Summer Weddings Mean Tax Changes

by NFS | Jul 14, 2014 | Archives

Taxes may not be high on your summer wedding plan checklist. But you should be aware of the tax issues that come along with marriage. Here are some basic tips that can help keep those issues to a minimum:

Name change. The names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. You can get the form on SSA.gov, by calling 800-772-1213 or from your local SSA office.

Change tax withholding.  A change in your marital status means you must give your employer a new Form W-4, Employee’s Withholding Allowance Certificate. If you and your spouse both work, your combined incomes may move you into a higher tax bracket. Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information.

Changes in circumstances.  If you receive advance payment of the premium tax credit in 2014, it is
important that you report changes in circumstances, such as changes in your income or family size, to your Health Insurance Marketplace. You should also notify the Marketplace when you move out of the area covered by your current Marketplace plan. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes will help you get the proper type and amount of financial assistance so you can avoid getting too much or too little in advance.

Address change.  Let the IRS know if your address changes. To do that, file Form 8822, Change of Address, with the IRS. You should also notify the U.S. Postal Service. You can ask them online at USPS.com to forward your mail. You may also report the change at your local post office.

Change in filing status.  If you’re married as of Dec. 31, that’s your marital status for the whole year for tax purposes. You and your spouse can choose to file your federal income tax return either jointly or separately each year. You may want to figure the tax both ways to find out which status results in the lowest tax.

Note for same-sex married couples: If you are legally married in a state or country that recognizes same-sex marriage, you generally must file as married on your federal tax return. This is true even if you and your spouse later live in a state or country that does not recognize same-sex marriage. Contact our office for more information on this topic.

For a FREE Life Guide on “Marriage & Money” from NFS, click here to request one. This guide includes help in pre-planning for your wedding including tips on “tying the financial knot”, a wedding budget worksheet, monthly budget organizer and a name/address change checklist.

Wrentham, Norfolk, Plainville, Franklin, Walpole, income tax, tax calculator, hr, irs forms, Jackson Hewitt, tax, tax act, tax return, tax brackets, income tax return, tax refund, taxes, accountant, h&r, tax return calculator, tax forms, free tax filing, federal income tax, federal tax forms, federal tax return, tax online, tax returns, online tax return, irs e file, tax return status, file taxes online, tax preparation, income tax return online, instant tax services, accountants, income tax filing, income tax forms, federal tax, estimate tax return, taxes online, online tax filing, tax services, federal taxes, what is income tax, tax filing, tax questions, online tax, e filing income tax, irs free file, free tax preparation, filing taxes, file taxes, state taxes, tax accountant, h and r, tax planning, free tax return, free federal tax filing, online taxes, free state tax filing, free online tax filing, federal income tax forms, tax help, free tax, how to file taxes, tax preparer, tax consultant, free taxes, income tax returns, complete tax, federal tax forms, free taxes online, income taxes, income tax return efiling, free efile, h&r, tax advisor, tax advice, best place to do taxes in wrentham, wrentham tax, wrentham tax planner, wrentham tax prep, wrentham income, wrentham income tax, wrentham accountant, wrentham accounting

Happy 4th of July from NFS

by NFS | Jul 4, 2014 | Archives

We remain the land of the free because we are the home of the brave.

As we celebrate Independence Day, take a moment to remember those who

fought for our freedoms and gave their all for you and me.

We truly appreciate your business.

What to do if You Get a Notice from the IRS

by NFS | Jul 3, 2014 | Archives

Each year the IRS mails millions of notices. Here’s what you should do if you receive a notice from the IRS:

1. Don’t ignore it. You can respond to most IRS notices quickly and easily. And it’s important that you reply promptly. 
2. IRS notices usually deal with a specific issue about your tax return or tax account. For example, it may say the IRS has corrected an error on your tax return. Or it may ask you for more information.
3. Read it carefully and follow the instructions about what you need to do.
4. If it says that the IRS corrected your tax return, review the information in the notice and compare it to your tax return. If you agree, you don’t need to reply unless a payment is due. If you don’t agree, it’s important that you respond to the IRS. Write a letter that explains why you don’t agree. Make sure to include information and any documents you want the IRS to consider. Include the bottom tear-off portion of the notice with your letter. Mail your reply to the IRS at the address shown in the lower left part of the notice. Allow at least 30 days for a response from the IRS.
5. You can handle most notices without calling or visiting the IRS. If you do have questions, call the phone number in the upper right corner of the notice. Make sure you have a copy of your tax return and the notice with you when you call.
6. Keep copies of any notices you get from the IRS.
7. Don’t fall for phone and phishing email scams that use the IRS as a lure. The IRS first contacts people about unpaid taxes by mail – not by phone. The IRS does not contact taxpayers by email, text or social media about their tax return or tax account.

For more help on working through your IRS Notice, please contact us at 800-560-4637.

Protecting Your Financial Records From Disaster

by NFS | Jul 2, 2014 | Archives

Among other worthy causes, July is Bioterrorism/Disaster Education and Awareness Month. With all of the unexpected happenings in the world, it is important that we are prepared for an emergency disaster. Take this time to educate yourself and your whole family on what to do in any type of disaster. Get a plan ready and have needed supplies handy if you ever need them.

Identification. If you suddenly find yourself standing in a pile of rubble that was once your home and your worldly possessions, establishing your identity will be of paramount importance. Access to personal identification documents such as your Social Security card, driver’s license, marriage license, birth certificate, passport and any citizenship papers will help you quickly establish your identity and speed up the co-ordination of your efforts with insurance companies, construction contractors, bankers and other entities involved in rebuilding and recovery.

Create a Backup Set of Records Electronically. Individuals and businesses should keep a set of backup records in a safe place. The backup should be stored away from the original set. Keeping a backup set of records – including, for example, bank statements, tax returns, insurance policies, etc. – is easier now that many financial institutions provide statements and documents electronically, and much financial information is available on the Internet. Even if the original records are provided only on paper, they can be scanned, which converts them to a digital format. Once documents are in electronic form, taxpayers can download them to a backup storage device, like an external hard drive, or burn them onto a CD or DVD.

You should also consider online backup, which is the only way to ensure data is fully protected. With online backup, files are stored in another region of the country – so if a hurricane or other natural disaster occurs in your area, documents remain safe.

Document Valuables.  Another step you can take to prepare for disaster is to photograph or videotape the contents of your home, especially items of higher value. A photographic record can help prove the market value of items for insurance and casualty loss claims. Photos should be stored with a friend or family member who lives outside the area, or in the above mentioned online backup solution. Such proof can include photographs or videos of personal possessions; remember, digital cameras and camcorders make it possible to quickly and easily create a complete home inventory record.

Update Emergency Plans. Emergency plans should be reviewed annually. Personal and business situations change over time, as do preparedness needs. When employers hire new employees or when a company or organization changes functions, plans should be updated accordingly and employees should be informed of the changes.

Make sure you have a means of receiving severe weather information; if you have a NOAA Weather Radio, put fresh batteries in it. Make sure you know what you should do if threatening weather approaches.

We’re Here to Help. Rebuilding your life in the wake of a disaster is a daunting task. However, advanced preparation can go a long way toward making recovery easier. If you don’t have your documents in order, there’s no time like the present to get started. Once you have everything in its proper place, remember to update it. If you lack the time or energy to keep your files updated on an ongoing basis, schedule a yearly checkup and use it as an opportunity to put the latest version of everything into your files. Even the most well-organized disaster recovery materials will be of no use to you if they are out-of-date. Please contact my office for your free “Emergency Planning Guide” today. This detailed guide will provide more in depth plans to help you protect your financial records from disaster.

Many Retirees Face April 1 Deadline To Take Required Retirement Plan Distributions

by NFS | Mar 27, 2014 | Archives

WASHINGTON — The Internal Revenue Service today reminded taxpayers who turned 70½ during 2013 that in most cases they must start receiving required minimum distributions (RMDs) from Individual Retirement Accounts (IRAs) and workplace retirement plans by Tuesday, April 1, 2014.

The April 1 deadline applies to owners of traditional IRAs but not Roth IRAs. Normally, it also applies to participants in various workplace retirement plans, including 401(k), 403(b) and 457 plans.

The April 1 deadline only applies to the required distribution for the first year. For all subsequent years, the RMD must be made by Dec. 31. So, for example, a taxpayer who turned 70½ in 2013 and receives the first required payment on April 1, 2014 must still receive the second RMD by Dec. 31, 2014.

Affected taxpayers who turned 70½ during 2013 must figure the RMD for the first year using their life expectancy on Dec. 31, 2013 and their account balance on Dec. 31, 2012. The trustee reports the year-end account value to the IRA owner on Form 5498 in Box 5. Worksheets and life expectancy tables for making this computation can be found in the Appendices to Publication 590.

Most taxpayers use Table III (Uniform Lifetime) to figure their RMD. For a taxpayer who turned 71 in 2013, for example, the first required distribution would be based on a life expectancy of 26.5 years. A separate table, Table II, applies to a taxpayer married to a spouse who is more than 10 years younger and is the taxpayer’s only beneficiary.

Though the April 1 deadline is mandatory for all owners of traditional IRAs and most participants in workplace retirement plans, some people with workplace plans can wait longer to receive their RMD. Usually, employees who are still working can, if their plan allows, wait until April 1 of the year after they retire to start receiving these distributions. See Tax on Excess Accumulations in Publication 575. Employees of public schools and certain tax-exempt organizations with 403(b) plan accruals before 1987 should check with their employer, plan administrator or provider to see how to treat these accruals.

The IRS encourages taxpayers to begin planning now for any distributions required during 2014. An IRA trustee must either report the amount of the RMD to the IRA owner or offer to calculate it for the owner. Often, the trustee shows the RMD amount in Box 12b on Form 5498. For a 2014 RMD, this amount would be on the 2013 Form 5498 that is normally issued in January 2014.

More information on RMDs, including answers to frequently asked questions, can be found on IRS.gov. Please contact our office if you need additional assistance.

Find NFS on Thumbtack!

by NFS | Mar 8, 2014 | Archives

Ever use Thumbtack to find services in your area? Well, now you can find us!

Check it out here