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http://local.yahoo.com/info-21626297-accounting-and-tax-pros-inc
orporated-stockton
http://www.gobignetwork.com/profiles/Lynette-R.aspx
http://www.ewomennetwork.com/profile/view.php?profileId=25118
http://www.linkedin.com/pub/b/5b5/52
http://www.bnicentralvalley.com/executives.shtml
http://atpros.wordpress.com/2008/04/29/welcome-to-our-blog-plea
se-read-1st/
http://www.medlawplus.com/professionals/Financial/107527606023
0158.tpl
http://www.manta.com/coms2/dnbcompany_61ylgr
January 2010
This past year has been a year of change for many. Between the recession, job losses, and massive federal
and state law changes, it has proved to be a trying year.
I don’t really have better news for 2010 either. Both the IRS and the State of California have changed the tax
tables used to withhold from payroll checks. Caution: These changes mean you could owe. We have word from
an organization in California that represents practitioners (like myself) that the tables could be incorrect.
The state of California struggled last year. Governor Schwarzenegger vetoed all potential new laws and
extensions of old laws in December. These could have helped California residents and small businesses. This
includes but is not limited to conforming to all new and some old Federal tax changes. Also, the State of
California Franchise Tax Board has also laid of 65% of their customer service department and processors also
we cannot forget “Furlough Fridays”, so expect delays.
Some changes I want to mention (more on following pages):
P.S. There is a rumor that both the US Treasury and the State of California tax rates will go up more in 2011.
We do not have too much information yet but wanted to make you aware. We may want to touch base mid year
to see if you may be affected.
We are now starting to take your appointments. Please call Patricia at 209-948-3159 to make your appointment
or setup a time to drop off. Mailed in documents are welcome as well.
2009 Tax Law Change Recap (BRIEF)
CHARITIBLE CASH DONATION CHANGES
Any deduction over $250 must now have a receipt. Receipt must say that no goods or services have been
provided. Any donation under $250 must now have a bank record (debit/check), or written documentation, or
payroll deduction.
EXCLUSION FOR UNEMPLOYMENT COMPENSATION
There is a one-year exclusion (2009 only) for unemployment benefits. For benefits received in 2009, recipients
may exclude up to $2,400 of unemployment benefits.
SALES TAX DEDUCTION FOR NEW CAR PURCHASES
Vehicles purchased after 2/17/2009 through 12/31/2009 a taxpayer can deduct, as an itemized deduction OR as
an addition to the standard deduction, the sales taxes on the purchase of a qualifying new vehicle. QUALIFYING
VEHICLE: Not weighing more than 8,500 lbs, not a motor home, deduction limited to $49,500 car cost. Can be a
“used” vehicle.
FIRST TIME HOME CREDIT EXTENDED AND ENHANCED
The first time homebuyer credit has been extended until April 30, 2010. Homes must be in contract by April 30,
2010 and must close escrow by June 30, 2010 to qualify for federal $8,000 credit.
There is also a $6,500 Long Time Resident credit is available to those that do not qualify as a first time
homebuyer. If you think you are eligible we will go over this individually.
CANCELATION OF DEBT – FORECLOSURES
If a lender discharges any part of a debt, then the taxpayer must recognize the amount discharged as ordinary
income. However, certain discharges of indebtness are not included. This is a complex area and will need to be
discussed with each client individually. There is an insolvency worksheet on our website. Also, federal and
state laws differ.
MAKING WORK PAY
In 2009 the Making Work Pay refundable credit was announced. Eligible employees are allowed a credit equal
too 6.2% of their gross earnings or $400 ($800 married) (whichever is least). WARNING: The government has
prepaid this credit by adjusting withholding during the year. However, the withholding adjustments will create an
underpayment for certain taxpayers.
BUSINESS MILEAGE
2009 Business non-commute rate is .55 cents a mile. 2010 will be .50 cents per mile.
NEW USE TAX REQUIREMENTS FOR BUSINESSES
Any business with $100,000 or more in gross sales that does not currently hold a sellers permit must register
with the Board of Equalization. The return is due April 15, 2010 and is calculated based on 2009 purchases.
What you report: Your purchases that you were not charged sales tax on. Store examples, Ebay, Amazon,
Craigslist, etc. Please visit www.BOE.CA.GOV for more information. Call us to assist in filing forms.
This is a brief recap of the Federal and State changes.
This represent about 5% of the tax law changes in 2009.
All Tax Planning and Preparation Fees are 100% deductible on your tax return.
Call (209) 948-3159 today for a convenient appointment
Open Saturdays and Evenings (by appointment) through tax season for your convenience
This past year has been a year of change for many. Between the recession, job losses, and massive federal
and state law changes, it has proved to be a trying year.
I don’t really have better news for 2010 either. Both the IRS and the State of California have changed the tax
tables used to withhold from payroll checks. Caution: These changes mean you could owe. We have word from
an organization in California that represents practitioners (like myself) that the tables could be incorrect.
The state of California struggled last year. Governor Schwarzenegger vetoed all potential new laws and
extensions of old laws in December. These could have helped California residents and small businesses. This
includes but is not limited to conforming to all new and some old Federal tax changes. Also, the State of
California Franchise Tax Board has also laid of 65% of their customer service department and processors also
we cannot forget “Furlough Fridays”, so expect delays.
Some changes I want to mention (more on following pages):
- · Increased Benefits for Education Tuition
- · COBRA benefits and unemployment that may be taxable
- · New California Small Business Hiring Credit.
- Estimated tax payment changes and new Webpay requirements.
P.S. There is a rumor that both the US Treasury and the State of California tax rates will go up more in 2011.
We do not have too much information yet but wanted to make you aware. We may want to touch base mid year
to see if you may be affected.
We are now starting to take your appointments. Please call Patricia at 209-948-3159 to make your appointment
or setup a time to drop off. Mailed in documents are welcome as well.
2009 Tax Law Change Recap (BRIEF)
CHARITIBLE CASH DONATION CHANGES
Any deduction over $250 must now have a receipt. Receipt must say that no goods or services have been
provided. Any donation under $250 must now have a bank record (debit/check), or written documentation, or
payroll deduction.
EXCLUSION FOR UNEMPLOYMENT COMPENSATION
There is a one-year exclusion (2009 only) for unemployment benefits. For benefits received in 2009, recipients
may exclude up to $2,400 of unemployment benefits.
SALES TAX DEDUCTION FOR NEW CAR PURCHASES
Vehicles purchased after 2/17/2009 through 12/31/2009 a taxpayer can deduct, as an itemized deduction OR as
an addition to the standard deduction, the sales taxes on the purchase of a qualifying new vehicle. QUALIFYING
VEHICLE: Not weighing more than 8,500 lbs, not a motor home, deduction limited to $49,500 car cost. Can be a
“used” vehicle.
FIRST TIME HOME CREDIT EXTENDED AND ENHANCED
The first time homebuyer credit has been extended until April 30, 2010. Homes must be in contract by April 30,
2010 and must close escrow by June 30, 2010 to qualify for federal $8,000 credit.
There is also a $6,500 Long Time Resident credit is available to those that do not qualify as a first time
homebuyer. If you think you are eligible we will go over this individually.
CANCELATION OF DEBT – FORECLOSURES
If a lender discharges any part of a debt, then the taxpayer must recognize the amount discharged as ordinary
income. However, certain discharges of indebtness are not included. This is a complex area and will need to be
discussed with each client individually. There is an insolvency worksheet on our website. Also, federal and
state laws differ.
MAKING WORK PAY
In 2009 the Making Work Pay refundable credit was announced. Eligible employees are allowed a credit equal
too 6.2% of their gross earnings or $400 ($800 married) (whichever is least). WARNING: The government has
prepaid this credit by adjusting withholding during the year. However, the withholding adjustments will create an
underpayment for certain taxpayers.
BUSINESS MILEAGE
2009 Business non-commute rate is .55 cents a mile. 2010 will be .50 cents per mile.
NEW USE TAX REQUIREMENTS FOR BUSINESSES
Any business with $100,000 or more in gross sales that does not currently hold a sellers permit must register
with the Board of Equalization. The return is due April 15, 2010 and is calculated based on 2009 purchases.
What you report: Your purchases that you were not charged sales tax on. Store examples, Ebay, Amazon,
Craigslist, etc. Please visit www.BOE.CA.GOV for more information. Call us to assist in filing forms.
This is a brief recap of the Federal and State changes.
This represent about 5% of the tax law changes in 2009.
All Tax Planning and Preparation Fees are 100% deductible on your tax return.
Call (209) 948-3159 today for a convenient appointment
Open Saturdays and Evenings (by appointment) through tax season for your convenience
Lynette C. Rue BSA EA
Bachelors In Business/Accounting
Enrolled Agent - Enrolled To Practice
Before The Internal Revenue Service
Bachelors In Business/Accounting
Enrolled Agent - Enrolled To Practice
Before The Internal Revenue Service