Tag Archive for Tax Credits

A Spotlight on Movie Production Tax Incentives

Introduction

Whether you’re a publicly held movie studio conglomerate producing and distributing substantial numbers of films annually commanding significant shares of box office revenues worldwide or an independent filmmaker, movie production tax incentives should certainly be considered and incorporated into the tax planning process to properly tax effect the cost of filmmaking.

Synopsis of Movie Production Tax Incentives

Movie Production Tax Incentives (hereinafter “MPIs”) are tax benefits offered on a state-by-state basis throughout the United States to entice, as applicable, in-state qualified phases of Read More

Written by | Posted in Specialty Tax Incentives

Responsible Governance – Tax Break Bills Vetoed!

Why are our tax systems so complex?  One key reason is that lawmakers keep adding to them and rarely delete anything.  Also, items added for temporary purposes are often renewed (rather than dropped or made permanent). Also, we often have numerous rules serving similar purposes (such as for higher education spending or savings).

Well, on October 10, 2015, California Governor Brown, said “NO” to nine tax bills presented to him.

His reason was that they might bust the budget given other budget issues.  Each of the nine would have either added or expanded an existing or expired provision or added something new. Read More

Written by | Posted in Tax Policy

Is Your Refund Too High or Do You Owe Taxes? You Probably Need to Adjust Your W-4

Article Highlights:

• Large Refund or Tax Due
• Employers Withhold Based on W-4
• IRS Online Withholding Calculator
• Self-employed Taxpayers

If your income is primarily from wages and you received a very large refund—or worse, if you owed money—then your employer is not withholding the correct amount of tax (but it probably isn’t your employer’s fault). Sure, you like a big refund, but you have to remember you are only getting your own money back that was over-withheld in the first place. Why not Read More

Written by | Posted in Income Tax • Individual • Tax Deductions

Back To School Blues And Tax Credits To Go With It

After the horrible 2013 winter doomed by one polar vortex after another, we couldn’t wait for summer to get around. It did finally arrive but amazingly was gone in the blink of an eye! I am always amazed by how quickly every summer flies by and before we know it, school is back in session. This year, summer was a huge deal in our household, we had a kid to send off to college!

Handy-dandy tax consultant that I am, with major life events, tax planning cannot be far behind. So, I thought I should remind my readers of the the college tax credits that are out there for 2014. Now would be a perfect time to see if they would qualify for college credits.

American Opportunity Tax Credit {AOTC} & The Lifetime Learning Credit {LLC}: These Read More

Written by | Posted in Specialty Tax Incentives • Tax Tips

In Taxes We Trust

Having worked with nonprofits for many years, I am awaiting some creative soul to create a new religion called “Taxology”. A person may seek something that is timeless, certain, and powerfully controls one’s destiny. Something that takes from the rich and provides for the masses sustenance (tax credits) and occasional joy (tax refunds). A book (Internal Revenue Code) that dramatically impacts people’s lives and elders (accountants, attorneys, EAs) continually study and interpret the laws and philosophy within it. Not everyone agrees with the precepts but most comply because they do do not want the wrath of a higher authority (the Internal Revenue Service) bestowed upon them. The book and its thousands of pages have been written by wise sages (Congress) to guide and fulfill our challenged lives. Read More

Written by | Posted in Tax Humor

5 Survival Tips For Tax Season

Tax Season Stress Relievers –

It’s almost that time of year that we all look forward to, especially accountants buckling down with their survival kits! It goes without saying that money and stress go hand in hand. For that reason it is easy to understand that the tax preparation season can be a stressful time of year for CPAs. It is not uncommon for them to put in 70-80 hours/week during the tax season including sleepless nights, lots of coffee, and weekends at the office. To help reduce some stress for our CPAs this tax season, we have put together a list of tips to help ease the stress and make these coming weeks as painless as possible: Read More

Written by | Posted in Individual • Tax Tips

Are You Missing the Boat? Do You Find Tax Credits Too Complex? We Don’t!

Today, there currently are nearly 3,000 tax credits and incentives programs in the United States, sponsored by federal, state and local governments to drive job creation, employee training, capital investment and new business development. These statutory and negotiated opportunities – including point-of-hire tax credits, to property & sales tax incentives, to utility & infrastructure abatements, to name a few – are available to companies of all sizes, across a broad range of industries.

But a relatively small number of companies, regardless of their size or financial sophistication, are benefiting fully from the tax credit and incentive-related benefits to which they are entitled. Industry estimates suggest that fewer than 25 percent of eligible US businesses participate in Read More

Written by | Posted in Affordable Healthcare Act • Corporate • Federal • Individual • IRS • North America • Tax Policy

California’s Governor Brown Signs Bill Increasing Minimum Wage – Increasing Enterprise Zone Credit Value

Governor Brown has signed AB 10 which will increase the minimum wage from $8 an hour to $9 an hour on July 1, 2014 and again to $10 an hour starting January 1, 2016.

An unintended consequence of the legislation will be an increase in the amount of Enterprise Zone tax credits qualified employers will be able to claim. Employers may still claim credits for qualified employees hired through December 31, 2013 for up to five years of employment. The credit is calculated as a function of the hourly wage with a limit of 150% of the minimum wage per hour. Currently, the maximum credit an employer can claim is $12 for an hour of qualified work; starting in July of next year that cap will increase to $13.50. Read More

Written by | Posted in Individual • North America

CPAs: Review California Clients Today for Enterprise Zone Credits (Up to $50,000 Per Qualified Employee)

TaxConnections Blogger PostsOn June 27, 2013, the California State Assembly passed AB 93, which eliminates the current Enterprise Zone (EZ) program, replacing it with a new set of incentives, which will be statewide in application. This change requires businesses to take action now to get the most out of existing credits while also preparing to take advantage of the new credits that will be effective January 1, 2014.

The EZ program was first established in 1986 and has been used to attract business to depressed areas in California and to support new and existing businesses located in depressed areas of the state. The program has allowed qualified businesses to claim hiring credits on qualified employees and sales tax credits on qualified purchases.

Do your clients need help understanding the immediate steps they must take? If your clients (CPAs: review your California clients) are in one of California’s 42 EZs, pay California income tax, and have employees, they are a prime candidate to review the various credits that remain available. These credits and refunds can be reviewed for the last four (4) open tax years. The time to act is now. After December 31, 2013 — your clients will have forfeited up to $50,000 per qualified employee. Read More

Written by | Posted in Corporate • Individual • North America • Sales/Use Tax • Specialty Tax Incentives • State And Local Tax (SALT) • Tax Controversy • Tax Policy • Tax Provision/Tax Reporting

California Enterprise Zone Tax Credits End 12/31

TaxConnections Picture - Hand Holding Golden DollarEvery business can benefit from hiring based tax credits. Here is something that you may not know …

Did you know that you have an opportunity to get an additional refund? Studies show that up to 60% of businesses did not take advantage of the Federal 2010 payroll tax credit called the HIRE Act. Employees that were hired between February 1, 2010, and January 1, 2011 and were unemployed for 60 days prior to hire can qualify for a refund of 6.2% of the employee wage for 2010. The deadline for this refund is January 10th, 2014 in order to receive the refund check. (HIRE Act Example: General contractor hired 32 qualified employees in 2010. They receive a refund for over $94,000.00.)

You are probably aware of Enterprise Zone HR Tax Credits for clients within California. However, recent legislation changed the existing statutes making it more difficult for businesses to take advantage of this program. The changes include changing the “look back” ability to limit businesses to review only 12 months from the employee’s date of hire. Some of the categories for eligibility are being amended as well to create additional hurdles for you. California Enterprise Zone ends December 31, 2013.

Businesses should also keep in mind the WOTC (Work Opportunity Tax Credit) program. Recent legislation expanded the qualifiers for this program to make it much more accessible. This program is very time sensitive. EDD requires new employee paperwork be submitted to them in less than 28 days from each employee’s respective date of hire. Businesses can receive up to $9,600 per qualified employee.

These are just a few instances of hiring based tax credits.

In accordance with Circular 230 Disclosure

Written by | Posted in Corporate • North America • Partnership • Specialty Tax Incentives • Tax Provision/Tax Reporting
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