Tuesday, June 22, 2010

Odds & Ends

  1. Medicare $250 checks will begin being sent mid-June.
  2. Starting July 1st the 10% excise tax on indoor tanning services begins. If you pay a separate fee for tanning, either to a business or at part of your Gym you will be subject to the tax. If your Gym offers it as an “included” service there will be no extra tax and as always any medical reasons will not be subject to the tax or the “spray-on” services.
  3. As of 6/22/10 there will be no extension of the closing date for the First Time Homeowners Credit. You will need to close by June 30th, 2010. You do however, have until April 15th, 2014 to amend or file for the credit.
  4. Processing Time:
    1040 Paper Return – 12 wks
    1040X (Amended) – 12 wks
    1040 e-file – 3 wks
  5. The IRS will either charge or pay 4% interest on underpayments or overpayments.

    Need to do a “Mid-Year” tax check up? Give a call, no charge.

    Army Post Accounting 515.285.5544

Wednesday, June 2, 2010

Conversion to ROTH IRA

There are several options on converting a traditional IRA to a ROTH. You can split the tax over two years. Even if you are married and both convert. Check with your tax professional for the best situation for you.

Married Filing Joint filing status, both taxpayers convert their traditional IRA to ROTH. May they make separate elections on how to pay the tax? One spouse would include in income on the joint return the full amount of their conservation and pay all the tax in 2010 and the other spouse would include in income 1/2 of conservation in 2011 and 1/2 of conservation in 2012 and pay the tax in 2011 and 2012.

Updates to come.