With summer vacation season almost upon us, people’s thoughts often turn to travel, and we thought it would be a good time to review the rules for deducting the costs of a business trip where you also take a vacation ("mixing business with pleasure"). These costs may be deductible, but are also subject to limitations. We will discuss these limitations below.
What I’m Reading This Summer – Passive Activity Losses and the Material Participation Tests
tax services , Brett W. Neate , Taxes - IndividualIn my youth, I was fascinated by all things weird and wonderful. The natural wonders of the world, such as the Grand Canyon or Aurora Borealis, were impressive for their scale and beauty. However, the man-made wonders were impressive not only for their scale and beauty but also for the fact that they sprung from the minds of men and made real through years of hard work.
I was in awe and fueled my interests through the joy of reading. I always held a love for books and looked forward to trips to the local library, so I could find an armful of books that I could read and fill my book log during the annual summer reading program.
Monday, April 18, was the tax deadline for most people in 2016. If you didn’t file a tax return or an extension to file but should have, take action now.
If you missed the tax filing deadline:
- File and pay soon. If you owe taxes, you should file and pay as soon as you can, which will stop the interest and penalties that you will owe. IRS Direct Pay is a free, secure and easy way to pay your balance due directly from your checking or savings account. We don’t charge a penalty for filing a late return if you are due a refund. The sooner you file, the sooner you’ll get your refund.
- Use IRS Free File. Nearly everyone can use IRS Free File to e-file their federal taxes for free. If your income was $62,000 or less, you can use free brand-name tax software. If you made more than $62,000, use Free File Fillable Forms to e-file. This program uses electronic versions of IRS paper forms and does some of the math for you. Fillable forms work best for those who are used to doing their own taxes. Either way, you have a free option on IRS.gov through the Oct. 17 extension period.
Related blogs: Howard Kass - IRS e-file is safe and quick. No matter who prepares your tax return, you can use IRS e-filethrough Oct. 17. E-file is the easiest, safest and most accurate way to file your taxes. The IRS will send you electronic confirmation when we receive your tax return, and we issue more than nine out of 10 refunds in less than 21 days.
- Pay as much as you can. If you owe but can’t pay in full, you should pay as much as you can when you file your tax return. IRS electronic payment options are the quickest and easiest way to pay your taxes. You should pay what you owe as soon as possible to minimize penalties and interest.
- Make monthly payments through an installment agreement. If you need more time to pay your taxes, you can apply for a direct debit installment agreement through the IRS Online Payment Agreement tool. You don’t need to write and mail a check each month with a direct debit plan. If you don’t use the online tool, you can still apply on Form 9465, Installment Agreement Request. You can get the form at IRS.gov/forms at any time.
- A refund may be waiting. If you are owed a refund, you should file as soon as possible to get it. Even if you are not required to file, you may still get a refund if you had taxes withheld from your wages or you qualify for certain tax credits like the Earned Income Tax Credit. If you don’t file your return within three years, you could lose your right to the refund. Source: IRS.gov April 18, 2016
Do you have a question about your income taxes or other financial concerns? We are ready to start the conversation. Contact us at info@zinnerco.com or call 216.831.0733 for a no-cost, no-obligation consultation.
Don’t panic if you haven’t filed your income tax yet. There’s no time like the present to prepare and file your 2015 tax return.
The Last Chance to Take Advantage of “File and Suspend” is Fast Approaching!
Changes to Household Employment that Will Affect Families in 2016
Employee or Independent Contractor , Taxes - IndividualIf you are a family that has privately hired a household employee to provide childcare, senior care, etc., in your home, there’s a relatively low chance that you'll know what aspects of household employment have changed from 2015 to 2016. The good news is that most of the changes are relatively minor, but here are five topics you should be aware of:
Both Sides of the Coin: What you need to know if you issue or receive 1099 forms
Taxes - Corporate & Business , Taxes - Individual , Richard Huszai, CPADeep into February, I begin to receive two very common questions:
Donor-Advised Funds: Changing the World, One Dollar at a Time
Taxes - Planning, Rules and Returns , Taxes - IndividualWith the recent Independence Day holiday weekend, social media has been buzzing about reasons to be proud to be an American. Obvious reasons include our rich culture (hello, melting pot of the world) and freedoms that citizens of other countries can only dream about. Where else in the world can you practice any religion you please, marry whoever you want, and criticize the president in public, all without fear of death or being thrown in jail? Here’s one more delightful reason we can add to that list: generosity.
The Charity Aid Foundation puts out a study each year that ranks countries based on three giving categories: donating money, volunteering time, and helping a stranger in need. The United States has held the #1 spot on the World Giving Index in 2011, 2013, and 2014. We tied in 2014 with Myanmar, but we were also the only country to be in the top 10 for all three categories.
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