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Tax Tip of the Week | No. 291 | ODT Fights Tax Fraud, Slows Ohio Returns February 25, 2015

Posted by bradstreetblogger in : General, tax changes, Tax Preparation, Tax Tip, Taxes, Taxes , add a comment

Tax Tip of the Week | Feb 25, 2015 | No. 291 | ODT Fights Tax Fraud, Slows Ohio Returns

An update from the Ohio Society of CPAs….

The Ohio Department of Taxation (ODT) is fighting tax fraud at the expense of timely returns.

New screening measures mean electronic returns requesting a refund may take up to 15 days to be direct deposited this year. Paper returns could take up to 30 days for a physical check to be mailed out.

The new safeguards include a new filter that will analyze the demographic information reported on a return. This analysis will then assign a “probability of fraud” factor that will determine how the return is then further processed by ODT.

If a return is pulled for review, the taxpayer will need to pass an Identification Confirmation Quiz before ODT will process the return. Taxpayers without Internet access can call ODT at (855) 855-7579.

These steps are being taken to further bolster defenses in anticipation of the continuing increase in attempted tax fraud involving identity theft.

Last year, ODT intercepted an unprecedented number of fraudulent income tax returns representing more than $250 million in potential theft. In previous years, attempted tax fraud averaged about $10 million.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.
Rick Prewitt – the guy behind TTW

…until next week.

Tax Tip of the Week | No. 290 | Ohio Logged Record New Business Filings in 2014 February 18, 2015

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Tax Tip of the Week | Feb 18, 2015 | No. 290 | Ohio Logged Record New Business Filings in 2014

A recent article from the Ohio Society of CPAs….

For the fifth year running, the Buckeye State has seen a record number of new entities filing to do business in the state, according to Ohio Secretary of State Jon Husted.

Last year, 93,775 new businesses filed with the Secretary of State. These numbers surpassed 2013 figures, in which 89,735 filed.

“Ohio continues to be a place where companies want to be located because we are focused on providing quality customer service that understands the needs of business,” Husted said. “By working to roll out the red carpet and cut the red tape, we are helping improve the state’s business climate, and that means a stronger economy and more jobs.”

As part of the overall record number of filings for last year, December 2014 saw 7,441 new entities file to do business, which surpassed the 6,941 filings from December 2013.

The steady growth among new businesses is a boom to the economy and for Ohio families.

“As more companies start up, they increase the potential for more, good-paying jobs,” Husted said. “That means families all across the state will not only be able to put a roof over their head, clothes on their back and food on the table, but also have a sense of accomplishment and dignity that they are moving forward.”

A major step in strengthening Ohio’s business climate was approving meaningful municipal income tax reform, an issue OSCPA has long advocated for on behalf of our members.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.
Rick Prewitt – the guy behind TTW

…until next week.

Tax Tip of the Week | No. 289 | How Are You Going To File Your Taxes? February 11, 2015

Posted by bradstreetblogger in : Deductions, General, Tax Planning Tips, Tax Tip, Taxes, Taxes , add a comment

Tax Tip of the Week | Feb 11, 2015 | No. 289 | How Are You Going To File Your Taxes?

Some tips are worth repeating…a reminder each year.

If you were legally married on 12/31/14, the IRS considers you married for the entire year of 2014.

You now must decide if you are going to file as Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Note, however, if you file MFJ it is an irrevocable election—you cannot go back and amend a MFJ return to a MFS return.

The primary reason to file MFS is to pay less tax.  It is a particularly beneficial filing status to save on the amount of Ohio taxes paid.  Another reason to file separately is to avoid joint liability.  Each spouse who signs a joint return is responsible for the accuracy and tax liability on the return.

Many times, for example, in a second marriage situation we see couples who have a desire to maintain separate financial responsibilities.  While this is understandable, it could lead to paying several thousand dollars in additional taxes.  If you file MFS, you will lose the following:

–    Credits for child care, education credits, adoption credits and EIC
–    Student loan interest deduction, tuition and fees deduction, savings bond interest deduction
–    If one spouse itemizes, or takes the standard deduction, the other spouse must do the same.  (That is, one cannot itemize and the other take the standard deduction.)
–    A greater percentage of your Social Security benefits may be taxable
–    Your ability to contribute to traditional or Roth IRA will be greatly limited
–    Capital losses will be limited to a maximum of $1,500
–    Passive losses will be limited

Before filing your return you need to look at both MFJ and MFS to see which lowers your tax burden the greatest.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.
Rick Prewitt – the guy behind TTW

…until next week.

Tax Tip of the Week | No. 288 | Minimum Wage Increase February 4, 2015

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Tax Tip of the Week | Feb 4, 2015 | No. 288 | Minimum Wage Increase

Another new law that starts 1/1/15

Ohio’s minimum wage increased to $8.10 ($4.05 for tipped workers) effective 1/1/15.The federal minimum wage of $7.25 can be used for businesses whose annual gross receipts are less than $297,000.

There is a stalled bill in Congress to raise the federal minimum wage to $10.10.

We’ll keep you posted.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.
Rick Prewitt – the guy behind TTW…until next week.