Kim R Coyle CPA & Associates

03/16/2023

Kim R Coyle

03/03/2023

MARCH 15 2023 DEADLINE

Taxes are due for some business types (partnerships, multi-member LLCs, and S-Corporations). Businesses organized as partnerships, including multi-member LLCs, and S-Corporations need to file Form 1065, or 1120S by March 15, 2023.

Individuals and C Corporations have a due date of April 18.

If you need help filing an extension, we can do it for $95 which will be applied to your tax return fee when you file.

03/02/2023

https://www.irs.gov/newsroom/people-may-want-to-file-a-tax-return-even-if-they-arent-required-to-do-so

Tax Tip 2023-27, March 2, 2023 — Some people choose not to file a tax return because they aren’t legally required to file, but they could be missing out on refundable tax credits or an income tax refund.

03/02/2023

https://www.cpapracticeadvisor.com/2023/03/01/how-to-file-a-deceased-persons-final-income-tax-returnhow-to-file-a/77324/

Benjamin Franklin said, “Nothing is certain but death and taxes.” But what about when death and taxes coincide?

02/28/2023

https://www.cnet.com/personal-finance/investing/how-starting-a-529-plan-for-college-now-could-turn-into-retirement-savings-later/?ftag=CAD3c77551&utm_email=4e8102e5946b07308c7d44237feecfa608ba4a980d474b0cef4586e21a159be1&utm_campaign_id=6289282&utm_email_id=759992db000a74f389ac354919b523fa74604820afbc56c4bee35012e3394716&utm_newsletter_id=71561&medium=email&source=iterable

02/22/2023

Issue Number: Tax Tip 2023-23
Common mistakes international filers make using Free File Fillable Forms

Free File Fillable Forms are electronic federal tax forms taxpayers can fill out and file online for free, enabling them to:

Choose the income tax form they need.
Enter their tax information online.
Electronically sign and file their return.
Print their return for recordkeeping.
International filers can also share in the benefits of Free File Fillable Forms. However, international filers should use extra caution to avoid common mistakes that occur when taxpayers fill out these forms. These mistakes can lead to transmission failures, rejected tax returns or issues in creating or accessing an account.

Here are some of the common mistakes international filers make while using these forms.

Special characters, hyphens and spaces
When creating an account or entering information on a form, taxpayers shouldn't use any hyphenates or special characters such as ñ, ü, ó, and they shouldn't leave spaces in first or last names.

International addresses
Many forms require taxpayers to use a U.S. mailing address. Entering an international address, including military addresses, APO, DPO and FPO, may cause the return to be rejected. Unfortunately, there isn’t a universal solution for this issue.

International phone numbers

Taxpayers should use a U.S. phone when creating an account. Filers that use international phone numbers may not be able to create, access or recover their account.
Certain forms only accept a 10-digit number, and international filers shouldn’t use these forms if they don’t have access to a U.S. phone number.
Banks outside of the U.S.

Direct deposit is available only for bank accounts located only in the United States.
IRS Direct Pay requires a U.S. bank routing number.
If the international filer has an account with an international bank that has a U.S. affiliate, the bank may be able to provide a U.S. bank routing number.
Unsupported or prohibited forms for e-filing
All taxpayers should familiarize themselves with the forms they need before starting a return. This will help them understand the information about a form and its limitations, which could prevent the taxpayer from filing electronically.

The most common instances of unsupported or prohibited forms for international filers include:

Form 1116 – Foreign Tax Credit
Form 2350, Application for Extension of Time to File U.S. Income Tax Return
Form 2555 – Foreign Earned Income
Foreign Employee Compensation form

More information:
Line-by-Line Help Free File Fillable Forms
Foreign Electronic Payments

02/16/2023

This IRS online tool simplifies estimating 2023 tax withholding

A few minutes spent reviewing income tax withholding early in the year helps set a taxpayer up for success all year long. The Tax Withholding Estimator on IRS.gov makes it easy to figure out how much to withhold.

This online tool helps employees withhold the correct amount of tax from their wages. It also helps self-employed people who have wage income estimate their quarterly tax payments.

The Tax Withholding Estimator does not ask for personally identifiable information, such as name, Social Security number, address and bank account numbers. The IRS doesn't save or record the information users enter in the Estimator.

Why use the Tax Withholding Estimator
Using this tool to estimate tax withholding can help taxpayers avoid unpleasant surprises. Having too little withheld can result in a tax bill or even a penalty at tax time. Having too much withheld may result in a projected refund, which could mean less money in the taxpayer’s pocket during the year. The Tax Withholding Estimator can help taxpayers decide how much to withhold to get to a balance of zero or to a desired refund amount.

Taxpayers can use the results from the Tax Withholding Estimator to decide if they should:

Complete a new Form W-4, Employee's Withholding Allowance Certificate and submit it to their employer, or
Make an additional estimated tax payment to the IRS.
Before using the tool, taxpayers may want to gather a few documents, including:

Pay stubs for all jobs. If the taxpayer married filing jointly, they would also need their spouses’ pay stubs.
Forms W-2 from employers to estimate their annual income.
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan.
Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy.
Form 1099-INT for interest received.
Other income documents and records of virtual currency transactions.
People do not need these documents use the tool but having them will help taxpayers estimate 2023 income and answer other questions asked during the process. The Tax Withholding Estimator results will only be as accurate as the information the taxpayer enters.

The Tax Withholding Estimator isn’t for taxpayers who

Only have pension income – They can read more about pension and annuity withholding on IRS.gov.
Have more complex tax situations – This includes taxpayers who owe certain taxes such as the alternative minimum tax and people with long-term capital gains or qualified dividends.

More Information:
Publication 505, Tax Withholding and Estimated Tax

Share this tip on social media -- : This IRS online tool simplifies estimating 2023 tax withholding. http://ow.ly/wVRc50MUvu4

02/13/2023

https://www.cpapracticeadvisor.com/2023/02/11/irs-says-state-issued-stimulus-payments-are-not-taxable/76740/

The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns.

02/09/2023

https://www.latimes.com/california/story/2023-02-09/irs-tells-californians-to-wait-to-file-tax-returns

Yeah I don't think I would wait. Most payments were $700 to $1050.
Expect a big refund? file and get it.

Small refund or owing wait to file.

The IRS has yet to figure out whether California's 'Middle Class Tax Refund' is taxable at the federal level. Telling people to wait to file isn't helpful.

02/09/2023

Issue Number: Tax Tip 2023-15

Understanding business travel deductions

Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.

Here are some tax details all business travelers should know
Business travel deductions are available when employees must travel away from their tax home or main place of work for business reasons. A taxpayer is traveling away from home if they are away for longer than an ordinary day’s work and they need to sleep to meet the demands of their work while away.

Travel expenses must be ordinary and necessary. They can't be lavish, extravagant or for personal purposes.

Employers can deduct travel expenses paid or incurred during a temporary work assignment if the assignment length does not exceed one year.

Travel expenses for conventions are deductible if attendance benefits the business. There are special rules for conventions held outside North America.

Deductible travel expenses include:

Travel by airplane, train, bus or car between your home and your business destination.
Fares for taxis or other types of transportation between an airport or train station and a hotel, or from a hotel to a work location.
Shipping of baggage and sample or display material between regular and temporary work locations.
Using a personally owned car for business.
Lodging and meals.
Dry cleaning and laundry.
Business calls and communication.
Tips paid for services related to any of these expenses.
Other similar ordinary and necessary expenses related to the business travel.
Self-employed individuals or farmers with travel deductions

Those who are self-employed can deduct travel expenses on Schedule C (Form 1040), Profit or Loss From Business (Sole Proprietorship).
Farmers can use Schedule F (Form 1040), Profit or Loss From Farming.
Travel deductions for the National Guard or military reserves
National Guard or military reserve servicemembers can claim a deduction for unreimbursed travel expenses paid during the performance of their duty.

Recordkeeping
Well-organized records make it easier to prepare a tax return. Keep records such as receipts, canceled checks and other documents that support a deduction.

Share this tip on social media -- : Understanding business travel deductions.

Tax Tip 2023-15, February 7, 2023 — Whether someone travels for work once a year or once a month, figuring out travel expense tax write-offs might seem confusing. The IRS has information to help all business travelers properly claim these valuable deductions.

02/07/2023

Some of the best ways for a wager earner to get tax deferred savings. If not for you for her........

401K Adult under 50 years - Maximum is $22,500 over 50 =$30000

IRA Tax Year 2023 - Max contributions $6,500 if you're under age 50 $7,500 if you're age 50 or older.

HSA Health plan coverage max contribute in 2023.
Amount
Single coverage $3,850
Family coverage $7,750
Catch-up contributions (age 55+) $1,000

Start the new year off right. Take the first step by contributing to your HSA. Your future self will thank you!