News & Updates

Nov 23, 2016 — by: Marina Rosso

December 1, 2016  - DOL Minimum Salary Increase -  BLOCKED!

 

The US District Court in Texas granted a preliminary injunction against the new Department of Labor minimum salary requirement. The new salary requirement for exempt employees was going to increase to $47,476 per year or $913 per week.

 

 Read More

Oct 11, 2016 — by: Aiello, Goodrich & Teuscher

With the ever-increasing cost of health insurance and medical care, you should be vigilant in finding ways to claim tax breaks related to health care. Unfortunately, that's now harder than before because a change included in the Affordable Care Act (ACA) increased the income-based threshold for deducting itemized medical expenses.

However, some seniors have been given a one-year reprieve: A lower deduction threshold will apply for 2016 to people who are at least 65 years old as of year end. But the lower threshold is scheduled to expire after 2016. So, it could make sense for seniors to load up on medical expenditures before the end of this year to take advantage of the lower threshold.

 Read More

Aug 2, 2016 — by: Aiello, Goodrich & Teuscher

Charitable giving is on the rise. And the momentum is expected to continue, given the natural disasters and human tragedies that have happened in recent months.

Last year, charitable donations reached an all-time high of approximately $373.25 billion, according to Giving USA 2016: The Annual Report on Philanthropy for the Year 2015. This report is published jointly by the Giving USA Foundation, a public-service initiative of The Giving Institute and the Indiana University Lilly Family School of Philanthropy.

Besides fulfilling their philanthropic needs, donors may also benefit from charitable deductions on their personal tax returns. If you're considering donating to a new cause or a long-standing favorite one, remember that gift-giving may come in many different forms. Here are seven ways you can offer support:

 Read More

Sep 16, 2013 — by: Sara Tabor

Mount Shasta’s Tessa Montgomery is following in the footsteps of her father, Dorian Aiello. She recently completed her CPA exam and experience requirement and has received her certificate granting her the authority to practice as a Certified Public Accountant.

Tessa_dorian

 

She works at Aiello, Goodrich & Teuscher in Mount Shasta, an accountancy corporation of which her father is a founding partner.

 Read More

Aug 28, 2013 — by: Marina Rosso

Dear Client:Marina-rosso

As you know, the primary purpose of the Affordable Care Act (also called the Healthcare Act) was to expand access to affordable health coverage and to make sure that all Americans have at least minimum level health coverage. Central to this is the creation of new Insurance Exchanges, which are being referred to as the Health Insurance Marketplace (or the Marketplace). The Marketplace is intended to provide a competitive private health insurance market where individuals and employees of small businesses can shop for affordable coverage. Every state will have a Marketplace – some will be run by the state, others by the Federal government or a combination of the two. They are currently being set up and are supposed to be up and running by 10/1/13.

Open enrollment for health insurance coverage through the Marketplace begins 10/1/13 for coverage beginning 1/1/14. Individuals who don’t have insurance coverage after 2013 may be subject to a penalty.

 Read More

Aug 15, 2013 — by: Kim Kessler

Kim-kesslerOn July 11, 2013, Gov. Jerry Brown signed Senate Bill 90 and Assembly Bill 93, which scales back the enterprise zone program of hiring tax credits that had provided employers in locally designated areas large tax breaks for years. Now, sales tax exemptions will be available for manufacturing and biotech research companies and other tax credits negotiated on a case-by-case basis with the administration.

Upon signing of these bills, the TEA (Targeted Employment Area) has been eliminated. What this means for Siskiyou County employers is that it will be much more difficult to get new hires vouchered for Enterprise Zone Tax credits. In addition, effective December 31, 2013, the program will effectively cease and be replaced by a much more defined program.

What this means for local businesses: all employees hired prior to July 9th need to be vouchered before December 31, 2013. For employees hired after July 8th you need to qualify new hires under the other Eligibility Categories BEFORE they are hired. Employees hired in 2013 will continue generating credit for their first 60 months of employment. Taxpayers will still be eligible for a 10-year carryover period to use these credits.

 Read More

Jul 9, 2013 — by: Allen Brown

Dscf0134During my 20 years as an auditor with the California Board of Equalization, my colleagues and I noted that tax understatements were generally due to misunderstanding of Sales and Use Tax Laws and Regulations. A few of these misunderstandings were so pervasive that even some technicians answering taxpayers' inquiries were giving erroneous advice on a few issues. Let me try to clarify just a few of these misconceptions… 

MYTH #1:        Transportation charges are always exempt from Sales Tax 

This is false. Certain conditions must be present to make these charges exempt. Generally, to be an exempt freight charge the following three conditions must be met: 

 Read More

Jul 2, 2013 — by: Logan Castle

How the Supreme Court Repeal of DOMA Will Affect Same-Sex CouplesLogan-castle

On June 26, 2013, the Supreme Court ruled a portion of the Defense of Marriage Act (DOMA) unconstitutional.  That section of DOMA defined marriage as a union between one man and one woman, meaning the Federal government did not recognize same-sex marriages.

After the repeal, same-sex marriages that are legally recognized by their individual states will now be recognized at the Federal level as well.  These couples will now be eligible to receive numerous federal protections that are offered to spouses in opposite-sex marriages, such as Social Security and pension benefits for spouses, family health insurance coverage, hospital visitation rights, and tax-free inheritance. 

 Read More

Jun 4, 2013 — by: Dorian Aiello

Dorian_1aNow that tax season is behind us, it is a good time to review the changes that will become effective for 2013.   Here is a recap of the most substantive changes effecting tax year 2013: 

  1. Payroll tax reductions expired on December 31, 2012. Congress did not renew the 2% reduction of the employee share of the Social Security Tax. This will make the paychecks a little less than the past two years. Self-employed individuals will pay in a little more as well due to the tax break lapse.
  2. Medicare surtax on high-income earners. A .9% tax increase will apply to earned income on amounts for married couples that exceed $250K/year and for singles and heads of household earning more than $200K/year. This additional tax only applies to the employee's share of the Medicare tax and Employers will need to withhold the surtax when year to date wages exceed $200K.
  3. A new 3.8% Medicare surtax on net investment income kick in this year as well. This provision was part of the 2010 Health care reform package with implementation to begin in 2013. This surtax affects married couples and singles with adjusted gross incomes that exceed $250K and $200K respectively. It is assessed on the smaller of the taxpayer's net investment income or the amount that exceeds the AGI threshold. Investment income includes interest, dividends, capital gains, rents and royalties. Excluded from the basket are retirement proceeds and tax free interest.
  4. Capital gains and Dividend rates rise to 20% for high income taxpayers. The Bush tax cuts will now be a little less for single filers with taxable income over $400K and married filers with taxable income over $450K. This would make the capital gain rate a maximum of 23.8% (including the Medicare surtax) for high income filers. The 15%/0% rates would still be in effect for taxpayers in with taxable income below these thresholds.
  5. The threshold limit for deducting medical expenses jumps to 10% of AGI for all taxpayers under 65. If any spouse is 65 or older the form 7.5% cap is still in effect.
  6. Retirement contribution limits have increased. The maximum contribution to a 401(k) has increased to $17,500, SIMPLE plans, $12,000, IRAs & Roth IRAs, $5,500, all a $500 increase over 2012.
  7. Standard mileage allowance for 2013 is 56.5 cents/mile for business driving and 24 cents/mile for medical related travel
  8. The 50% bonus depreciation for new equipment purchased in 2013 stays in place as well as the ability to expense up to $500K of business assets acquired in 2013 (IRC 179)
  9. The estate and gift tax exemption for 2013 increases to $5,250,000 for 2013. The annual gift tax exclusion rises to $14,000 per donee.
  10. The basic Medicare Part B premium increases to $104.90 per month in 2013. Remember that premiums are higher for upper-income seniors that exceed $170K AGI for couples and $85K limits for singles. 

We expect more changes to come. It should be a busy year as Congress debate health care reform and overhauling the tax code……….As usual, stay tuned……….

 

 Read More

May 24, 2013 — by: Tessa Montgomery

Dscn3252As a young professional, planning for retirement is often times an afterthought. Putting away for anything can be a hard task to pull off, especially when the benefit won’t be realized for 30+ years. I suffer from the adult version of “it’ll never happen to me.” In high school, it’s more of the feeling of invincibility; whether it’s driving too fast or other acts of risky behavior where I never considered that I would be put in a compromising situation. As I’ve grown up and had children of my own, I now realize this naivety but a similar scenario is happening in my adult life. Why start saving for retirement now? I have plenty of time, right? Wrong.

The value of social security benefits at retirement is a challenging issue. Our generation, and generations to follow, is faced with planning for retirement on our own and not relying on social security benefits as a source of income as our baby boomer parents can. One very easy and effective approach to saving for retirement is through a 401(k). I am lucky enough to have an employer that offers a plan and matches my contribution. I determine how much I want to contribute, they match that amount and it automatically comes out of my paycheck so I’m not consciously putting money aside, which makes the accumulation process painless.

For those of you without the 401(k) as an option (whether self-employed or such benefits aren’t offered through your employer), there is still a way for you to plan for retirement.  An easy way of doing so is through an Individual Retirement Account (IRA). The IRA allows the taxpayer to contribute $5,500 per year ($6,500 if age 50 or over).

 Read More