Author - SFS Tax & Accounting

Failure to File or Pay Penalties

Failure to File or Pay Penalties: Eight Facts The number of electronic filing and payment options increases every year, which helps reduce your burden and also improves the timeliness and accuracy of tax returns. When it comes to filing your tax return, however, the law provides that the IRS can assess a penalty if you fail to file, fail to pay or both. Here are eight important points about the two different penalties you may face if you file or pay late. ...

July 1, 2012Read more...

Renting Your Vacation Home

Renting Your Vacation Home Income that you receive for the rental of your vacation home must generally be reported on your federal income tax return. However, if you rent the property for only a short time each year, you may not be required to report the rental income. Below are tips on reporting rental income from a vacation home such as a house, apartment, condominium, mobile home or boat: Rental Income and Expenses Rental income, as well as certain rental expenses that can be...

July 1, 2012Read more...

FAQ: Education Credits

FAQ: Education Credits Question:   Do tuition and related expenses paid to attend a private high school qualify for an education credit? Answer:   No. Expenses paid to attend a private high school do not qualify for an education credit because a high school is not an eligible educational institution.In general, an eligible educational institution is an accredited college, university, vocational school, or other postsecondary educational institution.  In addition, in order to be an eligible educational institution, the school must be eligible to participate...

July 1, 2012Read more...

Payroll Tax Cut Extended to End of 2012

Payroll Tax Cut Extended to the End of 2012

The IRS released revised Form 941, enabling employers to properly report the newly-extended payroll tax cut benefiting nearly 160 million workers. Under the Middle Class Tax Relief and Job Creation Act of 2012, workers will continue to receive larger paychecks for the rest of this year based on a lower social security tax withholding rate of 4.2 percent, which is two percentage points less than the 6.2 percent rate in effect before 2011. This...

April 1, 2012Read more...

More Time to Contribute to IRAs in 2012

More Time to Contribute to IRAs in 2012 You have two extra days this year to make contributions to your Individual Retirement Arrangements. That’s because April 15 falls on a weekend and Emancipation Day, a legal holiday in the District of Columbia, will be observed on Monday, April 16. That means the due date for filing your tax return and making contributions to your 2011 IRA is Tuesday, April 17. Here are the top 10 things the IRS wants you to know...

April 1, 2012Read more...

Health Insurance Tax Breaks for the Self-Employed

Health Insurance Tax Breaks for the Self-Employed If you’re self-employed and paying for medical, dental, or long-term care insurance, the IRS wants to remind you about a special tax deduction for some insurance premiums paid for you, your spouse, and your dependents. Beginning in the tax year 2011, this deduction is no longer allowed on Schedule SE (Form 1040), but you can still take it on Form 1040, line 29. You must be one of the following to qualify: A self-employed individual with...

April 1, 2012Read more...