Congratulations to one of our newest staff members, Chris Burich! He is the winner of the 1st annual LMGW holiday decorating contest. Chris had a little assistance from some very special helpers – his wife Kelly and two adorable daughters.
The judging took place on Thursday, December 13, 2012 and the winner was announced at our annual Hot Cocoa and Secret Gift Exchange. To view all the contestants’ photos click here.
Happy holidays from all of us at LMGW!
The Internal Revenue Service requires the filing of Form 1099 for every person or business to whom you paid $600.00 or more in your trade or business for commissions, fees, and other forms of compensation for services rendered during 2012. Examples of payment for services that should be reported include rent paid, outside labor, management fees, legal fees, accountant fees, medical fees, and repairs & maintenance.
The IRS and state taxing authorities can assess penalties for failure to file these forms. Additionally, they may disallow these deductions if you do not file.
You are not required to file Form 1099 for 2012 if the person or business to whom you paid is a corporation, unless the payments are made to an attorney or to a medical or health service provider registered as a corporation.
If you would like LMGW to prepare the required forms for you, please fill out the LMGW 1099 request form and return it by sending an email with the request form attached to 1099@lmgw.com. You can also fax or mail back the request form to the fax number and address listed below.
Please download and use Form W-9 from our website to request the required information from your vendors, if needed.
The deadline for filing is January 31, 2013. In order for LMGW to guarantee your forms are timely filed, we ask that we receive all necessary information no later than January 18th, 2013.
Please call Collin at 408-252-1800 ex. 232 or email 1099@LMGW.com if you have any questions.
Saving for college is a daunting task. Over the past decade, tuition rates have been steadily rising and student financial aid is getting harder and harder to come by. The average college graduate had $26,500 of student loan debt in 2011, up almost 5% over the year before. To help ease the pain of rising tuition costs there are several college savings vehicles that help to save for college in tax-favorable ways. Let’s take a look at some of these plans.
A 529 plan is one of the most flexible ways to steadily save for college for your child, grandchild or other future student in your life. There are no income limitations on who can contribute to a 529 plan. Anyone can be an account owner and anyone can be a beneficiary. A contribution is considered a completed gift and is therefore excluded from a contributor’s estate. The contributions into the plan are not tax deductible but the earnings grow tax-free and there is no taxation on withdrawal as long as the withdrawal is used for qualified educational expenses.
529 plans fall under two categories – prepaid and savings. Prepaid plans lock in a tuition rate at an eligible public or private university. The contributions to the plan are only eligible to cover tuition and mandatory fees. Lump-sum installment plans are set up based on the beneficiary’s age and the number of years purchased; this is an advantage because it locks in lower tuition rate for the future. However, it impacts the student’s flexibility when choosing a university. Enrollment in these plans is also often limited to a certain time of year. Read more
The people of California have spoken and Proposition 30 passed by a fair margin, roughly 54% to 46%. The question now is, “what does this mean for me?” In summary, Prop 30 means tax increases for all California taxpayers making over $250,000 per year (Single and Married Filing Separate filers) or $500,000 per year (Married Filing Joint and Head of Household filers.)
For Single and Married Filing Separate filers the new rates will be:
For Married Filing Joint and Head of Household filers the new rates will be:
In addition, the California mental health tax 1% surcharge on income over $1,000,000 remains in effect, so the top rate rises to 13.3% for these high earners.
These tax increases are retroactive to January 1, 2012 so planning now is essential to brace for higher balances due in April. With this new initiative passing combined with looming federal tax increases, planning this November and December is more important than ever! Contact your LMGW tax advisor right away to schedule an appointment.
LMGW Certified Public Accountants, LLP (LMGW) was recently named as one of the 2012 Best Accounting Firms to Work for. This annual list was created by Accounting Today and Best Companies Group to identify, recognize and honor the best places of employment in the accounting industry. This is the fourth time that LMGW has been included in the annual list.
The Best Accounting Firms to Work for list is made up of a total of 100 companies, split into three groups: 47 small-sized companies (15-49 employees), 45 medium-sized companies (50-249 employees) and 8 large-sized companies (more than 250 employees). LMGW has been named one of the Best Accounting Firms to Work for in the small category.