Greetings to you from D. Eckerman Tax Services
2016 has been a year of many changes for us and probably also for some of you. In fall my longtime employee and friend Kim moved on. It is sad to have her go, but she is now able to work with her family in business and move to a warmer climate. Carrie stepped up to the plate taking on more responsibility, plus we added Heidi, a highly trained professional. We make a great team. We've exceeded our output with these two on board. Vicki will be back focusing on fast track returns and Mike as well. My "better half" Steve, my husband, will be helping as needed. We look forward to a great tax season.
Sadly another change, after years of battlingVascular Dementia, my wonderful Father went to be with the Lord on November 18th. While I am deeply saddened, I am joyous he is with his other family members who have gone before him, including our son Jeremy, who when he passed changed my Dad to a much more outgoing and loving person. We are blessed to have my Mother yet. A couple things I would ask of all of you is to take more pictures of your home, the places you have lived, and your family. It was neat to see the history. You can also never spend enough time with your parents, hard though to balanceparents, spouse, children, grandchildren, and life.
And our office is excited to get up every day and help with your finances and taxes, making sure you are all in the best possible situation.
REDUCE YOUR TAXES
If you want to minimize your 2016 tax bill, now is the best time to take action. The reason: Many tax-saving measures must be taken by year-end. As you do your year-end tax planning make sure to factor in the odds of tax reform. Normally, it pays taxwise to defer income and accelerate deductions. The strategy is even more important now. Put off property sales to avoid getting hit by the 3% Medicare surtax. IRA owners who turn 70 1/2 this year should consider delaying withdrawals. If you're over 70 1/2, Congress has brought back a tax break: You may take money from your IRA and give it directly to a charity, even if you don't itemize deductions. This "qualified charitable distribution" (up to $100,000) counts toward your Required Minimum Distribution (RMD) from your IRA as well, and then doesn't raise your taxable income.
MAKE A CHARITABLE CONTRIBUTION.
Clean out your closets and donate your clothing and household items to a charitable organization, since "non-cash" contributions are deductible if you itemize. Don’t forget to get a receipt. And you should make a list of each item donated, along with its condition, and snap a few photos as well. Remember, only donations of clothing and household items in "good condition or better" qualify for a deduction.
While you can donate cash or household items, you get the biggest tax break by donating appreciated securities. That avoids capital gains taxes on your profits. Just be sure to allow enough time for the securities to be transferred, as the organization must receive them before December 31.
Eligibility: If you must itemize and you'd rather give money to charity than to Uncle Sam, you can contribute something of value to a qualified nonprofit organization. (Generally up to 50 percent of your adjusted gross income.)
** READ FURTHER FOR SOMETHING SPECIAL **
OUR TAX PLAN
We care about each and every return; however with the success of a company comes more clients. Darlene has hired an excellent staff to input your tax information. With this staff in place, we ask all clients to drop off ALL of their tax documents in place of appointments. Our staff will call you with any questions. This will allow Darlene the time to review EVERY tax return. Once she puts her final touches on your return we will call you to pick up, at that time you will get a detailed letter explaining your return. You will then also have the opportunity to make an in person appointment if you still have questions. We thank each and every one of you for your business, and we look forward to helping you for the years to come.
TRUMPS'S TAX PLAN
Here is a web address with the major points of Trump's Tax Plan that will impact your personal taxes These proposals are changing daily. Our thinking is, wait and see. We hope next year is better, so for now, plan for this year. With a Republican majority in both the House and the Senate, it will be interesting to see what tax changes are heading our way in 2017. Remember, any changes to the Tax Code must first go through Congress.
SCAMS
Scams and Identity theft that affect the IRS have been on the rise. This includes IRS-impersonation Telephone scams, Email phishing scams and Identity Theft scams. If you aren't sure if it is a scam, please contact our office. The IRS will send you a letter via postal service before ever calling!
IT IS VERY IMPORTANT THAT YOU OPEN ALL MAIL FROM WI DEPARTMENT OF REVENUE AND THE IRS!!!!
- There are deadlines you need to watch out for.
- There are times the agency is not correct.
- There are penalties you may receive if not answered timely.
- We may be able to abate penalties.
We will always try to help you the best we can! Please remember though, it is still your responsibility.
Roth Versus Traditional
Just to make sure we're all on the same page with these two type of retirement savings accounts:
- Roth IRA or 401k: Money contributed to a Roth account is never tax deductible, but earnings can be taken tax-free upon turning 59.5 years of age. This means it helps your tax return in the year it is contributed.
- Traditional IRA, 401k, or other retirement account: Money contributed is usually tax deductible, and then amounts withdrawn down the road are taxed as ordinary income.
Increase to IRAs
Even if you're covered under a retirement plan at work, you and your spouse could each contribute up to $5,500 into a traditional IRA or Roth IRA next year, as long as your combined wages and net self-employment income exceeds the total amount contributed or your income earnings are not maxed. Anyone 50 or older can contribute an extra $1,000, increasing the total allowable contribution to $6,500. You have until April 18th, 2018 to contribute to your IRAs for 2017.
IF YOU'VE READ THIS FAR-LET US KNOW, WE HAVE A GIFT OF LAMB WORTH UP TO $10 OR $10 IN TAX CREDITS FOR YOUR 2017 TAX BILL
BUSINESS
FORM WI ST-12 (SALES TAX)
If you purchase all your products with sales tax, then sell retail products and collect the sales tax on those retail sales you will have paid taxes twice. On your sales tax report you are allowed or should be taking a credit for the tax you paid on the wholesale price. This also applies for tangible personal property. You do not have to "eat" the tax. That being said, you do have two choices:
- Pay no tax on your products for resale when you initially purchase them and pay the state what you collect form the customer. The products you used or took off the shelf tor personal use, keep track of and pay tax on the whole sale price. This is called Use Tax that gets paid on the same sales tax report.
- Pay tax on all purchases and when you sell and charge sales tax at 5.5% to the customer. Now you can take a credit for the 5.5% you already paid on the wholesale price. This will be paid on your sales taxes report.
Chose whichever is easier for you to keep track of and don't forget your exempt sales. If you sell to an Exempt business make sure you get an Exemption Certificate and keep the form on file. No sales or use tax is due. Exempt sales are subtracted out of your total sales so no taxes are generated.
MILAGE DEDUCTIONS
The IRS announced that the standard mileage rate will decrease to 54 cents per business mile driven in 2016. That is a decrease of approximately 6.1% from the 57.5 cents allowed in 2015. According to the IRS, "The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile." When you use your car for business, the miles driven between job sites is deductible, as well as driving between your home and a temporary job site, job interviews, and conferences. Commuting between your home and a regular place of business generally isn't tax deductible.
MARK YOUR CALANDERS.....JANURARY 31ST IS COMING SOON
W-2s and 1099's with numbers in box 7 are due by Jan 31st.
WT-7, 941,940,943,WI St-12 sales tax, WI 101 Unemployment Compensation are all due by Jan 31st.
DARLENE G. ECKERMAN, EA
Enrolled Agents (EA) are the only federally-licensed tax practitioners who specialize in taxation and also have unlimited rights to represent taxpayers before the IRS. This means that if you get a letter from the IRS, or worse, are audited or are the target of a collection action, your EA can speak directly to the IRS on your behalf. While attorneys and certified public accountants are also licensed, only EAs specialize exclusively in taxes. Enrolled agents are required to complete many hours of continuing education each year to ensure they are up to date on the constantly changing tax code and must abide by a code of ethics.
Contact us at
fax: 715-623-3646
phone: 715-623-2520
email:
Check out our website for more information
Announcing.....Now,for the First Time Ever,
Eckerman Sheep Company has just in time for Christmas....
"EweMazing" Sheep Cheese
Rich, Smooth, Semi Soft, 100% Sheep Milk Cheese, with Sweet Amazing Caramel and Nutty flavors.
Approximately $5.99/ 4oz piece
Don't Forget Delicious, Lean, Quality Lamb for your Holiday meals, call us for orders and receipts
Listed are prices per pound and types.
Our sausages and brats are made entirely of lean lamb, no pork or fat added.
Lamburger - $4.00
Shanks - $4.00
Steaks - $6.00
Stew or Kabob - $6.00
Roast - $6.00
Bacon - $6.00
Half or Whole Leg of Lamb - $6.00
Chops - $11.00
Gyros - $12.00
Tailgate or Cheddar Brats - $9.00
Summer Sausage - $9.00
Snack Sticks - $9.00