262-646-2008
N9 W29360 Thames Road
Waukesha, WI 53188
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.
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
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.
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."
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
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.
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.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
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.For more info click here for IRS.gov website
Information You Will Need:
Estimated Completion Time: 15 minutes. However: 5 minutes of inactivity will end the interview and you will be forced to start over.
- 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
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.
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:
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:
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:
- An amount specified by law, or
- 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)
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:
- A married individual filing a separate return whose spouse itemizes deductions;
- 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);
- 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
- An estate or trust, common trust fund, or partnership.
- 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.
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.
- Tax Consulting for Individuals / Business
- Tax Preparation and Consulting
- New Business Start-Ups
Edith Christian CPA
262-646-2008
N9 W29360 Thames Road
Waukesha, WI 53188
http://www.edithchristiancpa.net
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