Free Tax Tips From Financial Fortitude
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STUDIO CITY (CBSLA.com) — Need help filing your taxes?
Gina M. McAllister and Khansa Jones-Muhammad, both of Fortitude Financial Management, visited the KCAL9 studios Wednesday to share some tax tips and to talk about extensions.
• Self Employed people not covered by employer paid plan can deduct 100% health insurance premiums to the extent there is net income.
• Child Tax Credit is worth up to $1000 per child under the age of 17. If your child turned 17 in 2012 you cannot use this credit.
• Remember 2012 IRA Contributions for both Roth IRA and Traditional IRA need to be made by April 15, 2013.
• Even if only one spouse works, take advantage of funding two IRA accounts for retirement.
• Section 179 allows a business to deduct full purchase price of equipment, including leased equipment and software up to $2 Mil for Federal but only $25K for California.
• Track your Mileage – do not guestimate. Use Google Maps and create a log based on your 2012 calendar.
• Business Gifts are limited to $25 per person. Consider them tokens. The $2500 thank you gift will not stand up to IRS Audit.
• Organize, organize, organize. If you have a shoe box of receipts take the time to organize them before sitting with your tax preparer.
• Stay Compliant with all taxing authorities. The Internal Revenue Service and the state in which you formed your entity are usually not the only taxing authorities.
• You need to be concerned about city business licenses and, depending on the type of business you have, various licensing authorities like the Board of Equalization may require reporting and filing – sometimes on a monthly or annual basis.
What to do if you haven’t filed your tax returns yet:
Tax return deadlines:
• Corporations: March 15th (can extend to Sep 15th)
• Individuals: Apr 15th (can extend to Oct 15th)
• Non-profits: May 1th (can extend to Nov 15th)
Estimated Tax payment due dates:
• 1st Quarter payments: Fed 4/15 CA 4/15
• 2nd Quarter payments: Fed 6/17 CA 6/17
• 3rd Quarter payments: Fed 9/16 CA None due
• 4th Quarter payments: Fed 1/15/14 CA 1/15/14 (pay by 12/31/13)
Other Tips and pointers:
• All CA business entities must pay their $800 estimated tax payment by 4/15/13
• Federal & State extensions are only an extension to FILE your returns, NOT an extension to pay
• Even though you extend do not wait October 15 to rush again
• File your returns electronically to get a faster refund (Direct deposit into your bank account in less than 10 days)
• Check your Post Office Hours if you plan to mail your return on the last day
• IRS Form 4868
• CA (Auto Extended – Payment Due Form FTB 3519)
Corporations, Partnership & LLC’s Extensions:
• Corp, Partnership, LLC: IRS Form 7004
• CA Corp: FTB Form 3539
• CA LLC: FTB Form 3537
• CA Partnerships: FTB Form 3538
CA $800 Estimated Tax Payments (Due 4/15/13):
• Corp: Form 100-ES (1st Installment)
• LLC: Tax Voucher – Form 3522
• LLP: Pay with Ext Form 3538