Archive for the ‘Planning’ Category

Treasury and IRS Announce That All Legal Same-Sex Marriages Will Be Recognized For Federal Tax Purposes; Ruling Provides Certainty, Benefits and Protections Under Federal Tax Law for Same-Sex Married Couples

IR-2013-72, Aug. 29, 2013

WASHINGTON — The U.S. Department of the Treasury and the Internal Revenue Service (IRS) today ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes. The ruling applies regardless of whether the couple lives in a jurisdiction that recognizes same-sex marriage or a jurisdiction that does not recognize same-sex marriage.
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IRS Simplifies Late S Corp Elections

The Internal Revenue Service has combined parts of several revenue procedures into a new revenue procedure that provides relief to companies that make late elections to become S corporations.

There is time to sign up for the “Individual Provisions of the Affordable Care Act” webinar scheduled for Tuesday, July 30th at 1PM EDT. Various dates in August have also been scheduled. Check out dates/times by clicking the link below.

If you are a working parent or look for work this summer, you may need to pay for the care of your child or children. These expenses may qualify for a tax credit that can reduce your federal income taxes. The Child and Dependent Care Tax Credit is available not only while school’s out for summer, but also throughout the year. Here are eight key points the IRS wants you to know about this credit.

1. You must pay for care so you – and your spouse if filing jointly – can work or actively look for work. Your spouse meets this test during any month they are full-time student, or physically or mentally incapable of self-care.

2. You must have earned income. Earned income includes earnings such as wages and self-employment. If you are married filing jointly, your spouse must also have earned income. There is an exception to this rule for a spouse who is full-time student or who is physically or mentally incapable of self-care.

3. You must pay for the care of one or more qualifying persons. Qualifying children under age 13 who you claim as a dependent meet this test. Your spouse or dependent who lived with you for more than half the year may meet this test if they are physically or mentally incapable of self-care.

4. You may qualify for the credit whether you pay for care at home, at a daycare facility outside the home or at a day camp. If you pay for care in your home, you may be a household employer. For more information, see Publication 926, Household Employer’s Tax Guide.

5. The credit is a percentage of the qualified expenses you pay for the care of a qualifying person. It can be up to 35 percent of your expenses, depending on your income.

6. You may use up to $3,000 of the unreimbursed expenses you pay in a year for one qualifying person or $6,000 for two or more qualifying person.

7. Expenses for overnight camps or summer school tutoring do not qualify. You cannot include the cost of care provided by your spouse or a person you can claim as your dependent. If you get dependent care benefits from your employer, special rules apply.

8. Keep your receipts and records to use when you file your 2013 tax return next year. Make sure to note the name, address and Social Security number or employer identification number of the care provider. You must report this information when you claim the credit on your return.

For more details about the rules to claim this credit, see Publication 503, Child and Dependent Care Expenses. You can get both publications at IRS.gov or have them mailed by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

Publication 503, Child and Dependent Care Expenses
Tax Topic 602 – Child and Dependent Care Credit
Frequently Asked Questions – Child Care Credit
Publication 926, Household Employer’s Tax Guide
Publication 907, Tax Highlights for Persons With Disabilities

What if Mom Got Paid For Being Mom?

She nursed your wounds and gave you your first bowl haircut. She dried your tears, got the grass stains out of your jeans and handled the family finances. She packed your lunch, dropped you off on your first date, let you wear your superhero cape to school and made sure you bathed before you left. She worked hard, and she did an amazing job. In fact, she did many amazing jobs — out of the goodness of her heart.

What if she did get paid for all the work she did for you and your siblings? To honor of all the fantastic moms out there (and to remind you how much she deserves your gratitude), we took a just-for-fun look at what mom would make if she got monetary compensation for all her many amazing talents.

The least you could do is give her a fantastic Mothers Day.

Thanks, Mom