Capital One Accounting Solutions, P.A. - Financial freedom at your fingertips!

Recent Posts

What's New for 2013?
Need Extra Time to Complete Your Tax Return? File an Extension
Tips for Taxpayers with Foreign Income
Check your Eligibility for EITC
Identity Theft Crackdown Sweeps Across the Nation


Tax information
Tax Information for 2013
powered by

My Blog

What's New for 2013?

After Congress held many small business owners and self employed persons hostage for the latter part of 2012, here are a few adjustments we have to make personally for  2013.

Social security tax- Employees tax rate will revert back to the 6.2% instead of the previous rate for 2012 of 4.2%, and the wage base limit will increase to $113,700. 

This rate should be implemented by employers as soon as possible but no later than February 15, 2013. If employers for one reason or other fail to adjust the rate on the first pay check of 2013, then they must make an adjustment in a subsequent pay period to correct any underwithholding of social security tax as soon as possible, but not later than March 31, 2013, or in other words, before you file and submit first quarter payroll information.

Need Extra Time to Complete Your Tax Return? File an Extension

Even though the tax filing deadli
ne is later than usual this year - April 17 - many taxpayers may still need more time to file their tax return. If you need extra time, you can get an automatic six-month extension of time to file from the IRS.
Here are seven important things you need to know about filing an extension:
1. File on time even if you can't pay -If you completed your return but you are unable to pay the full amount of tax due, do not request an extension. File your return on time and pay as much as you can.

Tips for Taxpayers with Foreign Income

The Internal Revenue Service reminds U.S. citizens and resident aliens, including those with dual citizenship who have lived or worked abroad during all or part of 2011, that they may have a U.S. tax liability and a filing requirement in 2012.
The IRS offers the following tips for taxpayers with foreign income:
1.Filing deadline- U.S. citizens and resident aliens residing overseas or those serving in the military outside the U.S. on the regular due date of their tax return have until June 15, 2012 to file their federal income tax return.

Check your Eligibility for EITC

The Earned Income Tax Credit is a financial boost for workers earning $49,078 or less in 2011. Four of five eligible taxpayers filed for and received their EITC last year. The IRS wants you to get what you earned also, if you are eligible.

Here are the top 8 things the IRS wants you to know about this valuable credit, which has been making the lives of working people a little easier since1975.

1. As your financial, marital or parental situations change from year to year, you should review the EITC eligibility rules to determine whether you qualify.

Identity Theft Crackdown Sweeps Across the Nation

For those of you who have had a personal experience with identity theft, know that it is no easy task in getting your credit back on track without a lot of hard work. Similarly, those of you who have been affected by someone else claiming your dependents or impersonating you and claiming your refund, knows the pain of not receiving the refund you anticipated. Months of carefully budgeting and  hoping for the year to end; thinking that  now you will be receiving a refund and will be able to keep your feet one in front of the other is wash down the drain.

What to Do If You Are Missing a W-2

Mke sure you have all the needed documents, including all your Forms W-2, before you file your 2011 tax return. You should receive an IRS Form W-2, Wage and Tax Statement, from each of your employers. Employers have until January 31, 2012 to issue your 2011 Form W-2 earnings statement. If you haven't received your W-2, follow these four steps:
1. Contact your employer -If you have not received your W-2, contact your employer to inquire if and when the W-2 was mailed. If it was mailed, it may have been been returned to the employer because of an incorrect or incomplete address.

IRS Reminds Parents of Ten Tax Benefits

Your kids can be helpful at tax time. That doesn't mean they'll sort your tax receipts or refill your coffee, but those charming children may help you qualify for some valuable tax benefits. Here are ten things the IRS wants parents to consider when filing their taxes this year.
1. Dependents- In most cases, a child can be claimed as a dependent in the year they were born.
2. Child Tax Credit- You may be able to take this credit for each of your children under age 17. If you do not benefit from the full amount of the Child Tax Credit, you may be eligible for the Additional Child Tax Credit.

Four Tax Tips Regarding Tip Income

If your pay from work involves compensation through tips, then the IRS would like you to be aware of a few facts about tip income. Here are four key points to keep in mind:
1. 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 considered income and subject to tax.
2. 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.

Eight Facts to Help Determine Your Correct Filing Status

Determining your filing status is one of the first steps to filing your federal income tax return. There are five filing statuses: Single, Married Filing Jointly, Married Filing Separately, Head of Household and Qualifying Widow(er) with Dependent Child. Your filing status is used to determine your filing requirements, standard deduction, eligibility for certain credits and deductions, and your correct tax.
Some people may qualify for more than one filing status. Here are eight facts about filing status that the IRS wants you to know so you can choose the best option for your situation.

Six Important Facts about Dependents and Exemptions

Even though each individual tax return is different, some tax rules affect every person who may have to file a federal income tax return. These rules include dependents and exemptions. The IRS has six important facts about dependents and exemptions that will help file your 2011 tax return.
1. Exemptions reduce your taxable income.There are two types of exemptions: personal exemptions and exemptions for dependents. For each exemption you can deduct $3,700 on your 2011 tax return.
2. Your spouse is never considered your dependent.