Author - SFS Tax & Accounting

Failure to File or Pay Penalties: Eight Facts

It’s Taxing Times and Tax Resolution Times 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 [...]

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Renting Your Vacation Home

It’s Taxing Times and Tax Resolution Times 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 [...]

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FAQ: Education Credits

It’s Taxing Times and Tax Resolution Times 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, [...]

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Upcoming Tax Deadlines

It’s Taxing Times and Tax Resolution Times Upcoming Tax Deadlines July Mon 2 File Form 11-C to register and pay annual tax if you are in the business of taking wagers. Mon 2 File Form 730 and pay the tax on wagers accepted during May. Mon 2 File Form 2290 and pay the tax for vehicles first used during May. Thu 5 Deposit payroll tax for payments on Jun 27 – 29 if the semiweekly deposit rule applies. Mon 9 Deposit payroll tax for payments on Jun 30 – Jul 3 if the semiweekly deposit rule applies. Tue 10 Employers: Employees [...]

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Payroll Tax Cut Extended to the End of 2012

It’s Taxing Times and Tax Resolution Times 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 [...]

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More Time to Contribute to IRAs in 2012

It’s Taxing Times and Tax Resolution Times 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 [...]

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Health Insurance Tax Breaks for the Self-Employed

It’s Taxing Times and Tax Resolution Times 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. Starting in 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 [...]

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FAQ: Refund Splits

It’s Taxing Times and Tax Resolution Times FAQ: Refund Splits Question: What is a split refund? Answer: A split refund lets you divide your refund, in any proportion you want, and direct deposit the funds in up to three different accounts with U.S. financial institutions.   Question: What are the benefits of splitting my refund? Answer: By splitting your refund, you get the convenience of directing some of your refund to your checking account for immediate needs and sending some to savings for future use. Plus, you get the [...]

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Upcoming Tax Deadlines

It’s Taxing Times and Tax Resolution Times Upcoming Tax Deadlines April Mon 2 Electronically file Forms W-2, W-2G, 1098, 1099, and 8027. Wed 4 Deposit payroll tax for payments on Mar 28-30 if the semiweekly deposit rule applies. Fri 6 Deposit payroll tax for payments on Mar 31 – Apr 3 if the semiweekly deposit rule applies. Tue 10 Employers: Employees are required to report to you tips of $20 or more earned during March. Wed 11 Deposit payroll tax for payments on Apr 4-6 if the semiweekly deposit rule applies. Fri 13 Deposit payroll tax for payments on Apr 7-10 if the [...]

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In 2012, Many Tax Benefits Increase Due to Inflation Adjustments

It’s Taxing Times and Tax Resolution Times In 2012, Many Tax Benefits Increase Due to Inflation Adjustments For tax year 2012, personal exemptions and standard deductions will rise and tax brackets will widen due to inflation, the Internal Revenue Service announced today. By law, the dollar amounts for a variety of tax provisions, affecting virtually every taxpayer, must be revised each year to keep pace with inflation. New dollar amounts affecting 2012 returns, filed by most taxpayers in early 2013, include the [...]

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