Friday, December 24, 2010

Recession and Global Unemployment

The US unemployment rate is 9.8% as of December, 2010.

Countries with rates 20% and above:

Afghanistan - 35%
American Samoa - 29.8%
Bosnia - 43.4%
Canary Islands - 27.68%
Cape Verde - 21%
Dominica - 23%
Kosovo - 73%
Latvia - 20%
South Africa - 25.3%
Spain - 20.02%

Ireland, booming just a couple of years ago, has a rate of 13.9%. 

Recovering from foreclosure!

Recovering from foreclosure takes time, so use it to rebuild credit | News for Dallas, Texas | Dallas Morning News | Dallas Business News

Unemployment is a global problem - Aug. 11, 2010

Unemployment is a global problem - Aug. 11, 2010

7 States to Increase Minimum Wage, January 1, 2011!

7 states will raise minimum wage on January 1, 2011 - Arizona ($7.36), Colorado ($7.35), Montana ($7.35), Ohio ($7.40), Oregon ($8.50), Vermont ($8.15) and Washington ($8.67).

Massachusetts minimum wage remains at $8.00. Both Washington and Oregon have a lower cost of living than Massachusetts but a higher minimum wage! Lest you would assume otherwise - Vermont's cost of living was higher than Massachusetts in the 3rd quarter of 2010! 

The Rich Are Much Richer Than You or Me!

Gap between rich and middle class grows - Dec. 23, 2010

Thursday, December 23, 2010

Delayed tax filing for some in 2011!

The IRS wants you to know that taxpayers claiming state and local sales tax deductions, higher education tuition and fees deductions,  educator expenses deductions, and those who itemize deductions on Form 1040 Schedule A, will have to wait to file tax returns until tax processing systems are ready. The IRS estimates that will be in mid- to late February.

Thursday, November 18, 2010

Massachusetts Unemployment Rate Drops to 8.1% in October

BOSTON - Thursday November 18, 2010 --- The Executive Office of Labor and Workforce Development reported today that the total unemployment rate dropped from 8.4 percent in September to 8.1 percent in October, the lowest unemployment rate since April 2009 and the steepest two-month consecutive drop since 1976. Since August the rate has dropped seven tenths of a percentage point and remains below the 9.6 percent national rate.

The preliminary October job estimates show 3,185,500 jobs in Massachusetts, an increase of 10,000 jobs, with most of the gains in Education and Health Services and Leisure and Hospitality. Professional, Scientific and Business Services, Construction and Trade, Transportation, and Utilities lost jobs. Over-the-year, jobs are up 37,300 with private sector jobs up 35,100. The October job gain follows a revised 21,300 jobs loss in September, previously reported as a 20,900 job loss. Year-to-date (December 2009 - October 2010) 47,900 total jobs have been added. Private sector job growth for the same time period is 48,300.

Trends for the labor force, unemployed residents, employed residents, the unemployment rate and jobs continue to indicate improvement for Massachusetts' economy.

What do you mean my health insurance isn't going to cover me until February 1st?

The Education of Congressman-Elect Andy Harris : CJR

Long term unemployed out of luck!

House fails to pass unemployment benefits extension - Nov. 18, 2010

What You'll PayFor Medicare in 2011

How Much You'll PayFor Medicare in 2011 - Kiplinger

Wednesday, October 6, 2010

Monday, August 30, 2010

Tuesday, August 24, 2010

Massachusetts Single Family Homes

The median sale price for single family homes in Massachusetts is $330,000, according to MRA. Sales are down 28% compared to figures for July 2009!

Thursday, August 5, 2010

IRS Moving Slowly Into The Future

The IRS plans to explore providing an effective mechanism to use a portion of a taxpayer's refund to pay for the services of a tax professional. The IRS plans to engage with the public, consumer advocates, and the tax industry, to determine if this option will be a cost-effective way for taxpayers to pay for services.

Thursday, July 8, 2010

Day Camp Expenses

The IRS wants you to know that:

The cost of day camp may count as an expense towards your child and dependent care expenses.

Overnight camp costs do not qualify.

You will need the name, address and Federal ID number of the camp when you prepare your tax return.

Office of the Attorney General - - Press Release

Office of the Attorney General - - Press Release

Tuesday, July 6, 2010

Thursday, June 17, 2010

Swiss Bank Accounts

The Swiss Bank, UBS AG, has agreed to give the names of 4,450 American customers, suspected of tax evasion, to U.S. taxing authorities.

Monday, June 14, 2010

Government Checks No Longer In The Mail

Social Security, unemployment, veterans benefit, tax refund, railroad retirement, and government benefit checks must now be directly deposited into the recipient's bank account. Currently, 85% of Social Security checks are direct deposits. The alternative is Direct Express Debit MasterCard when there is no bank account.

It is safer, faster, and will save money – about $303 million over the first 5 years, then about $120 million a year.

Sunday, June 13, 2010

Snowe Files Amendment to S Corporation Profits Tax Proposal

On Thursday, Sen. Olympia Snowe, (R-Maine) and Sen. Mike Enzi, (R-Wyoming) filed an amendment to HR 4213 to strike the tax provisions regarding professional service S-Corporations. The senators called S-Corporations "the major entrepreneurial form of business ownership that has been the single biggest job generator."

Friday, June 11, 2010

EA's Exempted from New York Registration Process

EA's will no longer have to register as NY Tax Preparers under NY Senate Bill 5710A, passed 58-0 by the Senate on June 7, 2010. The Assembly also passed the bill. It is on its way to the Governor for signature. Good job, NY EA Association for advocating for all EA's across the country.

Wednesday, June 9, 2010

Massachusetts DOR Bills Mailed in Error

Massachusetts Department of Revenue erroneously mailed bills last week to about 850 taxpayers. The bills charged a late filing penalty for tax returns properly filed by the extended May 11 deadline. Apparently, the due date on the DOR system was not changed! The assessments charged are incorrect. DOR will mail letters to taxpayers instructing them to disregard the notice. Questions can be raised with DOR at (800) 392-6089. DOR apologizes for the error!

Monday, June 7, 2010

City of Philadelphia Tax Amnesty

The City of Philadelphia is now offering its first tax amnesty program since 1986. Residents, workers, property owners, and business owners may pay back taxes, without penalty, and only half the accrued interest. The city realizes many of its residents and workers face difficult challenges in these harsh economic times. Call 1-(877) 323-4124 for details. The amnesty program ends June 25th, 2010.

Medicare Seniors

About 4 million Medicare seniors who fall into the "donut hole" of prescription coverage will receive a $250 check this month from SSA. The first checks will be sent June 10.

Saturday, April 17, 2010

US Banks in 2010

Butler Bank of Lowell, Massachusetts was seized by the FDIC on Friday. 50 US banks have failed in the first 4 months of 2010. To put that in perspective, 29 banks failed in the first 4 months of 2009, and only 25 banks failed in the entire year of 2008. That curve is alarming!

Thursday, April 8, 2010

This Year's Income Tax Refunds

The IRS wants you to know the average income tax refund is up nearly 10% this year because of new tax benefits made possible by the Recovery Act.

Monday, April 5, 2010

Massachusetts Unemployment Assistance for Federal Disaster Area

Massachusetts has announced special unemployment assistance handling for areas affected by the flooding. Application must be made between March 14th, 2010 and May 3, 2010. This applies to self-employed individuals also.

Examples of reasons for unemployment that may make a person eligible to receive Disaster Unemployment Assistance:

* You were injured in the disaster and are unable to work, whether you are an employee or self-employed.
* Your workplace was damaged, destroyed, or you can't work because of the disaster.
* Your transportation to work is not available because of the disaster.
* You can't get to your job because you must travel through the affected area, and you cannot do that because of the disaster.
* You were about to begin working, but could not because of the disaster.
* You are now the breadwinner or major support for a household because the former head of household died in the disaster.
* You are out of work because the Federal government took over or closed the facility where you worked.
* You derived most of your income from areas affected by the disaster, whether working for yourself or for an employer.

Rhode Island Unemployment

Rhode Island is waiving some unemployment rules. RI residents will not have a "waiting" week. Self-employed residents will be eligible for unemployment. RI employers will not be charged for those laid off as a result of the flooding.

Now it's up to Congress to make unemployment funds available to those affected by this disaster, and for those still unemployed as a result of last year's economic disaster!

Wonder if Congressional members are eligible for unemployment when the electorate lays them off!

Saturday, April 3, 2010

Flexible Health Spending Accounts

Starting in 2011, over the counter medications must be prescribed by your doctor in order to use them in flexible health, health savings accounts.

Health Care and W-2's

Employers must begin reporting the value of health care benefits on W-2 statements in 2011.

Indoor Tanning Tax

A 10% excise tax will be assessed on indoor tanning services starting July 1, 2010!

Thursday, April 1, 2010

Masschusetts Deadline extended

Governor Deval Patrick directed Massachusetts Department of Revenue to allow residents in Bristol, Essex, Middlesex, Norfolk, Plymouth, Suffolk, and Worcester counties to extend the 2009 state tax filing deadline to May 11th, 2010. This extends the time for payment of balance due amounts and first estimates also.

Wednesday, March 31, 2010

Rhode Island Deadline extended

The Rhode Island Division of Taxation just announced it is extending its filing deadline to May 11th, following the IRS lead. This covers ALL RI residents. It also extends the deadline for payments of balance due, IRA contributions, and estimate payments.

Massachusetts Filing Deadline extended

The IRS has extended the filing deadline to May 11th, 2010 for residents of Bristol, Plymouth, Suffolk, Norfolk, Essex, Middlesex and Worcester counties!

Friday, March 26, 2010

IRS Licensing of Paid Tax Return Preparers

The IRS estimates there are 1.2 million paid tax return preparers in the United States. Wonder how many there will be once licensing becomes law next year!

Thursday, March 18, 2010

Saturday, March 13, 2010

Friday, March 12, 2010

Charitable Deductions on Your Tax Return

Claim Donation Values with Confidence: Ameritax Massachusetts has a solution. CharityDeductions.com is a charitable donation website featuring researched values for 100,000+ items from eBay used-item transaction data. Items are researched and backed by thousands of similar item transactions. Go to CharityDeductions.com and use our exclusive promotional code "ameritax" to receive your discounted membership. Track charitable cash and checks also, and print reports for the year.

Tuesday, March 9, 2010

Dow State of Affairs

The Dow fell to $6547 on March 9, 2009. It will open today, just one year later, at $10552!

Friday, February 19, 2010

Gambling winnings and the IRS

The full amount of gambling winnings for the year must be reported to the IRS, regardless of the amount, and regardless of whether OR NOT you receive a Form W-2G or other reporting form.

Saturday, February 6, 2010

Bartering and the IRS

• Bartering is an exchange of property or services. The fair market value of goods and services exchanged is fully taxable and must be included as income on Form 1040 of both parties.

Friday, January 22, 2010

Charitable Contributions to Haiti Relief

Legislation has been passed allowing itemizing taxpayers to deduct charitable contributions made by March 1st, 2010 to Haiti earthquake relief, on their 2009 returns. The bill also allows use of a taxpayer's phone bill as documentation for text-messaged contributions.

Thursday, January 21, 2010

Charitable Contributions to Haiti Relief

When giving to Haiti Relief, remember that, in order to take your donation as an itemized deduction on your tax return,
  • it must be made to a U.S.-based tax-exempt charity providing aid to Haiti.
  • Donations to foreign organizations are generally not deductible.

Tuesday, January 12, 2010

Over 60% of taxpayers use a tax professional. Choose a good one!

Preparer licensing starts next year. In the meantime, the IRS wants you to ask the following:

1. Is your preparer taking continuing education courses?
2. Does your preparer subscribe to a Code of Ethics?
3. Does your preparer have a negative history with a state board, or a criminal history?
4. Does your preparer base his fees on a percentage of the refund?
5. Does your preparer claim he can obtain larger refunds than other preparers?
6. Is your preparer in business year round?

A good preparer
  • takes continuing education courses
  • subscribes to a Code of Ethics
  • has no history of complaints with a state board or the BBB, and has no criminal history
  • bases fees upon the complexity of the return
  • makes no exaggerated claims about getting larger refunds
  • is in business year round and available when you get a letter from the IRS or the state.

A good preparer wants to see records and receipts, and will question you carefully.

Never sign a blank return, or a blank e-file authorization.

Review your return before signing it. You are responsible for its content.

A paid preparer is required by law to sign tax returns. If he doesn’t, ask why. Is he trying to avoid declaring the income on his tax returns? You’re paying taxes, why shouldn’t he? A good preparer is never afraid to sign a properly prepared return. An ethical preparer will declare all his income on his own tax return.

Wednesday, January 6, 2010

Misconceptions about filing status

Your marital status on the last day of the year determines your marital status for the entire year.

If you marry on the last day of the year, you are considered married for the entire year. Your filing choices are married filing jointly or married filing separately. If your divorce is final on the last day of the year, you are considered single, or head of household if you pay more than half the cost of maintaining a home for yourself and a qualifying person.

If your spouse died during the year, and you didn’t remarry, you are considered married and can still file jointly with your late spouse for the year of death.

If more than one filing status applies to you, choose the one that gives you the lowest tax obligation.

Tax questions? Call Ameritax at (508) 993-4343, or any of our offices.