Trent Wolfe – Kline's CPA Group, P.C.

Introducing The SafeSend Process

Trent Wolfe — Mon, 04 Nov 2024 22:34:25 +0000

We are pleased to announce a new method to receive tax returns for the upcoming year and we will be implementing new procedures for the annual tax organizer. We have partnered with SafeSend to deliver tax sensitive information through our current Tax Return software. A Quick Guide to SafeSend is provided on our Resources page.

Our goal is to deliver all tax organizers electronically for Tax Year 2024 and beyond. Delivering the organizers electronically through SafeSend will allow you to complete the organizer digitally and attach the pertinent tax documents to the specific page. This will avoid you printing your tax documents or forwarding emails for various documents received and will allow you to attach them to your organizer. If you prefer to print your organizer, fill in by hand and drop off tax documents, you will still be able to do this. Many of our clients have shifted to delivering their tax documents electronically through a secured file exchange and we want to incorporate all aspects of organizing the tax documents into one system. SafeSend allows us to combine these two functions into one efficient process.

As part of the efficiencies of delivering tax documents electronically, you will also have the ability to sign the tax signature documents electronically without the need to print them on paper. SafeSend will deliver a Client Copy, signature documents to be signed electronically, and instructions with vouchers or you’ll be able to access links to make payments electronically once the tax return is completed. We have seen an increased amount of payments being marked late when mailing them and SafeSend allows a simple process to make payments electronically for each jurisdiction.

The SafeSend process will also allow each return to be forwarded to bankers, financial advisors or attorneys upon request through your direct link emailed each year. You will have access to the tax filings for 7 years and will be able to view each return in one location. There is also an ability to pay for the preparation fee through our online payment system once the return is
delivered.

Upon receiving the organizer electronically, you will have the option to choose the delivery method for your tax return: electronically or picking up the return in the office. We will avoid
mailing tax returns near tax deadlines as the mail delivery has not always guaranteed prompt delivery. We would prefer to deliver the return electronically or be picked up in the office for all
income tax filings. SafeSend will not be available for payroll filings nor personal property tax reports. SafeSend can be used to deliver tax notices, QuickBooks files, Accounting Back-ups and other tax related documents securely to staff members. We have a link in the top right corner to send files securely.

HOW TO (OR HOW NOT TO) PAY YOUR CHILDREN

Trent Wolfe — Mon, 29 Aug 2016 16:20:32 +0000

By Brandy Swope

A tax-savings strategy our firm has recommended over the years is paying children for working in their family business.

Benefits include:

Deduction for the parent who is typically in a higher tax bracket than the child.
Income to the child whose wages could be just under the standard deduction amount of $6,300 making it federal tax-free to the child. State tax would have to be paid but it would generally be around $250 – $300.
If the wages are paid to a child under 18 and the parent is a self-employed business owner, they are not subject to any payroll taxes (FICA, federal unemployment, or state unemployment).
Wages to the child would qualify them to make a regular or Roth IRA contribution. This is a great way to begin saving for college in a tax-deductible way.

With the benefits come responsibilities. These include:

Be sure to document the hours worked. Using some type of time card would be ideal.
Be reasonable in hourly rate. Do not attempt to pay your child more than you would to an outside third party.
If you are going to pay a “bonus” at year-end, be sure to have documentation that says why and how this is calculated.
Keep good records of the actual work performed.

In most cases, this is a win-win for the parent(s) and the child(ren).

INDIANA STATE FAIR FEATURED FARMERS

Trent Wolfe — Mon, 08 Aug 2016 13:15:05 +0000

The Indiana State Fair kicked off Friday, August 5^th and will feature 17 farm families for each day of the fair from August 5^th through August 21^st. The Indiana State Fair is recognizing family farms that have received a Hoosier Homestead Award to coincide with Indiana’s Bicentennial celebration during 2016. The Hoosier Homestead Award is presented to family farms that have remained in one family for 100, 150 or 200 years. We are pleased to work with one such family, Maple Farms, Inc., from Kokomo, Indiana. You can read about the Maple Family here or visit their website for more information (www.maplefarmsinc.com). Maple Farms, Inc. will be featured on Thursday, August 18^th at the Indiana State Fair.

Each day the Indiana State Fair will be represented by a different farm family. The families will take part in numerous activities throughout the day and will be interviewed at 2:30 PM at the Glass Barn. To see the full listing of the 2016 Featured Farm Families and read more about their farm heritage, go to http://www.indianastatefair.com/state-fair/general-information/featured-farmers/ or follow the Indiana State Fair’s Blue Ribbon Blog here.

TAX BREAK FOR SUMMER CAMP

Trent Wolfe — Tue, 21 Jun 2016 17:07:51 +0000

Send the kids to camp. If your child goes to day camp this summer while you and your spouse work, the cost may qualify for the dependent care credit. The maximum credit is usually $600 for one child and $1,200 for two or more children. NOTE that this tax break also applies to specialty camps geared to a specific activity like soccer or computer science. Things to be aware of:

Child must be under 13 and a qualifying child on your tax return.
Overnight camps and summer school and tutoring programs do not qualify.
Both parents must work.
You must identify the organization that provides the camp. You will need to report the name, address, and taxpayer identification number of the care provider on your return. If the care provider is a tax-exempt organization, you need only report the name and address of the organization.
Special rules apply to divorced/separated parents. Please contact your accountant.

INDIANA ADOPTION CREDIT

Trent Wolfe — Thu, 28 Jan 2016 20:13:49 +0000

There is now an adoption credit for Indiana tax returns. The Indiana credit is 10% of the federal credit, but not more than $1,000 per child. The credit is for adoptions finalized in 2015 going forward. 2014 adoption credit carry-forwards on the federal return are not eligible for the credit.

MILEAGE RATES FOR 2016

Trent Wolfe — Thu, 14 Jan 2016 15:49:43 +0000

Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

54 cents per mile for business miles driven
19 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

Costs of College Are High – Are you claiming everything you’re entitled?

Trent Wolfe — Tue, 29 Dec 2015 21:29:30 +0000

By Mark Parker

As the costs to attend college have soared in recent years, it is very important that taxpayers take advantage of all the credits and deductions currently allowed. There are two popular credits available (credits generally being better than a deduction), the American Opportunity Credit (AOC) and the Lifetime Learning Credit (LTL). The AOC is a larger credit (up to $2,500) but is only for four years, while the LTL has a maximum credit of $2,000 but it can be used for an unlimited number of years.

In addition to these credits there is a deduction for student loan interest, tax benefits for starting a College 529 savings plan (maximum credit of $1,000 for Indiana’s plan), an Education Savings Account, and a Tuition and Fees deduction.

With so many different credits and deductions available now, it is important that the taxpayer knows what the best strategy for his/her particular situation is going to be. Along with the various credits and deductions there are phase outs for higher income taxpayers that may require planning. Sometimes the taxpayer can have the dependent claim the credits if it is advantageous to the family as a whole. Scholarships, course related books and fees, and withdrawals from 529 plans all need to be considered and coordinated to maximize the benefits. The timing of when the tuition and fees are paid can also play a part in whether you are utilizing the best tax strategy.

If you are planning for college or currently have dependents in college, it may be best to seek some help in understanding and maximizing the current tax laws relating to this topic. Please feel free to give our office a call.