Specializing in personal, commercial, estate and sales tax preparation since 1994.

IRS Delays E-files for Certain Forms

Please be advised we are being told returns containing Depreciation (Form 4562) will not be able to be e-filed until late February or early March.

Also, there is a delay with returns containing Education Credits (Form 8863). There is no word from the IRS when those returns will start being accepted.

This delay does NOT mean you cannot set an appointment, or drop your taxes off. We will prepare them so when the IRS starts accepting them, we will be ready.

We are just as anxious to get these filings in as you are. Please understand as soon as the IRS starts accepting these returns, we will start submitting them immediately.

IRS Delays 2013 Tax Season

The Internal Revenue Service said Tuesday that it plans to open the 2013 tax filing season and begin processing individual income tax returns on Jan. 30. This will NOT affect our ability to prepare your return in advance of the start date, so please contact our office for an appointment or drop off your information at your convenience.

IRS Delays 2013 Tax Season

We are now accepting credit/debit cards!!!!

Beginning this tax season, we are now accepting Visa, Mastercard, American Express, and Discover credit/debit cards for payment!!  If this is your preferred method of payment, please leave the information with Lori or Julie when dropping your taxes off.

Health Savings Accounts (HSAs)

2010 Changes

Eligibility. For 2010, a qualifying high deductible health plan (HDHP) must have a deductible of at least $1,200 for self-only coverage or $2,400 for family coverage and must limit annual out-of-pocket expenses of the beneficiary to $5,950 for self-only coverage and $11,900 for family coverage.

Employer contributions. Up to specified dollar limits, cash contributions to the HSA of a qualified individual (determined monthly) are exempt from federal income tax withholding, social security tax, Medicare tax, and FUTA tax. For 2010, you can contribute up to the following amounts to a qualified individual’s HSA.

  • $3,050 for self-only coverage or $6,150 for family coverage.
  • $4,050 for self-only coverage or $7,150 for family coverage for a qualified individual who is age 55 or older at any time during the year. The $7,150 limit is increased by $1,000 for two married individuals who are age 55 or older at any time during the year provided and each spouse has a separate HSA.

Employers are allowed to make larger HSA contributions for a nonhighly compensated employee than for a highly compensated employee.

For more information, see Health Savings Accounts in the 2010 Publication 15-B Employer’s Tax Guide to Fringe Benefits

.

2011 Changes

Eligibility. For 2011, a qualifying high deductible health plan (HDHP) must
have a deductible of at least $1,200 for self-only coverage or $2,400 for
family coverage and must limit annual out-of-pocket expenses of the
beneficiary to $5,950 for self-only coverage and $11,900 for family
coverage.

Employer contributions. Up to specified dollar limits, cash contributions to
the HSA of a qualified individual (determined monthly) are exempt from
federal income tax withholding, social security tax, Medicare tax, and FUTA
tax. For 2011, you can contribute up to the following amounts to a qualified
individual’s HSA.

  • $3,050 for self-only coverage or $6,150 for family coverage.
  • $4,050 for self-only coverage or $7,150 for family coverage for a
    qualified individual who is age 55 or older at any time during the year.
    The $7,150 limit is increased by $1,000 for two married individuals
    who are age 55 or older at any time during the year provided and each
    spouse has a separate HSA.

Employers are allowed to make larger HSA contributions for a nonhighly
compensated employee than for a highly
compensated employee.

For more information, see Health Savings Accounts in the 2011 Publication
15-B.

Economic Recovery Payment

Any economic recovery payment you receive during 2010 is not taxable. These $250 payments were made in 2010 to people who:

  • Received social security benefits, supplemental security income (SSI), railroad retirement benefits, or veterans disability compensation or pension benefits in November 2008, December 2008, or January 2009,
  • Live in a U.S. state, the District of Columbia, Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa, or the Northern Mariana Islands and,
  • Did not receive an economic recovery payment in 2009.

If you are married and you and your spouse both meet these requirements, each of you may get a $250 payment.

If you are entitled to a payment, you will get it automatically. You do not need to apply for it.  However, any payment you receive will reduce your making work payment credit on Schedule M (Form 1040A or 1040).

Hope and American Opportunity Credits for 2010

For tax year 2010, the following changes have been made to the Hope and American opportunity credits.

  • The Hope credit is not available for 2010.
  • The American opportunity credit is available for 2010 and is unchanged from 2009.

For more information, see chapter 2 of Publication 970, Tax Benefits for Education

Health Savings Accounts (HSAs)

2010

High Deductible Health Plan (HDHP). For HSA purposes, the minimum annual deductible of an HDHP increases to $1,200 ($2,400 for family coverage) and the maximum annual deductible and other out-of-pocket expenses limit increases to $5,950 ($11,900 for family coverage).

Limits on contributions. The maximum HSA contribution increases to $3,050 ($6,150 for family coverage).

2011

Nonprescription medicines no longer qualify.  For tax years beginning after December 31, 2010, nonprescription medicines (other than insulin) do not qualify as an expense for HSA purposes unless they are prescribed.

For more information, see Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans.

Residential Energy Credits

2010

Nonbusiness energy property credit. This credit, which expired after 2007, has been reinstated. You may be able to claim a nonbusiness energy property credit of 30% of the cost of certain energy-efficient property or improvements you placed in service in 2010. This property can include high-efficiency heat pumps, air conditioners, and water heaters. It also may include energy-efficient windows, doors, insulation materials, and certain roofs. The credit has been expanded to include certain asphalt roofs and stoves that burn biomass fuel.

    Limitation. The total amount of credit you can claim in 2009 and 2010 is limited to $1,500.

Residential energy efficient property credit.  Beginning in 2009, there is no limitation on the credit amount for qualified solar electric property costs, qualified solar water heating property costs, qualified small wind energy property costs, and qualified geothermal heat pump property costs. The limitation on the credit amount for qualified fuel cell property costs remains the same.

Traditional IRA Contribution and Deduction Limit

The contribution limit to your traditional IRA for 2010 will be increased to the smaller of the following amounts:

  • $5,000, or
  • Your taxable compensation for the year.

If you were age 50 or older before 2011, the most that can be contributed to your traditional IRA for 2010 will be the smaller of the following amounts:

  • $6,000, or

Your taxable compensation for the year.

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