Questions & Answers


 What is an IRA and how does it work?


An  Individual Retirement Account, more commonly referred to as an IRA, is a  popular tax savings outlet. There are several options you have when  deciding which type of IRA account to enter into. You may be able to  take a tax deduction for the contributions to a traditional IRA,  depending on whether you and or your spouse are covered by an employer's  pension plan and how much total income you have. Conversely, you cannot  deduct Roth IRA contributions, but the earnings on a Roth IRA may be  tax-free if you meet the conditions for a qualified distribution.


You  can file your tax return claiming a traditional IRA deduction before  the contribution is actually made. However, the contribution must be  made by the due date of your return, not including extensions. If you  haven't contributed funds to an Individual Retirement Account (IRA) for  last tax year, or if you've put in less than the maximum allowed, you  still have time to do so. You can contribute to either a traditional or  Roth IRA until the April 15 due date for filing your tax return for last  year, not including extensions.


Be sure to tell the IRA trustee  that the contribution is for last year. Otherwise, the trustee may  report the contribution as being for this year, when they get your  funds.


If you report a contribution to a traditional IRA on your  return, but fail to contribute by the deadline, you must file an amended  tax return by using Form 1040X, Amended U.S. Individual Income Tax  Return. You must add the amount you deducted to your income on the  amended return and pay the additional tax accordingly.


What are the important tax related dates that I need to know about as an employee or a business owner?


Due dates in order according to the federal fiscal year:


(All  due dates assume that the date falls on a business day. If the due date  falls on a holiday or weekend, the due date will be the next business  day.)


January 10


Employees  who work for tips - If you received $20 or more in tips during  December, report them to your employer. You can use Form 4070 Employee's  Report of Tips to Employer.


January 15


Employers -  Social Security, Medicare and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in December of this  year.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in December.


Individuals  - Make a payment of your estimated tax for this year if you did not pay  your income tax for the year through withholding (or did not pay in  enough tax that way). Use Form 1040-ES. This is the final installment  date for this year's estimated tax. However, you do not have to make  this payment if you file this year's return (Form 1040) and pay any tax  due by January 31 of the following year.


January 31


Employers  - Federal unemployment tax. File Form 940 (or 940-EZ) for this year. If  your undeposited tax is $100 or less, you can either pay it with your  return or deposit it. If it is more than $100, you must deposit it.  However, if you already deposited the tax for the year in full and on  time, you have until February 10 to file the return.


Employers -  Social Security, Medicare, and withheld income tax. File Form 941 for  the fourth quarter of this year. Deposit any undeposited tax. (If your  tax liability is less than $2,500, you can pay it in full with a timely  filed return.) If you deposited the tax for the quarter in full and on  time, you have until February 10 to file the return.


Employers –  Non-payroll taxes. File Form 945 to report income tax withheld for this  year on all non-payroll items, including backup withholding and  withholding on pensions, annuities, IRAs, gambling winnings, and  payments of Indian gaming profits to tribal members. Deposit any  undeposited tax. (If your tax liability is less than $2,500, you can pay  it in full with a timely filed return.) If you deposited the tax for  the year in full and on time, you have until February 10 to file the  return.


Employers - Give your employees their copies of Form W-2  for the previous year. If an employee agreed to receive Form W-2  electronically, post it on a website accessible to the employee and  notify the employee of the posting by January 31st.


Employers - Give annual information Forms 1098, 1099 and W-2G to recipients for certain payments made during the year.


Individuals  - File your income tax return (Form 1040) for this year if you did not  pay your last installment of estimated tax by January 15. Filing your  return and paying any tax due by January 31 prevents any penalty for  late payment of last installment.


February 10


Employees  who work for tips - If you received $20 or more in tips during January,  report them to your employer. You can use Form 4070 Employee's Report  of Tips to Employer.


February 15


Individuals - If  you claimed exemption from income tax withholding last year on the Form  W-4 you gave your employer, you must file a new Form W-4 by this date to  continue your exemption for another year.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in January.


Employers - Furnish Forms 1099-B, 1099-S and certain Forms 1099-MISC to recipients.


 

February 28


All  Businesses - File information returns (Form 1099) for certain payments  you made during previous year. These payments are described under  January 31. There are different forms for different types of payments.  Use a separate Form 1096 to summarize and transmit the forms for each  type of payment. See the General Instructions for Forms 1099, 1098,  5498, and W-2G for information on what payments are covered, how much  the payment must be before a return is required, which form to use, and  extensions of time to file. If you file Forms 1098, 1099, or W-2G  electronically (not by magnetic media), your due date for filing them  with the IRS will be extended to March 31. The due date for giving the  recipient these forms remains January 31.


Employers - File Form W-3 with Copy A of all Forms W-2 issued for the current tax year.


March 1


Farmers  and Fishermen - File Form 1040 and pay any tax due. However, you have  until April 15 to file if you paid your previous year estimated tax by  January 15 of the current year.


March 10


Employees  who work for tips - If you received $20 or more in tips during  February, report them to your employer. You can use Form 4070 Employee's  Report of Tips to Employer.


 

March 15


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in February.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in February.


Corporations  - File Form 1120 or 1120-A and pay any tax due. If you want an  automatic 6-month extension of time to file the return, file Form 7004  and deposit what you estimate you owe.


S Corporations - File Form  1120S and pay any tax due. Provide each shareholder with a copy of  Schedule K-1 (Form 1120S), Shareholder's Share of Income, Credits,  Deductions, etc., or a substitute Schedule K-1. If you want an automatic  6-month extension of time to file the return, file Form 7004 and  deposit what you estimate you owe.


S Corporation election - File  Form 2553, Election by a Small Business Corporation, to choose to be  treated as an S Corporation beginning with current calendar year. If  Form 2553 is filed late, S treatment will begin with next calendar year.


Electing  large partnerships - Provide each partner with a copy of Schedule K-1  (Form 1065-B), Partner's Share of Income (Loss) From an Electing Large  Partnership. This due date is effective for the first March 15 following  the close of the partnership's tax year. The due date of March 15  applies even if the partnership requests an extension of time to file  the Form 1065-B by filing Form 8736 or Form 8800.


March 31


Electronic  filing of Forms 1098, 1099, and W-2G - File Forms 1098, 1099, or W-2G  with the IRS. This due date applies only if you file electronically (not  by magnetic media). Otherwise, see February 28. The due date for giving  the recipient these forms will still be January 31. For information  about filing Forms 1098, 1099, or W-2G electronically, see Publication  1220,Specifications for Filing Forms 1098, 1099, 5498 and W-2G  Magnetically or Electronically.
 


April 10


Employees  who work for tips - If you received $20 or more in tips during March,  report them to your employer. You can use Form 4070 Employee's Report of  Tips to Employer.


April 15


Individuals - File an  income tax return (Form 1040, 1040A, or 1040EZ) and pay any tax due. If  you want an automatic 6-month extension of time to file the return, file  Form 4868, Application for Automatic Extension of Time To File U.S.  Individual Income Tax Return, or you can get an extension by phone if  you pay part or all of your estimate of income tax due with a credit  card. Then file Form 1040, 1040A, or 1040EZ by October 15.


Household  employers - If you paid cash wages of $1,800 or more in the previous  year to a household employee, file Schedule H (Form 1040) with your  income tax return and report any employment taxes. Report any federal  unemployment (FUTA) tax on Schedule H if you paid total cash wages of  $1,000 or more in any calendar quarter of the previous 2 years to  household employees. Also report any income tax you withheld for your  household employees.


Individuals - If you are not paying your  current year income tax through withholding (or will not pay in enough  tax during the year that way), pay the first installment of your current  estimated tax. Use Form 1040-ES.


Employers - Social Security,  Medicare and withheld income tax. If the monthly deposit rule applies,  deposit the tax payments for March.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in March.


Partnerships  - File a previous calendar year return (Form 1065). Provide each  partner with a copy of Schedule K-1 (Form 1065), Partner's Share of  Income, Deductions, Credits, etc., or a substitute Schedule K-1. If you  want an automatic 5-month extension to file the return and provide  Schedule K-1 or a substitute Schedule K-1, file Form 7004. Then, file  Form 1065 by September 15.


Electing large partnerships - File a  previous calendar year return (Form 1065-B). If you want an automatic  6-month extension of time to file the return, file Form 7004. Then file  Form 1065-B by October 16. See March 15 for the due date for furnishing  the Schedules K-1 to the partners.


Corporations - Deposit the  first installment of your estimated income tax for current year. A  worksheet, Form 1120-W, is available to help you estimate your tax for  the year.


April 30



Employers - Social Security,  Medicare, and withheld income tax. File form 941 for the first quarter  of current year. Deposit any undeposited tax. (If your tax liability is  less than $2,500, you can pay it in full with a timely filed return.) If  you deposited the tax for the quarter in full and on time, you have  until May 10 to file the return.


Employers - Federal Unemployment Tax. Deposit the tax owed through March if more than $500.


May 10


Employers  - File Form 941 for the first quarter. This due date applies only if  you deposited the tax for the quarter in full and on time.


Employees  who work for tips - If you received $20 or more in tips during April,  report them to your employer. You can use Form 4070 Employee's Report of  Tips to Employer.


May 15


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in April.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in April.


June 10


Employees  who work for tips - If you received $20 or more in tips during May,  report them to your employer. You can use Form 4070 Employee's Report of  Tips to Employer.


June 15


Individuals - If you  are a U.S. citizen or resident alien living and working (or on military  duty) outside the United States and Puerto Rico, file Form 1040 and pay  any tax, interest, and penalties due. Otherwise, see April 15. If you  want additional time to file your return, file Form 4868 to obtain 4  additional months to file. Then file Form 1040 by October 15. However,  if you are a participant in a combat zone you may be able to further  extend the filing deadline.


Individuals - Make a payment of your  current estimated tax if you are not paying your income tax for the year  through withholding (or will not pay in enough tax that way). Use Form  1040-ES. This is the second installment date for estimated tax in  current year.


Corporations - Deposit the second installment of  your estimated income tax. A worksheet, Form 1120-W, is available to  help you estimate your tax for the year.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in May.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in May.


July 31


Employers  - Social Security, Medicare, and withheld income tax. File form 941 for  the second quarter of the current year. Deposit any undeposited tax.  (If your tax liability is less than $2,500, you can pay it in full with a  timely filed return.) If you have deposited the tax for the quarter in  full and on time, you have until August 10 to file the return.


Employers - Federal Unemployment Tax. Deposit the tax owed through June if more than $500.


Employers  - If you maintain an employee benefit plan, such as a pension, profit  sharing, or stock bonus plan, file form 5500 or 5500-EZ for previous  calendar year. If you use a fiscal year as your plan year, file the form  by the last day of the seventh month after the plan year ends.


August 10


Employers  - File Form 941 for the second quarter. This due date applies only if  you deposited the tax for the quarter in full and on time.


Employees  who work for tips - If you received $20 or more in tips during July,  report them to your employer. You can use Form 4070 Employee's Report of  Tips to Employer.


August 15


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in July.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in July.


September 10


Employees  who work for tips - If you received $20 or more in tips during August,  report them to your employer. You can use Form 4070 Employee's Report of  Tips to Employer.


September 15 (For tax year 2013, this date will be September 16)


Individuals  - Make a payment of your current year estimated tax if you are not  paying your income tax for the year through withholding (or will not pay  in enough tax that way). Use Form 1040-ES. This is the third  installment date for estimated tax in the current year.


Partnerships  - File Form 1065. This due date applies only if you were given an  additional 5-month extension. Provide each partner with a copy of  Schedule K-1 (Form 1065) or a substitute K-1.


Corporations - File  Form 1120 or 1120-A and pay any tax due. This due date applies only if  you timely requested an automatic 6-month extension. Otherwise, see  March 15.


S Corporations - File Form 1120S and pay any tax due.  This due date applies only if you timely requested an automatic 6-month  extension. Otherwise, see March 15. Provide each shareholder with a copy  of Schedule K-1 (Form 1120S) or a substitute Schedule K-1.


Corporations  - Deposit the third installment of your estimated income tax. A  worksheet, Form 1120-W, is available to help you make an estimate of  your tax for the year.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in August.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in August.October 10


Employees who work for tips - If you  received $20 or more in tips during September, report them to your  employer. You can use Form 4070 Employee's Report of Tips to Employer.


October 15


Individuals  - If you have an automatic 6-month extension to file your income tax  return, file Form 1040, 1040A, or 1040EZ and pay any tax, interest, and  penalties due.


Electing large partnerships - File Form 1065-B.  This due date applies only if you were given an additional 6-month  extension. See March 15 for the due date for furnishing the Schedules  K-1 to the partners.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in September.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in September.


October 31


Employers  - Social Security, Medicare, and withheld income tax. File form 941 for  the third quarter of the current year. Deposit any undeposited tax. (If  your tax liability is less than $2,500, you can pay it in full with a  timely filed return.) If you deposited the tax for the quarter in full  and on time, you have until November 10 to file the return.


Employers - Federal Unemployment Tax. Deposit the tax owed through September if more than $500.


Employers  - Income Tax Withholding. Ask employees whose withholding allowances  will be different in the next calendar year to fill out a new Form W-4.


November 10


Employers - This due date applies only if you deposited the tax for the quarter in full and on time.


Employees  who work for tips - If you received $20 or more in tips during October,  report them to your employer. You can use Form 4070 Employee's Report  of Tips to Employer.


November 15


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in October.


Employers  - Social Security, Medicare, and withheld income tax. If the monthly  deposit rule applies, deposit the tax for payments in October.


December 10


Employees  who work for tips - If you received $20 or more in tips during  November, report them to your employer. You can use Form 4070 Employee's  Report of Tips to Employer.


December 15


Corporations  - Deposit the fourth installment of your estimated income tax. A  worksheet, Form 1120-W, is available to help you estimate your tax for  the year.


Employers - Social Security, Medicare, and withheld  income tax - If the monthly deposit rule applies, deposit the tax for  payments in November.


Employers – Non-payroll Withholding. If the monthly deposit rule applies, deposit the tax for payments in November.


All  Employers - Give your employees their copies of Form W-2 for the  previous year by January 31 of the following year. If an employee agreed  to receive Form W-2 electronically, post it on a website accessible to  the employee and notify the employee of the posting by January 31st.



Copyright 2013 Timmer Accounting & Tax Service LLC
14726 Riley Street, Holland, MI 49424
Phone: 616-399-1940
Email: duane@timmeraccounting.net 

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