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Michael F. Reilly, CPA, PC • Monthly Newsletter

May 2014 

As most of you know we have a lot of non profit clients. 

December year ends were due May 15th and we finished them all!

 

Now that the summer is here (finally) if you are changing wardrobes and giving clothes etc. to charity a receipt is a good idea.  A "fair market value" under $500 goes on the schedule A directly, from $500 to $5,000 goes on a separate page. It is easily deducted. Anything over $5000 needs an appraisal.  If you donate a car you need the charity to tell you in a letter what they received.

Do you need to make estimated tax payments?

Many taxpayers have income on which there is no withholding, such as interest, dividends, rental or royalty income, or business income. If this is your situation, you'll want to see if you're required to make estimated tax payments in 2014 in order to avoid the penalty for underpayment of your taxes.

The tax system is "pay as you go" by law. If you have income on which no taxes are withheld, it is up to you to prepay the proper amount of taxes. Generally, if you expect to owe at least $1,000 in federal taxes and your withholding and tax credits are less than 90% of your 2014 tax liability (or less than 100% of your 2013 tax liability), estimated tax payments are required. You are essentially required to "estimate" your income and taxes, and make the appropriate payments. Additionally, your estimated tax payments must be computed to also pay for any self-employment (i.e. FICA) taxes on your net business and/or partnership income that you might also owe.

How to ease financial stress after a spouse's death

The death of a spouse can be a devastating experience, both emotionally and financially. As the survivor, you'll have to make important decisions while you're in what could be the most vulnerable and distracted stage of your life. The suggestions that follow might at least help ease your financial stress.

Reminder: Tax-exempts have filing requirement coming soon

Tax-exempt organizations are required to file annual reports with the IRS. Those with gross receipts below $50,000 can file an E-postcard rather than a longer version of Form 990.

The deadline for nonprofit filings is the 15th day of the fifth month after their year-end. For calendar-year organizations, the filing deadline for 2013 reports is May 15, 2014. Contact us if you need details or filing assistance.

 

 


This newsletter provides business, financial, and tax information to clients and friends of our firm. This general information should not be acted upon without consultation.



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Michael F. Reilly, PC

_______________________

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