Archive for January, 2011

25
Jan
11

New Tax Benefits For Employers Who Hire Unemployed

Employers who hire unemployed workers this year (after Feb. 3, 2010 and before Jan. 1, 2011) may qualify for a 6.2-percent payroll tax incentive, in effect exempting them from their share of Social Security taxes on wages paid to these workers after March 18, 2010. more

24
Jan
11

Employment Taxes: 941/940 deposits now via (EFTPS).

Electronic Federal Tax Payment System usage is now required for most every remitter.

Beginning in 2011, the Financial Management Service (FMS), a Bureau of the Treasury Department, is eliminating  Federal Tax Deposit Coupons (Form 8109)….beginning January 1, 2011, all deposits must be made using the Electronic Federal Tax Payment System (EFTPS).

There are penalties for depositing late, or for mailing payments directly to the IRS that are required to be deposited, unless you have reasonable cause for doing so.

Employers below the $2,500 threshold may remit the employment taxes with their Form 941 or Form 944, may voluntarily make deposits by EFTPS, or may use other methods of payment as provided by the instructions relating to the return

To enroll in EFTPS, call 800-555-4477, or to enroll online, visit http://www.eftps.gov. For general information about EFTPS, call 800-829-1040 for individuals or 800-829-4933 for businesses.

Refer to Publication 966 (PDF) for Electronic Federal Tax Payment System information and Publication 15, (Circular E), Employer’s Tax Guide.

24
Jan
11

New on the 2010 Form 1040

http://finance.yahoo.com/taxes/article/111872/whats-new-on-1040-in-2010?mod=taxes-filing

Due Date is April 18

No More Phase-Outs for Itemized Deductions and Exemptions

Liberalized Adoption Credit

One-Time Break for Self-Employed Individuals

Homebuyer Credit Repayment Rules Kick In

As I explained in an earlier column, you may have to repay part or all of the credit claimed for a 2008 or 2009 home purchase with your 2010 Form 1040.

In most cases, however, only those who purchased homes in 2008 will be affected. They will generally have to repay 1/15 of the credit with the 2010 Form 1040. If this rule impacts you, fill out Form 5405 (First-Time Homebuyer Credit and Repayment of the Credit), and enter the repayment amount as an addition to your tax bill on line 59 of Form 1040.

Real Estate Tax Deduction for Non-Itemizers is Gone

Deductions for Sales Taxes on New Vehicle Purchases Are Gone

Break for Unemployment Benefits Is Gone

In 2009, the first $2,400 of unemployment benefits was federal-income-tax-free. This break was not continued for 2010. Therefore, 100% of 2010 unemployment benefits generally must be reported as income on Form 1040 (use line 19).

Your Tax Preparer Might E-File Your Return This Time




Follow

Get every new post delivered to your Inbox.

Join 33 other followers