Quick Tip – Building Client Relationships – Be a Valuable Resource

Quick TipBuilding client relationships require quality service. Providing an exceptional client experience includes being an invaluable resource to your client, all the time. Clients want and need you to provide them information and ideas, to assist them in meeting their business goals. They need your expert and timely guidance, to help them make the tough business decisions, that will excel their business growth. Keeping them informed on new information, and how it applies to their business, is a great way to be a valuable resource. Hand Shake

Try not to become a man of success, but a man of value.

~ Albert Einstein ~

Tax Tip – When IRS Comes Knocking

Tax Tips

TAX TIP from the NSA Federal Taxation Committee
The IRS has indicated that they plan to increase visits to taxpayers and small businesses in the areas of payroll tax collection and compliance.  Most of our individual and small business clients are not prepared or qualified to deal with such a visit.  It’s a good time to remind our clients that they are not required to deal with the IRS alone.  If an IRS agent shows up at their door, they may politely tell the agent that they wish to have someone represent them and decline to grant an interview or give immediate access to their files.  IRC 7521(b)(2) requires the IRS to suspend the interview at any time this request is made by the taxpayer.

Every taxpayer has the Right to Retain Representation.  Taxpayers who cannot afford representation may be eligible for assistance from a Low Income Taxpayer Clinic.

Numbers Can Be Fun!

Numbers Cartoon

Tax Tips – Is It Tax Deductible? – Gambling Losses

Tax TipsLearn tax tips so you will be informed and can save money on taxes!

Question – Are gambling losses Tax Deductible?

Example – You spent a few weekends in Vegas last year. One weekend, you won money. For the rest, your wallet came back a little worse for wear. Luckily gambling losses are tax deductible.

Answer – True or False?

 

The answer is TRUE.

You can deduct losses … but only to the extent of the gambling winnings you report as taxable income. And, while the law calls for all gamblers to report 100% of their winnings, only the 25% or so of taxpayers who itemize get the chance to deduct losses. Those who use the standard deduction don’t get this tax break.

One bright spot: Although gambling losses are considered miscellaneous expenses to be deducted on Schedule A of the Form 1040, this write-off is not restricted by the rule that generally allows miscellaneous expenses only to the extent they total more than 2% of your adjusted gross income. Gambling losses are deductible dollar for dollar, up to the amount of winnings reported.Gambling

 

QuickBooks Payroll Update Just Released

QuickBooks

 

Critical Notice

 

Payroll Compliance Update: Revised Tax Tables
Intuit has released Payroll Update 21516, with revised tax tables.

Get the Payroll Update
The Payroll Update ensures that you will be in compliance with legislation that affects your payroll. For details on the contents of this update, go to Employees > Get Payroll Updates > Payroll Update Info.

To confirm that you have received the update, open QuickBooks and choose Employees > Get Payroll Updates. If you don’t see a message that says, “You are using tax table version: 21516,” click UpdateGet complete instructions.

 

To turn on the automatic updates feature in QuickBooks so that you automatically receive payroll updates when they are released, choose Help > Update QuickBooks. On the Options tab, select Yes for Automatic Update.

 

Disk delivery customers: The next disk delivery is scheduled for late September. If you have an internet connection, we strongly recommend that you download this update now. Follow these instructions.

Math Game – Your Shoes Can Tell Your Age!

Math Game with Shoe Size and Age

PROJECTED Tax Rates and Brackets for 2016

Breaking NewsBloomberg BNA released the PROJECTED 2016 Tax Rates and a projection of inflation adjusted tax items. Included in the report is the warning that higher IRS penalties are expected. The IRS is expected to publish their revenue procedure with the 2016 inflation adjusted amounts later this year.

 

 

The PROJECTED 2016 income tax rate tables are:

Married Filing Jointly and Surviving Spouses

If Taxable Income Is: The Tax Is:
Not Over $18,550 10% of the taxable income
Over $18,550 but not over $75,300 $1,855 plus 15% of excess over $18,550
Over $75,300 but not over $151,900 $10,367.50 plus 25% of excess over $75,300
Over $151,900 but not over $231,450 $29,517.50 plus 28% of excess over $151,900
Over $231,450 but not over $413,350 $51,791.50 plus 33% of excess over $231,450
Over $413,350 but not over $466,950 $111,818.50 plus 35% of excess over $413,350
Over $466,950 $130,578.50 plus 39.6% of excess over $466,950

Unmarried Individuals (other than Surviving Spouses and Heads of Households)

If Taxable Income Is: The Tax Is:
Not Over $9,275 10% of the taxable income
Over $9,275 but not over $37,650 $927.50 plus 15% of excess over $9,275
Over $37,650 but not over $91,150 $5,183.75 plus 25% of excess over $37,650
Over $91,150 but not over $190,150 $18,558.75 plus 28% of excess over $91,150
Over $190,150 but not over $413,350  $46,278.75 plus 33% of excess over $190,150
Over $413,350 but not over $415,050 $119,934.75 plus 35% of excess over $413,350
Over $415,050 $120,529.75 plus 39.6% of excess over $415,050

 

Personal Exemption and Standard Deduction

The Personal Exemption for 2016 is projected to be $4,050 ($4,000 in 2015).

The projected Standard Deductions are as follows for each filing status listed:

Married Filing Jointly/Surviving Spouses — $12,600
Heads of Household — $9,300
All Other Taxpayers — $6,300

Alternative Minimum Tax (AMT)taxes made from money

The AMT exemptions are projected for 2016 as follows:

Married Filing Jointly/Surviving Spouses – $83,800
Heads of Household – $53,900
Unmarried Individuals (other than Surviving Spouses and Heads of Household) – $41,900
Estates and Trusts – $23,900

Estate and Gift Tax Exclusions

Bloomberg BNA projects the estate tax basic exclusion for decedents dying in 2016 will be $5.45 million. The exclusion amount, was $5.43 million in 2015. The annual gift tax exclusion is projected to remain at $14,000 in 2016.

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