WASHINGTON — Refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007, the Internal Revenue Service announced today. However, to collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011.
Category Archives: IRS Updates
IRS FREE Webinar: What New Non-501(c)(3) Organizations Need to Know
A FREE Webinar on February 24, 2011 about: What New Non-501(c)(3) Organizations Need to KnowWho Should Attend:
This new webinar was developed especially for new 501(c)(4), (c)(5), (c)(6), (c)(7), (c)(8) and (c)(10) tax exempt organizations — including social welfare, labor and agricultural organizations, business leagues, trade associations, social clubs, and fraternal organizations — and the tax professionals who represent them. Other members of the exempt organizations community will find the webinar of interest as well
Important Tax Law Changes for 2010
Taxpayers should make sure they are aware of many important changes to the tax law before they complete their 2010 federal income tax return.
Here are several important changes that the IRS wants you to keep in mind when you file your 2010 federal income tax return in 2011.
Health Insurance Deduction Reduces Self Employment Tax In 2010, eligible self-employed individuals can use the self-employed health insurance deduction to reduce their social security self-employment tax liability in addition to their income tax liability. As in the past, eligible taxpayers claim this deduction on Form 1040 Line 29. But in 2010, eligible taxpayers can also enter this amount on Schedule SE Line 3, thus reducing net earnings from self-employment subject to the 15.3 percent social security self-employment tax.
IRS to Start Processing Delayed Returns on Feb. 14; Most People Unaffected and Can File Now
WASHINGTON — The Internal Revenue Service plans a Feb. 14 start date for processing tax returns delayed by last month’s tax law changes. The IRS reminded taxpayers affected by the delay they can begin preparing their tax returns immediately because many software providers are ready now to accept these returns.
Beginning Feb. 14, the IRS will start processing both paper and e-filed returns claiming itemized deductions on Schedule A, the higher education tuition and fees deduction on Form 8917 and the educator expenses deduction. Based on filings last year, about nine million tax returns claimed any of these deductions on returns received by the IRS before Feb. 14.
Four Tax Tips about Tip Income
If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes. Here are four things the IRS wants you to know about tip income:
- Tips are taxable. Tips are subject to federal income, Social Security and Medicare taxes. The value of non–cash tips, such as tickets, passes or other items of value, is also income and subject to tax.
- Include tips on your tax return. You must include in gross income all cash tips you receive directly from customers, tips added to credit cards, and your share of any tips you receive under a tip–splitting arrangement with fellow employees.
- Report tips to your employer. If you receive $20 or more in tips in any one month, you should report all of your tips to your employer. Your employer is required to withhold federal income, Social Security and Medicare taxes.
- Keep a running daily log of your tip income. You can use IRS Publication 1244, Employee’s Daily Record of Tips and Report to Employer, to record your tip income.
For more information see IRS Publication 531, Reporting Tip Income and Publication 1244 which are available at http://www.irs.gov or can be ordered by calling 800-TAX-FORM (800-829-3676)
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