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Newbie to the Workforce? Tax Rules for Summer Jobs

Ah, the long summer days of scooping ice cream, dragging water-drenched rafts and watching the neighbor kids for hours on end.  If your teen or tween is hauling in the cash, it might mean they will owe the IRS a few pennies.

Does your child have a summer job? If your kiddo meets the following criteria, you’ll likely have to file on their behalf.

Here are the conditions in which it’s necessary to file for a minor:

  • Unearned income is greater than $1,050 (this includes dividends and interest on savings accounts or other investments)
  • Your child makes more than $6,300 at their lifeguarding and lemonade stand
  • They bracelet business they started in the garage? If it earns more than $400, it means the self-employment net earrings are high enough to warrant filing

Here are the easiest ways to file for a minor:

If the minor is under 19 or a full-time student under the age of 24, and the child’s income is less than $1500, it can be attached to a parent’s return using the form 8814 (qualified dividends or capital gains may increase)

If you want to ensure the tax man doesn’t hit hard, a minor can file his or her own return–which we can help with here at AF Gebauer and Company.

Even if not required to file, a minor can elect to file-which might be smart if he or she had money withheld from a part-time job and they want to receive a refund.

For more information on the special rules regarding the Kiddie Tax, please contact us!

 

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Tax Dates, Deadlines and Tidbits for 2017

With February looming, it’s important to prepare for tax season in mid-April. What are some of the most important deadlines in 2017?

  • The IRS will open filing season on January 23, 2017
  • Taxes are due April 18, 2017 as the typical tax day April 15 falls on a Saturday in 2017 (Personal Federal Income Tax)
  • Need an extension? Filing form 4868 will give you a brief reprieve and allow you until October 17, 2017 to file your 2016 taxes
  • There will be a delay in 2017 returns due to holidays for Presidents’ Day on February 20th
  • The IRS paid refunds on nearly 75 percent of last year’s tax returns totaling 153 million returns with refunds averaging around $2500

Need help with your 2017 taxes? Our Longmont office of accountants will take the sting and stress out of this year’s 2017 tax season. Contact us today!

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Wedded Bliss = Tax Hell?

A new life partner entails a whole lot more than extra dishes and super-sized loads of laundry. Whatever your marital status as of December 31st, 2017, will determine your tax options for the entire previous year. After hearing those wedding bells, you’ve got two options: file jointly with the new Mr. or Mrs. or use married filing separate status for a separate return based on deductions and credits.

Most lovebirds file their taxes jointly for two main reasons–first, it’s a heck of a lot easier to file one 1040 form and second, it’s usually cheaper to file together as married filing separate status can negate valuable tax breaks for things like childcare and tuition. You need to know about casino ohne bonus. Two individual returns could add up to a larger sum than one joint return.

There are drawbacks to filing jointly–if your loved one was up to no good as in underpayments, penalties and owed interest, it may behoove you to not take on potential liability and to file separately.

But, if your spouse isn’t on the IRS Most Wanted list, there are many tax benefits to being married. Here are 3 that you may not have considered.

  1. A Married Duo Reaps Greater Charitable Contribution Deductions– having a spouse raises the limit on yearly charitable donation amounts.
  2. Buying a House Changes your Taxes– the interest paid on a mortgage is tax-deductible.
  3. Children are Tax Gold– with every child comes more exemptions and tax credits! Bring on diaper duty.

For more information on penalties and bonuses with regards to being married, check out the tax policy information HERE.

To figure out your tax benefits and deductions for 2017, contact us today for more information. We provide Northern Colorado, Boulder County and the whole Front Range exemplary tax services.

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Tax Uncategorized

Mark Your Calendar: 2016 Tax Deadlines


Important 2016 Tax Dates and Deadlines for Small Businesses and Self-Employed Individuals

Small business owners and self-employed individuals are often focused on aspects of their business that can help them grow and efforts regarding sales, marketing strategy, customer service and day-to-day operations. Keeping track of accounting and tax deadlines can become burdensome and distract from areas of business that help impact the bottom line, however, not filing tax forms correctly or filing after the appropriate deadline can result in costly consequences.

Luckily, we’re here to eliminate extra stress and help you plan for 2016. Below is a list of important tax dates and links to some useful forms.

Subscribe to receive monthly notifications of upcoming due dates and necessary forms.

 

January

  • 15th– Individuals: Pay the final installment of your 2015 estimated tax. Use Form 1040-ES.
  • 15th– Farmers and fishermen: Pay your estimated tax for 2015. Use Form 1040-ES.
  • 31st– Furnish Forms 1098, 1099 and W-2G to recipients for certain payments during 2015. Furnish Form W-2 to employees who worked for you during 2015

February

  • 1st– File Forms 940, 941, 943, 944 and/or 945 if you did not deposit all taxes when due.
  • 1st– File your tax return if you did not pay your last installment of estimated tax by January
  • 10th– File Forms 940, 941, 943, 944 and/or 945 if you timely deposited all required payments.
  • 15th– File a new Form W-4 if you claimed exemption from income tax withholding in 2015.
  • 15th– Furnish Forms 1099-B, 1099-S and certain Forms 1099-MISC to recipients.
  • 16th– Begin withholding on employees who claimed exemption from withholding in 2015 but did not file a W-4 to continue withholding exemption in 2015.

March

  • 1st– File Form 1096 with information returns, including Forms 1098, 1099 and W-2G for payments made during 2015.
  • 1st– File Form W-3 with Copy A of all Forms W-2 issued for 2015.
  • 1st– Farmers and fishermen: File Form 1040 and pay any tax due. However, you have until April 15 to file if you paid your 2015 estimated tax payments by Jan 15, 2016.
  • 15th– Corporations: File Form 1120 for calendar year and pay any tax due. For automatic 6-month extension, file Form 7004 and deposit estimated tax.
  • 15thS Corporations: File Form 1120S for calendar year and pay any tax due. Furnish a copy of Sch. K-1 to each shareholder. File Form 2553 to elect S Corporation status beginning with calendar year 2016.
  • 15th– Electing Large Partnerships: Furnish Sch. K-1 (Form 1065-B) to each partner.
  • 31st– Electronically file Forms W-2, W-2G, 1098, 1099, and 8027.

April

  • 15th– Individuals: File Form 1040, 1040A, or 1040EZ. For automatic 6-month extension file Form 4868 and deposit estimated tax. Pay the first installment of 2016-estimated tax.
  • 15th– Partnerships: File Form 1065 and furnish a copy of Sch. K-1 to each partner.
  • 15th– Electing Large Partnerships: File Form 1065-B calendar year return.
  • 15th– Household Employers: File Sch. H with Form 1040 if you paid $1,800 or more to a household employee.
  • 15th– Corporations: Deposit the first installment of your 2016 estimated tax.

May

  • 2nd– Employers: File Form 941 for the first quarter.
  • 2nd– Deposit FUTA tax owed through Mar if more than $500.
  • 10th– File Form 941 for the first quarter if you timely deposited all required payments.

June

  • 15th– Individuals living outside the U.S.: File Form 1040.
  • 15th– Individuals: Pay the second installment of 2016 estimated tax.
  • 15th– Corporations: Deposit the second installment of your 2016 estimated tax.

July

  • Deadlines will be pushed until August 1st due to the 31st following on a Sunday.

August

  • 1st– Deposit FUTA owed through June if more than $500.
  • 1st– File Form 941 for the second quarter.
  • 1st– File Form 5500 or 5500-EZ for calendar year 2015 employee benefit plan
  • 10th– File Form 941 for the second quarter if you timely deposited all required payments.

September

  • 15th– Individuals: Pay the third installment of your 2016 estimated tax.
  • 15th– Partnerships: File Form 1065 if you timely requested a 5-month extension.
  • 15th– Corporations: File calendar year Form 1120 or 1120S if you timely requested a 6-month extension.
  • 15th– Corporations: Deposit the third installment of your 2016 estimated tax.

October

  • 17th– Individuals: File Form 1040, 1040A, or 1040EZ if you timely requested a 6-month extension.
  • 17th– Electing Large Partnerships: File Form 1065-B if you timely requested a 6-month extension.
  • 17th– File Form 5500 if you timely requested an extension on Form 5558.

November

  • 1st– File Form 941 for the third quarter.
  • 1st– Deposit FUTA owed through Sept. if more than $500.
  • 10th– File Form 941 for the third quarter if you timely deposited all required payments.

December

  • 15th– Corporations- Deposit the fourth installment of your 2015 estimated tax.

Source: http://www.tax.gov/calendar/

Please note: these are estimated dates until the IRS updates their 2016 tax calendar for businesses and self-employed. Also, this is only general event types please visit the IRS site for more detailed information. Currently, some of the links go to the 2015 form. We will update links as soon as the IRS posts updated 2016 versions.

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