Kevin Roberts, CPA | Roberts CPA Group | Tax - Wealth Management - Virtual CFO - Accounting - Payroll | 502-426-0000

       







 

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Kevin Roberts, CPA

Roberts CPA Group

 

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Other Articles by Kevin Roberts CPA

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- 11 Traits of The Financially Secure

 

- 5 More Bad Money Habits and How to Overcome Them

 

- 5 Ways We Keep Avoiding Better Money Habits

 

- The Starting Point for Tax Planning

 

- 6 Steps to Estate Planning Done Right

 

- A Billionaire's 4 Keys to Success

 

- Useful Financial Benchmarks for Mid-Life

- Confronting The Lies That Threaten Our Financial Stability

 

- Top 5 Ways to Confront Worries

- Self-Protection Through Knowing How Long To Keep Tax Records
 

- Identity Thieves Want YOUR Tax Return
 

- The Power of Specialized Knowledge
 

- Take A Test Drive Of Your Retirement Plans

 



 

 

 

 

 

 

 

 8 Tax Tips for Students with Summer Jobs +

Tax Items in Your Summer Wedding Checklist + 6 Tips to Help Pay Your Tax Bill this Summer


 

Students often get a job in the summer. If it's your first job it gives you a chance to learn about work and paying tax.

The tax you pay supports your home town, your state and our nation.

Here are some tips students should know about summer jobs and taxes:

Withholding and Estimated Tax. If you are an employee, your employer withholds tax from your paychecks. If you are self-employed, you may have to pay estimated tax directly to the IRS on set dates during the year. This is how our pay-as-you-go tax system works.

New Employees. When you get a new job, you will need to fill out a Form W-4, Employee's Withholding Allowance Certificate. Employers use it to figure how much federal income tax to withhold from your pay. The IRS Withholding Calculator tool on IRS.gov can help you fill out the form.

Self-Employment. Money you earn doing work for others is taxable. Some work you do may count as self-employment. These can be jobs like baby-sitting or lawn care. Keep good records of your income and expenses related to your work. You may be able to deduct (subtract) those costs from your income on your tax return. A deduction can cut taxes.

Tip Income. All tip income is taxable. Keep a daily log to report them. You must report $20 or more in cash tips in any one month to your employer. And you must report all of your yearly tips on your tax return.

Payroll Taxes. You may earn too little from your summer job to owe income tax. But your employer usually must withhold social security and Medicare taxes from your pay. If you're self-employed, you may have to pay them yourself. They count for your coverage under the Social Security system.

Newspaper Carriers. Special rules apply to a newspaper carrier or distributor. If you meet certain conditions, you are self-employed. If you do not meet those conditions, and are under age 18, you may be exempt from social security and Medicare taxes.

ROTC Pay. If you're in ROTC, active duty pay, such as pay you get for summer camp, is taxable. A subsistence allowance you get while in advanced training is not taxable.

Use IRS Free File. You can prepare and e-file your tax return for free using IRS Free File. It is only available on IRS.gov. You may not earn enough money to be required to file a federal tax return. Even if that is true, you may still want to file. For example, if your employer withheld income tax from your pay, you will have to file a return to get a tax refund.

 

  Last May I hosted a live webinar on Social Security Strategies and Secrets you should understand and use as you contribute and eventually take distributions from this program.  If you are interested in watching the VIDEO REPLAY you can click here.  Kevin
 

 

Include a Few Tax Items in Your Summer Wedding Checklist

 

If you’re preparing for summer nuptials, make sure you do some tax planning as well. A few steps taken now can make tax time easier next year.

Here are some tips from the IRS to help keep tax issues that may arise from your marriage to a minimum:

Change of name. All the names and Social Security numbers on your tax return must match your Social Security Administration records. If you change your name, report it to the SSA. To do that, file Form SS-5, Application for a Social Security Card. The easiest way for you to get the form is to download and print it on SSA.gov. You can also call SSA at 800-772-1213 to order the form, or get it from your local SSA office.

Change tax withholding. When you get married, you should consider a change of income tax withholding. To do that, give your employer a new Form W-4, Employee's Withholding Allowance Certificate. The withholding rate for married people is lower than for those who are single. Some married people find that they do not have enough tax withheld at the married rate. For example, this can happen if you and your spouse both work. Use the IRS Withholding Calculator tool at IRS.gov to help you complete a new Form W-4. See Publication 505, Tax Withholding and Estimated Tax, for more information. You can get IRS forms and publications on IRS.gov/forms at any time.

Changes in circumstances. If you receive advance payments of the premium tax credit you should report changes in circumstances, such as your marriage, to your Health Insurance Marketplace. Other changes that you should report include a change in your income or family size. Advance payments of the premium tax credit provide financial assistance to help you pay for the insurance you buy through the Health Insurance Marketplace. Reporting changes in circumstances will allow the Marketplace to adjust your advance credit payments. This adjustment will help you avoid getting a smaller refund or owing money that you did not expect to owe on your federal tax return.

Change of address. Let the IRS know if you move. To do that, file Form 8822, Change of Address, with the IRS. You should also notify the U.S. Postal Service. You can change your address online at USPS.com, or report the change at your local post office.

Change in filing status. If you are married as of Dec. 31, that is your marital status for the entire year for tax purposes. You and your spouse can choose to file your federal tax return jointly or separately each year. It is a good idea to figure the tax both ways so you can choose the status that results in the least tax.
 



6 Tips to Help You Pay Your Tax Bill this Summer

If you get a tax bill from the IRS, don’t ignore it. The longer you wait the more interest and penalties you will have to pay.

Here are six tips to help you pay your tax debt and avoid extra charges:

1. Reply promptly. After tax season, the IRS typically sends out millions of notices. Read it carefully and follow the instructions. If you owe, the notice will tell you how much and give you a due date. You should respond to the notice promptly and pay the bill to avoid additional interest and penalties.

2. Pay online. Using an IRS electronic payment method to pay your tax is quick, accurate and safe. You also get a record of your payment. Options for electronic payments include:

- IRS Direct Pay.
- Electronic Federal Tax Payment System or EFTPS.
- Credit or debit card.
- Direct Pay and EFTPS are free services. If you pay by credit or debit card, the payment processing company will charge a fee.

3. Apply online to make payments. If you are not able to pay your tax in full, you may apply for an installment agreement. Most people and some small businesses can apply using the Online Payment Agreement Application on IRS.gov. If you are not able to apply online, or you prefer to do so in writing, use Form 9465, Installment Agreement Request to apply. The best way to get the form is on IRS.gov/forms. You can download and print it at any time.

4. Check out a direct debit plan. A direct debit installment agreement is the lower-cost hassle-free way to pay. The set-up fee is less than half of the fee for other plans. The direct debit fee is $52 instead of the regular fee of $120. With a direct debit plan, you pay automatically from your bank account on a day you set each month. There is no need for you to write a check and make a trip to the post office. There are no reminder notices from the IRS and no missed payments. For more see the Payment Plans, Installment Agreements page on IRS.gov.

5. Pay by check or money order. Make your check or money order payable to the U.S. Treasury. Be sure to include:

- Your name, address and daytime phone number
- Your Social Security number or employer ID number for business taxes
- The tax period and related tax form, such as “2014 Form 1040”
- Mail it to the address listed on your notice. Do not send cash in the mail.

6. Consider an Offer in Compromise. With an Offer in Compromise, or OIC, you may be able to settle your tax debt with the IRS for less than the full amount you owe. An OIC may be an option if you are not able to pay your tax in full. It may also apply if full payment will create a financial hardship. Not everyone qualifies, so you should explore all other ways to pay before submitting an OIC. To see if you may qualify and what a reasonable offer might be, use the IRS Offer in Compromise Pre-Qualifier tool.

Find out more about the IRS collection process on IRS.gov.

If you have comments or questions on the information in these articles, as usual feel free to call our offices at 502-426-0000.
 


 

 

Please Would You Give Us Your Feedback & a Testimonial on Our Hotline at 800-609-9006 ext. 9078

 

Hey it's Kevin Roberts and I wanted to ask you a favor.  We've just installed a toll-free number that I would like for you to call and tell me how you think we are doing as your CPA firm.

 

Just dial 800-609-9006 ext. 9078 and follow the instructions, it only takes 1 minute.  If we've done a good job please let me know.

 

And if we can improve on anything, please mention that too. Thanks!  Kevin

 


 

Remember you can call our offices if you have any questions about these or any other bookkeeping, accounting, tax, financial planning or insurance related issues, at 502-426-0000. 

 

Regards, Kevin Roberts, CPA

President, Roberts CPA Group

 

 

 

 

Kevin Roberts, CPA | Roberts CPA Group | 201b Townepark Circle
Louisville, KY 40243 | 502-426-0000 | Fax: 502-805-0408
La Grange office: 209 S 1st Street | La Grange, KY 40031
502-222-7260 | www.louisville-tax.com