The IRS Sends Out “Oops” Notices to Demand Repayment of the First Time Homebuyer’s Tax Credit
Psych! The IRS asked 80,000 taxpayers to repay their first-time homebuyer’s tax credit. If you were shocked, check it here!
Reminder! Taxes are Due on October 17th!
Just a gentle reminder that if your tax return was extended back in April, it is due on October 17th. If you want to be sure that we’ll be able to get your return completed before the deadline, we must have your information no later that September 30th! Email .(JavaScript must be enabled to view this email address) with tax questions!
New 1099 Rule Repeal!
It’s good news that the House and Senate both passed H.R. 4 that repeals the 1099 reporting requirement that was passed in the Obamacare bill last year. This was a weird provision added to the bill to help “pay” for the cost of healthcare for everyone. It was unrelated to the health care bill (called the Patient Protection and Affordable Care Act) and was just a grab for cash.
- Beginning January 1, 2012, every small business was going to have to send 1099s to everyone they paid over $600. This would be for services or goods, so if you buy more than $600 in supplies from Wal-Mart, then you would have to send them a 1099.
- Also, beginning after December 31, 2010, rental property owners were going to have to send 1099s to any service provider (roofers, plumbers, etc.) that they paid over $600 in one year.
Both of the provisions above will go away once Obama signs H.R. 4 into law. He is expected to do so. Hot dang!
Watch out for the SC Unemployment Tax
There is a lot of talk about how broke the states are around the US. And South Carolina is no different. South Carolina passed a law back in June of 2010 to raise the amount of wages which are taxed for SC unemployment purposes. As far back as I can remember, all wages earned in SC up to $7,000 were taxed to employers for unemployment purposes.
But beginning January 1, 2011, that wage base went up to $10,000. That means all wages earned in SC are now taxed up to $10,000 for each employee. And this is an expense that employers have to carry. This will not affect the employees’ paychecks.
And it’s going up more each year:
Wage base in 2010: $7,000
Wage base in 2011: $10,000
Wage base in 2012: $12,000 (will remain here for a few years)
Wage base in 2015: $14,000
So beware: your first quarter’s unemployment tax bill is going to be a doozy, since you don’t pay this unemployment tax bill until the end of the first quarter. Get ready for it (and save some cash)!
Senate Passes the 1099 Repeal
Hot dang, they are seriously working on a fix for our 1099 issue.
The Senate just passed a provision to repeal the onerous 1099 rule that all small businesses are scared of. If it passes the House, the Prez will probably sign it in to law. But lawmakers will have to make up the lost revenue that this 1099 nightmare would have brought in. What will they tax next? I’ve heard they’ll take oil companies, but still unsure.
