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Developing Tax Updates
3.8% Medicare Surtax on Individual Net Investment Income New tax changes became effective for 2013 - AGI above $250,000 for joint filers and $200,000 for singles will pay extra 3.8% on their net investment income or excess over $250,000/$200,000, whichever is lower. Check out the planning strategies provided by The Tax Adviser. And don't forget about the 0.9% Medicare Tax Increase on Wages and SE Income... Also take effective for 2013, extra 0.9% of hospital insurance tax will be added as part of FICA on wages or/and SE income for filers with AGI above $250,000 for joint filers and $200,000 for singles. The additional tax is imposed solely on the employee and self-employed person. Proposition 30 Impact for Californian IRS guidance on record keeping for small business. Record keeping for individuals are also available in the reference section.IRS Record Retention GuideIRS guidance on record keeping for small business. Record keeping for individuals are also available in the reference section.
Form 1099-K Merchant Card and Third Party Network Payment Compliance If your business takes credit cards as a payment type or uses any kind of payment settlement party, please pay attention to the Form 1099-K statements you receive at beginning of the year. Settled transactions amount are reported to IRS as part of the compliance requirement. Be sure to match up the amount reported on Form 1099-K to your register/POS system, and turn the 1099-K statement to your tax preparer!
Form W-2 Reporting of Employer-Sponsored Health Coverage Do you know the employer is now required to disclose the cost of health care coverage on the Form W-2? Small-size business with fewer than 250 Forms W-2s is under transition relief and therefore the disclosure requirement is optional. The transition relief will continue until the IRS publishes new guidance. If you have 250 or more W-2s to issue at year-end, please contact your payroll administrator for disclosure information! Expiration of Tax Provisions in 2012 The so-called "Bush tax cuts" is facing sunset again after a two-year extensions. There are many tax provisions are set to expire in year 2012, including tax rates increase, reductions in deductions and exemptions, long-term capital gain rate increase, elimination of qualified dividend treatment, itemized deductions phase-out, reinstatement of the marriage penalty, reduction of family tax credits, elimination of AMT patch... and etc. For more information, please consult your CPA or tax preparer regarding the impact on your tax returns