Edith I Christian, CPA

Edith I Christian, CPA
Individual and Business Accounting In Waukesha And Milwaukee Counties Call 262-646-2008

Saturday, December 29, 2012

Waukesha Tax Preparer | Edith Christian CPA

 Waukesha Tax Preparer Edith Christian CPA is available to assist you and your family or business with it's Wisconsin and Federal taxes.
http://www.edithchristiancpa.net
Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today!
  
262-646-2008
N9 W29360 Thames Road
Waukesha, WI 53188

Friday, December 28, 2012

Milwaukee Accountant Tax Tips For Small Businesses

As Milwaukee and Waukesha small businesses and their accountants and other advisers are preparing for year-end tax preparation, Here are five tips for payroll taxes.
1. Verify tax IDs.
A small-business owner should collaborate with his or her accountant or payroll service provider to ensure each tax ID number on payroll reports are correct and current. Any mistake should be fixed prior to processing the company’s last payroll of 2012.
2. Confirm W-2 and 1099 information with employees.
Before the end of the year, employees should review and confirm their W-2 and 1099 information. Small-business owners are responsible for providing accountants with updated employee W-2 information before the last payroll report in 2012. If a W-2c form must be filed with the IRS to correct information on a W-2, the accountant should be notified immediately.
3. Know your filing responsibilities.
Depending on the situation, the small-business owner or the company's accountant must file the company's taxes, and that responsibility should be confirmed with the accountant or tax advisor.
4. Submit payroll adjustments.
All employee payroll adjustments, including voided or manually issued employee checks, are to be submitted to the accountant or payroll service provider prior to the final 2012 payroll report. The deadline for this is Dec. 28.
5. Report all missing wages or miscellaneous income and tax credits.
Missing wages and miscellaneous income and tax credits are required to be reported to the accountant or payroll service provider before the final 2012 payroll report. These wages, income and tax credits include fringe benefits, tips, COBRA payments, employee moving expenses and unsubstantiated employee expense reimbursements.

The Social Security proposal you need to know about

Republicans are reportedly suggesting a shift to chained CPI as one way of dealing with the deficit, and President Obama appears open to the move. That could impact the way Social Security benefits are calculated in the future.

To understand chained CPI, it's important to get a refresher on the standard CPI, or the Consumer Price Index. This index tracks price changes of goods and services in some 200 categories. The Bureau of Labor Statistics defines the index as "a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services."

The government uses the CPI as one basis for adjusting dollar values on Social Security payments. During times of inflation, for example, the index rises and Social Security payments get cost-of-living adjustments, or COLAs.

"Chained CPI" doesn't just look at the prices of goods and services. It goes deeper into consumer choices and relative price changes. For an example, says the BLS, consider differences in the costs of pork and beef.

If the price of pork goes up while the price of beef doesn't, shoppers might shift away from pork to beef, the Bureau notes. Chained CPI accounts for this type of consumer substitution, while the standard CPI does not.

And here's the important part: In this example, chained CPI would rise, but not by as much as the standard CPI. In fact, the Congressional Budget Office says the chained CPI has grown at a slower rate than the traditional CPI, by an average of 0.3 percentage points annually over the past 10 years.

So what does that mean to you, the taxpaying consumer? Switching to a chained CPI will reduce spending on Social Security and federal pensions while increasing revenue for the government. The differences between the CPI and chained CPI may seem small, but they can add up. As the Columbia Journalism Review points out, the chained CPI "cuts spending and raises revenue, the twin strategies for reducing the federal deficit."

There are estimates the chained CPI could bring in hundreds of billions of dollars in savings for the government while generating billions more in revenue.  The unanswered question, though, is at what cost.

In a recent letter to Congress, the National Committee to Preserve Social Security and Medicare urged lawmakers to oppose any deficit reductions plans that would involve the chained CPI.

"This cut would reduce projected benefits for the oldest and most vulnerable Americans who would be least able to afford it," says the letter, which also notes that Social Security Administration officials estimate the chained CPI would bring about a 0.3 percentage drop compared to current cost-of-living adjustments.

"This reduced COLA would result in a decrease of about $130 per year (0.9%) in Social Security benefits for a typical 65 year old," The letter continues. "By the time that senior reaches age 95, the annual benefit cut will be almost $1,400, a 9.2% reduction from currently scheduled benefits. Remarkably, this is a benefit reduction that slightly exceeds the one month’s benefit for the average retiree."

The Christian Science Monitor says supporters of the chained CPI believe it’s a better way to measure inflation and reduce the deficit -- especially as a growing number of Baby Boomers retire and go on Social Security. 

But there's also a middle ground in the debate, according to the Monitor: those who argue that the change "should be cushioned by supplementing benefits for older retirees."

Wednesday, December 19, 2012

Waukesha Accountant


Waukesha Accountant Edith Christian

Looking for a Waukesha Accountant to handle your tax Preparation? Is your business located in Waukesha and you need an accounting firm to handle your Payroll? Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores.
You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today.

Tuesday, December 18, 2012

Waukesha Tax Preparation Services



 Tax Preparation and Accounting is available to you in Waukesha and Milwaukee Wi.  Contact us for an appointement.

Parents await fate of four key tax breaksDon’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today.

News from CNN on tax breaks for parents

As the countdown to a fiscal cliff reaches its final days, four key tax breaks for parents are hanging in the balance.

Lawmakers and President Obama continue to butt heads about which tax cuts should be extended. And unless a deal is inked by the end of the year, the Child Tax Credit, Earned Income Tax Credit, Child and Dependent Care Credit and the American Opportunity Credit will revert to lower levels on Jan. 1.
If this happens, many families will be worse off by hundreds -- or even thousands -- of dollars, according to Roberton Williams, a senior fellow at the Tax Policy Center.
Some families could take a hit on several fronts if they typically qualify for more than one tax break.
Related: Fiscal cliff -- Years of self-made messes
For example, a low-income couple with three kids will lose as much as $1,500 from expiring provisions of the Child Tax Credit. If their income is low enough, they could also see a smaller refund from the Earned Income Tax Credit, and benefits from the Child and Dependent Care Credit could be reduced as well.
1. Child Tax Credit
The Child Tax Credit allows lower-income parents to claim as much as $1,000 for each child under age 17.
Under the Bush tax cuts, the maximum value of the credit was doubled to $1,000. Obama's 2010 Tax Relief Act then extended the credit until the end of this year and made it so families whose income tax is lower than the credit's value could receive more of the credit in a cash refund once any tax liability is zeroed out. The credit phases out for married couples whose income is $110,000 or for single people with income of $75,000 or more.
Should the Bush and Obama provisions expire, the tax break will drop back to a maximum of $500, and only working families with three or more children will be eligible to receive cash refunds.
A couple with two children could therefore end up paying an added $1,000 in taxes next year. Since they have fewer than three children, they will no longer be eligible for a cash refund. And if they don't owe any taxes, they can't apply the credit either, said Williams.
2. Child and Dependent Care Tax Credit
This credit allows working parents -- or those looking for work -- to report up to $3,000 of child care-related expenses per child, up to a maximum of $6,000 per family. Families can receive up to 35% of their expenses as a credit, with lower-income families receiving the highest percentages.
Prior to the Bush tax cuts, parents could only report up to $2,400 per child or $4,800 per family, and families received a maximum credit of just 30% of expenses.
Should the tax breaks expire, the credit will revert to these lower levels. That would mean the largest credit that parents with two children could receive next year would be $1,440, compared to $2,100 currently.

Saturday, December 15, 2012

Waukesha Accountants | Tax Credits in Wisconsin


Wisconsin residents can take advantage of a variety of tax credits to supplement their incomes. The most important of these include the Federal Earned Income Tax Credit; the Wisconsin Earned Income Tax Credit; the Wisconsin Homestead Credit and the Child Tax Credit.  These credits can bring thousands of extra dollars to individuals and families — yet every year, thousands of people who are eligible for these tax credits fail to claim them.
This website is intended to increase awareness and use of available tax credits among low and moderate income families in Wisconsin.  It is designed as a resource for Cooperative Extension educators, service providers, employers, and others interested in the economic well-being of Wisconsin families. It includes detailed information about key tax credits; ideas and resources for outreach; links to help locate free tax assistance; links to relevant tax forms and instructions; statistics on use of tax credits; and a variety of other information.

Information about key tax credits

Outreach: goals, strategies, and resources


When your accounting tasks are too much to bear, don’t lose heart. Just call on Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.
You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.

Monday, December 10, 2012

Waukesha Tax Accountant | Dependents

Who Can I Claim as a Dependent: There are two types of exemptions, personal exemptions and exemptions for dependents. A dependent’s exemption is an amount you can claim on your tax return to reduce your taxable income. This can result in a decrease in tax and increase the amount of your refund. You are allowed one exemption for each person you can claim as a dependent. You usually can claim exemptions for yourself, your spouse and each person you can claim as a dependent. You may lose part of the dollar amount of your exemptions if your adjusted gross income is above a certain amount.
Information You Will Need:
  • Citizenship status, marital status, relationship to the dependent and the amount of support provided
  • Basic income information such as your adjusted gross income
  • The terms of your divorce or separation agreement if you are the divorced or separated parent of the potential dependent
  • If no person supplied more than half of the potential dependent's support, the terms of any multiple support agreement you may have
Estimated Completion Time: 15 minutes. However: 5 minutes of inactivity will end the interview and you will be forced to start over.
The following interview covers the same questions you would answer if you called our toll-free tax assistance telephone number or if you came into a Taxpayer Assistance Center.
For more info click here for IRS.gov website

Monday, December 3, 2012

Milwaukee Taxes | Standard Tax information | Edith Christian CPA

The standard deduction is a dollar amount that reduces the amount of income on which you are taxed. In general, the standard deduction is adjusted each year for inflation and varies according to your filing status. You cannot take the standard deduction if you itemize deductions.
Your standard deduction consists of the basic standard deduction and any additional standard deduction for age or blindness.
The basic standard deduction of an individual who can be claimed as a dependent on another person's tax return is the greater of:
  1. An amount specified by law, or
  2. The individual's earned income plus a specified amount (but the total cannot be more than the basic standard deduction for his or her filing status)
The additional standard deduction consists of the sum of any additional amounts for age or blindness. The additional amount for age will be allowed if you are age 65 or older at the end of the tax year. You are considered to be 65 on the day before your 65th birthday. For the definition of blindness, refer to Publication 501, Exemptions, Standard Deduction, and Filing Information. The additional amount for blindness will be allowed if you are blind on the last day of the tax year. For example, a single taxpayer who is age 65 and blind would be entitled to a basic standard deduction and an additional standard deduction equal to the sum of the additional amounts for both age and blindness.
If you or your spouse were age 65 or older or blind at the end of the year, be sure to claim an additional standard deduction by checking the appropriate boxes for age or blindness on Form 1040A (PDF) or Form 1040 (PDF). You may not use Form 1040EZ (PDF) to claim an additional standard deduction.
Certain taxpayers are not entitled to the standard deduction. They are:
  1. A married individual filing a separate return whose spouse itemizes deductions;
  2. An individual who was a nonresident alien or dual status alien during any part of the year (note that residents of India may be able to claim the standard deduction if they meet certain criteria. Refer to Publication 519, U.S. Tax Guide for Aliens, for more information);
  3. An individual who files a return for a period of less than 12 months due to a change in his or her annual accounting period; or
  4. An estate or trust, common trust fund, or partnership.
  5. More info click here  http://www.irs.gov/taxtopics/tc551.html

Saturday, December 1, 2012

Business Accounting Services Milwaukee and Waukesha | Edith Christian CPA


Weather your business is just starting up or well established, We can work with you to handle your accounting needs in Milwaukee and Waukesha areas.
http://www.edithchristiancpa.netWhen your accounting tasks are too much to bear, don’t lose heart. Just call on Edith I Christian, CPA. We’ll help you maximize your earnings in a fast, efficient and economical fashion. With our peerless personnel, we can handle virtually any accounting and income tax need in a timely and efficient manner.
  • Tax Consulting for Individuals / Business
  • Tax Preparation and Consulting
  • New Business Start-Ups
You can benefit from our wide-ranging knowledge and expertise. Contact us today and learn more about our unique capabilities.




  Edith Christian CPA
262-646-2008
N9 W29360 Thames Road
Waukesha, WI 53188
http://www.edithchristiancpa.net

Tuesday, November 27, 2012

Waukesha Accountant | Edith Christian CPA | Itemize

Should I itemize?

You should itemize deductions if your total deductions are more than the standard deduction amount. Also, if your standard deduction is zero, you should itemize any deductions you have if:
  • You are married and filing a separate return, and your spouse itemizes deductions,
  • You are filing a tax return for a short tax year because of a change in your annual accounting period, or
  • You are a nonresident or dual-status alien during the year. You are considered a dual-status alien if you were both a nonresident and resident alien during the year.
NOTE: If you are a nonresident alien who is married to a U.S. citizen or resident at the end of the year, you can choose to be treated as a U.S. resident. (See Publication 519, U.S. Tax Guide for Aliens.) If you make this choice, you can take the standard deduction.
When to itemize
You may benefit from itemizing your deductions on Schedule A (Form 1040) if you:
  • Do not qualify for the standard deduction, or the amount you can claim is limited,
  • Had large uninsured medical and dental expenses during the year,
  • Paid interest and taxes on your home,
  • Had large unreimbursed employee business expenses or other miscellaneous deductions,
  • Had large uninsured casualty or theft losses,
  • Made large contributions to qualified charities, or
  • Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled.
Helpful Publications
Tax Tips

Sunday, November 25, 2012

Waukesha Accounting | Tips for People Who Pay Estimated Taxes

Tips for People Who Pay Estimated Taxes

If you have income that is not subject to withholding you may need to pay estimated taxes to the IRS during the year. Whether you need to pay estimated taxes is dependent upon your financial circumstances, what you do for a living (if you're self-employed for example), and the types of income you receive. Here are six tips from the IRS that explain estimated taxes and how to pay them.

If you have income from sources such as self-employment, interest, dividends, alimony, rent, gains from the sales of assets, prizes or awards, then you may have to pay estimated tax.

As a general rule, you must pay estimated taxes in 2012 if both of these statements apply:
1) You expect to owe at least $1,000 in tax after subtracting your tax withholding (if you have any) and tax credits, and 2)You expect your withholding and credits to be less than the smaller of 90 percent of your 2012 taxes or 100 percent of the tax on your 2011 return. Special rules apply for farmers, fishermen, certain household employers and certain higher income taxpayers.

Sole Proprietors, Partners, and S Corporation shareholders generally have to make estimated tax payments if they expect to owe $1,000 or more in taxes when they file a return.

To figure estimated tax, include expected gross income, taxable income, taxes, deductions and credits for the year. You'll want to be as accurate as possible to avoid penalties and don't forget to consider changes in your situation and recent tax law changes.

For estimated tax purposes the year is divided into four payment periods or due dates. These dates are generally April 15, June 15, Sept. 15 and Jan. 15 of the next or following year.

The easiest way to pay estimated taxes is electronically through the Electronic Federal Tax Payment System, or EFTPS, but you can also figure your tax using Form 1040-ES, Estimated Tax for Individuals and pay any estimated taxes by check or money order using the Estimated Tax Payment Voucher, or by credit or debit card.

Tuesday, November 20, 2012

Milwaukee Accountant | Edith Christian | Employement Taxes

Federal Income Tax and Social Security and Medicare Taxes

You generally must withhold federal income tax from your employees' wages. You withhold part of Social Security and Medicare taxes from your employees' wages and you pay a matching amount yourself. To figure how much to withhold from each wage payment, use the employee's Form W-4 and the methods described in Publication 15, Employer's Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide (PDF).
The Internal Revenue Service recently released instructions to help employers implement the 2011 and 2012 cut in payroll taxes, along with new income-tax withholding tables that employers will use during 2011 and 2012.
Employers should start using the new withholding tables and reducing the amount of Social Security tax withheld as soon as possible in 2011, but not later than Jan. 31, 2011.
Notice 1036 (PDF) contains the percentage method income tax withholding tables, the lower Social Security withholding rate, and related information that most employers need to implement these changes. Publication 15, (Circular E), Employers Tax Guide (PDF), contains the percentage method tables and the wage bracket tables that some employers use.

Federal Unemployment (FUTA) Tax

You report and pay FUTA tax separately from Federal Income tax, and Social Security and Medicare taxes. You pay FUTA tax only from your own funds. Employees do not pay this tax or have it withheld from their pay. Refer to Publication 15, Employer's Tax Guide and Publication 15-A, Employer's Supplemental Tax Guide (PDF) for more information on FUTA tax.
Employers in some states may owe more tax under the Federal Unemployment Tax Act (FUTA) than they expect if they operate in a credit reduction state. Employers in credit reduction states must increase the FUTA tax rate on wages subject to taxes under that state’s Unemployment Insurance (UI) program when they prepare their Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.

Self-Employment Tax

Self-employment tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners.

Depositing Employment Taxes

Beginning January 1, 2011, taxpayers must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS). Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used after December 31, 2010. See Treasury Decision 9507 for more information.

Reporting Employment Taxes

In general, employers must report federal income taxes withheld, and the employer’s and employees’ shares of social security and Medicare taxes (collectively “employment taxes”) on either Forms 941, Employer's QUARTERLY Federal Tax Return (PDF) ( Instructions (PDF) available here), or Form 944, Employer’s ANNUAL Federal Tax Return (PDF) ( Instructions (PDF) available here). Form 943, Employer's Annual Federal Tax Return for Agricultural Employees (PDF) ( Instructions (PDF) available here) is used by employers who pay wages to farmworkers.
If you have been filing Forms 941 and believe your employment taxes for the calendar year will be $1,000 or less, and you would like to file Form 944 instead of Forms 941, you must contact the IRS to request to file Form 944 rather than Form 941. You must receive written notice from the IRS to file Form 944 instead of Forms 941 before you may file this form.  Refer to Certain Taxpayers May File Their Employment Taxes Annually for more information.
Conversely, if you received notice from the IRS and have been filing Form 944 but would like to file Forms 941 instead, you must contact the IRS to request to file Forms 941.  You must receive written notice from the IRS to file Forms 941 instead of Form 944 before you may file these forms.  Refer to Certain Taxpayers May File Their Employment Taxes Annually for more information.
Report FUTA taxes on Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (PDF) ( Instructions (PDF) available here).

e-file for Business and Self-Employed Taxpayers

Whether you're a business, big or small, or are self-employed you'll find an e-file for business filing option that meets your needs. Use IRS e-file for Employment Tax Returns, Information Returns, Partnerships, Corporations, Estates & Trusts, plus Exempt Organizations.

Preparing and Filing Form W-2

At the end of the year, the employer must complete Form W-2, Wage and Tax Statement (PDF) to report wages, tips and other compensation paid to an employee. A copy of this form must be given to the employee by January 31st after the end of the year. You must also send a copy of the W-2 to the Social Security Administration (SSA). Employers can prepare and file up to 20 W-2s at a time at the Social Security Administration’s Web site. Using SSA’s online W-2 filing, employers can also print out all the necessary copies of the W-2 for their employees, state taxing agencies, etc.

Correcting/Adjusting Employment Taxes

If correcting employment tax errors on previously filed employment tax returns is required, refer to Correcting Employment Taxes.

Voluntary Classification Settlement Program

The Voluntary Classification Settlement Program (VCSP) is a new optional program that provides taxpayers with an opportunity to reclassify their workers as employees for future tax periods for employment tax purposes with partial relief from federal employment taxes for eligible taxpayers that agree to prospectively treat their workers (or a class or group of workers) as employees. To participate in this new voluntary program, the taxpayer must meet certain eligibility requirements, apply to participate in the VCSP by filing Form 8952, Application for Voluntary Classification Settlement Program, and enter into a closing agreement with the IRS.

Outsourcing Payroll Duties

If you outsource your payroll, refer to Outsourcing Payroll and Third Party Payers.

Independent Contractor (Self-Employed) or Employee?

Which workers are considered employees? Before you can know how to treat payments you make for services, you must first know the business relationship that exists between you and the person performing the services. Refer to Independent Contractor (Self-Employed) or Employee? for more information.

Combined Annual Wage Reporting (CAWR)

Combined Annual Wage Reporting (CAWR) is a Document Matching Program that compares the Employee Wage Information reported by the employer to the Internal Revenue Service (IRS) and the Social Security Administration (SSA). If the amounts reported to the IRS do not match those from SSA, you may receive a notice asking for the reason for the discrepancy. If you do not respond timely, IRS may compute the additional taxes and/or penalties due and send you a bill. If you receive a notice CP253 or Letter 99C regarding missing Form(s) W-2, refer to Combined Annual Wage Reporting Missing Form W-2 Inquiries. If you receive a notice CP251 or Letter 99C regarding underreported employment taxes refer to Combined Annual Wage Reporting Employment Tax Problem Inquiries.

Additional Medicare Tax

Beginning January 1, 2013, the Additional Medicare Tax applies to an individual’s Medicare wages, Railroad Retirement Tax Act compensation, and self-employment income that exceeds a threshold amount based on the taxpayer’s filing status.
Employers are responsible for withholding the 0.9% Additional Medicare Tax on an individual’s wages and compensation paid in excess of $200,000 in a calendar year. An employer is required to begin withholding Additional Medicare Tax in the pay period in which it pays wages and compensation in excess of $200,000 to an employee.
There is no employer match for the Additional Medicare Tax.

For more information click here

Saturday, November 17, 2012

Milwaukee Accountant | Edith Christian

Don’t squander away your precious time by struggling with complicated IRS forms and complex bookkeeping chores. You can get fast and effective solutions to all of your tax and accounting affairs when you employ Edith I Christian, CPA. We know how stressful your life can be. But when you call on us, you can relax a little bit. Our professionalism, integrity and trusty service make your life less taxing. Plus, we focus on delivering peerless customer service to ensure the satisfaction of every single client. Our name is indelibly linked with characteristics such as honesty, reliability and outright excellence. You can count on us! Are you ready for more information? Call today.

262-646-2008
 N9 W29360 Thames Road
Waukesha, WI 53188

http://www.edithchristiancpa.net