Name: Tiffany Crawford, JD, Tax Specialist
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Posts by Tiffany Crawford, JD, Tax Specialist:
Does New 1099 Reporting Affect You?
January 25th, 2012If your business has paid at least $600 in professional services or other payments in 2011, you may be subject to a new 1099 reporting requirement as you begin to file your 2011 taxes. Read the rest of this entry “
Need Help Understanding Employee Healthcare Benefit Reporting on W-2s?
November 22nd, 2011The IRS recently held a webinar to explain its reporting requirements for healthcare coverage on employees’ W2’s for the 2011 tax year. We’ve provided a summary of the webinar below for those of you who missed it. Read the rest of this entry “
Going, Gone? Tax Provisions that Could End in 2012
October 24th, 2011Late in the year last year, Congress extended several tax law provisions but only for a short period of time. Below are items that may expire at the end of this year if no action is taken by Congress. Read the rest of this entry “
Do You Understand Michigan’s Business Tax Changes?
October 19th, 2011We recently reported that Michigan is changing their tax structure effective January 1, 2012. In a nutshell, Michigan is replacing the Michigan Business Tax (MBT) with a Corporate Income Tax (CIT). Changes coming with the new CIT include a 6 percent tax imposed on C corporations only, making Michigan’s corporate income tax rate the lowest in the Midwest. Read the rest of this entry “
Are You Taking Advantage of This Year’s Federal and State Hiring Tax Credits and Incentives?
October 11th, 2011State and federal governments have made a number of tax incentives and credits available to employers in 2011 to help stimulate the stagnating economy. In many cases, your company may not see the tax benefit until it files its 2011 taxes, but this delayed benefit should not stop you from considering them. Read the rest of this entry “
So the Grass Wasn’t Greener? Time to Reverse Your Roth IRA Conversion
September 27th, 2011If you converted a traditional IRA to a Roth IRA account last year, you may be facing an account that is worth much less than when you converted it. But you might also be facing a tax bill on value you no longer have. You do have an option, but only if you act quickly – reverse your 2010 Roth conversion.
If you converted your traditional IRA to a Roth IRA last year, the transaction triggered a taxable distribution from the traditional IRA, followed by a contribution to your Roth account. That tax will be based on the value of the traditional IRA on its conversion date. That means if your account is worth less now, you will owe taxes on money that no longer exists.
How to Reverse Your Roth IRA
Thankfully, the Roth conversion regulations allowed for the ability to reverse the conversion – but only if you do so before October 17. This involves completing the proper paperwork with your IRA custodian or trustee. When properly filed, the IRS considers your account as being “recharacterized” from a Roth account back to traditional IRA status. It’s as if the conversion never happened, and your tax liability disappears.
You’ll need to amend your 2010 tax return to allow for the reversal, or adjust your 2010 return if you have filed for an extension. Your reversal of the Roth conversion this year will also trigger some additional documentation requirements for your 2011 tax return.
Reconverting to Roth
Now that you’ve lessened your tax liability on phantom income that vanished due to the market’s versatility, you might consider using the down market to your advantage. You can reconvert your now traditional IRA back to a Roth – and pay less tax on it than you would have paid last year. You must wait 30 days after the reversal to reconvert it. Reconverting your traditional IRA account to a Roth can make sense if you expect your assets to appreciate quickly.
Your tax professional can assist you in amending your 2010 tax return or adjusting your extended 2010 return. He or she can also walk you through the reporting process that will be required should you decide to reconvert your IRA.
Less Ohio Tax Centers, No Tax Booklets, But Still Many Resources
August 3rd, 2011With more Ohio taxpayers now filing state returns electronically, the Ohio Department of Taxation has closed seven regional taxpayer centers and will no longer mail its income tax booklets to taxpayers. Read the rest of this entry “
Investing in a Small Business? Get InvestOhio Tax Credit
July 29th, 2011Ohio taxpayers and pass-through entities can now receive a non-refundable income tax credit for qualifying investments to acquire an equity interest in a small business through a program called InvestOhio. Investors may claim up to $1 million ($2 million for married taxpayers filing jointly) through the new tax credit every two years. Any unused portion of the credit can be carried forward seven years. Read the rest of this entry “
Live or Do Business in Michigan? Your Tax Laws Are Changing!
June 1st, 2011In late May, the Michigan legislature voted to make dramatic changes to Michigan’s corporate and individual income tax laws. The measure repeals the Michigan Business Tax and eliminates numerous individual income tax credits, deductions and exemptions as well as changes future income tax rates. Read the rest of this entry “
Did You Win at March Madness? Remember to Pay Uncle Sam
April 12th, 2011If your NCAA college basketball bracket brought you some winnings, remember that your earnings count as taxable income, and you’ll need to report it when you file your 2011 taxes. Read the rest of this entry “
