All locations listed below will be in the state of Idaho:
Pocatello - Tuesday, January 31, 2017
Twin Falls - Wednesday, February 2, 2017
Idaho Falls - Thursday, February 3, 2017
As a recent university graduate, the American Opportunity Tax Credit is something that has directly benefitted me and something that I have been very grateful for. If you or one of your dependents is a university student, this might be something that could help you lower the amount of federal income tax that you pay. The credit can be taken on 100% of the first $2,000 spent on qualified tuition and related expenses, and then 25% on the next $2,000 spent on qualified tuition and expenses. The total maximum credit is $2,500 per student, per year, and can be used for the student’s first four years of post-secondary education. Not only can this reduce your tax liability, but up to 40% of the credit amount is refundable which could generate a refund if your tax liability is reduced to zero before using up the entire credit.
In order for this credit to be applicable, you or your dependent needs to be a qualifying student. A qualifying student is a student who is pursuing a degree or other recognized credential from a college or university and is enrolled at least half-time. Additionally the student must not have been convicted of a controlled substance felony.
As previously mentioned, qualified tuition and expenses are used to calculate the amount of the credit. Tuition and fees along with course materials (required books, supplies, etc.) are all qualified expenses and can be used to calculate the credit. However, things like insurance, room and board, and transportation are not considered qualified expenses. Another factor in calculating the credit is the amount of financial aid received. The college or university that you or your dependent is attending will send you a tuition statement (1098-T) which will report qualified expenses as well as financial aid received. The amount of qualified expenses reported on the tuition statement might just be the amount of tuition and fees paid/billed and therefore you might be able to tack on things like books and supplies that you were required to purchase for your courses. The total qualified educational expenses will be reduced by financial aid you receive like scholarships, fellowships, or grants, but will not be reduced by borrowed funds like student loans.
Form 8863 is used to calculate the credit and must be attached to your Form 1040 when you file your individual tax return. The form instructs you to start on Part III where you will calculate the amount of the credit. Then it will take you to Part I and then to finish up on Part II. Part I will calculate any phase-out of the credit that might take place based on your AGI (Adjusted Gross Income). Taxpayers that are married and filing jointly will begin to lose some of the credit if their AGI is above $160,000 and will completely miss out on the credit if their AGI reaches $180,000 or above. For taxpayers using the other filing statuses the credit will be limited if AGI reaches $80,000 and completely eliminated with an AGI of $90,000 or above. After the phase-out calculation, the refundable portion of the credit is calculated in Part I and then the nonrefundable portion is calculated in Part II.
In conclusion, it can be very advantageous to use education credits and deductions when preparing your tax return. Most of the time the American Opportunity Tax Credit will be the optimal credit to use, but if you don’t qualify, you can check to see if you qualify for the Lifetime Learning Credit or the Tuition and Fees Deduction. Education expenses are already high enough, you might as well use them to get some relief on your taxes and hopefully this post shed some light on how to do so.
A preliminary injunction was filed in a November 22 ruling that has put a hold on the implementation of the new federal overtime rule.
The case was filed in the District court in Texas by 21 states, the U.S. Chamber of Commerce, and other business groups.
“A preliminary injunction preserves the status quo while the court determines the Department of Labor’s authority to make the final rule as well as the final rule’s validity,” said Judge Amos Mazzant of the U.S. District Court for the Eastern District of Texas.
The Department of Labor will appeal the decision, but until the courts make a final ruling, employers may continue to follow the existing overtime rule.
If you’re thinking in participating in #GivingTuesday, keep in mind that certain charitable contributions are deductible if you itemize on your 2016 tax return. IRS Select Check on IRS.gov is a searchable online tool that lists most eligible charitable organizations. Donations to religious organizations and government agencies are eligible to be deductible donations even if they are not listed in this database. In some states, Idaho for example, there is also a special deduction for contributions made to state educational entities or youth rehabilitation services. Property donations (items like clothing, household items, and other like items) are normally limited to the item’s fair market value or the value at which the thrift store can sell it. If any benefit is received in result of the donation (merchandise, meals, tickets or services), donors may have to reduce the value of their charitable contribution. Bank records (canceled checks, bank statements, etc.) or a written statement from the organization is needed to prove the amount of any donation made so be sure to keep track of these items. For more details on Charitable Contributions and possible tax deductions, visit the IRS website.
Nevada has adopted a tax on businesses that generate more than $4,000,000 in revenues from within the state. Some of the notable features of the tax include:
1- This is set up to be more of a franchise tax rather than an income tax. The standard nexus rules of P.L. 86-272 don’t apply here.
2- You will need to look to the state’s definition of “Nevada Income” to calculate the correct amount to report on the form.
3- The form is based on a fiscal year- 7/1-6/30.
4- The tax rate used is based on the business NAICS code of the business.
5- The filing requirement applies to all businesses including sole proprietors (Sch C, E, and F).
Any business registered in Nevada or with operations there will need to file a return annually. Some additional references on the Nevada Business Tax can be found at the Tax Adviser and the Nevada Department of Taxation.
If you believe this applies to you and your business and would like assistance in preparation of this return, please contact us at any of our three locations in Idaho Falls (208.523.0862), Pocatello (208.232.6006), and Twin Falls (208.733.6581). Our tax experts can help you navigate the many nuances and requirements of filing.
Disclaimer: Any material appearing in communication or shared third party content from Cooper Norman is for informational purposes only and is not intended as legal, accounting, or tax advice provided by Cooper Norman. Opinions expressed in communications from Cooper Norman professionals or shared third party content do not necessarily reflect the opinion of Cooper Norman or its associates. These communications are not intended to create, and receipt does not constitute, a legal relationship, including, but not limited to, an accountant-client relationship. Often these materials have been prepared by professionals, but the user should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Cooper Norman assumes no obligation to provide notification of changes in tax laws or other factors that could affect the information provided.
You can read more about the author, Tim Anderson, CPA, MAcc on his bio here.
Congratulations to Austin Irwin and his Leadership Pocatello Class on a highly successful event Saturday, April 16 , 2016 at the Avcenter.
There were over 300 in attendance and they raised over $19,000 which will go back into our community through our Leadership Program.
Cooper Norman CPAs & Business Advisors is seeking an experienced Firm Administrator. The successful candidate will have a strong background in accounting and business administration and a minimum of 5 years of related work experience. A Bachelor of Science in Accounting is highly preferred. This position will be responsible for the day to day operations of the firm and act as the Chief of Staff to the Managing Partner. Responsible for all firm accounting and reporting (billings, A/R, A/P, payroll, financials, cash and debt management, budgets, expenditure control, risk management, licensing, and ensuring compliance with all Federal and State laws. The position may work out of Idaho Falls, Pocatello, or Twin Falls, Idaho. We are looking for a strong leader committed to excellence and continuous improvement and the one-firm concept who matches our business philosophies and core values to maintain and grow our reputation for quality service and innovative advisory solutions. The salary range is $50,000 – $75,000/year DOE. Please email your resume to Tara Gartrell at firstname.lastname@example.org Resumes received by May 6th will be given full consideration. Equal Opportunity Employer
Job Description: Firm Administrator
Classification: Full-time, Exempt
Compensation: $50,000 - $75,000 based on qualifications
Firm Administrator Job Responsibilities:
- Responsible for the day to day operations of the firm and act as the Chief of Staff to the Managing Partner (MP).
- Firm champion for operational efficiency focusing on client services and firm profitability.
- Primary operational liaison with Human Resources, Information Technology, Business Development, Recruiting, CN University Training, Facilities and Space Management, and Administration.
- Responsible for all firm accounting and reporting (billings, A/R, A/P, payroll, financials, cash and debt management, budgets, expenditure control, risk management, licensing, ensures compliance with all Federal and State Laws)
- Assist in the implementation of firm and partner goals, produce and publish statistical reports, and monitor progress.
- Attendance required at Partner and Management meetings. Responsible for agenda’s, minutes, and follow-up on action items.
- Maintains high-level knowledge of issues affecting the public accounting industry and successful management of the firm.
- Assist MP with vendor, banker, insurance agent, and legal counsel relationships.
- Visible and active in the business community; Exhibits leadership inside and outside the firm.
- Assist MP, Members-In-Charge, and Partners as needed; Accessible to Partners and Staff.
This job description is not all-inclusive. The employee may be asked to perform other duties and responsibilities. The employee will be evaluated based on the description above and any revisions that may be made from time to time.
Qualifications and Experience:Strong background in accounting and business administrative experience is required. A minimum of 5 years of related work experience. A Bachelor of Science in Accounting is highly preferred; Strong people skills; Strong management, organizational, vision, and leadership skills; Committed and passionate about our business philosophies and core values; Committed to excellence and improvement. A team player who is committed to the one-firm concept and puts the interests of the Firm above personal interest.