The IRS has now declared in Notice 2014-7 that In-Home Supportive Service (IHSS) payments are now not subject to income tax under Section 131. See this explanation by the IRS on their website: http://www.irs.gov/Individuals/Certain-Medicaid-Waiver-Payments-May-Be-Excludable-From-Income Check with your state to see if the IHSS payments are non taxable there, too (In California they are tax free). The ruling was in January 2014, but the IRS says it will affect any open tax years, so those previous years can be amended to get refunds on this change. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Tax Musings of a Burbank CPA: If You Have a Corporation, Today is Filing Day!
Ok, today is the day: if you have a calendar year C Corporation or an S Corporation, your tax return is due on March 16. Now you don’t have to freak out if you (or your tax preparer) hasn’t gotten things together yet. You can file a six month extension to file until September 15. Just remember if you owe any corporation taxes, there is no extension to pay these. Pay all taxes due as soon as you can to avoid penalties and interest. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa
Burbank CPA Musings: The Virtues of Tax-Loss Harvesting
If you have gains from stock sales, harvesting losses on other stocks you own can cut your tax bill next year. See the pros and cons in this article in The Wall Street Journal by Jane Hodges: http://www.wsj.com/articles/the-virtues-of-tax-loss-harvesting-1425870185?utm_campaign=Daily+Clips&utm_source=hs_email&utm_medium=email&utm_content=16431658&_hsenc=p2ANqtz–s6mVHh7F1eJN_zf3m5D1a7VqpixeuLf2QPn8okXYZm7kn29RNQCnrfGr99zgTuT2m8-yN3X-9gULShkzFTRQKtj66eA&_hsmi=16431658 There can be times when it is not a great idea, like if you are following a long term investment strategy and this could throw a monkey wrench into it, but there are times, especially when changes are being considered in your investments that this can save some tax dollars. Make sure if you have a financial advisor that you discuss this with him or her first before going ahead with anything. For financial, accounting and tax musings, You can count on us to count for you! Email: bstonercpa@sbcglobal.net Phone: 818-317-6035 Website: www.briantstonercpa.com Android and the IPhone: Has been Featured On https://twitter.com/bstonercpa