FAQS
Approaching income tax deadlines:
September 16, 2013. This is the filing deadline for corporations, trusts and partnerships that previously filed an extension for more time

October 15, 2013. This is the filing deadline for individuals who previously filed an extension for more time

September 16, 2013. Deposit deadline for the third installment of 2013 estimated taxes

Signed into law in 2010 and upheld by the Supreme Court in 2012, the Patient Protection and Affordable Care Act will affect individuals, employers and health care providers.  In addition to the many new tax rules to offset the cost of these reforms, the law also contains how it may affect employee benefit plan operations, internal controls, financial reporting and more. Call our office if you have questions regarding this legislation. Now is the time for employers to figure out how the shared-responsibility health care rules will affect them. Under the rules, which take effect next year, "applicable large employers" are required to offer full-time employees (and their dependents) health insurance that provides "minimum essential coverage" with "minimum value" at an affordable cost.  

The American Institute of Certified Public Accountants (AICPA) recently unveiled the Financial Reporting Framework for Small- and Medium-Sized Entities, which is designed to help small businesses prepare streamlined, relevant financial reports. The framework is intended for private companies that do not need GAAP financial statements. The AICPA said the framework is intended for private companies that do not need GAAP financial statements. These financial statements represent another option for small businesses to comply with financial reporting requirements but with reduced costs.

Income Tax Tip—Job Search Expenses: Amounts paid to look for a new job may be deductible when the job is in the same line of work. In this tax tip, the IRS listed these reminders for deducting job search costs: (1) the expenses must be spent on a job search in the same or current occupation; (2) outplacement agency fees and amounts spent on preparing and mailing resumes are deductible when paid to look for a job in the present occupation; (3) travel expenses may be deductible if the trip is primarily to look for a new job; (4) expenses are not deductible if there was a substantial break between the end of the last job and the time a new search began; (5) first time job search expenses are not deductible; and (6) job search expenses are claimed as miscellaneous itemized deductions subject to the two percent of AGI limitation.

Tax Benefits for Armed Forces Personnel: In this tax tip, the IRS listed several tax benefits available to active members of the Armed Forces, including: (1) a moving expense deduction resulting from a permanent change of station, (2) favorable treatment for combat pay, (3) extended tax filing deadlines, (4) the deduction of uniform cost and upkeep if they are prohibited from being worn off duty, (5) a deduction by reservists for unreimbursed travel expenses if traveling more than 100 miles away from home, and (6) possible deductions for job hunting expenses.

Legislative Update:

Several tax changes are now set to occur at the beginning of 2013 if Congress does not act. Among them:

  • Individual income tax rates will go up.
  • Long-term capital gains rates will rise.
  • The gift and estate tax exemption will drop from $5.12 million to $1 million. Estate assets more than the $1 million exemption will be taxed at a maximum 55% rate.
  • Taxpayers whose income exceeds a set “threshold amount” will be subject to a 3.8% Medicare surtax on net investment income, effectively raising their marginal income tax rate. An affected taxpayer in the 39.6% bracket—the highest bracket in 2013—will have a 43.4% marginal rate. This will apply to individuals and trusts and estates.

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See our Tax Calendar of all the pending tax due date deadlines.

 

 

 

 

 

 

Speak directly to a Tax Specialist - (210) 804-0276 or Email: geoff@geoffmorgancpa.com

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Geoffrey Morgan, CPA, PC
8614 Crownhill Blvd.
San Antonio, TX 78209

 

Phone: (210) 804-0276
Fax: (210) 804-0636

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