historically crazy election season, more clients are checking the
"Yes" box in our Tax
Organizer to the question about contributing to the Presidential Election
Campaign Fund than have done so during all of my prior 29+ years of practice combined.
While most taxpayers probably aren't even
aware that this option exists, there is a box to check on the top right of the
first page of your personal tax return (Form 1040) to designate $3 of your federal tax liability to be
earmarked for the Presidential Election Campaign Fund. For joint filers, there is a second box for your spouse to
check as well.
Please note that checking this box does not increase
your tax liability by $3. Instead, the federal government simply allocates
$3 from your total tax liability to the Presidential Election Campaign Fund.
While your specific vote will
probably never be the one vote to determine the outcome of an election, taking
time to actually vote is critical to our democracy. Same goes for the $3
you allocate to this fund that won't be enough on its own to make or break anyone's campaign.
However, having these campaign
funds available might make a difference to a candidate who is neither a
billionaire nor entrenched as part of the political establishment. Who
knows, maybe one day someone as far removed from the political scene as a former surgeon
can go on to become president of the United States thanks in part to these public campaign funds.
According to the instructions to
the Form 1040:
Presidential Election Campaign Fund
This fund helps pay for Presidential election campaigns.
The fund reduces candidates' dependence on large
contributions from individuals and groups and places
candidates on an equal financial footing in the general
election. The fund also helps pay for pediatric medical
research. If you want $3 to go to this fund, check the
box. If you are filing a joint return, your spouse can
also have $3 go to the fund. If you check a box, your
tax or refund won't change.
Andrew's presentation will be on building a Niche accounting firm. Over
the past 29 years, Andrew has focused his CPA firm on the tax and basic
financial planning issues affecting healthcare professionals and their
practices. With the help of his brother Rick,
their firm has grown to 20 staff
members preparing personal taxes for a few thousand physicians, dentists, and
psychologists each winter while
also providing accounting, tax and payroll services to more than 250 dental and
medical practices throughout the year.
The New England
Graduate Accounting Studies Conference, Inc. (NEGASC) is an independent
organization, run largely by non-paid volunteers. Its mission is to provide high
quality and affordable professional learning to the US accounting profession
through its annual conference. NEGASC is not affiliated with, nor endorsed
by, the Internal Revenue Service, any Federal or State agency, the American
Institute of Certified Public Accountants, or any State society of CPAs.
The New England Graduate Accounting Studies Conference is among the
oldest non-profit organizations set up to further CPA knowledge and education.
It’s does this by holding an annual conference, in which twenty (20) hours of
continuing professional education (CPE) are offered. The location of the annual
seminar changes every year, but is held at a college or university in one of the
New England states every June.
If your high
school or college aged child needs to file a tax return only to have
federal or state income taxes withheld from their pay refunded, then why not
file for free? For federal taxes, this applies to dependents who
earned no more than $6,300 (in 2016) unless they also have investment income
Even if your
child earns more than $6,300, if the only income is from W-2 wages, then please
take advantage of
the free filing. Just be careful to make sure that you indicate that the
child can be claimed as your dependent on their return.
your child's tax returns, please consider contributing
the lesser of your child's gross wages, or $5,500, into a Roth IRA for your
child. Think decades of tax-free compounded growth on those contributions.
If a child is filing a tax
return ro report significant investment income, however, the overly
complex Kiddie Tax rules should deter most parents from trying to file for their
kids using the
If you do have
a working child and that child won't earn more than $6,400 in wages during 2017, please
instruct your child to claim Exempt on Line 7 of the
W4 form to
avoid the need to file a tax return for that child.
share these great resources with your working child:
WASHINGTON – The
Internal Revenue Service today announced that taxpayers now may use their smart
phones or tablets to electronically prepare and file their federal and state tax
returns through IRS Free File.
The IRS and its
private-sector partners who offer their brand-name software products for free
now support a new design that allows for the use of desktops, laptops, mobile
phones and tablets.
You may access the
products using mobile devices in two ways: (1) Use the IRS app,IRS2Go,
which has a link to the Free File Software Lookup Tool or (2) use the device’s
browser to go towww.IRS.gov/freefileand
select the “Free File Software Lookup Tool” or “Start Free File Now” to find the
software product that matches your situation. The IRS2Go app is available for
Android and iOS devices.
adjusted gross income of $64,000 or less will find one or more free software
options. Each of the 12 software providers set the eligibility requirements for
their product, generally based on age, income or state residency. The Free File
Software Lookup Tool asks a few questions to help you identify the appropriate
offer free federal and free state tax return preparation; some charge a fee for
state return preparation. Active duty military personnel whose income was
$64,000 or less are exempt from any eligibility requirements and may use any
Free File product they choose to file their federal return for free.
The Free File
software allows for free electronic tax preparation and filing and direct
deposit of refunds. Some taxpayers mayneed
their 2015 adjusted gross incomeif
they filed a return, in order to validate their identities and complete the
electronic filing process.
For 2016, the standard deduction for a single individual is $6,300 and
for a married couple is $12,600. A person will benefit by itemizing once
allowable deductions exceed the applicable standard deduction. Itemized
deductions include state and local income taxes (or sales taxes), real estate
taxes, mortgage interest, charitable contributions, and unreimbursed employee
For 2016, the personal exemption is $4,050. Individuals will claim a
personal deduction for themselves, their spouse, and their dependents.
The maximum earnings subject tosocial security taxes is $127,200
for 2017, up from $118,500 for 2015 and 2016.
The standard mileage rateis $.535 per business mile as of
January 1, 2017, down from $.54 for 2016.
The maximum annual salary deferral into a 401(k) plan or a
403(b) plan is $18,000 in 2015, 2016 and 2017, up from $17.5k in 2014.
And if you'll be 50 or older by December 31st, you can contribute an extra
$6,000 into your 401(k) or 403(b) account this year.
The maximum annual contribution to your IRA is $5,500 for 2014
through 2017. And if you turn 50 by December 31st, you can contribute an
extra $1,000 that year. You have until April 15, 2017 to make your 2016
In a shocking development, the
IRS recently announced that they will be honoring the FICA tax refunds
submitted by residency programs and individual doctors. The catch is
that only FICA taxes paid prior to 4/1/05 qualify.