Important Dates
January 15th - 4th Quarter Est. Tax Payment for 2010 taxes
April 15th - Personal Returns Due
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 Preparing for 2010 Taxes
As the leaves fall during the months of November and December we encourage you to make an appointment with us to go over your final numbers for the year and create a tax plan that suits your personal or business needs. This is a great opportunity to get a clear idea of where you stand financially as of 2010, and if there are any adjustments to your financial situation that can be made before the end of the year to maximize your profits and minimize tax liability. Tax breaks such as the Energy efficient home improvement credit and the Making Work Pay tax credit (along with many others) will be expiring at the end of 2010, and there is no indication of these being renewed in 2011. This is a vital time to look ahead and take advantage of the tax breaks in place today. Please see our website at www.mbtaxpro.com for help in your tax organization. We have a page full of useful forms to help keep your finances in order. You are also welcome to call or email the office and Fern will send you over forms that are best suited for your particular tax needs.
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Bookkeeping By MB Tax
MB Tax Professionals offers bookkeeping to facilitate your business financial organization and to make your tax time with us even easier. Our mission is to alleviate you of the day to day accounting tasks so that you can focus on growing your business. We want to help you achieve a clear picture of your company's financial position so that you can make more informed financial decisions. We work closely with business owners to implement accounting solutions that are tailored to meet the needs of your business. Whether you need help closing out your books at the end of the month, weekly tracking of your expenses, or you crave systems that will help increase productivity and efficiency, MB Tax can help!
We offer weekly, monthly, or quarterly services, depending on the needs of your business. We also offer a year end overview of your books. Our general bookkeeping fee is $45/hour, with weekly/monthly/quarterly rates as well. Give us a call and we will work out the best bookkeeping plan for you.
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Lower Paychecks No Matter What in 2011?
(reprinted from telegram.com)
Employers in the U.S. are starting to warn their workers to prepare for slimmer paychecks if Congress fails to vote on an extension of Bush-era tax cuts. "I've been doing payroll for probably close to 30 years now, and never have we seen something like this, where it gets that down to the wire," said Dennis Danilewicz, who manages payroll services for about 14,000 employees at New York University's Langone Medical Center. "That's what's got a lot of people nervous. All we can do is start preparing communications with a couple of different scenarios."
Lawmakers won't start debating whether to extend the cuts, which expire Dec. 31, until after the Nov. 2 elections. Because it takes weeks to prepare withholding schedules, the Internal Revenue Service will probably have to assume the cuts will expire and direct employers to increase deductions starting Jan. 1, experts say.
If Congress fails to act, income tax rates will revert to higher levels dating from June 2001. For a married couple with an income of $80,000, that would drain an extra $221.48 in withholding from a semi-monthly paycheck, according to calculations by the Tax Institute at H&R Block. Married individuals earning $240,000 a year would lose an additional $557.78 to withholding in a single semi-monthly paycheck. The Tax Institute at H&R Block calculated federal tax rates for single-income earners and married taxpayers without children.
Paychecks could shrink in January and into February, depending on how long it takes Congress to act. January could well be a time of "sticker shock" for salaried employees and their employers, said Kathy Pickering, executive director of the Tax Institute, an independent research division at Kansas City, Missouri-based H&R Block Inc. "If the laws get passed late in December, it's just necessarily going to take one to three weeks to get those payroll tables updated and implemented into the system," Pickering said.
Allowing the tax cuts to expire, even temporarily, would deal a blow to disposable income and could curtail the consumer spending that accounts for about 70 percent of the economy, said Alec Phillips, a Washington-based economist at Goldman Sachs Group Inc.
"The longer the expiration lasts, the more significant the impact will be," he said.
Please see the tables below for a more comprehensive view on what this means for you, courtesy of www.taxfoundation.org.
For the full article, see our MB Tax Pro Blog!
| Table 1 Summary of Taxes Owed (+ or -) on Typical Tax Returns 2011 | |
| Full Expiration | Republican Plan | Democratic Plan | | Single Parent, One child, $25,000 | -$901 | -$1,856 | -$1,856 | | Married couple, three children, $45,000 | $1,028 | -$1,510 | -$1,713 | | Married couple, two children, $50,000 | $2,833 | $690 | $690 | | Married couple, two children, $85,000 | $7,235 | $5,385 | $5,385 | | Single, no children, $60,000 | $8,255 | $7,500 | $7,500 | | Single, no children, $150,000 w/ investment income | $28,340 | $25,071 | $25,071 | | Married couple, two children, $150,000 w/ investment income | $21,602 | $17,800 | $17,800 | | Married couple, two children, $300,000 | $76,616 | $64,971 | $68,392 | | Married couple, no children, $420,000 w/ investment income | $106,815 | $95,554 | $98,591 | | Married couple, no children, $1,000,000 w/ investment income | $293,106 | $231,900 | $260,871 | | Retired couple, $60,000 w/ investment income | $3,444 | $768 | $768 |
| Table 2 Summary of Effective Tax Rates (Taxes as a Percentage of Income) Paid on Typical Tax Returns 2011 | |
| Full Expiration | Republican Plan | Democratic Plan | | Single Parent, One child, $25,000 | -3.6% | -7.4% | -7.4% | | Married couple, three children, $45,000 | 2.3% | -3.4% | -3.8% | | Married couple, two children, $50,000 | 5.7% | 1.4% | 1.4% | | Married couple, two children, $85,000 | 8.5% | 6.3% | 6.3% | | Single, no children, $60,000 | 13.8% | 12.5% | 12.5% | | Single, no children, $150,000 w/ investment income | 18.9% | 16.7% | 16.7% | | Married couple, two children, $150,000 w/ investment income | 14.4% | 11.9% | 11.9% | | Married couple, two children, $300,000 | 25.5% | 21.7% | 22.8% | | Married couple, no children, $420,000 w/ investment income | 25.4% | 22.8% | 23.5% | | Married couple, no children, $1,000,000 w/ investment income | 29.3% | 23.2% | 26.1% | | Retired couple, $60,000 w/ investment income | 5.7% | 1.3% | 1.3% |
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Changes in filing Payroll Tax
The IRS has announced that proposed regulations will expand the use of electronic payment systems for payroll and other tax payments, and discontinue the use of paper coupons next year.
For the full article, please see our MB Tax Pro Blog! |
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