img

Individuals who must make estimated tax payments If you did not pay your last installment of estimated tax by January 18, you may choose (but are not required) to file your income tax return (Form 1040) by January 31. Filing your return and paying any tax due by January 31 prevents any penalty for late payment of the last installment.

File and pay your tax by
15 April

If you cannot file and pay your tax by January 31

If you cannot file and pay your tax by January 31, file and pay your tax by April 15th. Please provide us with accurate social security numbers and names for your spouse and all dependents.

Incorrect or transposed social security numbers and incorrect names are the biggest causes for refund delays. If possible, please bring the actual card or supply us with a copy.

If you are newly married and using your married name, make sure you have sent a change of name form to the Social Security Administration. We have seen countless delays due to this overlooked detail.

Please do not forget to inform us if you have had a change of address, or dependent changes failure to do so will cause delays in your refunds.

The annual exclusion

You can give up to $13,000.00 to anyone, gift –tax-free this year. You and your spouse can combine your individual annual exclusions and make gifts of up to $26,000.00 to a single recipient. (2013 annual exclusion will be $14,000 per person).

Some gifts have special rules. For instance, education and medical expenses you pay directly to the respective providers do not reduce your annual exclusion.

The lifetime exclusion

Through December 31 you can make lifetime gifts of up to $5.12 million without paying gift tax.

The reason: This is the basic lifetime estate and gift tax exclusion which is likely to change beginning next year.

Under current law the basic exclusion is the sum of gifts you make during lifetime and the assets you leave to your heirs at your death. In 2012, the amount can be as high as $5,120,000 before estate or gift tax applies. When you’re married, you can double the exclusion to a maximum of $10,240,000.

Check Your Tax Refund Status!

E-File Information:

Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30. The IRS will begin accepting tax returns on that date after updating forms and completing programming and testing of its processing systems. This will reflect the bulk of the late tax law changes enacted Jan. 2. The announcement means that the vast majority of tax filers — more than 120 million households — should be able to start filing tax returns starting Jan 30. The IRS estimates that remaining households will be able to start filing in late February or into March because of the need for more extensive form and processing systems changes. This group includes people claiming residential energy credits,

depreciation of property or general business credits. Most of those in this group file more complex tax returns and typically file closer to the April 15 deadline or obtain an extension. There are several forms affected by the late legislation that require more extensive programming and testing of IRS systems. The IRS hopes to begin accepting tax returns including these tax forms between late February and into March; a specific date will be announced in the near future. The key forms that require more extensive programming changes include Form 5695 (Residential Energy Credits), Form 4562 (Depreciation and Amortization) and Form 3800 (General Business Credit). A full listing of the forms that won't be accepted until later is available on IRS.gov.

Copyright © 2007, GCTAXMAN, All Rights Reserved