Thursday, July 23, 2009
Reprieve for New Bedford RMV Office
Thanks to Senator Montigny and others, the New Bedford RMV Office will not close as previously announced. It will serve as an express registry office (limited transactions) but this is still good news for those living in the Greater New Bedford area.
Minimum Wage Increase
Federal minimum wage will rise to $7.25 per hour tomorrow, July 24th, 2009. Massachusetts minimum wage is $8.00 per hour (effective January 1, 2008).
Wednesday, July 22, 2009
Boston Meals and Hotel Taxes
Mayor Menino meets hotel and restaurant industry representatives today to discuss his proposed 2% hotel tax increase (to 14.45% total state and city taxes), and .75% meals tax increase (to 7% total state and city tax), to be effective October 1, 2009. The Boston City Council will decide next week whether or not to approve the rate hike.
Cape Cod Businessman Guilty in Tax Fraud Case
Article from Cape Cod Times about Cape Cod resident who didn't declare $500,000 in income!
http://www.capecodonline.com/apps/pbcs.dll/article?AID=/20090722/NEWS/907220325&emailAFriend=1
http://www.capecodonline.com/apps/pbcs.dll/article?AID=/20090722/NEWS/907220325&emailAFriend=1
New Bedford Area Unemployment
Unemployment in the New Bedford area rose to 13.6% in June. Compare it to 8.1% in June 2008. Towns included are Acushnet, Dartmouth, Fairhaven, Freetown, Gosnold, Mattapoisett, New Bedford, and Rochester. Economists predict the rate will not begin to fall until June 2010!
Sunday, July 19, 2009
Plan to Test Elderly Drivers more often In Massachusetts
From the Insurance Institute for Highway Safety:
“There isn’t much evidence that elderly drivers are a big menace to other people on the road. Looking at per-licensed-driver rates, drivers in the 30- to 59-year-old category are much more likely to kill other motorists, pedestrians, and bicyclists than elderly drivers."
So should we plan to retest that group as well?
“There isn’t much evidence that elderly drivers are a big menace to other people on the road. Looking at per-licensed-driver rates, drivers in the 30- to 59-year-old category are much more likely to kill other motorists, pedestrians, and bicyclists than elderly drivers."
So should we plan to retest that group as well?
Saturday, July 18, 2009
Owe Tax to Louisiana or Delaware?
Both Louisiana and Delaware have scheduled a tax amnesty program for September 1 through October 31, 2009.
Friday, July 17, 2009
Summer jobs and taxes
The IRS wants students to know some things about summer jobs!
1. Students must fill out a W-4 when starting a new job. A W-4 is used by employers to determine the income tax that will be withheld from paychecks. Students with multiple summer jobs should make sure all employers are withholding enough taxes to cover the total income tax liability.
2. Tips received are taxable income.
3. Students do odd jobs to make extra cash. Earnings you receive from self-employment are subject to income tax. This includes income from jobs like baby-sitting and lawn mowing!
4. If you have net earnings of $400 or more from self-employment, you have to pay self-employment tax. This tax pays for your benefits under the Social Security system.
5. Subsistence allowances paid to ROTC students participating in advanced training are not taxable. Active duty pay – such as pay received during summer advanced camp – is taxable.
6. Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
You are in the business of delivering newspapers.
Your pay for these services directly relates to sales rather than to the number of hours worked.
You perform the delivery services under a written contract which states that you will not be treated as an employee for federal tax purposes.
7. Generally, newspaper carriers or distributors under age 18 are not subject to self-employment tax.
1. Students must fill out a W-4 when starting a new job. A W-4 is used by employers to determine the income tax that will be withheld from paychecks. Students with multiple summer jobs should make sure all employers are withholding enough taxes to cover the total income tax liability.
2. Tips received are taxable income.
3. Students do odd jobs to make extra cash. Earnings you receive from self-employment are subject to income tax. This includes income from jobs like baby-sitting and lawn mowing!
4. If you have net earnings of $400 or more from self-employment, you have to pay self-employment tax. This tax pays for your benefits under the Social Security system.
5. Subsistence allowances paid to ROTC students participating in advanced training are not taxable. Active duty pay – such as pay received during summer advanced camp – is taxable.
6. Special rules apply to services you perform as a newspaper carrier or distributor. You are a direct seller and treated as self-employed for federal tax purposes if you meet the following conditions:
You are in the business of delivering newspapers.
Your pay for these services directly relates to sales rather than to the number of hours worked.
You perform the delivery services under a written contract which states that you will not be treated as an employee for federal tax purposes.
7. Generally, newspaper carriers or distributors under age 18 are not subject to self-employment tax.
Monday, July 13, 2009
Summertime Child and Dependent Day Care
1. The cost of sending your child or dependent to a day camp may count as an expense towards your child and dependent care credit, even if the camp specializes in a particular sport or activity.
2. The overnight cost of sending your child or dependent to an overnight camp is NOT considered a work related expense and will NOT count towards your child and dependent care credit. Get the camp to separately state the care aspect of the daytime cost on the invoice.
The following publication will help with other day-care questions.
IRS Publication 503
2. The overnight cost of sending your child or dependent to an overnight camp is NOT considered a work related expense and will NOT count towards your child and dependent care credit. Get the camp to separately state the care aspect of the daytime cost on the invoice.
The following publication will help with other day-care questions.
IRS Publication 503
Friday, July 10, 2009
More on the NH vs. MA Sales Tax Issue
Yesterday, NH's governor signed a bill that protects its retailers from having to report sales to the home states of out-of-state buyers.
Now MA will have to prove goods or services bought in NH are being used, stored, or consumed in MA. MA DOR will have to go after MA residents instead of NH retailers. That puts the burden back where it belongs, with the state that is imposing the tax.
MA residents still have to declare these goods/services on their personal tax returns and pay use tax to MA - not often done, and little enforced.
The NH bill comes after MA attempted to collect $108,000 in "use" taxes from Town Fair Tire for sales it made to MA customers at its NH stores.
Now MA will have to prove goods or services bought in NH are being used, stored, or consumed in MA. MA DOR will have to go after MA residents instead of NH retailers. That puts the burden back where it belongs, with the state that is imposing the tax.
MA residents still have to declare these goods/services on their personal tax returns and pay use tax to MA - not often done, and little enforced.
The NH bill comes after MA attempted to collect $108,000 in "use" taxes from Town Fair Tire for sales it made to MA customers at its NH stores.
Thursday, July 9, 2009
New Mailing Address for 1040 Series
Massachusetts residents:
As of July 1, 2009, there's a new address for mailing 1040 series returns, including amendments (gone is the old and dearly loved Andover address!):
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002
As of July 1, 2009, there's a new address for mailing 1040 series returns, including amendments (gone is the old and dearly loved Andover address!):
Department of the Treasury
Internal Revenue Service
Kansas City, MO 64999-0002
Saturday, July 4, 2009
Massachusetts RMV License Renewals
Some good news from Massachusetts RMV: The Registry will begin offering customers the opportunity to go online and request notification by e-mail or telephone before licenses expire.
The Registry stopped mailing reminder notices last year. The move was designed to save $800,000 annually, but sparked complaints from drivers frustrated by the lack of notification.
The Registry stopped mailing reminder notices last year. The move was designed to save $800,000 annually, but sparked complaints from drivers frustrated by the lack of notification.
Massachusetts RMV Office Closings
Not only will you pay more sales tax on your auto purchase after August 1st, but RMV is closing some offices and opening others. The 5 new offices will open in state buildings, saving rent expenses. As leases expire, closings are scheduled between now and December.
New Branches:
MTA Charlton Turnpike Center (full service)
MTA Natick Service Plaza (express)
MHD Canal Visitor Center (express)
MHD Peabody (express)
Boston TBD (full service)
Branches Closing:
Lowell (closing July)
North Attleboro
Cambridgeside Galleria
New Bedford (closing July 24th)
Springfield (Eastfield Mall)
Southbridge
Framingham
Falmouth
Eastham (one day)
Beverly
Boston (Chinatown)
New Branches:
MTA Charlton Turnpike Center (full service)
MTA Natick Service Plaza (express)
MHD Canal Visitor Center (express)
MHD Peabody (express)
Boston TBD (full service)
Branches Closing:
Lowell (closing July)
North Attleboro
Cambridgeside Galleria
New Bedford (closing July 24th)
Springfield (Eastfield Mall)
Southbridge
Framingham
Falmouth
Eastham (one day)
Beverly
Boston (Chinatown)
Friday, July 3, 2009
Taxachusetts or Not!
What % of your income goes to income, sales, real estate, and personal property taxes?
Many states and municipalities are currently raising taxes (fact of life). California is again issuing IOU's for state income tax refunds!
Use the link below to see your 2008 tax burden. Massachusetts ranks 23rd. Alaska has the least, thanks to oil, Connecticut the greatest, but also has the highest per capita income in the nation, just ahead of Massachusetts. So given our 23rd place tax burden, and our 2nd place per capita income ranking, let's whine about the weather instead.
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