Posts tagged: taxes
If you own a small business and have yet to do your taxes, the U.S. Small Business Administration has some good news.There are 17 small-business tax cuts already signed into law and an additional five are proposed for 2013, the Tri-City Herald reports.
“These tax cuts are available to all types of small businesses, from main street shops to high growth startups,” said Calvin W. Goings, assistant associate administrator for the U.S. Small Business Administration, in a press release.
Some of the tax cuts are:
•Start-up entrepreneurs can deduct $5,000 for start-up expenditures.
•If you have bought new equipment, you can write-off a larger portion of the cost of that new equipment this year rather than depreciating the cost over time. The maximum amount a small business can expense on new.
•Tax credits are available for starting or continuing to provide health insurance coverage for your employees, and this applies even if you are self-employed.
•Starting in 2010, the process for deducting the cost of your cell phone and monthly bills was vastly simplified.
For more information, contact the local district office in Washington at sba.gov.<a href='http://www.sba.gov/'>sba.gov</a>
Legislation that would exempt new Washington-based businesses from the state's B&O tax in their first year of operations has cleared a key Senate committee.
Senate Bill 6327, sponsored by state Sen. Mike Padden, R-Spokane Valley, advanced with a “do pass” recommendation from the Senate Economic Development, Trade and Innovation Committee. It's now waiting for consideration by the Senate Ways and Means Committee.
Under the measure, news businesses with fewer than 25 employees would enjoy the exemption for two years, plus a 50 percent reduction on their B&O tax bill in their third year of operations.“This measure would make it clear to entrepreneurs inside and outside of the state that legislators want our small-business employers to succeed and that Washington is open for business,” said Padden.
Legislative analysts predict the exemption would cost the state about $2.9 million in lost tax revenue in 2013 and $10.6 million in 2014.
The state's business-and-occupation tax, often called a gross-receipts tax, is heavily criticized on both sides of the partisan aisle because it targets gross revenue rather than profits. The rate differs by industry but all companies are given an exemption on their first $250,000 in revenue each year.
Padden and other backers argue that giving new companies a break could help business startups survive those critical first years in Washington, which currently has the nation's second-highest rate of startup failure.
“May” being the operative word — but it got your attention.
The IRS is launching a big push to make sure people know about the earned income tax credit. It's one of the sweetest tax deals around, because it's refundable, meaning the IRS could be in the position of sending you money.
Some 426,000 Washington state taxpayers used the tax credit last year, but the IRS estimates one in five of taxpayers eligible don't use the credit because they don't know about it.
The income limit to qualify starts at $13,660 for a single person with no kids, and tops out at $49,078 for a married couple who files jointly and has three or more kids.
Couple of things to keep in mind: the tax credit doesn't affect welfare benefits. And in most cases, any payment you get won't count against you in determining eligibility for Medicaid, SSI, food stamps, low-income housing or TANF payments.
How do you get it? You have to file a tax return. The IRS has a worksheet to see whether you qualify and for how much; you can find Publication 596 on the IRS website here.There are also thousands of places you can get free tax preparation through the VITA program. Call 1-800-906-9887 for a list.
BOISE – Idaho's Department of Labor will start intercepting federal tax refunds headed to more than 5,000 Idahoans next year, to recover nearly $10 million in unemployment benefit overpayments due to fraud or misreported earnings.
To avoid the move, the people involved, who all are being notified, will have to repay the amounts by Jan. 3, 2012, including interest and penalties; agree to a repayment plan; or request a review. For information, call toll-free (800) 672-5627.
Department official Larry Ingram said the department has collected $23 million in overpayments, interest and penalties since 2007, and has withheld state income tax refunds as part of its collection efforts, but this year will be the first time federal officials have allowed it to tap into federal income tax refunds.
The Washington Department of Revenue will visit with local business owners in Spokane on Monday (yes, Valentine's Day) to get input on how the agency can simplify the tax process for small businesses.
The visit to Greater Spokane Incorporated's offices, 801 W. Riverside, Suite 100, is part of Gov. Chris Gregoire’s executive order last October to make it easier to do business in the state.
This event is free and open to any businesses, not just GSI members. It will be from 1:30 to 3 p.m.
Information and registration: http://events.greaterspokane.org/default.asp?cale_id=1409&details=true
A three-month amnesty program for businesses with overdue taxes has started in Washington state.
The plan aims to collect revenue now by waiving any penalties and interest. Otherwise, the state Revenue Department could spend months trying to collect those past-due bills.
The program was requested by Gov. Chris Gregoire and authorized by the Legislature during December’s special session.
The Revenue Department estimates the amnesty program could collect about $24 million for the state, and about $4 million for local governments. The state guesses about a fifth of 50,000 delinquent businesses will take advantage.
Businesses have to submit an application by April 18 and taxes have to be paid by the end of April. Details are available at the website paymytax.org.