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The Tax Benefits of Having a Baby

05/01/17 11:55 am | Comments (0) | Posted By:

Having a baby is such a wonderful blessing, but along with the tremendous amount of joy comes a large amount of new expenses. The federal government offers a number of tax breaks to help parents save money on their tax bill.

The Dependent Exemption

For 2016, you can claim a $4,050 exemption by adding your child as a dependent. This will reduce the amount of income which you will be taxed on. This is not a prorated amount, meaning that you qualify for the entire amount no matter what time of the year the child was born. For example, a married couple with one child would qualify for three exemptions, even if that baby was born in December of the year.

There is a phase-out on the dependent exemption that applies once your adjusted gross income exceeds $259,400 for single filers, $285,350 for head of household, $155,650 for married filing separately, and $311,300 for married couples filing jointly in 2016.

The Child Tax Credit

The child tax credit provides a credit of $1,000. A credit is different than a deduction in that it reduces the amount of the tax bill dollar for dollar compared to a deduction that reduces the amount of income you are being taxed on.

There is a phase-out for the child tax credit which starts when your income is above $110,000 for married couples filing jointly, $75,000 for single filers and head of household, or $55,000 for married filing separately.

The Child Care Credit

The child care credit provides a credit for the costs you pay for a qualifying individual while you and your spouse, if you are married filing jointly, work or look for work.

The dollar limit on the amount of the expenses you can use to figure the credit is $3,000 for the care of one child under age thirteen or $6,000 for two or more children under age thirteen. The amount of your credit is between 20-35 percent of your allowable expenses. There is not a complete phase-out for this credit, but the credit decreases as the amount of income increases. Families with an adjusted gross income of $43,000 or more will only be able to take 20% of allowable expenses.

 

Expecting a Tax Refund in 2017? You Might Have to Wait!

15/12/16 12:17 pm | Comments (0) | Posted By:

On December 9th, 2016, the IRS announced that the 2017 tax filing season will begin on January 23rd, 2017, when it will start accepting electronic tax returns. Per its website, the IRS is expecting more than 153 million individual tax returns to be filed during 2017, some of which will be affected by recent changes in tax law. Specifically, the IRS is now required to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until February 15th, 2017. This rule applies to the entire refund, not just the portion of the refund relating to these credits. Furthermore, due to delays in refund processing through financial institutions, weekends, and the Presidents’ Day holiday on Monday, February 20th, 2016, the IRS is warning taxpayers who claim either credit that they most likely will not be receiving their refunds before February 27th, 2017.

How can you check the status of your refund?

There are two easy ways:

- Where’s My Refund on the IRS website – This website will be updated with estimated deposit dates for early EITC and ACTC refund filers after February 15th, 2017. All you need is your social security number or ITIN, filing status, and your exact refund amount.

- IRS2Go – This is the official mobile app of the IRS. It can be downloaded from the IRS website. EITC and ACTC refund filers can start checking the status of their refunds after February 15th, 2017.

 

 

12 Days of Tax Planning

12/12/16 1:22 pm | Comments (0) | Posted By:

 

 

The 12 days of tax planning countdown- for web

New Tax Deadlines for the 2016 Filing Season

01/12/16 4:54 pm | Comments (0) | Posted By:

With the year coming to an end, it is important to start getting your books in order to have them ready to close, and get a head start on filing your tax return. It is important to know that for the upcoming year, many due dates have changed for 2016 returns, and will be changed going forward.

Here are a few of those dates that have changed for the upcoming filing season. Additional guidance can be found on the American Institute of Certified Public Accountants (AICPA) website:

• Partnerships with a calendar year end will have a new due date of March 15th, and the extension date remains as September 15th. Fiscal year partnership returns are due on the 15th day of the 3rd month after year end, and a six month extension is allowed from that date.

• Trusts and Estates Form 1041 will have the same filing date of April 15th, but the new extension date is now September 30th.

• Exempt organizations will have the same filing date of May 15th, but with a single automatic 6-month extension of November 15th.

• FinCEN Report 114 will have a new due date of April 15th, with a new extension date of October 15th.

• Information returns including W-2 and most 1099 MISC forms will be due to the IRS/SSA on January 31st. This is the same date that they are due to the taxpayer. All other 1099 forms are due February 28th or March 31st if filed electronically.

• C Corporations have different rules for the upcoming years depending on when the year end is:

C Corporations with a calendar year end will have a new due date of April 15th with an extension date of September 15th.

C Corporations with a fiscal year end return other than December 31st and June 30th will be due on the 15th of the 4th month after the year end with an extension on the 15th of the 10th month after year end.

C Corporations with a June 30th fiscal year end will have a due date of September 15th with a new extension due date of April 15th.

It is important to be aware of these new filing dates since this will effect many entity returns in the upcoming filing season.

 

 

 

 

 

 

What Can a Reno CPA Do For You or Your Business?

07/11/16 11:33 am | Comments (0) | Posted By:

Reno, Nevada CPAs in the office of Barnard Vogler & Co. can assist individuals in many ways. We offer the traditional CPA services of 1040 preparation and tax planning. More specifically, our Reno CPAs have tax experience with California residency issues, cancellation of debts of recourse and nonrecourse, Chapter 11 bankruptcy tax matters and various trusts issues beyond just the preparation of the tax return.

Our CPAs in Reno, Nevada are also versed in a wide array of business matters. Some areas of expertise are the customary services that Certified Public Accountants typically provide such as financial statement preparations, compilations, reviews and audits. Additionally, we have assisted businesses with a congressional tax audit returning to the taxpayer a multimillion dollar tax refund, entity selections to provide the most beneficial business types, or controller/CFO services of remote bookkeeping, budget assistance and development of accounting policies and procedures. At our downtown Reno, Nevada location CPAs have also helped unravel and report on multimillion dollar frauds, been Chapter 7 bankruptcy examiners, and performed business valuation and expert witness testimony.

Give our office a call if you need a Reno CPA for yourself or your business.

 

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