Category: Tax Tips -May 2024

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May 2024 Tax Tips -May 2024

Upcoming Tax Due Dates

Upcoming Tax Due Dates

May 15

Employers: Deposit Social Security, Medicare and withheld income taxes for April if the monthly deposit rule applies.

Employers: Deposit nonpayroll withheld income tax for April if the monthly deposit rule applies.

Calendar-year exempt organizations: File a 2023 information return (Form 990, Form 990-EZ or Form 990-PF) or file for an automatic six-month extension (Form 8868). Pay any tax due.

Calendar-year small exempt organizations (with gross receipts normally of $50,000 or less: File a 2023 e-Postcard (Form 990-N) if not filing Form 990 or Form 990-EZ.

June 10

Individuals: Report May tip income of $20 or more to employers (Form 4070).

May 2024

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May 2024 Tax Tips -May 2024

What to Do if Your Business’s Data Security Is Breached

What to Do if Your Business's Data Security Is Breached

Most businesses store sensitive information about employees and customers, such as names, addresses, Social Security numbers (SSNs), banking information and more. If lost or stolen, this data could put individuals at risk for identity theft and other types of damage.

What should you do if this happens to your business? The IRS recommends these steps to take:

  1. If a breach could pose harm to a person or business, notify local police and report the potential risk of identity theft.
  2. If a breach includes names and SSNs or could affect other businesses, contact the major credit bureaus and notify the businesses.
  3. If the breach puts individuals at risk, notify those individuals so they can take steps to mitigate the misuse of their data, including checking out the IRS Taxpayer Guide to Identity Theft.

For that Guide and more, click here: https://www.irs.gov/identity-theft-fraud-scams/has-your-business-become-the-victim-of-a-data-security-breach

May 2024

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May 2024 Tax Tips -May 2024

Discovering a Mistake After Your Tax Return Is Filed

Discovering a Mistake After Your Tax Return Is Filed

Did you file your 2023 tax return and then realize you’d made a mistake? Perhaps you completed your return yourself and made an error in math or neglected to include a schedule that should’ve been attached. Or maybe you recently remembered some large, potentially deductible, charitable donations you’d made in early 2023 that you’d forgotten to tell your tax professional about. Now you may be wondering if you need to file an amended return.

Taxpayers usually don’t need to file amended returns for certain issues. For example, the IRS will correct any math errors while processing tax returns and notify the taxpayers. And if a form or schedule is missing, the tax agency will send a letter requesting it. Certain other changes, however, require an amended return to be filed. They include: a change of filing status, missing income, incorrect deductions or credits, and an inaccurate tax liability. Contact the office for help filing an amended return.

May 2024

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May 2024 Tax Tips -May 2024

The “Nanny Tax” Must Be Paid for Nannies and Other Household Employees

The "Nanny Tax" Must Be Paid for Nannies and Other Household Employees

If you employ a household worker who isn’t an independent contractor, you may be required to pay employment taxes on the worker’s cash wages. This is commonly referred to as the “nanny tax.”

In 2024, when a household employee’s cash wages reach at least $2,700, you must pay the employer share of Social Security (6.2%) and Medicare (1.45%) taxes and withhold the employee share of these taxes (also 6.2% and 1.45%, respectively). You aren’t required to withhold federal income tax, but you must pay federal unemployment tax on wages of $1,000 or more. This tax is assessed only on the first $7,000 of wages paid.

To pay these obligations, increase your quarterly estimated tax payments or increase withholding from your wages. Additional requirements will apply when you file your tax return for the year. Contact the office with questions.

May 2024

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