BTR's News to Use

Last year's tax season may seem like it is just behind us, but the 2017 tax year is already halfway over! Did you know a mid-year assessment can influence your tax outcome? If you’d like to minimize your tax liability and the effort involved with tax filing, let out knowledgeable accountants conduct a review today.

Every business, from a Fortune 500 Company to a one-person consulting practice, needs to account for their revenues, expenses, asset, liabilities, and equity in a systematic manner.  Who needs this “accounting”?

Congressional leaders are lauding the agreement on a large extenders package that revives over 50 provisions—some permanently, such as the research credit, Code Sec. 179 expensing, and the child credit; some for five years, such as bonus depreciation, and over 25 other provisions through 2016. The $650-billion Protecting Americans from Tax Hikes (PATH) Bill of 2015 also includes over 60 other provisions on miscellaneous topics, including real estate investment trusts, tax administration and more.

What is the tax filing deadline for 2016?

The 2015 tax season is over & summer has passed, which means it’s time to start thinking about the 2016 tax season and what the tax filing deadline is.

Traditionally the deadline date for filing your income tax return with the IRS is April 15^th, unless that date falls on a Saturday or Sunday.  Next year, April 15th happens to fall on a Friday, yet the tax filing deadline has been moved to Monday, April 18^th, 2016 and if you are a Maine or Massachusetts resident, the tax filing deadline is actually Tuesday, April 19^th, 2016.

If you’re the parent of a high school or college student, chances are your kid has a summer job.  If so, chances are they don’t necessarily know what they’re doing when it comes to taxes. They probably don’t understand how their taxes can affect you as a parent, or their own finances as they transition into adulthood.

Here’s what you BOTH need to know about paying taxes on summer jobs:

• All taxpayers, including students, must fill out a W-4 when starting a new job.  This form is used to determine the amount of tax that will be withheld from each paycheck.  It is important that both you and your child understand what is being withheld and how it will affect your child’s income.

*Side note: if your child has multiple summer jobs, make sure they receive and fill out a W-4 for each position.  This is the only way to ensure that your child’s employer is withholding an adequate amount of taxes to cover their total income liability tax.