reporting

March Madness News- How Do I Report Fantasy Sports Winnings?

It’s that time of year again- March Madness is upon us, as is the time to file your taxes. A pressing question on the minds of many Americans this time of year is how to report fantasy sports income on their tax returns. The answer is relatively simple.  Assuming your involvement in fantasy sports does not rise to the level of a trade or business, this income is reported as hobby income. You claim the winnings (net of any entry fees) as other income on line 21 of your Form 1040, and if you are able to take advantage of itemized deductions, you can write off related expenses (i.e. entry fees which did not result in any winnings) on Schedule A, subject to a few important limitations: First, your expenses are deductible only to the extent of the related income you report on line 21. Second, like investment adviser fees, any related expenses are reported as miscellaneous itemized deductions, and you only benefit to the extent your total miscellaneous itemized deductions exceed 2% of your adjusted gross income. Additionally, these deductions may be eliminated completely if you are subject to alternative minimum tax. Also […]

By |April 1st, 2016|income tax, report|0 Comments

IRS Reminds Employers of Approaching ACA Information Reporting Due Dates:

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The IRS is encouraging self-insuring employers and Applicable Large Employers (ALEs) to mark their calendars to ensure they meet the new ACA reporting requirements. Self-insuring employers that are not ALEs must provide Form 1095-B (Health Coverage) and ALEs must provide Form 1095-C (Employer-provided Health Insurance Offer and Coverage) to employees by 3/31/16. These forms, plus their related transmittal forms, must be filed with the IRS by 5/31/16, if filing on paper, or 6/30/16, if filing electronically.

If you have any question, please contact your Linkenheimer CPA at 707-546-0272.

By |March 8th, 2016|affordable care act|0 Comments

Health Care—Reporting Reminder for Applicable Large Employers

Future-of-healthcare

The IRS has reminded Applicable Large Employers (ALEs) (generally those with 50 or more full-time equivalent employees) that they are subject to new reporting requirements for 2015. The first statements (Form 1095-C for employees and the IRS, and Form 1094-C for the IRS only) must be provided to employees by 2/1/16 and to the IRS by 2/29/16 (3/31/16, if filed electronically). The reports will provide information about health coverage the ALE offered (or didn’t offer) to each full-time employee, which the IRS will use to determine whether the employer shared responsibility payment applies to the ALE and if the employee is eligible for the premium tax credit. All ALEs are subject to this reporting requirement—regardless of whether they offer coverage or are subject to the employer shared responsibility provisions. The IRS will use the information to determine if the ALE is eligible for transition relief under the employer shared responsibility provisions. If you have any questions on how the reporting requirements effect you and your business, please contact your Linkenheimer CPA.

By |October 19th, 2015|Health care|0 Comments

Reminder of Reporting Requirement for Taxpayers with Foreign Connections

The IRS is reminding all U.S. citizens and resident aliens with an interest in or signature or other authority over foreign financial accounts, whose total value exceeded $10,000 at any time during 2014, they must file electronically with the Treasury Department a Financial Crimes Enforcement Network (FinCEN) Form 114 by 6/30/15. The IRS encourages taxpayers with foreign assets to determine if they have a FBAR filing requirement. Separately, certain taxpayers living abroad (U.S. citizens and resident aliens, including those with dual citizenship who lived or worked abroad during all or part of 2014) may have to file a Form 1040 for 2014, including the Foreign Account Tax Compliance Act (FATCA) related Form 8938. The Form 1040 deadline for these taxpayers is automatically extended two months, to 6/15/15, by attaching a statement to their return explaining that they were living overseas or serving in the military outside the U.S. on the regular due date of their tax return. If you have any questions, please contact your Linkenheimer LLP CPA.

By |June 23rd, 2015|irs|0 Comments

IRS Reminds Businesses of Cash Transaction Reporting Requirement

Businesses, including sole proprietors, in any U.S. possession or territory must report a cash transaction exceeding $10,000. The transactions are reported on Form 8300, which must be filed within 15 days of the transaction. A transaction can include two or more related transactions if the recipient knows, or has reason to know, that each transaction is one of a series of connected transactions. Transactions conducted between a payer (or its agent) and the recipient within a 24-hour period are considered related. Cash includes coins and currency (domestic and foreign), cashier’s checks, bank drafts, traveler’s checks, and money orders. U.S. possessions and territories include American Samoa, the Commonwealth of Northern Mariana Islands, Guam, Puerto Rico, and the U.S. Virgin Islands. Businesses required to file Form 8300 can include pawnbrokers, attorneys, real estate brokers, insurance companies, and travel agents, as well as those that sell jewelry, furniture, boats, aircraft, or automobiles.

By |May 28th, 2015|irs|0 Comments