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October 2013
Issue: 46

Extended Individual Income Tax Returns Due October 15th

 

I hope everyone had a great summer and are now enjoying the nice fall weather we have been having.  Business is picking up around here as the extended deadline for individual income tax returns is October 15th.  There are still several clients that I have not heard from this year so please contact me as soon as possible if you still need to file your 2012 tax return.  I will be very busy leading up to the deadline so the sooner you get me your tax information the better.  If you don't file by October 15th, then you could be subject to a late filing penalty and we won't be able to e-file your return.

 

I have been getting a lot of questions throughout the year about Obamacare and how that is going to affect my clients.  I think the biggest impact is that all individuals are now required to have health insurance effective January 1st, 2014.  If you don't get health insurance, then you will be penalized by the government.  I have included an article about the penalty and how it works.  Ironically, many people without health insurance are electing to forgo coverage and simply pay the penalty as that will be much cheaper.  In addition to the health coverage requirement, businesses with greater than 50 employees are required to provide health insurance to all employees.  Fortunately, most of my clients fall under the 50 employee threshold so this hasn't been an issue.  However, there are some other minor issues for small businesses to consider.  I have included an article explaining what those issues are and what needs to be done.

 

In another tax development, the Supreme Court ruled that anyone that is legally married is now considered married for tax purposes.  In the past, same sex marriages were not recognized by the federal government so same sex couples were not allowed to file a joint tax return.  That has changed now which creates a host of tax issues to consider.  I have included an article that details these issues as well. 

 

Enjoy this month's newsletter!

No Thanks, Obamacare. I'll Pay the Penalty

Can't afford the premiums. Don't need health insurance. Won't support Obamacare.

These are some of the reasons why CNNMoney readers say they'll opt to pay a penalty for not having health insurance in 2014, rather than sign up for a policy in the state-based exchanges or through their companies.

"I would love to have insurance, but we just don't have the money," said Sandra Czop, 58, of Bloomingdale, Ill. "We need that $100 to put food on the table. We have no money to put gas in the car."

What Small Businesses Need to Do for Obamacare Before Oct. 1

The health insurance marketplaces created by the Affordable Care Act will open on Oct. 1. Most small employers - those with 50 or fewer full-time employees - are not required to offer health insurance coverage under the Affordable Care Act. Even businesses with more than 50 full-time employees have gotten a one-year reprieve from penalties if they don't offer insurance. But all companies, regardless of size, are required to notify their employees about the Obamacare marketplaces.

 Read more... 


IRS Rules All Legal Same-Sex Marriages Count Now---Even Retroactively

The IRS has taken lots of hits lately, but this is welcome news for same-sex couples, those considering marriage, and the tax preparation community that has long been scratching its collective head. Now it's official. The IRS says anyone who is legally married is married for federal tax purposes.

 

Read more... 

In This Issue
No Thanks, Obamacare. I'll Pay the Penalty
What Small Businesses Need to Do for Obamacare Before Oct. 1
IRS Rules All Legal Same-Sex Marriages Count Now---Even Retroactively
S Corporation Self-Employment Tax Avoidance Still A Solid Strategy
Upcoming Tax Deadlines

S Corporation Self-Employment Tax Avoidance Still A Solid Strategy

Even though Sean P. McAlary lost in Tax Court the decision in his case shows that S Corporations are still a valid self-employment tax avoidance strategy. If you operate as a sole-proprietorship, all of its income will be subject to self-employment tax.  If you put the business into an S Corporation, none of the income will be subject to self-employment tax. 

Upcoming Tax Deadlines

Please let us know if there is anything we can do for you!!

 

Vetscher & Associates, LLC

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