Startup Innovation Credit Act of 2013 Emerges in Congress
While lawmakers may not agree on what to do about the U.S. economy, CFOs and other senior executives agree that job creation is a good place to start. In an effort to help stimulate this growth, a bipartisan proposal was recently introduced that would make the successful Research and Development (R&D) tax credit available for…
The new 0.9% Medicare tax: Watch out for withholding issues
Under the health care act, starting in 2013, taxpayers with earned income over $200,000 per year ($250,000 for joint filers and $125,000 for married filing separately) must pay an additional 0.9% Medicare tax on the excess earnings. Employers are required to withhold the tax beginning in the pay period in which wages exceed $200,000 for…
New Guidance Offered on ACA Requirement of Insurance Notice
New guidance has been issued on the Affordable Care Act requirement that employers provide employees with a notice of their health insurance coverage options available through the future health insurance exchanges. Issued by the U.S. Department of Labor’s Employee Benefits Security Administration, the guidance requires all employers subject to the FLSA to provide the notice…
Report of Foreign Bank and Financial Account (FBAR) and Statement of Specified Foreign Financial As
Each U.S. person who has a financial interest in or signature or other authority over foreign bank accounts, securities accounts or other financial accounts must file a Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts or FBAR) if the aggregate value of the accounts exceeds $10,000 at any time during the calendar…
Tax consequences to consider before putting your home on the market
When you sell your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain if you meet certain tests. Gain that qualifies for exclusion also is excluded from the new 3.8% Medicare contribution tax. Losses on the sale of your home aren’t deductible. But if part of it is rented or…
5 Technology-Driven Trends Benefiting Small Businesses
More and more people are interested in starting their own businesses these days. Ever since the recession hit, new grads decided to start their own companies rather than wait for some company to give them a job. However, many older Americans are also more likely to start a new business. Technology has been a reoccurring…
Work opportunity credit for certain 2013 new hires can save you tax
If you’re considering expanding your staff, hiring from certain disadvantaged groups before the end of 2013 can save you tax. The American Taxpayer Relief Act of 2012 extended the Work Opportunity credit for hires from most eligible groups through 2013. Examples of eligible groups include food stamp recipients, ex-felons and nondisabled veterans who’ve been unemployed…
Planning to make a large cash gift for high school graduation? Consider paying some college tuition
With commencement ceremonies for high school seniors coming up, many parents and grandparents are contemplating making cash gifts the student can use for college expenses. But if gift and estate taxes are a concern, consider a potentially more tax-efficient gift: paying some of the child’s college tuition. Cash gifts to an individual generally are subject…