The IRS announced its official filing season dates today, and issued a number of suggestions and reminders to tax preparers and taxpayers, most importantly on the topics of delayed refunds and ITINs. See their press release here: 2017 Tax Filing Season Begins Jan. 23 for Nation’s Taxpayers, Tax Returns Due April 18
All posts by Nancy McClelland
QuickBooks Online Interface Overhaul
Our good friend Charlie Russell over at Accountex Report (formerly Sleeter) has helped us out once again by 1) warning us that QuickBooks Online is once again changing its interface and 2) letting us know what the changes are and how we’re likely to be affected and react.
His summary? Meh, it’s fine — it’s not as major as the last time they did this, and it’s mostly being done to create consistency across all their online product platforms (which is a good thing). His (and I couldn’t agree more) main complaint is that they need to keep these “redesigns” around for longer, allowing us to get used to them and become more efficient with our navigation and data entry.
The full article has lots of great screen shots and step-by-step info; I encourage a quick read (it’s only 2-pages long), as these changes are rolling out throughout the course of the month, and you’ll want to be on top of your game when doing financial reviews in January in anticipation of tax-time.
Year-End Tax Tips | Accounting Today News
Accounting Today posted its annual recommendations for steps to take before the new year comes, to ensure a better tax return in 2017. Handy to share with clients, or as a reminder for your own practice: Year-End Tax Tips | Accounting Today News
10 Year-End Tax-Planning Tips for Individuals
It’s that time again! Accounting Today releases its annual list… many of which are particularly smart planning techniques for tax savings.
Grant Thornton has released a collection of Year-End Tax Guides for 2016. Here are 10 of the most important 2016 tax-planning considerations for individuals.
1. Accelerate Deductions and Defer Income
2. Bunch Itemized Deductions
3. Make Up a Tax Shortfall with Increased Withholding
4. Leverage Retirement Account Tax Savings
5. Reconsider a Roth IRA Rollover
6. Get Your Charitable House in Order
7. Give Directly from an IRA
8. Zero out AMT
9. Don’t Squander Your Gift Tax Exclusion
10. Leverage Historically Low Interest Rates
Podcasts for CPAs
I wanted to share a short and sweet little article from the American Institute of CPAs on podcasts that are popular among “young CPAs” (I don’t know what their demographics are, or why they’d angle it this way, but I’m 44 and I love some of these):
I’m especially a fan of Steve Bragg’s publications and was glad to see that he’s got a regular podcast.
And of course, I want to plug John Garrett’s Green Apple Podcast — not only is it entertaining, but I was his first interviewee back when he started publishing episodes! I think he’s about 50 podcasts in, and the insights just keep coming.
Access “QuickBooks Self-Employed” (QBSE) Clients from QBOA
Big news for accountants using the QuickBooks Online Accountant program, from my favorite QB blogger, Charlie Russell:
Now you can access QuickBooks Self-Employed from QuickBooks Online Accountant. All your clients will be located in one centralized list.
However, an important warning — although you may have clients who signed up on their own for QuickBooks Self-Employed (in which case it’s obviously super-helpful to have them show up in your list of QBOA clients), QBSE is NOT a full-featured accounting program. Furthermore, unlike the rest of the world of QuickBooks products (desktop and online), QBSE cannot be converted into a QuickBooks full-featured version of any of their accounting software.
This means that as accountants, we have a duty to warn clients and potential clients against this program. The costs, time and trouble to “start over” with only summary info for prior years, or even higher costs, time and trouble to re-import transactional data into a version of QuickBooks that will work properly from an accounting perspective is not worth the cost-savings of starting with QBSE.
That said: for those clients who somehow already got themselves into this situation, at least now, we as accountants will be able to access their files with all of our other QBO client files.
More here, at the original article:
Access QuickBooks Self-Employed from QuickBooks Online Accountant – Accountex Report
New QuickBooks Online Reporting – A Guide
Okay, so Intuit says, “we improved reports to make them more professional looking and easier to customize.” I am not a fan. Any time I have to click more times to get to the data or the reports I need than I had to click previously, it’s NOT an improvement.
Nevertheless, onward. The change is coming, and I’ve had a sneak preview for a while… I got the notice today that these reports are rolling out to my clients this week. (You may already have them or it may be a while longer, as they tend to roll out changes in batches.)
I do, however, think that Intuit did a nice job with their guide to the new (and “improved”) reports — Improved QuickBooks reports • QuickBooks Online — complete with screen shots and step-by-step instructions (for things that should take you fewer steps; grrr).
But don’t blame me if you don’t like the new reports. Blame Apple. ;)
Best Accounting Blogs of 2016
I couldn’t possibly be prouder than to announce that The Dancing Accountant’s blog has been chosen as one of the Best Accounting Blogs of 2016! And it’s not just an exciting honor — it’s a humbling one, as many of the blogs that I read regularly (and in fact, that I link to from my own) were also chosen for the list. Many of the colleagues I respect most, whose presentations I attend at my favorite conferences, are also on the list. Industry leaders and technology gurus, software companies and app specialists, and quite a few niche CPAs made the list, too. And with company like that… <blush>… I have to say that I am indeed, quite proud to have been tapped as well.
I’d like to thank the folks at Fit Small Business and encourage you to check out their site — they offer a comprehensive array of Buyer’s Guides and a pretty solid blog of their own, as well as a list of the Best Small Business Blogs of 2016.
I started this blog as a space to save my research on various client accounting and tax issues somewhere within reach and easy-to-find, where others in my situation might also benefit from it. I had no idea it would develop such a following. The best part about the information age is being able to share our knowledge and experiences with each other — thanks for reading!
IRS Urges Employers to Take Advantage of Expanded Work Opportunity Tax Credit; Sept. 28 Deadline to Request Certification
The Work Opportunity Tax Credit is available to employers who hire and retain veterans and individuals from other target groups (see below) who experience significant barriers to employment. There is no limit on the number of individuals an employer can hire to qualify to claim the tax credit. The Department of Labor is a great source of info on the credit, offering a tutorial, video, and employer’s guide.
The IRS also offers some excellent resources.
This year, there is an extended certification deadline — Sept. 28, 2016 — which applies to eligible workers hired between Jan. 1, 2015, and Aug. 31, 2016.
The 10 categories of WOTC-eligible workers include:
- Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients
- Unemployed veterans, including disabled veterans
- Ex-felons
- Designated community residents living in Empowerment Zones or Rural Renewal Counties
- Vocational rehabilitation referrals
- Summer youth employees living in Empowerment Zones
- Food stamp (SNAP) recipients
- Supplemental Security Income (SSI) recipients
- Long-term family assistance recipients
- Qualified long-term unemployment recipients (for people who begin work after 2015).
This is a great example of a win-win tax credit, designed to encourage employers to hire those people who face difficulties getting into the workforce, which not only helps the employers and their employees, but also strengthens communities.
Back-to-School Season = Catch-up Time for Nanny Taxes
“The IRS considers that babysitter or nanny that was working in the home for the family over the course of the summer to be an employee of the family, which makes the family a household employer… Families should make sure they tie up all those loose ends before they move on with the rest of their year so that it doesn’t make tax time come April even more complicated than it has to be.”
Source: Back-to-School Season Means Catch-up Time for Nanny Taxes
Nice little reminder article of the thresholds and requirements for taxation of household employees (hint: it’s more likely that you owe it than not) — but remember that the nanny payroll company cited in the article is but one of many out there. Because it’s such a specialized area, they tend to be pricier than I think is reasonable, but it’s better than trying to do it yourself. Here are some companies to consider:
Some companies offer lower prices than others, but beware — make sure you’re getting all the features you need:
- Will they apply for federal EIN, state registration and unemployment accounts for you? This is a royal pain and it’s best to outsource these steps.
- Will they prepare and file quarterly and annual payroll taxes, as well as issue W-2s, or is this an extra charge?
- Do they offer direct deposit?
- Are their charges per paycheck or per month? If your nanny gets paid every week, this difference can be substantial.
- Will they prepare your annual Schedule H for you?
If you’ve found an affordable household employee payroll service that performs all the above tasks, please mention them in the comments! I’m always looking for good companies to recommend to clients.