As technology continues to challenge the traditional paradigm of employees and “the office,” many businesses and individuals find calculating taxes for work done outside company office space to be confusing. According to statistics from the U.S. Census Bureau’s American Community Survey, there are now an estimated 3.2 million full-time employees who telecommute for at least half the workweek, up 79 percent since 2005.
What do going to church or participating in sailing races have in common? They can affect your ‘snowbird’ tax status. (submitted photo)
Determining residency for tax purposes often proves challenging for Minnesota’s population of “snowbirds” -- retired individuals who head south each winter.
Last year, Gov. Mark Dayton made a well-publicized attempt to enact a “snowbird tax,” expanding the number of people required to pay Minnesota income taxes.
As part of a campaign to educate taxpayers on confusing, challenging and emerging tax issues, the Minnesota Society of Certified Public Accountants offers important reminders related to Minnesota’s new state gift tax.
The new tax, effective July 1, 2013, and included in 2013 tax filings, collects 10 percent of a taxpayer’s cumulative lifetime gifting exceeding $1 million. Minnesota is only the second state in the country to enact a state gift tax.
Social Security can help smooth the paperwork
The Social Security program treats all workers - men and women - exactly the same in terms of the benefits they can receive.
But women may want to familiarize themselves with what the program means to them in their particular circumstances. Understanding the benefits may mean the difference between living more comfortably vs. just getting by in retirement.
Tax time is tough, there’s no question about it, but it’s even more challenging when you’re self-employed and trying to deal with the sometimes confusing rules and recordkeeping that can go hand in hand with running your own show. The Minnesota Society of CPAs (MNCPA) answers some of the most frequent questions about taxes and self-employment and offers tips that can help you lower your tax bill.
Will your tax bill this year include taxes on your Social Security benefits? About 55 million people receive monthly Social Security payments and some of them pay taxes on up to 85 percent of those benefits, depending on their financial situation. Will you have to ante up to Uncle Sam when you begin to collect Social Security? If you’re not certain - or if you’re currently being taxed on your benefits - the Minnesota Society of CPAs (MNCPA) offers advice on ways to minimize your outlay.
What do you want to do now, or next year, or five or 10 years down the road? This is the time of year when people step back and consider where they stand and how close they are to achieving long-held goals. No matter what your objectives, there’s no doubt that a sound financial plan will put you in a better position to achieve them, according to the Minnesota Society of CPAs.
Every year taxpayers make mistakes on their tax returns that range from silly to serious. What kinds of errors should you keep in mind as you get ready to file this year’s return? The Minnesota Society of CPAs highlights three common missteps to avoid.
With significant changes made to the federal and Minnesota tax rules in 2013, the Minnesota Society of Certified Public Accountants would like to remind taxpayers of the importance of tax planning and understanding how the new rules affect their respective tax situations.