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Medicare Cost Report Payments for Meaningful Use of Electronic Health Records

2012-02-06T00:47:49Z

Medicare Cost Report Payments for Meaningful Use of Electronic Health Records Payments for Meaningful Use of Electronic Health Records

Posted FEB 5 2012 by GUSTAVO A VIERA CPA in MEDICARE & MEDICAID with 0 COMMENTS

The American Recovery and Reinvestment Act of 2009 (ARRA) established incentive payments under theMedicare Cost Report programs for certain professionals and hospitals that “meaningfully use” certified electronic health record (EHR) technology. These provisions of ARRA , together with certain of its other provisions, are referred to as the Health Information Technology for Economic and Clinical Health (HITECH) Act. The HITECH Act’s overall public policy goal is “to pro- mote the adoption and meaningful use of interoperable health information technology and qualified electronic health records (EHRs).” The government’s ultimate goal is to promote more effective (quality) and efficient healthcare delivery through the use of technology—reducing the total cost of Medicare Cost Report care for all Americans and using the savings to expand access to the healthcare system.

ARRA set aside $19 billion for making incentive payments to hospitals and physicians that implement and meaningfully use EHR technology by 2014. Incentive payments will be paid out over four years on a transitional schedule. To qualify for incentives under the HITECH Act, hospitals and physicians must meet EHR “meaningful use” criteria. The Centers for Medicare Cost Report (CMS) chose to take a phased approach to defining meaningful use (through three stages), using cri- teria that become more stringent over time.

Generally, it appears that short-term acute care IPPS hospitals3 receiving Medicare Cost Report payments have accounted for them using either a contingency model or an IAS 20 grant accounting model. Although the Securities and Exchange Commission (SEC) had not issued any formal views on EHR income recognition at the time this paper was published, preliminary indications are that SEC registrant hospitals are applying a contingency model. Other hospitals—i.e., those that are privately-held, not-for-profit, or governmental—appear to be choosing between the two models as a matter of accounting policy. If an SEC registrant chooses to apply any model other than a gain contingency model, consultation with the SEC staff is strongly recommended.

The remainder of this position paper discusses accounting for the incentive payments under the two accounting models. Because the SEC has not yet issued any views on the specific requirements associated with the contingency model, the primary emphasis of this paper is on the grant accounting model.

1. See the July 28, 2010, Federal Register (starting on page 44314) for the final rule issued by the Department of Health and Human Services, Centers for Medicare & Medicaid Services, that implements the applicable provisions of ARRA.

2. Federal Register, p. 44316.

3. This is referring to “subsection (d) hospitals” in section 1886(d)(1)( of the Social Security Act that are paid under the hospital inpatient prospective payment system (IPPS) and are located in one of the 50 states or the District of Columbia.

About P&P Board Issue Analyses

The Healthcare Financial Management Association through its Principles and Practices (P&P) Board publishes issue analyses to pro- vide short-term practical assistance on emerging issues in healthcare financial management. To expedite information to the industry, issues analyses are not sent out for public comment. Therefore, they are factual, but not authoritative. The purpose of this issue analysis is to provide some clarity to the healthcare industry on certain accounting and reporting issues resulting from incentive payments under the Medicare program for the meaningful use of electronic health record (EHR) technology. Consultation on these matters with independent auditors is highly recommended. Also, Security and Exchange Commission registrants that are contemplating use of a method other than the contingency model are encouraged to consider pre-clearing their views with the SEC staff.

Medicare Cost Report Payments for Meaningful Use of Electronic Health Records.

Note: Because this is an area where accounting practices are just starting to emerge, entities are strongly encouraged to discuss ac- counting for the incentive payments with their independent auditors as soon as possible. In addition, SEC registrants that are contemplating use of a method other than the contingency model are encouraged to consider pre-clearing their views with the SEC staff.

Scope.

This paper focuses on accounting for the Medicare EHR incentive payments to acute-care inpatient hospitals that are paid under the IPPS. The provisions of the incentive program are applied differently to critical access hospitals (CAHs) and eligible professionals (EPs); however, read in conjunction with the rules applicable to those types of providers, the concepts discussed in this position paper may be useful in determining the appropriate accounting in those situations as well. The concepts discussed in this position paper may also be helpful in determining the appropriate accounting for incentive payments received under state Medicaid programs, which are similar in some ways to the Medicare Cost Report program.

Overview of Accounting Models

Contingency Model

A key consideration in applying the contingency model is appropriately identifying the contingencies that must be satisfied prior to recognizing the revenue. When EHR incentive payments are viewed within the context of a contingency model, one contingency involves the fact that receipt of an incentive payment occurs only if the hospital is successful in complying with the meaningful use criteria during the entire EHR reporting period (90 consecutive days in the first payment year and 365 consecutive days during each of the second through fourth payment years). The contingency model would not permit income from incentive payments to be recognized until the hospital has actually complied with the meaningful use criteria for the full EHR reporting period in a given year. For example, if in the first payment year the hospital successfully complied with the criteria during days 1 through 89 but failed to comply on day 90, the entire incentive payment for that year would be forfeited. How- ever, if compliance was maintained for the entire 90 day period, income could be recognized on the 90th day if the discharge condition noted below is also met as of that day. It would not be appropriate under a contingency model to consider the proba- bility of complying with the requirements when considering when to recognize income from the incentive program.

Medicare Cost Report Payments for Meaningful Use of Electronic Health Records

Another potential contingency relates to the discharges upon which the final incentive payment is based. As discussed in Appendix B of this paper, Medicare’s incentive payments are based on a formula which utilizes discharges occurring during a hospital’s cost report year4 that begins in the EHR reporting period (see Figure 1). The EHR reporting period is based on the federal fiscal year, which runs from October 1 through September 30. Therefore, unless an entity’s fiscal year coincides with the federal fiscal year, a portion of the discharges used in the payment calculation will occur after the EHR reporting period ends. Because the actual numbers of Medicare discharges and total discharges will typically not be known until the hospital’s fiscal year has ended, under a contingent gain model, these amounts would likely be considered an uncertainty that must be resolved prior to recognition of income. Similar considerations may apply to the total charges, charity care charges, and patient days used in the final incentive payment calculation. It is therefore expected that hospitals using the contingency model would typically not meet the contingency for discharge and other final payment calculation data until the last day of the cost report year.

Under the contingency model, the income from the incentive payments would be recorded entirely in the period in which the last remaining contingency is resolved (see Figure 2). Thus, the cash received or receivable from an incentive payment would be recognized as income entirely in a single quarter (i.e., the last quarter of the fiscal year end that is used in the incentive payment calculation).

Submission of the cost report and its subsequent desk review or audit by CMS would not likely be viewed as contingent events that must occur prior to the recognition of income.

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Get Your Prior Years Tax Information from the IRS

2012-02-05T16:22:25Z

Miami Accounting

Sometimes a Tax Accountant in Miami needs a copy of an old tax return, but can’t find or the client does not have one in their own records. Accounting services for small business point out there are three easy and convenient options for getting tax return transcripts and tax account transcripts from the IRS: on the web, by phone or by mail. Miami accounting CPA’s point out there are eight things you need to know about getting federal tax return information from a previously filed tax return.

1. A Tax Accountant in Miami can order transcripts online or by phone for the current tax year as well as the past three tax years. Earlier tax years must be requested with Form 4506T-EZ, Short Form Request for Individual Tax Return Transcript. Any accounting services for small business can help you with the request.

2. A tax return transcript shows most line items from your tax return as it was originally filed by your Miami accounting CPA, including any accompanying forms and schedules. It does not reflect any changes made after the return was filed.

3. A tax account transcript shows any later adjustments either you, your Tax Accountant in Miami or the IRS made after the tax return was filed. This transcript shows basic data, including marital status, type of return filed, adjusted gross income and taxable income.

4. To request either transcript online from this website use our online tool called Order a Transcript. To order by phone, call 800-908-9946 and follow the prompts in the recorded message. When you use these automated self-service options, the selected transcript will be mailed to your current address of record. To have your transcript mailed to a different address, have an accounting services for small business complete and mail Form 4506-T, Request for Transcript of Tax Return. The IRS does not charge a fee for transcripts.

5. To request a 1040, 1040A or 1040EZ tax return transcript through the mail, have your Miami accounting CPA complete IRS Form 4506T-EZ. Businesses, partnerships and individuals who need transcript information from other forms or need a tax account transcript must use the Form 4506T.

6. If you order online or by phone, you should receive your tax return transcript within five to 10 calendar days from the time the IRS receives your request. Allow 30 calendar days for delivery of a tax account transcript if you order by mail using Form 4506T or Form 4506T-EZ.

7. If you still need an actual copy of a previously processed tax return, it will cost $57 for each tax year you order. Have your Tax Accountant in Miami complete Form 4506, Request for Copy of Tax Return, and mail it to the IRS address listed on the form for your area. Copies are generally available for the current year as well as the past six years. Please allow 60 days for actual copies of your return.

8. Visit this website to determine which form will meet your needs. Forms 4506, 4506T and 4506T-EZ can be downloaded here or by calling a accounting services for small business CPA Firm.

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Small business CPA Tax Tips for the Self-employed

2012-02-05T15:57:54Z

Small Business Accounting Services

Small Business CPA knows there are many benefits that come from being your own boss. If you work for yourself, as an independent contractor (like a Small business tax services for example), or you carry on a trade or business as a sole proprietor, you are generally considered to be self-employed.

Small business CPA want you to be aware of six key points the IRS would like you to know about self-employment and self- employment taxes:

Small business CPA

1. Self-employment can include work in addition to your regular full-time business activities, such as part-time work you do as a small business tax services at home or in addition to your regular job.

2. If you are self-employed, like a small business CPA, you generally have to pay self-employment tax as well as income tax. Self-employment tax is a Social Security and Medicare tax primarily for individuals who work for themselves. It is similar to the Social Security and Medicare taxes withheld from the pay of most wage earners. You figure self-employment tax using a Form 1040 Schedule SE. Also, you can deduct half of your self-employment tax in figuring your adjusted gross income.

3. If you’re a small business accounting services you can file an IRS Schedule C, Profit or Loss from Business, or C-EZ, Net Profit from Business, with your Form 1040.

4. If you are self-employed small business tax services (as an example) you may have to make estimated tax payments. This applies even if you also have a full-time or part-time job and your employer withholds taxes from your wages. Estimated tax is the method used to pay tax on income that is not subject to withholding. If you fail to make quarterly payments you may be penalized for underpayment at the end of the tax year.

5. You can deduct the costs of running your business. These costs are known as business expenses. These are costs you do not have to capitalize or include in the cost of goods sold but can deduct in the current year.

6. To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your field of business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be indispensable to be considered necessary.

Small business tax services

For more information see a Small business CPA, a Small business accounting services or a Small business tax services. You can also reference the Self-employment Tax Center, IRS Publication 334, Tax Guide for Small Business, IRS Publication 535, Business Expenses and Publication 505, Tax Withholding and Estimated Tax, available at www.irs.gov. href="http://www.vieracpa.com/wp-content/uploads/2011/12/6-e1324058198999.jpeg" style="color: rgb(19, 67, 115); text-decoration: none; outline-style: none; outline-width: initial; outline-color: initial; ">

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¿Qué formulario debo usar para presentar mi declaración de impuesto federal?

2012-02-05T15:19:31Z

Despachos Contables

¿Contadores en Miami quieran que sepan que Formulario debo usar – el 1040, el 1040A o el 1040EZ?

Los tres formularios usados para presentar la declaración de impuesto federal sobre el ingreso personal son; Formulario 1040EZ, Formulario 1040A y el Formulario 1040.

Contador Publico en Miami

Formulario 1040EZ

Como Contador en Miami yo se que el Formulario 1040EZ es el formulario más sencillo de usar. Pere no necesariamente el correcto. El Contador Publico en Miami puede usar el Formulario 1040EZ si se dan todas las siguientes condiciones:

Su estado civil para efectos de la declaración es soltero o casado que presenta una declaración conjunta. Si fue extranjero no residente en algún momento del año 2011, su estado civil para efectos de la declaración debe ser casado que presenta la declaración conjunta.
Usted (y su cónyuge si es casado que presenta una declaración conjunta) tenía menos de 65 años de edad y no estaba ciego al final del año 2011. Si nació el primero de enero de 1946, a usted se le considera que tiene 65 años de edad al final del año 2011.
No declara ningún dependiente.
Su ingreso tributable es menos de $100,000.
Su ingreso proviene únicamente de sueldos, salarios, propinas, compensación por desempleo, dividendos del Alaska Permanent Fund (Fondo permanente de Alaska), becas de estudios y de desarrollo profesional tributables e intereses tributables de $1,500 o menos.
No recibió ningún pago adelantado del crédito por ingreso del trabajo (EIC).
No declara ningún ajuste al ingreso, como una deducción por aportaciones hechas a una cueta de ahorros para la jubilación (IRA, por sus siglas en inglés) o intereses sobre un préstamo de estudios.
No reclama ningún crédito que no sea el crédito por ingreso del trabajo o el crédito “hacer que el trabajo pague”.
No debe impuestos sobre el empleo de empleados domésticos sobre salarios que le pagó a un empleado doméstico.
No declara la deducción estándar adicional.
Debe cumplir todos estos requisitos para poder usar el Formulario 1040EZ. De lo contrario, debe utilizar el Formulario 1040A o el Formulario 1040.

Contadores en Miami

Formulario 1040A

Su contador en Miami le tiene que avisar si no reúne los requisitos para utilizar el Formulario 1040EZ, quizás pueda utilizar el Formulario 1040A.

Los Despachos Contables les avisan que pueden usar el Formulario 1040A si se dan todas las siguientes situaciones:

Su ingreso proviene únicamente de salarios, sueldos, propinas, distribuciones de cuentas IRA, pensiones, y anualidades, prestaciones tributables del seguro social y de la jubilación ferroviaria, becas tributables de estudios y de desarrollo profesional, intereses, dividendos ordinarios (incluyendo dividendos del Alaska Permanent Fund (Fondo permanente de Alaska)), distribuciones de ganancias de capital, y compensación por desempleo.
Su ingreso tributable es menos de $100,000.
Sus ajustes al ingreso se deben solamente a lo siguiente:
Deducción de una cuenta de ahorros para la jubilación (IRA, por sus siglas en inglés)
Deducción de intereses sobre un préstamo de estudios.
No detalla las deducciones.
Sus impuestos se deben únicamente a los siguiente:
La Tabla de Impuestos.
Impuesto mínimo alternativo.
Pagos adelantados del crédito por ingreso del trabajo, si ha recibido alguno.
Recuperación de un crédito por estudios.
El Formulario 8615, Tax for Certain Children Who Have Investment Income of More than $1,900 (Impuesto para determinados hijos con ingreso de inversiones superior a $1,900), en inglés.
La Qualified Dividends and Capital Gain Tax Worksheet (Hoja de trabajo para el impuesto sobre dividendos calificados y ganancias de capital), en inglés.
Reclama sólo los siguientes créditos tributarios:
El crédito por gastos del cuidado de menores y dependientes.
Crédito para ancianos o personas incapacitadas.
El crédito tributario por hijos.
El crédito tributario adicional por hijos.
Los créditos tributarios por estudios.
El crédito por aportaciones a cuentas de ahorros para la jubilación.
El crédito por ingreso del trabajo.
El crédito tributario “hacer que el trabajo pague”.
No tuvo un ajuste al impuesto mínimo alternativo sobre acciones que adquirió al ajercer una opción de compra de acciones con incentivo.
Debe cumplir todos los requisitos mencionados anteriormente para usar el Formulario 1040A. De lo contrario, tiene que usar el Formulario 1040.

Contador en Miami

Formulario 1040

Si los contadores en Miami les dicen que no puede usar el Formulario 1040EZ ni el Formulario 1040A, debe usar el Formulario 1040. Puede usar el Formulario 1040 para declarar todos los tipos de ingresos, deducciones y créditos.

Los contador publico en Miami les avisan que quizás pague menos impuestos presentado el Formulario 1040 porque puede tomar deducciones detalladas, algunos ajustes a los ingresos y créditos que no puede tomar en el Formulario 1040A ni en el Formulario 1040EZ.

Debe usar el Formulario 1040 si le corresponde alguna de las siguientes situaciones:

Su ingreso tributable es de $100,000 o más.
Detalla sus deducciones.
Tenía ingresos que no pueden ser declarados en el Formulario 1040EZ ni en el Formulario 1040A, incluyendo intereses exentos de impuestos provenientes de bonos de actividad privada que fueron emitidos después del 7 de agosto del 1986.
Reclama algún ajuste a los ingresos brutos que no sean los ajustes mencionados anteriormente bajo Formulario 1040A.
En el recuadro 12 del Formulario W-2 se indican impuestos del empleado no cobrados (impuestos del seguro social y Medicare) sobre propinas o sobreun seguro de vida colectivo a término.
Recibió $20 o más en propinas en algún mes y no las declaró todas a su empleador.
Era residente bona fide de Puerto Rico y excluye ingresos provenientes de fuentes en Puerto Rico.
Reclama todos los créditos salvo los mencionados anteriormente bajo Formulario 1040A.
Debe impuestos sobre uso y consumo sobre remuneraciones por acciones negociadas por oficiales de una sociedad anónima expatriada.
Su Formulario W-2 muestra una cantidad en el recuadro 12 con el código Z.
De su cuenta IRA, recibió una distribución de fondos calificada de una cuenta de ahorros para gastos médicos (HSA, por sus siglas en inglés).
Es empleado y su empleador no le retuvo los impuestos del seguro social ni del Medicare.
Tiene que presentar otros formularios con su declaración para declarar ciertas exclusiones, impuestos o transacciones.
Es deudor de un caso de quiebra declarado después del 16 de octubre de 2005.
Sufrió una pérdida neta por desastre atribuible a un desastre declarado como tal por el gobierno federal, aun si declara la deducción estándar.
Debe recuperar el crédito para compradores de vivienda por primera vez.
Recibió un reembolso o crédito por ciertos impuestos o por una pérdida neta por desastre que usted reclamó como parte de su deducción estándar.

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Tax Accountant in Miami Warns of Tax Identity Theft

2012-01-31T20:46:27Z

Tax Accountant Miami

Tax Accountant Miami Firms, the Internal Revenue Service and the Justice Department today announced the results of a massive national sweep cracking down on suspected identity theft perpetrators as part of a stepped-up effort against refund fraud and identity theft.

Working with the Justice Department’s Tax Division and local U.S. Attorneys’ offices, the nationwide effort targeted 105 people in 23 states. The coast-to-coast effort took place over the last week and included indictments, arrests and the execution of search warrants involving the potential theft of thousands of identities and Tax Preparation Miami refunds. In all, 939 criminal charges are included in the 69 indictments and information related to identity theft according to Tax Accountant in Miami, Gustavo A. Viera CPA.

Tax Preparation Miami

In addition, IRS auditors and investigators conducted extensive compliance visits to Tax Accountant Miami and money service businesses in nine locations across the country in the past week. The approximately 150 visits occurred to help ensure these check-cashing facilities aren’t facilitating refund fraud and identity theft.

“This unprecedented effort against identity theft sends a strong, unmistakable message to anyone considering participating in a refund Tax Preparation Miami fraud scheme this tax season,” said Tax Accountant in Miami Viera. The IRS is aggressively pursuing cases across the nation with the Justice Department, and people will be going to jail. This is part of a much wider effort underway at the IRS to help protect taxpayers and honest Tax Accountant Miami.

“The Justice Department is working closely with the IRS to investigate, prosecute, and punish tax refund crimes committed through the theft of identities,” said Viera a Tax Preparation Miami Firm. “Now, more than ever, we must remain vigilant against the unauthorized use of identification information to defraud the U.S. government.”

The national effort is part of a comprehensive identity theft strategy the IRS has embarked on that is focused on preventing, detecting and resolving identity theft cases as soon as possible. In addition to the law-enforcement crackdown, Tax Accountant in Miami have stepped up its internal reviews to spot false tax returns before tax refunds are issued as well as working to help victims of the identity theft refund schemes.

The law-enforcement sweep started last week across the country, reflecting investigative efforts stretching back months and even years.

The nationwide effort by the Justice Department and the IRS led to actions taking place in 23 locations across the country with 105 individuals. The actions included 80 complaints/indictments and informations, 58 arrests, 19 search warrants, 10 guilty pleas and four sentencings. A map of the locations and additional details on the actions are available on IRS.gov, the IRS Civil and Criminal Actions page and the Department of Justice Tax Division page.

Beyond the criminal actions, the IRS enforcement personnel conducted a special sweep last week and on Monday to visit 150 Tax Accountant Miami and money services businesses to help make sure these businesses are not knowingly or unknowingly facilitating identity theft or refund fraud. The visits occurred in nine high-risk places identified by the IRS covering areas in and surrounding Atlanta, Birmingham, Ala., Chicago, Los Angeles, Miami, New York, Phoenix, Tampa and Washington, D.C.

In addition, the IRS has more than 250 check-cashing operations under audit across the country and will be looking for indicators of identity theft as part of the exam effort.

Tax Accountant in Miami

The information from these audits and compliance visits will be used to assist continuing Tax Preparation Miami Firms investigations into refund fraud and identity theft.

Tax Accountant in Miami Firms also is taking a number of additional steps this tax season to prevent identity theft and detect refund fraud before it occurs. These efforts includes designing new identity theft screening filters that will improve the Tax Accountant Miami ability to spot false returns before they are processed and before a refund is issued, as well as expanded efforts to place identity theft indicators on Tax Preparation Miami services to track and manage identity theft incidents.

To help taxpayers, the IRS earlier this month created a new, special section on IRS.gov dedicated to identity theft matters, including YouTube videos, tips for taxpayers and a special guide to assistance. The information includes how to contact the IRS Identity Protection Specialized Unit and tips to protect against “phishing” schemes that can lead to identity theft.

Identity theft occurs when someone uses another’s personal information without their permission to commit fraud or other crimes using the victim’s name, Social Security number or other identifying information. When it comes to federal taxes, taxpayers may not be aware they have become victims of identity theft until they receive a letter from the IRS stating more than one tax return was filed with their information or that IRS records show wages from an employer the taxpayer has not worked for in the past.

If a taxpayer receives a notice from the IRS indicating identity theft, they should follow the instructions in that notice. A taxpayer who believes they are at risk of identity theft due to lost or stolen personal information should contact the IRS immediately so the agency can take action to secure their tax account. The taxpayer should contact the IRS Identity Protection Specialized Unit at 800-908-4490. The taxpayer will be asked to complete the IRS Identity Theft Affidavit, Form 14039, and follow the instructions on the back of the form based on their situation.

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Tax Accountant in Miami Warns of Tax Identity Theft

2012-01-31T20:46:23Z

Tax Accountant Miami

Tax Preparation Miami

The law-enforcement sweep started last week across the country, reflecting investigative efforts stretching back months and even years.

In addition, the IRS has more than 250 check-cashing operations under audit across the country and will be looking for indicators of identity theft as part of the exam effort.

Tax Accountant in Miami

The information from these audits and compliance visits will be used to assist continuing Tax Preparation Miami Firms investigations into refund fraud and identity theft.

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Miami Accounting Firms Reminds Parents of Ten Tax Benefits

2012-01-31T20:44:02Z

Miami Accounting Firms

Accounting Miami firms know your kids can be helpful at tax time. That doesn’t mean they’ll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits. Here are 10 things Bookkeeping services in Miami wants parents to consider when filing their taxes this year.

Accounting Miami

1. Bookkeeping services in Miami remind you dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.

2. Child Tax Credit You may be able to take this credit for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit. For more information see an Accounting Miami Firm.

3. Child and Dependent Care Credit You may be able to claim this credit if you pay someone to care for your child or children under age 13 so that you can work or look for work. See a www.vieracpa.com Firm for information on Child and Dependent Care Expenses.

4. Earned Income Tax Credit The EITC is a tax benefit for certain people who work and have earned income from wages, self-employment or farming. EITC reduces the amount of tax you owe and may also give you a refund. Accounting Miami firms have more details.

5. Adoption Credit You may be able to take a tax credit for qualifying expenses paid to adopt an eligible child. If you claim the adoption credit, you must file a paper tax return with required adoption-related documents. For details, consult with a bookkeeping services in Miami or the instructions for IRS Form 8839, Qualified Adoption Expenses.

6. Children with earned income If your child has income earned from working, they may be required to file a tax return. For more information, see a Miami Accounting firm.

7. Children with investment income Under certain circumstances a child’s investment income may be taxed at their parent’s tax rate. For more information, see IRS Publication 929, Tax Rules for Children and Dependents or an Accounting Miami CPA Firm.

8. Higher education credits Education tax credits can help offset the costs of higher education. The American Opportunity and the Lifetime Learning Credits are education credits that can reduce your federal income tax dollar-for-dollar. See Bookkeeping services in Miami, for details.

9. Student loan interest You may be able to deduct interest paid on a qualified student loan, even if you do not itemize your deductions. For more information, see IRS Publication 970 or a Miami Accounting firm.

10. Self-employed health insurance deduction If you were self-employed and paid for health insurance, you may be able to deduct any premiums you paid for coverage for any child of yours who was under age 27 at the end of the year, even if the child was not your dependent. For more information, see the IRS website.

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Health Care Accountants Optimistic about Business Growth

2012-01-26T15:47:52Z

Health Care Accountants Optimistic about Business Growth

Health Care Accountants

Health Care Accounting Service are more optimistic about business growth predictions for 2012 in their respective states than the nation as a whole, according to a new survey of Healthcare Accounting Service in Florida, Texas and California.

Those polled were most confident about the Health Care Accountants industry, and their own Health Care Accounting Service companies. Information technology tops the list of capital investments planned in the coming year. Survey respondents also anticipate some new hiring in the next 12 months. Health care costs continue to be a top concern of businesses along with government regulation and uncertainty in the tax laws.

Healthcare Accounting Service

The poll was conducted for Healthcare Accounting Service industry and Institute of CPAs.

It polled nearly 13,000 Health Care Accountants in who are partners or sole owners of public Health Care Accounting Service Firms or serve as CEOs, CFOs or presidents of companies in various industries. More than 2,100 Healthcare Accounting Service completed the survey.

“The poll showed that Health Care Accountants in the three states feel confident about the prospects for growth in the Health Care Accounting Service industries they work in and serve, but still have concerns about factors beyond their control”, said Healthcare Accounting Service VieraCPA in a statement. This includes increasing health care costs and government regulation, and the lack of available credit to grow theirs or their clients’ businesses.”

Only 6 percent of the Health Care Accountants who responded predict robust growth in the United States, but the numbers climb as they evaluated the growth outlook for their own state (9 percent), Health Care Accounting Service industry (20 percent), and organization (26 percent).

The Healthcare Accounting Service CPAs surveyed did not report significant decreases in workforce or revenues since the financial crises took hold, and say they expect both areas to increase marginally in the next year. These Health Care Accountants business leaders expect marginal (53 percent) or substantial (7 percent) revenue growth in the next year, with marginal (32 percent) and substantial (2 percent) growth in employment. Less than 10 percent of respondents predict a reduction in employment.

Information technology topped the list of investment and spending priorities over the next year. Sixty percent of the surveyed Health Care Accounting Service CPAs said their organizations plan to invest marginally or significantly more in this area followed by 40 percent planning capital spending increases. Product development and marketing/advertising will remain relatively flat with more than 50 percent citing no change in either category.

Health Care Accounting Service

Healthcare Accounting Service and their clients listed the ability to obtain funding as a significant area of concern. Approximately 76 percent do not think small businesses have access to adequate credit to grow or sustain their operations. The financial crisis and forecasts for slow growth greatly reduce their or their clients’ ability to obtain loans, according to 70 percent of the Health Care Accountants polled. Health Care Accounting Service CPAs also cite health care costs as a concern, with 98 percent of those surveyed responding affirmatively when asked if the cost of health care benefits was a worry for businesses in their states.

Some are looking into this area for savings, with 94 percent agreeing that companies are reevaluating employee/benefit costs, while 63 percent are aware of companies dropping or reducing employee health insurance coverage. Labor costs, workers’ compensation, and public pension funding were also seen as problems, with public pension exposure taking the highest percentage among the three.

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The IRS Targets Small Business Accountants Miami

2012-01-23T19:08:42Z

Salary vs. Dividend Tricks the IRS Hates

Small business accountants Miami firms heard the IRS message loud and clear of a recent U.S. district court case won by the IRS against David Watson, a CPA. At issue: a common tax-cutting maneuver by Miami accounting firms available to the owners of millions of closely held Accounting services in Miami.

The case, David E. Watson P.C. v. U.S., revolved around Mr. Watson’s low pay as the sole owner of a Accounting services in Miami and shareholder of a so-called S Corporation. Such companies, often called “Sub-S” after the subchapter of the tax code governing them, is a popular choice of entity for private Miami accounting firms. Unlike C corporations, Sub-S have no more than 100 shareholders, and they pass profits to owners without an extra layer of tax. There are nearly 4 million Sub-Ss in the U.S. today.

Mr. Watson’s Sub-S was, in turn, one of four principals in LWBJ, a small business accountants Miami firm. According to the decision, the Accounting services in Miami firm made profit distributions of $203,651 and $175,470 to Mr. Watson through his Sub-S for 2002 and 2003, respectively, the years in question.

Mr. Watson, who had a graduate degree in tax and 20 years’ experience, received only $24,000 of salary for each of those years, far less than the $40,000 a year earned by recent graduates in Miami accounting firms with no experience, according to one expert of small business accountants Miami.

The IRS cried foul, saying his pay was far too low as a CPA an accounting services in Miami. Why object? Unlike profit distributions, all salary is subject to a 2.9% Medicare tax and some is subject to a 12.4% Social Security, or FICA, tax. (The FICA income cap, $84,900 in 2002, is now $106,800.) By reporting low pay Mr. Watson didn’t save any income taxes, but he did save nearly $20,000 in payroll taxes for the two years, the IRS said, pegging Mr. Watson’s true pay at $91,044 for each year.

Judge Robert W. Pratt agreed, ruling that the CPA owed the extra tax plus interest and penalties.

Mr. Watson plans to appeal the decision. “The IRS can disallow a tax deduction for unreasonably high compensation, but the law doesn’t give it the authority to raise pay in order to collect extra payroll taxes,” he says. Independent Miami accounting tax expert Gustavo A Viera CPA says this will be a hard argument to win.

For Small business accountants Miami Sub-S owners, this issue isn’t going away. Last year it even turned up in legislation, when the House passed a provision that would have subjected all profits of shareholder/employees of Accounting services in Miami firms—such as accounting, law and consulting firms—to payroll taxes. The measure died in the Senate, but the IRS would likely welcome its return. Cases like Mr. Watson’s are expensive for the agency to litigate because each turns on individual circumstances.

Recent IRS statistics suggest why the agency might focus on Sub-S pay. Over the past decade and a half, when executive paychecks exploded, the salaries of Miami accounting CPA Sub-S owners declined as a percentage of total income, from 52% in 1995 to 39% in 2007, according to the latest data available. (The remaining income is taxable to the owners as well, but doesn’t incur payroll taxes.) During the same 12-year period, Small business accountants Miami Sub-S income doubled, while salaries increased only 26%. The average pay for a Sub-S owner was recently was $38,400, according to Accounting services in Miami firm VieraCPA.

Miami accounting VieraCPA, says pay and payroll tax issues are a frequent source of friction with clients: “Sometimes you have to take them to the woodshed and say, ‘You need to report more income as pay for personal services.”‘

What is a fair ratio of profits to pay? There isn’t one answer, Small business accountants Miami VieraCPA experts say. A company with substantial capital or assets, such as a manufacturer, often is able to justify lower pay than one selling personal services like a law or Miami accounting firm. Says Mr. Viera: “I would tell a client that for personal services, 70% would be the absolute floor and might not get the job done,” he says.

In Mr. Watson’s case, his revised compensation came to only about 40% of his total return from the company. The upshot: Pay can vary—but it can’t be too low.

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Información General sobre el ITIN

2012-01-23T15:59:11Z

Contador Publico

Los contadores pueden pedirle un Número de Identificación Personal del Contribuyente (ITIN), es un número tributario procesador otorgado por el Servicio de Impuestos Internos (IRS). Es un número de nueve dígitos que siempre empieza con el número 9 e incluye los numeros 70-88 como el cuarto y quinto dígito. A partir del 12 de abril del 2011, se ampliaron los números posibles para el cuarto y quinto dígito para incluir dígitos de 90-92 y 94-99, por ejemplo 9XX-90-XXXX. Consulte con un Despachos Contables.

El contador publico pide y el IRS otorga los ITIN a individuos quienes requieren un número de identificación para fines tributarios en los Estados Unidos pero no tienen ni son elegibles para obtener un Número de Seguro Social (SSN) de la Administración del Seguro Social (SSA).

Despachos Contables

Los contadores piden un ITIN y se emiten sin importar el estado migratorio porque tanto residentes como extranjeros pudieran tener obligaciones tributarias de presentar declaraciones y pagos de impuestos de acuerdo al Código Tributario del IRS.

Para recibir un ITIN, individuos tienen que tener el requisito y el contador public presentar una declaración federal de impuestos válida, a menos que reúnan alguna excepción.

¿Para qué se usa el ITIN?

Los ITIN son para reportes tributarios solamente, y no pretenden servir ningún otro propósito. El IRS otorga los ITIN con el fin de ayudar a individuos cumplir con las leyes tributarias de los Estados Unidos, y para proveer una manera eficaz de procesar y contabilizar declaraciones preparada por contadores y pagos de los que no son elegibles para Números de Seguro Social.

Un ITIN no concede el derecho a trabajar en los Estados Unidos ni concede al poseedor beneficios del Seguro Social ni el Crédito Por Ingreso del Trabajo (EITC).

¿Quién necesita un ITIN?

El IRS otorga los ITIN a extranjeros y otros que tienen un requisito de reporte tributario o de presentar una declaración y no califican para un SSN. Un extranjero que no es residente y no califica para un SSN, quien tiene un requisito de presentar una declaración federal de impuestos sólo para reclamar un reembolso bajo las provisiones de algún acuerdo con los Estados Unidos, necesita un ITIN. Consulte con su despachos contables

Ejemplos de individuos que necesitan un ITIN incluyen:

Extranjeros no-residentes que necesitan presentar una declaración federal de impuestos y no son elegibles para obtener un SSN

Extranjeros residentes (según el número de días presentes en EE.UU.) presentando una declaración federal y no son elegibles para obtener un SSN
Dependiente o cónyuge de un ciudadano o extranjero residente
Dependiente o cónyuge de extranjero no-residente con visa
¿Cómo sé si necesito un ITIN?

Si usted no tiene un SSN y no es elegible para obtener un SSN, pero debe cumplir con el requisito de proveer un número federal de identificación o presentar una declaración federal de impuestos, tendrá que pedirle a un contador publico solicitar un ITIN.

Si usted tiene una solicitud pendiente para obtener un Número de Seguro Social, no presente el Formulario W-7. Llene el Formulario W-7 sólo si la Administración del Seguro Social (SSA) le notifica que no se le puede otorgar un Número de Seguro Social.

Para obtener un Número de Seguro Social, llene el Formulario SS-5, Solicitud para una Tarjeta de Seguro Social. Para obtener el Formulario SS-5, o para investigar si usted es elegible para obtener un Número de Seguro Social, visite el sitio www.socialsecurity.gov o comuníquese con la Administración del Seguro Social.

Por ley, un extranjero no puede obtener un Número ITIN y Número de Seguro Social a la vez. El IRS procesa declaraciones que contienen ya sea un ITIN o un Número de Seguro Social. El IRS ya no procesa, ni acepta declaraciones con la anotación “SSA205c”, o la frase “applied for”, “NRA”, o con espacios en blanco.

¿Cómo solicito un ITIN?

Contadores

Los contadores usan el Formulario W-7SP, Solicitud de Número de Identificación Individual del Contribuyente para solicitar el ITIN. Adjunte una declaración federal válida al menos que usted califique por una excepción, e incluya sus documentos originales o documentos certificados comprobando su identidad y documentos que comprueben su identidad de extranjero.

Internal Revenue Service

Austin Service Center

ITIN Operation

P.O. Box 149342

Austin, TX 78714-9342

Usted también puede utilizar los servicios de un Agente Tramitador Autorizado por el IRS o visitar un Centro de Asistencia al Contribuyente en lugar de enviar su información al IRS en Austin. Los Centros de Asistencia al Contribuyente proveen ayuda con las solicitudes de ITIN en persona o por cita.

Solicitantes fuera de los Estados Unidos deberán comunicarse con la oficina del IRS en el extranjero, e investigar si tal oficina acepta solicitudes mediante el Formulario W-7(SP). El Departamento de ITIN en Austin emite todos los números por correo.

¿Cuándo debo solicitar un ITIN?

Usted debe completar el Formulario W-7SP en cuanto esté listo para presentar su declaración de impuesto federal, siendo que necesita incluir la declaración con su solicitud.

Si usted califica para una de las excepciones y no necesita presentar una declaración, envíe el Formulario W-7SP, en cuanto haya preparado el formulario, con los documentos requeridos para comprobar que reúne los requisitos de tal excepción.

Usted puede solicitar un ITIN en cualquier temporada del año; sin embargo, si la declaración que usted incluye con el Formulario W-7(SP) es presentada después de la fecha límite para la declaración, pudiera deber interés y /o multas. Para evitar esto, debe presentar su declaración del año en curso para la fecha límite.

¿Dónde puedo obtener ayuda con mi solicitud de ITIN?

Usted puede llamar gratuitamente al IRS al 1-800-829-1040 para obtener información y ayuda sobre como llenar el Formulario W-7SP y su declaración federal de impuesto, o para informarse sobre el estado de su solicitud después de seis semanas de haberla presentado.

Además hay ayuda disponible en persona con las solicitudes de ITIN en los Centros de Asistencia al Contribuyente en los Estados Unidos o por cita. Solicitantes fuera de los Estados Unidos deberán comunicarse con la oficina en el extranjero e investigar si tal oficina acepta solicitudes mediante el formulario W-7SP.

También puede utilizar los servicios de un Agente Tramitador Autorizado por el IRS.

¿Cómo y cuándo puedo esperar recibir mi ITIN?

Si usted califica para un ITIN y su solicitud esta completa, usted recibirá una carta del IRS asignándole su número de identificación, generalmente dentro de cuatro a seis semanas.

Si usted no recibe su ITIN u otra correspondencia seis semanas después de haber aplicado, favor de llamar al IRS al número gratuito 1-800-829-1040 para informarse sobre el estado de su solicitud.

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Contador Publico Consejos Ingreso de Negocios

2012-01-22T14:42:26Z

Contador Publico Consejos Ingreso de Negocios

Contador Publico

Contadores registran el ingreso de negocios es ingreso recibido por la venta de productos o servicios. Por ejemplo, los honorarios recibidos por un Despachos Contables se consideran como ingreso de negocios para esa persona. Los alquileres recibidos por una persona dedicada al negocio de bienes raíces es ingreso de negocios. Los pagos recibidos en forma de bienes o servicios tienen que incluirse como ingreso equivalente a su valor normal en el Mercado, de acuerdo con Gustavo Viera on Contador Publico en Miami.

Contadores

Los Contadores normalmente, un negocio se organiza como una empresa por cuenta propia, una sociedad colectiva o una sociedad anónima. Despachos Contables les avisan que una empresa por cuenta propia es un negocio que no es una sociedad anónima y cuyo dueño es una persona física. Una empresa por cuenta propia no tiene ninguna existencia aparte de su dueño. Las deudas del negocio son deudas personales del dueño. Por lo general, una compañía de responsabilidad limitada (LLC, por sus siglas en inglés) con un solo dueño se considera empresa por cuenta propia para propósitos del impuesto federal sobre el ingreso, a menos que el dueño elija que la LLC sea considerada como una sociedad anónima de acuerdo con ontador publico VieraCPA.

Por ejemplo uno Contador por cuenta propia presenta el Anexo C o el Anexo C-EZ (del Formulario 1040), para informar de los ingresos y los gastos del negocio. Un empresario por cuenta propia que tuvo ganancias netas (en el Anexo C o el Anexo C-EZ, excluyendo el ingreso recibido como empleado de una iglesia) de $400 o más, o que tuvo ingresos de $108.28 o más como empleado de una iglesia, tiene que presentar el Formulario 1040 y el Anexo SE del Formulario 1040. El Anexo SE se utiliza para calcular el impuesto sobre el trabajo por cuenta propia, el cual es la combinación de los impuestos de Seguro Social y Medicare sobre el ingreso del trabajo por cuenta propia. Para más información sobre las empresas por cuenta propia, consulte a un Despachos Contables.

Los Contador Publico como una sociedad colectiva es una organización comercial, no constituida como sociedad anónima, resultante de dos o más personas que se unen para llevar a cabo una ocupación como contadores o negocio. Cada persona aporta dinero, propiedad, servicios o una combinación de éstos, a cambio del derecho de participar en las ganancias y pérdidas de la sociedad colectiva. Los Despachos Contables formdo como una LLC con más de un dueño generalmente se considera sociedad colectiva para fines de impuestos.

Generalmente, los ingresos y gastos de una sociedad colectiva se declaran en el Formulario 1065, U.S. Return of Partnership Income, (Declaración de ingresos de una sociedad colectiva en los Estados Unidos), en inglés, el cual es una declaración anual. La sociedad colectiva en sí no paga impuestos sobre el ingreso. Cada socio recibe un Anexo K-1, del Formulario 1065, Partner’s Share of Income, Deductions, Credits, etc., (Ingresos, créditos y deducciones correspondientes al socio), en inglés, en el cual se señala la porción distribuida que corresponde al socio, de los ingresos, gastos y otras partidas de la sociedad colectiva, según se haya determinado conforme a los términos del acuerdo de la sociedad colectiva.

Los socios informan en sus declaraciones de impuestos las cantidades indicadas en el Anexo K-1. Para más información, consulte a un contador publico para el Formulario 1065, en inglés. Para más información sobre las sociedades colectivas en general, consulte la Publicación 541, Partnerships (Sociedades colectivas), en inglés.

Para fines del impuesto federal sobre el ingreso, una “sociedad anónima”, por lo general, incluye a entidades separadas de las personas que la formaron según las leyes federales o estatales, o los accionistas que participan en ella. También, incluye ciertos negocios que eligen pagar impuestos como sociedad anónima presentando el Formulario 8832, Entity Classification Election (Elección para la clasificación de la entidad), en inglés. El impuesto sobre los ingresos de una sociedad anónima se calcula en el Formulario 1120, U.S. Corporation Income Tax Return (Declaración de impuestos sobre los ingresos de una sociedad anónima en los Estados Unidos), en inglés. El Formulario 1120-A ya está obsoleto para los años tributarios a partir del año 2007.

Despachos Contables

Para más información sobre las sociedades anónimas en general, consulte con Gustavo A Viera CPA contadores en Miami y un despachos contables desde en 1983.

Las sociedades anónimas que reúnen ciertos requisitos pueden optar por convertirse en sociedades anónimas de tipo S, las cuales se consideran semejantes a sociedades colectivas. La sociedad anónima de tipo S presenta el Formulario 1120S, U.S. Income Tax Return for an S Corporation (Declaración de impuestos sobre los ingresos de una sociedad anónima de tipo S en los Estados Unidos), en inglés, y generalmente no está sujeta a impuestos.

La mayoría de ingresos y gastos de una sociedad anónima de tipo S se “traspasan” a los accionistas en el Anexo K-1, Shareholder’s Share of Income, Deductions, Credits, etc. (Ingresos, deducciones y créditos correspondientes al accionista) del Formulario 1120S, en inglés. En su declaración de impuestos, los accionistas informan de las cantidades indicadas en el Anexo K-1. Para más información sobre las sociedades anónimas de tipo S, consulte las instrucciones para el Formulario 1120S, en inglés.

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Most Taxpayers Can File Immediately

2012-01-18T15:26:58Z

Most Taxpayers Can File Immediately

Tax Accountant Miami

The Tax preparation Miami firms are ready for tax season and the Internal Revenue Service opened the 2012 electronic tax return filing season yesterday with a reminder to taxpayers that Income tax preparation Miami and e-file remains the best way to get fast refunds and ensure accurate tax returns.

IRS e-file has surpassed the milestone of 1 billion returns processed,according to VieraCPA a Tax Accountant Miami. The Tax preparation Miami electronic transmission system revolutionized the way the IRS processes tax returns and made speedy refunds possible. More than 112 million Income tax preparation Miami returns were e-filed last year, or 77 percent of all individual returns filed.

“E-file is the best option for taxpayers. E-file enables taxpayers to file more accurate returns and receive their refunds quickly and safely,” said Tax Accountant Miami VieraCPA.

In general, for people concerned about security, e-file has proven itself year in and year out as a safe and secure method of Tax preparation Miami. E-file has a proven track record. Software vendors and paid Income tax preparation Miami use the latest encryption technology. Plus, within 48 hours, an electronic acknowledgement is issued that the return has been received by the IRS and either accepted or rejected.

With most people receiving a refund, the fastest way to get a refund is by e-filing and using direct deposit. Taxpayers can get their money automatically in as few as 10 days. Last year, more than 79 million refunds were electronically deposited into taxpayers’ accounts, saving them a trip to the bank.

Income tax preparation Miami

Tax Accountant Miami want you to know that for people who owe taxes, e-file offers payment alternatives such as filing now and scheduling payment on the April tax deadline. Taxpayers who still want to pay by check can do so by e-filing and then mailing a payment voucher.

Taxpayers can e-file their tax returns one of three ways: through a Tax preparation Miami firm, through self-preparation software or through IRS Free File. The IRS does not charge for e-file. Many Income tax preparation Miami firms and software products also offer free e-filing with their services. Free File offers free tax preparation and free electronic filing.

Starting this filing season, any paid Tax Accountant Miami who prepares and files more than 10 returns for clients generally must file the returns electronically. Taxpayers are encouraged to use Tax preparation Miami firms who offer IRS e-file.

Taxpayers should also only use Income tax preparation Miami firms who sign the returns they prepare and enter their Preparer Tax Identification Numbers (PTINs). Tax Accountant Miami firms are required to sign the returns they prepare and include their PTINs. Although paid Tax preparation Miami firms sign returns, taxpayers are legally responsible for the accuracy of every item on their return. Income tax preparation Miami firms are also required to give taxpayers a copy of their returns.

When using e-file, you also use an e-signature and an electronic filing PIN. If you prepare your own return using software you must use the self-select PIN method on the return. When using a paid Tax Accountant Miami, you can still use the self-select PIN method or the practitioner PIN method. The Electronic Filing PIN is a temporary PIN used by the IRS to verify your identity when you e-file.

IRS Free File, which has been making taxes a little less taxing for a decade, also begins today, Jan. 17. Everyone can use Free File, either the brand-name software offered by IRS’ commercial partners or the online fillable forms. Individuals or families with 2011 adjusted gross incomes of $57,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions.

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Free Tax Preparation = Higher Tax Bill

2012-01-18T15:04:01Z

Free Tax Preparation = Higher Tax Bill

Posted Jan 18 2012 by Gustavo A Viera CPA in Business Trends, Tax with 0 Comments

Tax Preparation Miami

IRS Free Income tax preparation Miami Filing, which has been making taxes a little less taxing for a decade, opens today, Jan. 17. More than 33 million returns have been filed through Free File since its debut. But Tax Accountant Miami VieraCPA says you may be paying more in taxes than you have too.

Tax Accountant Miami

Tax Accountant Miami firms note that everyone can use Free File Income tax preparation Miami, either the brand-name software offered by IRS’ commercial partners or the online fillable forms. Individuals or families with 2011 adjusted gross incomes of $57,000 or less can use Free File software. Free File Fillable Forms, the electronic version of IRS paper forms, has no income restrictions.

Free File Tax preparation Miami can save you time and Tax preparation Miami firm fees. You can prepare and e-file your tax return at no charge. And, the software helps you find the tax breaks you are due. “But it’s no substitute for a Tax Accountant Miami CPA which has years of experience,” said Gustavo A Viera, director, VieraCPA.com. “Free File does not mean lower taxes.”

Income tax preparation Miami

Income tax preparation Miami Free File software is a product of a public-private partnership between the IRS and the Free File Alliance, LLC. The Alliance is a consortium of approximately 20 tax software providers who make versions of their free-file products available exclusively at www.irs.gov/freefile.

All Free File members must meet certain security requirements and use the latest in encryption technology to protect taxpayers’ information. Seventy percent of taxpayers – 100 million people – are eligible for Free File software. It’s perfect for first-time filers, families looking to save money or older Americans adept at using the Internet.

People with an adjusted gross income of $57,000 or less are eligible for at least one software product if not more. Each of the Free File software providers sets their own eligibility requirements, usually based on qualifiers such as income, state residency, age or military status.

The easiest way to locate a software provider is to use the online “get help” tool at www.irs.gov/freefile that, with a little of a taxpayer’s information such as income, age and state residency, can identify matching free-file products. Or, taxpayers can review all providers and their offers. Some software providers also offer state income tax preparation for free or for a fee.

Also, the IRS is working with select Tax Accountant Miami volunteer tax sites such as Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly. There are 200 locations nationwide that have set up Free File kiosks where taxpayers can use computers to prepare their own returns with Free File.

For taxpayers whose incomes are more than $57,000, there’s Free File Fillable Forms, available only at the IRS website. This program is best for taxpayers experienced in preparing their own federal tax returns. For people who prefer doing their taxes the old fashioned way – by paper – this is an electronic alternative.

Free File Fillable Forms performs some math calculations and provides links to some IRS publications. It does not use the familiar question-and-answer format used by software. Taxpayers can e-file the forms for free. It also does not support state income tax returns.

Taxpayers must access the free-file products through IRS.gov or authorized kiosks to avoid any charges for preparing or e-filing a federal tax return.

Once taxpayers have selected a Free File software product, they will be directed away from IRS.gov to the partner’s site to prepare and e-file their returns. The IRS does not retain any personal information from the taxpayers.

The IRS also encourages businesses, state and local governments, charities and churches to inform their employees, clients and customers about Free File.

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Top Tips Every Taxpayer Should Know about Identity Theft

2012-01-17T23:31:11Z

Income tax preparation in Miami

Tax Accountant Miami want you to know that identity theft often starts outside of the Tax preparation Miami system when someone’s personal information is unfortunately stolen or lost. Identity thieves may then use a taxpayer’s identity to fraudulently file a tax return and claim a refund. In other cases, the identity thief uses the taxpayer’s personal information in order to get a job. The legitimate taxpayer may be unaware that anything has happened until Income tax preparation in Miami time and they file a return later in the filing season and it is discovered that two returns have been filed using the same Social Security number.

Tax preparation Miami

Tax Accountant Miami CPA’s offer the top 13 things the IRS wants you to know about identity theft so you can avoid becoming the victim of an identity thief.

1. The IRS does not initiate contact with taxpayers or Income tax preparation in Miami firms by email to request personal or financial information. The IRS does not send emails stating you are being electronically audited or that you are getting a refund.

2. Tax preparation Miami firms should advise clients that if they receive a scam e-mail claiming to be from the IRS, forward it to the IRS at phishing@irs.gov.

3. Identity thieves get your personal information by many different means, including:

Stealing your wallet or purse
Posing as someone who needs information about you through a phone call or e-mail
Looking through your Income tax preparation in Miami firms trash for personal information (that’s why we shred everything)
Accessing information you provide to an unsecured Internet site

4. If you discover a website that claims to be the IRS but does not begin with www.irs.gov, forward that link to the IRS at phishing@irs.gov.

5. To learn how to identify a secure website, visit the Federal Trade Commission atwww.onguardonline.gov/tools/recognize-secure-site-using-ssl.aspx.

6. If your Social Security number is stolen, another individual may use it to get a job. That person’s Tax preparation Miami firm may report income earned by them to the IRS using your Social Security number, thus making it appear that you did not report all of your income on your tax return. When this occurs, you should contact the IRS to show that the income is not yours. Your record will be updated to reflect only your information. You will also be asked to submit substantiating documentation to authenticate yourself. That information will be used to minimize this occurrence in future years.

7. Your identity may have been stolen if a letter from the IRS indicates more than one tax return was filed for you or the letter states you received wages from an employer you don’t know. If you receive such a letter from the IRS, leading you to believe your identity has been stolen, respond immediately to the name, address or phone number on the IRS notice.

8. If your Income tax preparation in Miami tax records are not currently affected by identity theft, but you believe you may be at risk due to a lost wallet, questionable credit card activity, or credit report, you need to provide the IRS with proof of your identity. You should submit a copy of your valid government-issued identification – such as a Social Security card, driver’s license, or passport – along with a copy of a police report and/or a completed IRS Form 14039, Identity Theft Affidavit, which should be faxed to the IRS at 978-684-4542. Please be sure to write clearly. As an option, you can also contact the IRS Identity Protection Specialized Unit, toll-free at 800-908-4490. You should also follow FTC guidance for reporting identity theft at www.ftc.gov/idtheft.

9. Show your Social Security card to your employer when you start a job or to your financial institution for Income tax preparation in Miami reporting purposes. Do not routinely carry your card or other documents that display your Social Security number.

10. For more information about identity theft – including information about how to report identity theft, phishing and related fraudulent activity – visit the IRS Identity Theft and Your Tax Records Page, which you can find by searching “Identity Theft” on the IRS.gov home page.

11. IRS impersonation schemes flourish during tax season and can take the form of e-mail, phone websites, even tweets. Scammers may also use a phone or fax to reach their victims. If you receive a paper letter or notice via mail claiming to be the IRS but you suspect it is a scam, contact the IRS athttp://www.irs.gov/contact/index.html to determine if it is a legitimate IRS notice or letter. If it is a legitimate IRS notice or letter, reply if needed. If the caller or party that sent the paper letter is not legitimate, contact the Treasury Inspector General for Tax Administration at 1-800-366-4484. You may also fax the notice/letter you received, plus any related or supporting information, to TIGTA. Note that this is not a toll-free FAX number 1-202-927-7018.

12. During Tax preparation Miami your tax return for electronic filing, make sure to use a strong password to protect the data file. Once your return has been e-filed, burn the file to a CD or flash drive and remove the personal information from your hard drive. Store the CD or flash drive in a safe place, such as a lock box or safe. If working with a Tax Accountant Miami, you should ask them what measures they take to protect your information.

13. If you have information about the identity thief that impacted your personal information negatively, file an online complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov. The IC3 gives victims of cyber crime a convenient and easy-to-use reporting mechanism that alerts authorities of suspected criminal or civil violations. IC3 sends every complaint to one or more law enforcement or regulatory agencies that have jurisdiction over the matter.

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Obama Tax Incentives to Bring Jobs Home

2012-01-17T17:12:18Z

Obama Tax Incentives to Bring Jobs Home

Posted Jan 17 2012 by Gustavo A Viera CPA in Tax with 0 Comments

Tax Accountant Miami

Income tax preparation in Miami firms applaud President Barack Obama plans to include tax incentives in his fiscal 2013 budget to encourage more U.S.-based multinational companies to relocate jobs from foreign countries back home.

At an event Wednesday with business leaders to promote so-called “insourcing” of jobs, Obama described in general terms how he intended to propose such incentives, according to VieraCPA a Tax preparation Miami firm.

“Right now, we’re at a unique moment, an inflection point, a period where we’ve got the opportunity for those jobs to come back,” said Obama. “And the business leaders in this room, they’re ahead of the curve, they recognize it. I’ll give you just a few examples. After shedding jobs for more than a decade, American manufacturers have now added jobs for two years in a row. That’s good news. But when a lot of folks are still looking for work, now is the time for us to step on the gas. So that’s why I pushed Congress to extend the payroll tax cut this year, so that 160 million working Americans weren’t hit with a tax hike. Now is the time to extend that middle class tax cut for all of this year. It’s the right thing to do, and we need to get that done. But we’re going to have to do more. And that’s why, in the next few weeks, we’re also going to put forward new tax proposals that reward companies that choose to bring jobs home and invest in America. And we’re going to eliminate tax breaks for companies that are moving jobs overseas, because there is an opportunity to be had right here and right now. There are workers ready to work, right now.”

Tax Accountant Miami Viera CPA noted that the President has also set a goal of doubling U.S. exports of goods and services by 2014, and the administration is already “a little ahead of schedule in meeting that goal.”

Tax preparation Miami

Congress is expected to return from its winter recess next week, and begin meeting in a conference committee to agree on a way to pay for extending the payroll tax cut through the rest of the year.

Income tax preparation in Miami

Tax Accountant Miami VieraCPA stated that President Obama met Wednesday with business leaders to promote so-called “insourcing” of jobs described in general terms how he intended to propose such incentives.

The report showed VP Biden sitting in the back of the half empty room by himself. Apparently, quite a few of business community invitees cancelled on the President’s little gathering.

Tax preparation Miami Accountants agree, insourcing should create jobs here, but why didn’t President Obama propose it when he was first elected? I’ll tell you. At that time the Democrats had both the house and senate but……there would have been party backlash for giving “nasty little tax breaks/new loopholes” to big business.

Political or not, Tax Preparation Miami CPA’s applaud it:

“Right now, we’re at a unique moment, an inflection point, a period where we’ve got the opportunity for those jobs to come back,” said Obama. “And the business leaders in this room they’re ahead of the curve, they recognize it”

Income tax preparation in Miami firms, as well as most businesses recognized this three years ago. This just may be just President Obama’s attempt to move to the center, to appear as a moderate and get reelected. But as a Tax Accountant Miami with a large client base, I see the need on a daily basis.

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Tax Preparation Miami Tax Changes 2012

2012-01-16T22:59:38Z

Tax Preparation Miami Tax Changes 2012

Posted Jan 16 2012 by Gustavo A Viera CPA in Tax with 0 Comments

Income Tax Preparation in Miami

Tax Accountant Miami firms want to point that compared to some prior years, Congress has made few tax changes this year. Following are highlights of changes and facts for the upcoming Tax Preparation Miami season.

Income Tax Preparation in Miami Opening day for electronic filing. The IRS starts accepting returns for electronic filing on Jan. 17th.

Tax Accountant Miami should be aware that the Due Date of Return The end of tax season is April 17, 2012 for returns not on extension.

Tax Preparation Miami CPA’s should note that the new Form 8949 and Schedule D All capital transactions will now be reported on the new Form 8949. Schedule D-1 is no longer used. Sales of securities in 2011 that were purchased in 2011 should have a basis on the 1099 from a broker. The Income Tax Preparation in Miami preparer must indicate on Form 8949 if a basis was shown on 1099-B, not shown on 1099-B, or no 1099-B was issued. A separate form is required for each case. There is also a column to report an adjustment to basis/sales price and the reason for the adjustment. As of today the form does not show the gain or loss on each transaction. Instead columns for the total cost, sales price, and adjustments are transferred to schedule D, notes Tax Accountant Miami VieraCPA.

Tax Preparation Miami CPA’s should also be aware that the Standard Mileage Rates were changed mid-year. From 01/01/2011 to 06/30/2011 the rate was 51 cents per mile; after 06/30/2011 it went up to 55 cents per mile. The rate for use of a vehicle to get medical care also changed in midyear. From 01/01/2011 through 06/30/2011 the rate is 19 cents a mile and is 23.5 cents a mile for the remainder of the year. The 2011 rate for use of a vehicle to do volunteer work for certain charitable organizations remains at 14 cents a mile.

Tax Accountant Miami

Income Tax Preparation in Miami for Schedule SE For 2011, the FICA portion of SE tax is reduced from 12.4% to 10.4%. The Medicare (HI) portion of the SE tax remains 2.9%. As a result, the SE tax rate is reduced from 15.3% to 13.3%.

Net self-employment income is no longer reduced by the amount of the self-employed health insurance deduction.

Earned Income Credit Before 2011 Tax Accountant Miami CPA’s were required to complete Form 8867, Preparer’s EIC Checklist, and keep it in their records. Now this due diligence form must be submitted to the IRS. Paid Tax Preparation Miami preparers failing to meet their due diligence requirements on EITC claims face higher penalties for returns required to be filed after December 31, 2011. The United States-Korea Free Trade Implementation Act amended IRC section 6695(g) raising the amount to $500.

Alternative Minimum Tax The exemption amount has increased to $48,450 ($74,450 if married filing jointly or a qualifying widow(er); $37,225 if married filing separately).

New Form 8938 Taxpayers with foreign assets above certain thresholds may have to file this new form, Statement of Specified Foreign Financial Assets. Unmarried taxpayers living in the US need to file if the total value of specified foreign assets exceeds exceed $50,000 on the last day of the tax year or more than $75,000 at any time during the tax year. For married taxpayers living in the US the threshold is $100,000 on the last day of the tax year or more than $150,000 at any time during the tax year. The thresholds for filing are generally four times higher for taxpayers living outside the US.

Tax Preparation Miami

PTIN’s: All Income Tax Preparation in Miami preparers need to have a PTIN. The fee for renewal is $63. CPA’s and enrolled agents are also required to have a PTIN although they are exempt from the competency tests which will be required.

Electronic Filing Requirements Starting Jan. 1, 2012, the 100-return threshold will be reduced to 11 or more income tax returns that the Tax Accountant Miami preparer, or the Tax Preparation Miami preparer’s firm in the aggregate, expect to file in 2012 for individuals, trusts and estates. In 2011 over 65 million returns were prepared professionally and about 90% of them were filed electronically.

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Accounting Miami Audit Software Compliance

2012-01-13T15:04:26Z

Accounting Miami Audit Software Compliance

Posted Jan 13 2012 by Gustavo A Viera CPA in Accounting with 0 Comments

Miami Accounting Firms Compliance

Both Miami accounting firms and financial auditors know that compliance with software license agreements is an essential best practice. However, ensuring this has been an unending task for both Accounting Miami Firms and financial auditors. They intentionally or unwittingly allow their employees and co-worker to use unauthorized software to get a specific work done.

Accounting Miami

This is why as a best practice, software compliance financial audit have to consider both ethics and risks involved. There are two approaches most Miami accounting firms take. These are; regular financial audit and self financial audit approach. Regular financial audit approach is done by the Accounting Miami firm audit department and is labor intensive. It requires specialized technical financial audit expertise. This means there is need for best practices and compliance at a very high level. On the other hand, self financial audit is conducted by the Miami accounting firms itself. Once it is conducted, the reports are sent to the audit department for analysis and monitoring the results. The management conducts random spot audits in individual units of the organization.

Both of these software compliance auditing approaches involve evaluation of some important best Accounting Miami firm practices. There must be appropriate identification of the software installed on the PCs, choosing the right tools and use of software recognition programs to check all data on installed software applications. The best example of such a tool is the SPAudit software. Other software programs work by combining a database with a recognition methodology in accordance with Miami accounting firms best practices. This creates a list of all installed executable programs regardless of whether they are included in the database or not. Additionally, the Barefoot Auditor (BFA) software produced by the company Pathfinder searches for all installed software on the hard disk. It retrieves information on product name, license, version and serial number. It recognizes all current and old installed software applications. This helps in ensuring Accounting Miami firm software compliance within an organization in a sophisticated analysis approach.

BFA operates at a DOS platform of 2.1 or higher version. It recognizes all compatible LANs and runs on compatible PCs. This minimum requirement is 256K RAM and takes less than 30 minutes for a complete analysis and generation of report. This application is straightforward, easy to use and simple to understand. The user guide has all the guidance needed to ensure Miami accounting firms best practice of the application in any organization. Follow-ups will be required as a regular best practice to ensure compliance and proper functionality.

Financial Audit

Control Access by Guests to the Network

It is a recommended Accounting Miami firm best practice to have a Guest user ID for visitors on the network. This has limited access settings to ensure control on problems. Internal audits must recognize lapses in controls while inspecting for control problems. The benefits of using a “Guest ID” are that it allows temporary access to only the shared folders. There is enough privacy for the organizations important and personal data. Additionally, the Guest ID doesn’t need a password which makes it easier to manage by the audits without accountability. At the same time, Miami accounting firms and managers can maintain their best practices without any hitch while guests visit their network.

Miami accounting firms financial audits nonetheless need to ensure there is constant supervision and monitoring of all networks and internal data. Software compliance is an important and highly recommended best practice. It cannot be taken lightly in any organization managing massive databases of information.

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Tax Preparation Miami 10 Year End Tax Tips

2012-01-13T14:39:12Z

Tax Preparation Miami 10 Year End Tax Tips

Tax Accountant in Miami

Get Organized – When preparing for your tax preparation Miami remember to gather your tax data as soon as possible. You should round up all receipts and canceled checks, such as those from charities; check their latest brokerage statements for year-to-date gains or losses; make a checklist of accounts to keep track of the 1099s, if any, when they arrive; and get medical receipts and insurance reimbursement forms in order. If you start organizing your files now, it will be easier to avoid a last-minute rush when it’s time to do your income tax preparation in Miami. It is much easier to have the originals or to request replacements when your have time, instead of discovering at the last minute that you are missing some item that prevents you from finishing their tax return.

Be Aware of the Alternative Minimum Tax – As a Tax Accountant in Miami I develop a year-end planning strategy for clients, to be sure to assess their AMT exposure. Tax preparation Miami CPA’s should know who are or might be affected by the AMT have additional factors to consider when attempting to reduce their overall tax bill. The AMT eliminates or reduces the federal tax savings of many common tax planning techniques. A decision to accelerate an expense or defer an item of income to reduce income for regular tax purposes may not always save federal taxes (although it could affect state taxes) because it may subject the taxpayer to the AMT. For example, the deduction for property taxes on a residence, state income taxes (or state sales tax if you elect this deduction option), miscellaneous itemized deductions, and personal exemption deductions are not allowed when calculating the AMT. Certain items of income can also trigger an AMT liability such as the exercise of incentive stock options, interest from certain municipal bonds and large, long-term capital gains and/or qualified dividends.

Prepare a Tax Projection – Before your income tax preparation in Miami and the end of the year, Tax Accountant in Miami should prepare a tax projection (prior to seeing a tax preparation Miami CPA) for their clients based on all of their known income and deductions for the year. By laying everything out in one spot, you can often identify planning opportunities, many of which must be done before the tax year ends. One example is that it may make sense to prepay any state income tax due during the year in order to get a current year federal tax deduction. If a client is in the AMT category, the opposite may be true: it may be more beneficial to make such a payment in the following calendar year.

Review Income and Deductions – The most fundamental year-end tax saver is to adjust the timing of income and deductions. If you anticipate income tax rates to increase in 2013, it may be beneficial for you to take income earlier, if possible, in 2012 and defer deductions into 2013 in order to save the taxes on income and have the deferred deductions save on taxes in 2013 when the rates are expected to be higher. In using this strategy, it should be noted that different itemized deductions are subject to different phase-out limits for regular tax purposes as it relates to the AMT.

Postpone Income – If you are in line for a bonus, you may want to see if your employer will hold off writing the check until January. If they own a cash-basis business, they can time the receipt of income (by deferring receipt until January) by waiting until the end of the year to send their December billings to their own clients and customers. Taxpayers cannot simply defer taxes by not depositing checks received in the bank. (As a caveat, if you expect to be subject to the AMT when preparing Income tax preparation in Miami, you should consider accelerating income to the current year in an effort to mitigate the negative aspects of this tax.)

Fund Your Retirement – Tax Accountant in Miami should encourage clients should consider converting a traditional IRA to a Roth IRA. Beginning with the 2010 tax year, the income limitations on converting a traditional IRA to a Roth IRA were removed, opening up this tax preparation Miami planning opportunity to many more taxpayers. Balances in a Roth IRA grow tax free and distributions from Roth accounts are generally not taxable after a five-year holding period. Unlike traditional IRAs, there is no minimum distribution requirement for Roth IRAs. That means that for those who do not need the entire IRA to live on during their retirement years, they can pass on a much larger balance to their heirs and the money continues to grow tax free. Two words of caution: conversion comes with a current-year tax bill and must be paid from money outside of the IRA account for the transaction to make sense. Roth conversions can be a very powerful planning tool, but they are not for everyone. A good Tax Accountant in Miami can help you understand all of the relevant factors before choosing a Roth conversion.

Are You Eligible to Claim Casualty Losses? – Before income tax preparation in Miami time, determine if you’re in a federally declared disaster area have the option of claiming disaster-related losses on their federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get you an earlier refund, but waiting to claim the loss on this year’s return could result in a greater tax saving depending on other income factors.

Pay Deductible Expenses Before December 31 – Tax preparation Miami includes the possible acceleration of a deduction before December 31. You can also pay property taxes early, make an extra mortgage payment (the interest portion is deductible), pay you for their year-end tax-planning meetings or opt to have dental work or elective (deductible) surgery before the end of the year. Using a credit card is the same as using cash—the deduction is taken in the year the charge is incurred, not the year the credit card balance is paid off.

Plan the Timing of Charitable Giving – During your income tax preparation in Miami you should plan the timing of charitable contributions, and the type of property contributed, to maximize the tax savings. Charitable contributions, along with other deductions, should be timed so as to occur in a year in which you will be in a higher marginal tax bracket. Only contributions actually made prior to year end are deductible. You should consider using a credit card to make year-end gifts and hold onto all receipts. To the extent possible, they should make contributions of appreciated publicly traded stock and other securities held for more than one year rather than cash. In most cases, the contribution of long-term, capital-gain property allows for a deduction equal to the fair-market value of the property contributed and avoids taxation of the appreciation. The exclusion of up to $100,000 from gross income for IRA distributions made directly to qualified charitable organizations is set to expire Dec. 31, 2011. The exclusion is available to taxpayers age 70 ½ or over and counts toward satisfying the donor’s annual Required Minimum Distribution. Qualified charitable distributions are not subject to the charitable deduction percentage limits, and because the distributions are not included in gross income, they do not increase AGI (Adjusted Gross Income, one’s total federal income less certain specified items allowed to be subtracted on the face of IRS Form 1040) for purposes of phaseouts and limitations of deductions, exclusions and tax credits. Donors whose state itemized deductions are limited, as well as those who do not itemize, may find this method of charitable giving especially valuable.

Consider Gifts to Children and Grandchildren – If you intend to make gifts to children (or other relatives), you should do it well before December 31 so that the checks clear. Gifts up to $13,000 per person need not be reported. However, if you have not made any gifts in 2011, you should consider making a gift of $13,000 at the end of 2011, and follow it up with another gift in January 2012. Such planning will permit the donor to benefit by investing both amounts at the beginning of 2012 and earn income on the principal for the entire year. Keep in mind that the lifetime exception for 2011 is a generous $5,000,000 and should be considered in your overall tax planning. In 2011, the exemption for Generation Skipping Transfer (GST) tax is $5 million. Therefore, gifts to “skip” persons (such as grandchildren) that exceed the $13,000 annual exclusion amount per person, will be excluded from GST tax if the total is under $5 million dollars. This is an effective way to transfer wealth and exclude such amounts from estate tax. Review prior Forms 709 (U.S. Gift and Generation-Skipping Transfer Tax Return) first to determine if any GST exemption has been used in prior years. Even if GST gifts were excluded in 2011, these gifts may still be subject to gift tax. A Tax Accountant in Miami should be consulted before GST gifts are made

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Accounting Miami – Financial Reporting Best Practices

2012-01-12T14:42:04Z

Accounting Miami – Financial Reporting Best Practices

Posted Jan 12 2012 by Gustavo A Viera CPA in Accounting with 0 Comments

Miami Accounting Firms

Miami accounting firms realize there is always the need for business people to understand and apply the principles of accounting according to requirements for best practices. Miami accounting service agree there is never enough guidance when it comes to billing and taxes. There are certain sensitive guidelines which are recommended in order to ensure best practices.

Accounting services in Miami understand that in order to have efficient revenue negotiation there is the need to produce reliable and accurate financial reports. This is because users of these reports must be satisfied to be able to trust the Miami accounting firms preparing the reports.

Accounting services in Miami

Follow the Standard Formats for Reporting

Business and Miami accounting firms must have set out accounting principles based on which financial reports must be prepared. These principles and format standards are very crucial because they increase comparability within the various departments in the firm and other Miami accounting service as well. Accounting services in Miami often rely on software which is designed to ensure that the reports are produced automatically. These software applications have been produced based on standard accounting principles. Therefore there is increased accuracy and dependability on the reports generated.

Miami accounting service

Characteristics of a Good Quality Financial Report

A useful and accurate financial statement must comprise the following characteristics:

Understandable and Clear: It must not be complicated and must have a clear presentation. The users of the financial statement must be able to spot the necessary information at a glance. There must be transparency because when reports are difficult to understand banks may raise a red flag.
Significant Information: The information must be valuable and relevant to the financial or business institution. It is a best practice to make sure the report is prepared within a time period. This increases the accuracy of the report.
Trustworthy Information: The management of a firm is responsible for the information in the financial report to be reliable. The transactions must be consistent with what the financial report displays. Being faithful is the key! It must be neutral and free of bias.
Comparable: The financial report must be comparable to enable performance review over a specified period of time. The comparison is usually between companies and competitors.

Accounting services in Miami when preparing financial statements include information about assets, liabilities and taxes over the financial year. This is why there are a set of documents which play an important role in providing information for a financial statements. These documents include the following:

Balance Sheet
Income Statement
Statement of retained earnings
Statement of change in cash balance
Notes to the financial statement

Miami accounting firms must keep these documents must be up to date at all times as they can be used for references at any time of the financial year. This is why they must be accurate and authentic. The information available in these accounting documents is very helpful in best practices for risk management and compliance in banks and business institutions as well. There are other reasons why a good financial report is important, for example when it comes to revenue negotiation and recognition.

Therefore, all Miami accounting service must have a standard for financial reporting as a best practice to ensure success.

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Six Important Facts about Dependents and Exemptions

2012-01-12T14:21:49Z

Six Important Facts about Dependents and Exemptions

Posted Jan 12 2012 by Gustavo A Viera CPA in Tax with 0 Comments

Tax Preparation Miami

Even though each individual Income tax preparation in Miami is different, some tax rules affect every Tax Accountant in Miami who may have to file a federal income tax return or is in the business of Tax Preparation Miami. These rules include dependents and exemptions. The IRS has six important facts about dependents and exemptions that will help you file your 2011 Income tax preparation in Miami.

Tax Accountant in Miami

1. Exemptions reduce your taxable income. There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,700 on your 2011 tax return.

2. Your spouse is never considered your dependent. On a joint return, you may claim one exemption for yourself and one for your spouse. If you’re filing a separate return, you may claim the exemption for your spouse only if they had no gross income, are not filing a joint return, and were not the dependent of another taxpayer. (Consult with a Tax Preparation Miami CPA)

3. Exemptions for dependents. You generally can take an exemption for each of your dependents. A dependent is your qualifying child or qualifying relative. You must list the Social Security number of any dependent for whom you claim an exemption when getting ready to do your income tax preparation in Miami.

4. If someone else claims you as a dependent, you may still be required to file your own tax return. Whether you must file a return depends on several factors including the amount of your unearned, earned or gross income, your marital status and any special taxes you owe. Consult a Tax Accountant in Miami.

5. If you are a dependent, you may not claim an exemption. If someone else – such as your parent – claims you as a dependent, you may not claim your personal exemption on your own tax return.

6. Some people cannot be claimed as your dependent. Generally, you may not claim a married person as a dependent if they file a joint return with their spouse. Also, to claim someone as a dependent, that person must be a U.S. citizen, U.S. resident alien, U.S. national or resident of Canada or Mexico for some part of the year. This is a very common issue with Tax Preparation Miami CPA Firms. There is an exception to this rule for certain adopted children. See IRS Publication 501, Exemptions, Standard Deduction, and Filing Information for additional tests to determine who can be claimed as a dependent.

Income tax preparation in Miami

For more information on exemptions, dependents and whether you or your dependent needs to file a tax return, see IRS Publication 501. The publication is available at www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676). You can also call a Tax Accountant in Miami or visit our Interactive Tax Assistant site at www.vieracpa.com to determine who you can claim as a dependent and how much you can deduct for each exemption you claim. The tool is also a tax law resource on the IRS website that takes you through a series of questions and provides you with responses to tax law questions.

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