QUICK FACTS

//QUICK FACTS
QUICK FACTS 2017-07-28T11:05:24+00:00

We have a compiled a list of information to answer many frequently asked questions.

INDIVIDUALS

April 15

Extension Date: October 15

CORPORATIONS

15th day of the 3rd month after fiscal year end

Extension Date: 15th day of the 9th month after fiscal year end

PARTNERSHIPS

15th day of the 4th month after fiscal year end

Extension Date: 15th day of the 9th month after fiscal year end

TRUSTS

15th day of the 5th month after fiscal year end

Extension Date: 15th day of the 9th month after fiscal year end

NOT-FOR-PROFITS FORM 990

15th day of the 4th month after fiscal year end

Extension Date: 15th day of the 11th month after fiscal year end

Beginning on Jan. 1, 2014, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 56 cents per mile for business miles driven.
  • 23.5 cents per mile driven for medical or moving purposes.
  • 14 cents per mile driven in service of charitable organizations

The employee tax rate for social security is 6.2%. . The employer tax rate for social security remains unchanged at 6.2%. The social security wage base limit is $113,700. The Medicare tax rate is 1.45% each for the employee and employer for 2013, unchanged from 2012. There is no wage base limit for Medicare tax.Social security and Medicare taxes apply to the wages of household workers you pay $1,800 or more in cash or an equivalent form of compensation.

Additional Medicare Tax withholding: In addition to withholding Medicare tax at 1.45%, 0.9% Additional Medicare Tax must be withheld from wages paid to an employee in excess of $200,000 in a calendar year. Additional Medicare Tax You is required to withheld beginning in the pay period in which you pay wages in excess of $200,000 to an employee and continue to withhold it each pay period until the end of the calendar year. Additional Medicare Tax is only imposed on the employee. There is no employer share of Additional Medicare Tax. All wages that are subject to Medicare tax are subject to Additional Medicare Tax withholding if paid in excess of the $200,000 withholding threshold. For more information on what wages are subject to Medicare tax, see the chart, Special Rules for Various Types of Services and Payments, in section 15 of Publication 15 (Circular E), Employer’s Tax Guide.

For 2013, the maximum you can contribute to all of your traditional and Roth IRAs is the smaller of:

• $5,500 ($6,500 if you’re age 50 or older), or
• your taxable compensation for the year.

The IRA contribution limit does not apply to:

• Rollover contributions
• Qualified reservist repayments Your traditional IRA contributions may be tax-deductible. The deduction may be limited if you or your spouse is covered by a retirement plan at work and your income exceeds certain levels.

The same general contribution limit applies to both Roth and traditional IRAs. However, your Roth IRA contribution might be limited based on your filing status and income.

You can’t make regular contributions to a traditional IRA in the year you reach 70½ and older. However, you can still contribute to a Roth IRA and make rollover contributions to a Roth or traditional IRA regardless of your age.

If you file a joint return, you and your spouse can each make IRA contributions even if only one of you has taxable compensation. The amount of your combined contributions can’t be more than the taxable compensation reported on your joint return. It doesn’t matter which spouse earned the compensation.

If neither spouse participated in a retirement plan at work, all of your contributions will be deductible.

Further information is available in IRS Publication 590.

Maximum contribution to SEP IRA – 25% of eligible compensation, up to $51,000

  • The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased from $17,000 to $17,500.
  • The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan remains unchanged at $5,500.
  • The following table shows the minimum annual deductible and maximum annual deductible and other out-of-pocket expenses for HDHPs for 2013.

Self-only coverage

Family coverage

Minimum annual deductible

$1,250

$2,500

Maximum annual deductible and other out-of-pocket expenses*

$6,250

$12,500

* This limit does not apply to deductibles and expenses for out-of-network services if the plan uses a network of providers. Instead, only deductibles and out-of-pocket expenses for services within the network should be used to figure whether the limit applies.

Self-only HDHP coverage is an HDHP covering only an eligible individual. Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual).

Further information is available in IRS Publication 969.

  • Maximum capital gains rate for taxpayers in the 10% or 15% tax bracket – 0%
  • Maximum capital gains rate for taxpayers above the 15% bracket but below the 39.6%   bracket – 15%
  • Maximum capital gains rate for taxpayers in the 39.6% bracket – 20%
  • Capital gains tax rate for unrecaptured Sec. 1250 – 25%
  • Capital gains tax rate on collectibles – 28%

Beginning in tax year 2013 (returns filed in 2014), taxpayers may use a simplified option when figuring the deduction for business use of their home. Full details on the new option can be found in Revenue Procedure 2013-13.

Note: This simplified option does not change the criteria for who may claim a home office deduction. It merely simplifies the calculation and recordkeeping requirements of the allowable deduction.

Selecting a Method

  • You may choose to use either the simplified method or the regular method for any taxable year.
  • You choose a method by using that method on your timely filed, original federal income tax return for the taxable year.
  • Once you have chosen a method for a taxable year, you cannot later change to the other method for that same year.
  • If you use the simplified method for one year and use the regular method for any subsequent year, you must calculate the depreciation deduction for the subsequent year using the appropriate optional depreciation table. This is true regardless of whether you used an optional depreciation table for the first year the property was used in business.

Effective, January 1, 2013, Ohio minimum wage was raised to $7.85 per hour from $7.70 with exceptions for tipped employees, some student workers and other exempt occupations. Tipped employees minimum wage was raised to $3.93 per hour. Ohio’s minimum wage is updated annually based on the cost-of living index.

An exception is made for employees under 16 years old, and any employees who work for companies grossing under $288,000 per year, who may be paid $7.25 per hour (the Federal Minimum Wage) instead of the higher Ohio Minimum Wage. Handicapped or disabled workers may be paid a special minimum wage rate, lower than the Ohio Minimum Wage, if their employer has a certificate from the Ohio Department of Commerce.