Tax News

 HSA

 

HSAs are confusing as is, but in California they can be even more complex. The rules are different for the IRS and for the Franchise Tax Board. Let's take a look at how it works:

 

Health Savings Account (HSA) Contributions

 

Differences Between Federal and California Law

 

Contributions Federal law allows taxpayers a deduction for contributions to an HSA account. Contributions made on behalf of an eligible individual by an employer are excluded from W-2 wages. California does not conform to this provision.

 

What to do for California

 

Enter the amount from Schedule CA (540 or 540NR), column A, line 25, in column B, line 25. Enter the amount of any employer contribution from federal Form W-2, line 12, code W on Schedule CA (540 or 540NR), line 7, column C. 

 

Health Savings Account (HSA) Distributions

 

Differences Between Federal and California Law

 

Distributions that are not used for qualified medical expenses are includible in federal gross income. The amount taxable under federal law, less interest and dividend income previously taxed by California, is not taxable by California.

 

What to do for California  

 

Enter the required adjustment from Schedule CA, line 21f, column A, in line 21f, column B.

 

 

For more information, please see FTB Publication 1001 Page 10

 

 

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Preparers are a special target for cybercriminals, a security expert told tax professionals during a recent webinar on cyber-security.

“You have to do what you have to do to protect your business,” host Jake Solis, co-CEO of the IT consultancy 1+1 Technology, said during the webinar, “Cyber Security Breach Prevention and Response,” which was presented by the Latino Tax Professionals Association.

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If you receive Social Security benefits, you may have to pay federal income tax on part of your benefits.

How do I know if I have to pay income tax on my benefits?

It depends on how much total income you report to the IRS.

 

IR-2017-61, March 15, 2017

 

 

WASHINGTON — The Internal Revenue Service today granted many businesses affected by this week’s severe winter storm additional time to request a six-month extension to file their 2016 federal income tax returns.  The IRS is providing this relief to victims and tax professionals affected by this week’s storm (known as Winter Storm Stella) that hit portions of the Northeast and Mid-Atlantic.

 

 

Business taxpayers who are unable to file their tax return by today’s due date (March 15, 2017) can request an automatic extension by filing Form 7004, available on IRS.gov, on or before March 20, 2017. Form 7004 provides a  six-month extension for returns filed by partnerships (Forms 1065 and 1065B) and S corporations (Forms 1120S).

 

 

Eligible taxpayers taking advantage of this relief should write “Winter Storm Stella” on their Form 7004 extension request (if filing Form 7004 by paper).  As always, the fastest and easiest way to get an extension is to file this form electronically. 

 

 

 

The IRS will continue to monitor conditions and provide additional relief if circumstances warrant.

 

IR-2017-61, March 15, 2017

 

WASHINGTON — The Internal Revenue Service today granted many businesses affected by this week’s severe winter storm additional time to request a six-month extension to file their 2016 federal income tax returns.  The IRS is providing this relief to victims and tax professionals affected by this week’s storm (known as Winter Storm Stella) that hit portions of the Northeast and Mid-Atlantic.

 

Business taxpayers who are unable to file their tax return by today’s due date (March 15, 2017) can request an automatic extension by filing Form 7004, available on IRS.gov, on or before March 20, 2017. Form 7004 provides a  six-month extension for returns filed by partnerships (Forms 1065 and 1065B) and S corporations (Forms 1120S).

 

Eligible taxpayers taking advantage of this relief should write “Winter Storm Stella” on their Form 7004 extension request (if filing Form 7004 by paper).  As always, the fastest and easiest way to get an extension is to file this form electronically. 

 

 

The IRS will continue to monitor conditions and provide additional relief if circumstances warrant.

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 I started my business when I was 18. At the beginning, I knew very little. I was doing simple tax returns that only included W2s, helping my friends with their taxes, stuff like that. But then more people were recommended to me, and they recommended more people, and it just kind of built from there. 
 
Intuit ProConnect Tax Online played a big role right from the start. Being mobile and in the cloud meant that I could access clients’ documents right away, let them know the status of their refund, give them copies of their tax return, or process the tax return while I was at school, in the library, or anywhere.