Hey, Partners!

Here’s an important alert for your 2017 tax returns. The Internal Revenue Service wants annual returns for partnerships and S Corporations to be filed a month earlier than returns for individual taxpayers. The due date for partnerships and S Corporations reporting on calendar tax years is Thursday, March 15. It applies if you’re filing a Form 1065 (U.S. Return of Partnership Income) or Form 1120S (U.S. Income Tax Return for an S Corporation). Partnerships had been due on April 15th, but the IRS moved up the deadline to March from the standard April date beginning last season for 2016 returns. If … Continue reading

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More Credits Where Credits Are Due

Minnesota’s Legislature has given state taxpayers a bunch of tax credits and subtractions from income that they can start using on 2017 returns. Most apply to special situations. Nonetheless, many Minnesota taxpayers – who now are starting to fill in the blanks on their 2017 returns — are going to like these NEW tax breaks when their refunds arrive! Here are some to note: • Social Security Benefit Subtraction – This is one with fairly broad effect. Minnesotans who receive Social Security or Railroad Retirement benefits can take as much as $3,500 off their income if filing as an individual, … Continue reading

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We’re On The Clock! Tax Season Opens Today (1/29)

Those W-2s and 1099s probably have been landing in your mailbox – or computer – for a couple of weeks or so. Now, taxpayers are able to fill in their returns and fire them off to the Internal Revenue Service. Today is the first day of the filing season for individual taxpayers. to pay income taxes or file for a refund! We’ll all have until April 17 this year to pay income taxes or file for a refund! The filing deadline once again has been pushed back a couple of days because of a holiday in the nation’s capital. The … Continue reading

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In a Hurry To File This Year?

If you’re among the eager taxpayers who just can’t wait to send in their tax returns – and, probably, collect their refunds — Jan. 29 is the opener. That’s when the Internal Revenue Service says it will start accepting an estimated 155 million returns for 2017 from individual taxpayers. But many businesses already can send in their 2017 tax forms, although that is not very well known. The IRS began accepting electronic filings from corporations, partnerships, trusts, non-profit organizations, etc., on Jan. 8, 2018, says Drake Software, maker of professional tax preparation software, in an announcement. Of course, there may … Continue reading

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Last Minute Tax Moves For 2017

Tax reform has dominated our national mindset lately. But, we’re still wrapping up the 2017 tax year, and few, if any, changes to tax codes are likely to take effect this year. So, what can you do now  to minimize federal and state taxes on your upcoming 2017 return? Here are some savvy steps to take no later than Dec. 31 with tax reform in mind, from Eric and the National Association of Tax Professionals: Personal taxes Income timing – Defer flexible income into 2018, if possible. Many taxpayers will benefit from lower tax brackets next year. Itemized deductions – Load … Continue reading

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Online crooks working a complex scam!

Once again, the Internal Revenue Service is warning the taxpaying public about a dangerous deception by cyber scammers. This one is particularly sophisticated, but it also is simple to foil. The Web criminals have been sending fake tax forms about life insurance using the names of tax preparers. The objective? To reach into the clients’ life insurance policies or annuities and steal money. With enough information, a nefarious somebody could take out loans or even clean out the value of an annuity. The IRS alert has a few tip-offs to watch for: • The subject line of the scam emails … Continue reading

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Finally, Tax Reform is Forming!

The anticipation about tax reform now is being satisfied. We’ve got details. Both the House of Representatives and the Senate versions of federal tax reform are promising big cuts in taxes, especially for the middle class. Both houses of Congress named their bills the “Tax Cuts & Jobs Act.” Corporations and small business also are in line for benefits. It’s not a done deal yet. Although the House of Representatives passed its tax fix on Thursday (11/16), the full Senate still must vote on it, probably after Thanksgiving. But we finally know what tax-slashing is likely. What’s in these bills … Continue reading

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2016 S Corp and Partnership Returns: Deadline Quickly Approaches

Taxpayers who pushed off their 2016 returns last spring by filing 6-month extensions now are getting close to the day of tax reckoning. The deadline for completing those extended tax returns looms within six weeks for individuals. Actually, partnerships and S corporations need to hustle now. Their extensions expire on Sept.15, a month earlier than in the past. The partnership deadline previously had followed the schedule for Form 1040 filed by individuals — April 15 (original deadline) and Oct. 15 (with an extension). The new due date was set by Congress in a 2015 law. It moved up the original … Continue reading

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Help Harvey Victims with Vacation Pay, Tax-Free

The Internal Revenue Service is making it easier for some charitable taxpayers and their employers to donate as the nation rushes relief to areas ravaged by Hurricane Harvey. The IRS just announced it will not tax proceeds from “leave-based donation programs” that will benefit Hurricane Harvey victims. Some, but not all, employers allow their workers to trade in their vacation, personal leave or sick time for cash payments sent to charities.  Here’s how the programs work.  The employee authorizes the exchange. Then, instead of paying him/her for leave time, the employer sends the cash donation directly to a charity or … Continue reading

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LAST CALL for 2015 Property Tax Refund; FIRST DUE DATE for 2016!

Last call! Tuesday, Aug. 15, is the last chance for Minnesota homeowners and renters to grab a refund of some property taxes for 2015. However, while Aug. 15 is their original due date, state residents who paid the taxes in 2016 can relax. Although Aug. 15 is the original due date, they still have another year—until Aug. 15, 2018 – to make a claim. The refund for homeowners formally is called the “Homestead Credit Refund”; for people who rent, it’s simply the “Renter Property Tax Refund.”  Minnesota Form M1PR covers both types of refunds. Also possible is a “special credit,” … Continue reading

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