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TAXBILLY

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Posts posted by TAXBILLY

  1. Efile Mandate

    in General Chat

    Posted

    "If you file more than 100 returns for tax year 2010, you are required to e-file. If you sign a return and the client chooses to mail it, then form 8948 must be filled out and attached to the return. If the client does not include the signed form 8948, that return will not be in compliance. The enforcement rules are still being drafted, but will be retroactive to Jan 1, 2011."

    Form 8948 is not signed by anybody.

    taxbilly

  5. Delays in Filing Until mid to late Feb

    in General Chat

    Posted

    You must have missed something:

    Inflation Adjusted Exemptions and Deductions

    Personal exemptions and standard deductions for tax year 2011 were released by the IRS. These inflation adjustments relate to eight tax provisions that were either modified or extended by the Tax Relief Act. Some of the adjustments include:

    The value of each personal and dependent exemption available to most taxpayers is $3,700, a $50 increase from 2010.

    The new standard deduction is $11,600 for married couples filing a joint return, a $200 increase; $5,800 for singles and married individuals filing separately, a $100 increase; and $8,500 for heads of household, a $100 increase. The additional standard deduction for blind people and senior citizens is $1,150 for married individuals and $1,450 for singles and heads of household, each an increase of $50. Nearly two out of three taxpayers take the standard deduction, rather than itemizing deductions, such as mortgage interest, charitable contributions and state and local taxes.

    Tax-bracket thresholds increase for each filing status. For a married couple filing a joint return, for example, the taxable-income threshold separating the 15-percent bracket from the 25-percent bracket is $69,000, up from $68,000 in 2010.

    The maximum earned income tax credit (EITC) for low- and moderate- income workers and working families rises to $5,751, up from $5,666 in 2010. The maximum income limit for the EITC rises to $49,078, up from $48,362 in 2010. The credit varies by family size, filing status and other factors, with the maximum credit going to joint filers with three or more qualifying children.

    The modified adjusted gross income threshold at which the lifetime learning credit begins to phase out is $102,000 for joint filers, up from $100,000, and $51,000 for singles and heads of household, up from $50,000.

    Pacun is correct. There were no changes for 2010 returns.

    taxbilly

  9. Where are the gurus?

    in General Chat

    Posted

    I got worried about you earlier this week when Catherine was posting birthdays first, because we notice when you are missing a few days! However, you jumped back in before I became concerned enough to say anything. Everyone else takes about a month for me to realize I haven't seen them in a while! Believe me you are very important to this board (and not just for the birthday wishes!) :wub:

    I was criticized a year or two ago about posting birthday greetings to run up my post account so I decided to be selective. If you notice, there have been members that have not visited this board in years and those are the ones that I haven't posted. But I am turning over the mantle to you or Catherine as this guru is growing old and senile.

    taxbilly

  16. 1099 dates are confusing me

    in General Chat

    Posted

    Evidently the 1099 situation for 2011 even confused NATP. Their "You Make The Call" segment in the December 16, 2010 newsletter failed to mention that 1099-MISCs are not required for corporations in 2011 but will be required in 2012. I emailed them and they replied that they were incorrect.

    taxbilly

  17. 1099 dates are confusing me

    in General Chat

    Posted

    Beginning January 1st, 2011, landlords need to start tracking their 1099 info. These 1099's will be issued in January 2012.

    The other issue, with 1099's having to be issued to non-service vendors, the payer needs to start tracking the 1099 info on January 1st, 2012. These 1099's will be issued in January 2013.

    The landlord 1099 issue was part of a separate legislation from the vendor 1099 issue. The vendor 1099 issue came about as part of the health care legislation. If that legislation survives then the 1099 issue may survive. The 1099 issue may be pulled out of the law and repealed on its own. It may be modified. Shoot, we may even be speaking a different language by January 1st, 2012. But I believe the landlord 1099 issue is here to stay.

    We have mailed a letter to all of our landlord clients informing them of this change. They need to be made aware because their responsibilty for gathering the info begins in just 17 days. Understand the penalty for non-compliance. If the landlord does not get a W-9, the landlord is required to do backup withholding at the 28% rate. If the landlord fails to get a W-9 and fails to do backup withholding, then the landlord will have to pay the 28% on his own. Just to make the waters muddier, if the landlord pays with a credit card, he should not report these payments on a 1099 since the credit card company will be reporting that transaction to the IRS.

    Hope that helps!

    Be aware that the 28% rate is in effect until December 31, 2010 but Congress has not decided what the rate will be for 2011.

    taxbilly

  18. 1099 dates are confusing me

    in General Chat

    Posted

    Is this right?

    1099 rental info Jan 2012 get w-9's in 2011

    1099 for vendors Jan 2013 get w-9's in 2012

    or get w-9's for everybody in 2012 and 1099 to all in Jan 2012

    I have read all the info I can find and the wording is driving me nuts. Isn't there a simple version of this. Oh I forgot it is the IRS, what's wrong with me?

    Thanks for the help. My focus has been on my medical problems and not 100% on the IRS.

    The 2011 Problem:

    http://www.aicpa.org/interestareas/tax/newsandpublications/taxnews/pages/20101111.aspx

    The 2012 Problem:

    http://www.irs.gov/pub/irs-drop/n-10-51.pdf

    Be advised that your clients will balk at having to put their Social Security number on the 1099-MISC they will issue. I am advising my clients to obtain an EIN for their rental property for this purpose. Also be aware that if your client pays by credit card a 1099-MISC will not be necessary, but only in 2011.

    If the service or property provider is a corporation no 1099-MISC is required but only in 2011.

    taxbilly

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