Due Dates this month
Personal Estimated Tax payments are due January 16th.
Both 1099s and W-2’s are due out to the recipients of the money by January 31st.
If you need help with the documents, please let us know as soon as possible, so we can be sure to get to you before the deadline.
Two Classes – Tax Update by the Tax Buddha and Schedule C Class
Sign up for the Tax Update class the morning of January 11th. The Emeryville Chamber of Commerce is putting on a tax update, presented by Andy Thursday morning in two weeks. Sign up at: http://www.chamberhub.com/cgi/foxweb.dll/wlx/cal/wlxprofile?caleid=884&cc=ECOC. You may attend even if you’re not a chamber member. Registration begins at 7:30 am, and we should be done by 9:30 so you can get back to work.
Also, Andy’s giving his “Preparing your own Schedule C” class
again for the Small Business Administration in SF on Tuesday January 30th
6-8:30 pm. Soon, we’ll be on the calendar at http://web.sba.gov/calendar/public/index.cfm?grp=13&op=group
New Mileage Rate for 2007 $0.485/mile
The IRS says the new maximum rate for mileage reimbursement deduction is
48.5 cents per mile for 2007. In ’06 they changed the rate mid-year,
not promising they will stick with this rate for the whole of ’07.
Phone Excise Tax refund
Apparently, phone companies collected a tax from March ’03-August ’06
that was deemed unconstitutional, and they’re going to refund it
on 2006 income tax returns.
Individuals can figure the exact tax, or do a “standard” of $30 for a single person, $40 for a couple, $50 or $60. This tax is refundable.
For businesses, you can collect the exact amount if you have 41 phone bills, or you can use the formula based on a ‘sample.’ You’ll need a copy of your April ’06 and September ’06 bills, AND to know the amount you spent by month for the 41 months, or a total paid for the each of the years 03-06—maybe a QuickBooks report?
For AT&T, this tax appears to have been collected on Long Distance. Cingular appears to have collected on the whole bill.
I did my business
phone bills and I’m getting $131 refunded from the
IRS, which is weird on an “S” Corp return.
Cash Donations need Receipts
Starting in August ’06 going forward, cash donations need a receipt. This is new. If you put money in the church collection plate, you’ll need to do it by check, or get a receipt, if you want to deduct it. (The old law was that you needed a receipt for amounts of $250 or more). Your cancelled check or credit card statement should suffice for a receipt for cash donations.
Clothing and household items must now (as of Aug 17 ’06) be in “good used condition or better.” For single items worth over $500 they may be in less than “good” condition, provided you “include a qualified appraisal of the item WITH THE RETURN” – Oy! (The good news is that it appears you may donate over $500 value, if in “good” or better condition). For the over $500 set, you’ll still need info on the donee, which hasn’t changed. Take a photo of clothing or household goods you want to donate.