ICS: Notes from the ICS Computer




	updated on: January 14, 2012 Welcome, Missy Melissa Galvin, MST, CPFP has joined our firm. For her second job, Missy is a personal trainer – we all plan to be in perfect physical condition by April 15th. We have tax relief! But only for 2011 – there will be a 2% deduction in Social Security taxes. Hire your kids! When you are self-employed, wages paid for work done by your children (who are under age 18) are not subject to Social Security and Medicare taxes. Taxpayers who adopt a child... or attempt to adopt – a child may qualify for the “adoption tax credit”. The credit covers reasonable and necessary expenses – such as adoption fees, court costs, attorney fees, travel costs – to a maximum of $13,170. If you adopt a special needs child, you qualify for the maximum credit whether or not you incurred the expenses. Health Care Credit The maximum “small business health care tax credit” is 35% of premiums paid. This credit is targeted to businesses that pay at least half of the health insurance cost and have 25 or fewer employees. Beware of Scams Bogus IRS e-mail scams are resurfacing – including one involving payments allegedly rejected by the Electronic Federal Tax Payment System. The IRS will not contact you via e-mail – do not respond. These scams may link malicious software to your computer. Energy Credits Ending Federal energy credits end in 2011; make upgrades now - windows, doors, furnaces, solar... Debt Forgiveness Normally, debt forgiveness – usually reported on Form 1099-C Cancellation of Debt - results in taxable income. However, you may be able to exclude up to $2 million of the debt forgiven on your principal residence. Review your W-4 Form This may be a good time to check your W-4 and tweak your withholdings. If you owe too much on April 15th you may be subject to a penalty or interest; if you have a large refund you are giving the government an interest-free loan. Reasons for re-evaluating your exemptions may be: marriage, new child, expected capital gains or losses, IRA distributions, medical expenses, charitable gifts, education credits, self-employment income, new home……… We know you are busy – feel free to e-mail, fax or mail your tax information. We must have all of your tax information by March 20th in order to guarantee an April 15th filing. ICS Worksheets Please download any and all helpful worksheets from the links on our home page. Important reminders: Please remember We must have all your tax information by March 20th, in order to guarantee an April 15th filing. The IRS encourages: Electronic filing of tax returns, direct deposit of refunds, and direct withdrawals of amounts owed. This eliminates lost returns, reduces errors, and speeds up refunds. To have your return E-filed and your refunds direct deposited into your bank account we'll need the following information: (1) name of bank (2) routing number of bank (3) your account number Have a Beautiful 2012!