The Internal Revenue Service (IRS) announced the availability of an expanded version of IRS2Go 2.0, available on both Apple and Android platforms. It is an expanded version of the smartphone application designed to provide taxpayers easier access to practical tools and information.
This new smartphone application offers taxpayers a number of tools. Taxpayers can:
Several new tax provisions took effect January 1, 2012.
Inflation adjustments
The applicable amounts for many tax items increased on January 1 due to annual inflation. The personal exemption amount has increased to $3,800. Various credits and other items were also adjusted. Contribution limits and other amounts for pension plans and retirement accounts were also changed for 2012, and the Social Security wage base for 2012 is now $110,100.
The Temporary Payroll Tax Cut Continuation Act of 2011 will temporarily extend the two percentage point payroll tax cut for employees, continuing to reduce Social Security tax withholding from 6.2 percent to 4.2 percent of wages paid through February 29, 2012.
According to the Internal Revenue Service (IRS), low and moderate-income workers can earn a special tax credit, the Retirement Savings Contribution Credit, by taking steps to save money. The saver’s credit helps offset part of the first $2,000 that workers voluntarily contribute to an IRA or 401(k) plan.
The Work Opportunity Credit has been expanded to provide employers with new incentives to hire unemployed veterans. Employers will be eligible for a credit of up to $9,600 for each qualified veteran that they hire after the law’s enactment date (November 21, 2011) and before January 1, 2013.
The Internal Revenue Service (IRS) has announced the mileage rates for business, medical, moving and charitable purposes for 2012.
In 2012, employers will now need to include the total reportable cost of applicable employer-sponsored group health plan coverage on Form W-2. This includes coverage under any group health plan, including a self-insured plan.
The Federal Trade Commission (FTC) estimates that as many as nine million people have their identities stolen each year. Identity theft starts with the misuse of personally identifying information that someone may find going through your trash, skimming, phishing, or stealing a purse, wallet, or credit card statement, etc. Identity thieves can then use your information to commit some type of fraud.
Does your employer provide you with a cell phone or reimburse you for work-related use of your personal phone? On September 14, 2011, the Internal Revenue Service (IRS) issued new guidance on the tax treatment of employer provided cell phones and clarified the treatment of reimbursement for business use of personal cell phones for tax years after December 31, 2009.
Although Hurricane Irene may not have been as destructive in Maryland as it was in some other areas, ask yourself- If it had been, would you have been prepared? The Internal Revenue Service (IRS) is encouraging individuals to safeguard important tax documents to protect themselves from future hurricanes or other disasters.
