tax liability

Tax

After I Do – Best Filing Status for Married Couples

Summer is wedding season. If you are getting married this summer, remember to give some attention to your 2011 tax filing status.

You have two filing status options: married filing jointly, or married filing separately.

Married Filing Jointly

You can choose married filing jointly as your filing status if you are married and both you and your spouse agree to file a joint return. On a joint return, you report your combined income and deduct your combined allowable expenses. You can file a joint return even if one of you had no income or deductions.

According to the IRS, if you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Also, your standard deduction (if you do not itemize deductions) may be higher, and you may qualify for tax benefits that do not apply to other filing statuses.

We recommend that if you and your spouse each have income, you figure your tax both on a joint return and on separate returns (using the filing status of married filing separately). You can choose the method that gives you the lower combined tax.

Joint Responsibility. Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse.

Married Filing Separately

You can choose married filing separately as your filing status if you are married. This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return.

We Can Help

Give us a call if you’re unsure of which status to file under.

Tax

August Tax Calendar

August 1

 Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2011. 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 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 calendar year 2010. 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.

Certain Small Employers – Deposit any undeposited tax if your tax liability is $2,500 or more for 2011 but less than $2,500 for the second quarter.
August 10

 Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2011. 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.
August 15

 Employers – Nonpayroll 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.
Business Tax

Basic Hints to Help New Small Businesses

Folks starting a small business are often challenged by their new tax filing requirements. It can be overwhelming to learn about federal tax responsibilities.

The following is a list of basic tips to avoid potential problems:

  • Classify workers properly as employees or independent contractors as determined by law, not the choice of the worker or business owner.
  • Deposit federal employment taxes, called trust fund taxes, according to the appropriate schedule.
  • Start making estimated quarterly payments to cover your own income tax and Social Security self-employment tax liability.
  • Keep good records to protect your personal and financial investment and to make tax filing easier.
  • Consider a tax professional to help you with Schedule C.
  • File and pay your taxes electronically. It’s fast, easy, and secure.
  • Protect financial and tax records to ensure business continuity in the event of a disaster.

Starting a new business? Give us a call today. As always, we’re here to help sort out your tax responsibilities.

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Copyright All rights Reserved. Financial Dream Team, like all providers of personal financial services is required by law to inform their clients of their policies regarding privacy of client information. The information in this material is not intended as tax or legal advice. Financial Dream Team, USA, LLC is a registered business in Califronia. Provided content is for informational purposes only.

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