Tax News Archives - Page 25 of 28

May
20
2016

Store or Shred? This Is How Long You Should Keep Your Tax Records

“Now that my income tax return has been filed and the filing deadline has passed, I can shred all my tax documents, right?” Wrong!

After you file your tax return, you should keep your tax return and records that support an item of income, deduction or credit shown on your tax return until the period of limitations for that tax return runs out. The period of limitations is the period of time in which you can amend your tax return to claim a credit or refund,

Apr
14
2016

Proposed Changes to the Minimum Salary for Exempt Employees

Between 1940 and 1975, the minimum wage for exempt employees was raised every five to ten years. In 1975, the minimum salary for exempt employees was set at $8,060 and $8,840 per year, depending on job duties. Roughly 30 years later, in 2004, the Department of Labor (DOL) updated the minimum salary for exempt employees to $23,660 per year. Now, the DOL is proposing an increase to $50,440 per year.

In general, an employee is considered exempt if all of the following apply.

Feb
05
2016

Tax Fraud Safeguards

Despite efforts put in place by the Internal Revenue Service and by the individual states, tax fraud continues to exist and to evolve. In 2013 alone, the IRS paid out $5.8 billion in fraudulent refunds to identity thieves. In response to the changing threats of tax fraud the IRS, in cooperation with the individual states and the tax industry as a whole, has taken new steps in 2016 to create a more secure filing season.

Jan
22
2016

8 Tips to Minimize Your Tax Preparation Fees

Our fee to complete your tax return is based on the time we expend and the level of experience necessary for preparation. Here are some steps you can take to minimize this fee:

Complete the Tax Organizer

Filling out the organizer before dropping off your tax information or coming in for a tax interview reduces the amount of time required to prepare your return. In particular, be sure to address the client information and questionnaire sections of the organizer as thoroughly and completely as you can.

Dec
08
2015

Business Entertainment Expenses

When are entertainment expenses of a business deductible on a tax return? And which expenses are really entertainment for tax purposes in the first place?

Susan blog

A business can deduct 50% of its expenses to entertain clients, customers, or employees if those expenses are ordinary and necessary and they meet certain requirements. Ordinary means the expense is common and accepted in your trade or business. Necessary means the expenses are supportive and fitting for your business.

Nov
23
2015

2016 Changes in Arizona Transaction Privilege Tax

With January 1, 2016 around the corner we would like to inform you of changes in Arizona transaction privilege taxes that will occur in the New Year.

One major element of the TPT Simplification laws that was supposed to occur on January 1, 2016 was that privilege taxes for all cities and towns were to be filed with and paid to the Arizona Department of Revenue. This was to include “non-program” cities such as Tucson and Phoenix,

Nov
10
2015

2015 Arizona Charitable Tax Credits Reminder

It’s that time of year again! The end of the year is quickly approaching, and we encourage our clients, friends, and family to give to their favorite charities as a great tax-planning strategy. For many Arizona charities, your donation could equal a dollar-for-dollar Arizona tax credit, meaning it is of no additional cost to you to make these donations. But hurry! With the exception of the Public School and the School Tuition Organizations credits, all of these donations must be made by December 31,

Sep
24
2015

New Arizona Tax Credits for Corporations

Starting in 2015 there are two new credits that both C and S Corporations can take advantage of for School Tuition Organizations (STO). Both credits require preapproval by the Arizona Department of Revenue (ADOR) and total contributions statewide for each of these credits are capped at a maximum amount by the state. Overall both of these credits are used to provide scholarships that assist students from preschool to 12th grade with disabilities.

Both of these credits have already reached their maximums for the year ended in June 2016.

Jun
03
2015

Dependents from a Tax Perspective: What is “Total Support”?

Is your child a student under the age of 24? Does your child not live at home? You may still be able to claim him or her as a dependent if you provided over one-half of their total support in a given year.

The following items are included in total support:

Food, clothing, and recreation.
Amounts received under the GI Bill for tuition payments and allowances.
Medical insurance premiums and medical and dental care.

Feb
17
2015

10 Tax Season Tips and Tidbits

Now that the 2015 tax season is in full swing, we thought you might enjoy the following tax tidbits:

1. On August 5, 1861 the U.S. government levied the first income tax to help fund the Civil War. Income over $800 was taxed at a 3% rate. In 1895, the Supreme Court declared income tax unconstitutional. Sorry . . . don’t get your hopes up. In 1913, the 16th amendment was ratified and permanently established income taxation.