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IRS regulations require that if an employee has been assigned a motor vehicle, employers must include the value of automobile commuting and personal use in the employee’s gross income as reported on the employees’ W-2 and to withhold certain payroll taxes such as FICA and Medicare. 

Employees that have been assigned vehicles and who drive the vehicle to and from their residences are considered by the Internal Revenue Code to have received taxable income.  The Internal Revenue Code requires that employers withhold associated FICA and Medicare, which are then remitted to the IRS and reported on individual employees’ W-2 Forms.  Certain “qualified non-personal use vehicles” have been exempted by the IRS from reporting and taxation requirement. 

The amount of taxable income derived from the assignment of a vehicle is dependent on the status of the employee as defined by the Internal Revenue Code.  The following details the calculation for determining the amount of taxable income.

The IRS permits most employees to value each one way commute at $1.50 ($3.00 per round trip). The Internal Revenue Code requires that employees report the number of commuting trips in a calendar year they make to their employers. The $1.50 is multiplied by the number of trips and this amount is included in the employee’s wages. If more then one employee commutes in the vehicle this value applies to each employee.

Contact the accounting and tax consulting firm of Robert C Olivieri, Jr. PC if you have any questions on this issue or are looking to have your corporate or payroll tax returns prepared.  Take advantage of our 30 plus years of Accounting and Tax Consulting experience to reduce or eliminate IRS payroll liabilities and avoid audits due to non compliance.  Non compliance is a very serious issue with the IRS.  If they believe your company has been negligent with certain tax regulations, they may be able to assess you additional tax, including penalties and interest.  You may not toss the blame into your current accountant; following tax regulations is your responsibility.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

The five-percent tax rate on qualified dividends and net capital gains is reduced to zero. In general, this reduction applies to investors whose taxable income is below:

• $65,100, if married filing jointly or qualifying widow or widower
• $32,550, if single or married filing separately or
• $43,650, if head of household.

Note that taxable income is normally less than total income. The worksheet for Form 1040 Line 44, Form 1040A Line x or Schedule D and its instructions provide details.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

The maximum earned income tax credit for 2008 is:

• $4,824 for people with two or more qualifying children, up from $4,716 in 2007
• $2,917 for those with one child, up from $2,853 last year and
• $438 for people with no children, up from $428 in 2007.

Available to low and moderate income workers and working families, the earned income tax credit helps taxpayers whose incomes are below certain income thresholds, which in 2008 rise to:

• $41,646 for those with two or more children
• $36,995 for people with one child and
• $15,880  for those with no children

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

The standard mileage rate for business use of a car, van, pick-up or panel truck is 50.5 cents per mile from Jan. 1, 2008, to June 30, 2008, up 2 cents from 2007. The rate is 58.5 cents for each mile driven during the rest of 2008.

From Jan. 1, 2008, to June 30, 2008, the standard mileage rate for the cost of operating a vehicle for medical reasons or as part of a deductible move is 19 cents per mile, down a penny from 2007. The rate is 27 cents from July 1 to Dec. 31.

The standard mileage rate for using a car to provide services to charitable organizations is set by law and remains at 14 cents a mile. As noted earlier, special rates apply to the Midwest disaster area.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

This filing season, more people can make tax-deductible contributions to a traditional IRA. The deduction is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $53,000 and $63,000, compared to $52,000 and $62,000 last year.

For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $85,000 to $105,000, up from $83,000 to $103,000 last year.

Where an IRA contributor who is not covered by a workplace retirement plan is married to someone who is covered, the deduction is phased out if the couple’s income is between $159,000 and $169,000, up from $156,000 and $166,000 in 2007.

The phase-out range remains $0 to $10,000 for a married individual filing a separate return who is covered by a retirement plan at work.

The worksheet in the instructions for Form 1040 Line 32 or Form 1040A Line 17 can help a taxpayer figure the IRA deduction.

For 2008, the elective deferral (contribution) limit for employees who participate in 401(k), 403(b) and most 457 plans remains unchanged at $15,500. This limit rises to $16,500 in 2009. The catch-up contribution limit for those aged 50 to 70-½ remains at $5,000 in 2008 but rises to $5,500 in 2009.

The AGI phase-out range for taxpayers who contribute to a Roth IRA is $159,000 to $169,000 for joint filers and qualifying widows and widowers, compared to $156,000 to $166,000 in 2007. For singles and heads of household, the comparable phase-out range is $101,000 to $116,000, compared to $99,000 to $114,000 in 2007.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

Several popular tax breaks that expired at the end of 2007 were renewed for tax-years 2008 and 2009. As a result, eligible taxpayers can claim:

• The deduction for state and local sales taxes on Form 1040 Schedule A , Line 5
• The educator expense deduction on Form 1040, Line 23 or Form 1040A, Line 16
• The tuition and fees deduction on Form 8917 and
• The District of Columbia first-time home buyer credit on Form 8859

In addition, the residential energy-efficient property credit is extended through 2016. In general, solar electric, solar water heating and fuel cell property qualify for this credit. Starting in 2008, small wind energy and geothermal heat pump property also qualify. Use Form 5695 to claim the credit.

The non-business energy property credit for insulation, exterior windows, exterior doors, furnaces, water heaters and other energy-saving improvements to a main home is not available in 2008 but will return in 2009.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

If you are pregnant, you can collect U.C. benefits only if you do not voluntarily leave your job. If you are able to work and suitable work is available, but you leave just because you are pregnant, you are not entitled to unemployment compensation as a general rule. If your employer discharges you because of pregnancy, you are entitled to benefits. Benefits may continue after the baby is born if you are available to work and otherwise eligible for benefits.

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you have any questions or are looking to have your payroll tax returns prepared or if you need guidance on an unemployment matter.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your payroll tax liabilities. Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

If you changed your home or business address, you will want to remember these six tips to ensure you receive any refunds or correspondence from the IRS.

1. You can change your address on file with the IRS in several ways:

• Correct the address legibly on the mailing label that comes with you tax package
• Write the new address in the appropriate boxes on your tax return;
• Use Form 8822, Change of Address, to submit an address or name change any time during the year
• Give the IRS written notification of your new address by writing to the IRS center where you file your return. Include your full name, old and new addresses, Social Security Number or Employer Identification Number and signature. If you filed a joint return, be sure to include the information for both taxpayers. If you filed a joint return and have since established separate residences, both taxpayers should notify the IRS of your new addresses
• Should an IRS employee contact you about your account, you may be able to verbally provide a change of address

2. Be sure to also notify your employer of your new address so you get your W-2 forms on time.

3. If you change your address after you’ve filed your return, don’t forget to notify the post office at your old address so your mail can be forwarded.

4. Taxpayers who make estimated payments throughout the year should mail a completed Form 8822, Change of Address, or write the IRS center where you file your return. You may continue to use your old pre-printed payment vouchers until the IRS sends you new ones with your new address. However, do not correct the address on the old voucher.

5. The IRS does use the Postal Service’s change of address files to update taxpayer addresses, but it’s still a good idea to notify the IRS directly.

6. Visit IRS.gov for more information about changing your address. You can find the address of the IRS center where you file your tax return or download Form 8822, Change of Address. The form is also available by calling 800-TAX-FORM (800-829-3676).

Contact the accounting, tax and financial consulting firm of Robert C Olivieri, Jr. PC if you still have any other questions or are looking to have your personal, corporate, payroll or sales tax returns prepared.  Take advantage of our 30 plus years of Accounting, Tax and Financial Consulting experience to reduce your IRS liabilities and show you our provocative Retirement Strategies.  Our retirement suggestions are not stockbroker friendly because we are not in the business of selling stocks or mutual funds.  Feel free to call Bob, almost anytime, at 215.943.3296 for any questions you may have.  Is it not time you dealt with Accounting and Tax Professionals that are available at your convenience?

The IRS has free tax forms and publications on a wide variety of topics.  If you need IRS forms, Publications or information, try one of these easy options:

• Internet:  You can access forms and publications on the IRS website 24 hours a day, 7 days a week, at IRS.gov.
• Phone:  Call 1-800-TAX-FORM (800-829-3676) to order current year forms, instructions and publications and prior year forms and instructions.  You should receive your order within 10 days.
• Mail:  Order your tax forms and publications from the National Distribution Center, P.O. Box 8903, Bloomington, IL, 61702-8903. You should receive your products 10 days after receipt of your order