have taxes withheld or who simply wish to prepay some additional amount can do so by making payments with estimated tax vouchers. (more…)

Now that your taxes have been completed for 2009, you are probably wondering what old records can be discarded.  If you are like most taxpayers, you have records from years ago that you are afraid to throw away.  It would be helpful to understand why the records needed to be kept in the first place. (more…)

If it is not your refund check in the mail box, that letter from the IRS will probably increase your heart rate a little.  Don’t panic; many of these letters can be dealt with simply and painlessly. (more…)

Beginning this year, taxpayers are able to convert funds in regular IRAs (as well as qualified retirement plans) to Roth IRAs regardless of their income level. Prior to 2010, taxpayers could not make a conversion if their gross income was in excess of $100,000. (more…)

The IRS has posted the finalized Form W-11, Hire Act Employee Affidavit, that a new hire signs under penalty of perjury indicating that he or she was employed for a total of 40 hours or less during the 60-day period ending on the date the employment begins, thus qualifying the employer for the new HIRE incentives. (more…)

How Can the Tax Credit Help My Business?

With the Job Creation & Recovery Tax Credit, Maryland employers may be able to save up to $5000 by hiring certain employees into new positions.

Which Employees Qualify?

All employees must be Maryland residents hired between March 25, 2010 and December 31, 2010 and meet the following criteria. Click here to read more! (PDF)