news & updates

2011 Personal Tax Organizer

Changes to Employer Reporting!

There have been a couple of important changes for Employers!  All employers in the State of Oregon will be required to submit their W-2 information electronically for 2011 (due March 31, 2012).  This follows the SSA’s guidelines for submitting electronic W-2 information.

Also effective for 2011, businesses with more than 250 1099′s must also file the data electronically (due March 1, 2012) for forms 1099-MISC, 1099-G, 1099-R and W2-G.

The state has more information located here:  http://www.oregon.gov/DOR/BUS/iwire-income-wage-information-return-eservices.shtml

Welcome, new staff!

Tabor Accounting Group would like to welcome Erin Hooker, Kosta Golemis and Christina Van Holland to our staff!  Erin will be working as a Staff Accountant, while Christina and Kosta will be doing mostly personal tax.  Welcome!

They can be reached via email:

Erin Hooker:  erinh@taboraccountinggroup.com

Kosta Golemis: kostag@taboraccountinggroup.com

Christina Van Holland:  christinavh@taboraccountinggroup.com

2011 1099 Packet Now available!

2011 1099 Packet

Need to file 1099′s this year?  Not sure what the heck that means?  Here’s a splendid explanatory packet that should help you to decide.  Still unsure?  Contact your accountant (pick one here) or info@taboraccountinggroup.com.

IRS Revises Standard Mileage Rates

This modification results from recent increases in the price of fuel.  The revised standard mileage rates are 55.5 cents per mile for business use of an automobile and 23.5 cents for use of an automobile as a medical or moving expense.  The mileage rate for use of an automobile as a charitable contribution is fixed by statute and remains 14 cents.  The revised standard mileage rates apply to deductible transportation expenses paid or incurred for business, medical, or moving expense purposes on or after July 1, 2011, and to mileage allowances that are paid both (1) to an employee on or after July 1, 2011, and (2) for transportation expenses an employee pays or incurs on or after July 1, 2011.

Announcement 2011-40 will be published in Internal Revenue Bulletin 2011-29 on July 18, 2011.

2010 Blank Tax Organizer!

Here is our NOW FILLABLE blank tax organizer for personal tax return prep.  2010 Blank Organizer

2011 “New Hire” Packet available now!

Our 2011 New Hire Packet is now available for your new employees.  If you have any questions, contact Kristen or Abby at 503-598-1011, or kristent@taboraccountinggroup.com or abbyr@taboraccountinggroup.com.

2011 New Hire Packet

Happy Holidays!!

2011 Payroll Alert!

Payroll Tax Cut to Boost Take-Home Pay for Most Workers; New Withholding Details Now Available on IRS.gov

WASHINGTON ― The Internal Revenue Service today released instructions to help employers implement the 2011 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011.

Millions of workers will see their take-home pay rise during 2011 because the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 provides a two percentage point payroll tax cut for employees, reducing their Social Security tax withholding rate from 6.2 percent to 4.2 percent of wages paid. This reduced Social Security withholding will have no effect on the employee’s future Social Security benefits.

The new law also maintains the income-tax rates that have been in effect in recent years.

Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011 but not later than Jan. 31, 2011. Notice 1036, released today, contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employer’s Tax Guide, containing the extensive wage bracket tables that some employers use, will be available on IRS.gov in a few days.

The IRS recognizes that the late enactment of these changes makes it difficult for many employers to quickly update their withholding systems. For that reason, the agency asks employers to adjust their payroll systems as soon as possible, but not later than Jan. 31, 2011.

For any Social Security tax over withheld during January, employers should make an offsetting adjustment in workers’ pay as soon as possible but not later than March 31, 2011.

Employers and payroll companies will handle the withholding changes, so workers typically won’t need to take any additional action, such as filling out a new W-4 withholding form.

As always, however, the IRS urges workers to review their withholding every year and, if necessary, fill out a new W-4 and give it to their employer. For example, individuals and couples with multiple jobs, people who are having children, getting married, getting divorced or buying a home, and those who typically wind up with a balance due or large refund at the end of the year may want to consider submitting revised W-4 forms. Publication 919, How Do I Adjust My Tax Withholding?, provides more information to workers on making changes to their tax withholding.

Additionally, the State of Oregon has also updated their tax tables.

http://www.oregon.gov/DOR/BUS/payroll_updates.shtml

CONTACT KRISTEN OR ABBY IN OUR PAYROLL DEPARTMENT TO FIND OUT HOW THIS EFFECTS YOU! 503-598-1011

kristent@taboraccountinggroup.com

abbyr@taboraccountinggroup.com

Some Key Notes from 2010 Tax Bill

1. Provide a two-year “patch” of the AMT. The description of this provision by the Joint Tax Committee is:
The provision provides that the individual AMT exemption amount for taxable years beginning in 2010 is (1) $72,450, in the case of married individuals filing a joint return and surviving spouses; (2) $47,450 in the case of other unmarried individuals; and (3) $36,225 in the case of married individuals filing separate returns.

The provision provides that the individual AMT exemption amount for taxable years beginning in 2011 is (1) $74,450, in the case of married individuals filing a joint return and surviving spouses; (2) $48,450 in the case of other unmarried individuals; and (3) $37,225 in the case of married individuals filing separate returns.

2. Temporarily extend the Bush tax cuts through 2012. This means that the current 10-percent, 15-percent, 25-percent, 28-percent, 33-percent and 35-percent individual income tax rates are extended for two years (through 2012). This has particular impact on withholding rates for wage earners beginning January 1, since those rates had been scheduled to be increased at that time. The IRS has already provided a Notice containing the 2011 Percentage Method Tables for Income Tax reflecting the changes made by the tax bill. The Notice is available at the following weblink: http://www.irs.gov/pub/newsroom/notice_1036.pdf

3. Extend the current moratorium on itemized deduction limitations. Under the provision, the overall limitation on itemized deductions does not apply for two additional years (through 2012). In addition, the personal exemption phase-out does not apply for two additional years (through 2012).

4. Teacher expenses. The provision extends the deduction for eligible educator expenses for two years so that it is available for the 2010 and 2011 tax years.

5. Education incentives. The current exclusion from income and wages for employer-provided educational assistance, the student loan interest deduction, and Coverdell education savings accounts will continue to be available through 2012. In addition, the above-the-line deduction for qualified tuition and related expenses is also extended through 2012.

6. Dividends and capital gains tax rates. The regular and minimum tax rates for qualified dividend income and capital gains in effect before 2011 are extended for two additional years (through 2012). This may have some interest for those doing some end of the year tax planning and who were anticipating higher rates in 2011.

7. Tuition and related education expenses. The provision extends for two years (through 2012) the temporary modifications to the Hope credit for taxable years beginning in 2009 and 2010 that are known as the American Opportunity Tax Credit.

8. Estate Taxes. The bill makes a number of changes to the estate tax. One important point is that the bill provides an ELECTION for the estates of decedents who died during 2010. In general, if such an election is made, the estate would not be subject to estate tax, and the basis of assets acquired from the decedent would be determined under the modified carryover basis rules of section 1022. Executors should be aware of the availability of this election so as to determine whether it is in the best interests of the estate to do so prior to filing the estate’s return.

9. Depreciation. The provision extends and expands the additional first-year depreciation to equal 100 percent of the cost of qualified property placed in service after September 8, 2010 and before January 1, 2012 (before January 1, 2013 for certain longer-lived and transportation property), and provides for a 50 percent first-year additional depreciation deduction for qualified property placed in service after December 31, 2011 and before January 1, 2013 (after December 31, 2012 and before January 1, 2014 for certain longer-lived and transportation property).

10. Employment taxes. The provision reduces the employee OASDI tax rate under the FICA tax by two percentage points to 4.2 percent for one year (2011). Similarly, the provision reduces the OASDI tax rate under the SECA tax by two percentage points to 10.4 percent for taxable years of individuals that begin in 2011. A similar reduction applies to the railroad retirement tax.

The bill contains a large number of provisions, only some of which are summarized above. Click here for technical explanation of the entire bill.The text of the legislation is posted at: http://www.rules.house.gov/111/LegText/111_satohr4853_txt.pdf