There are about 3 weeks left for certain businesses and indiviudals to complete tax filings. The filing of S-Corporation tax returns and Partnership tax returns that are on extension are due on September 15th. Also, if you are an individual taxpayer that needs to make quarterly tax payments, the 3rd quarter due date is September 15th. Please contact our office if you need assistance in planning out how much you owe for your 3rd quarter estimated payments.
You got the kids out of the house finally, now what kind of tax credits are available to you?
Summer is coming to an end, and that means it is time to go back to school for kids of all ages. Education can come at a pretty large cost. The IRS has a few deductions and credits available to taxpayers that pay tuition to try and help offset costs. There is even a dedcution for all of you teachers out there. Click below to read more. All tax laws from the time of the blog still apply to this tax year.
As many of you know, the tax industry has been the main target of identity theft over the past few years. It is important that we all take precautions and safety measures to protect personal information. If a hacker obtains even the slightest information from you, they are able to turn it into someting more dangerous. Your cell phone travels with you everywhere, and there might be some important information on there. Use these steps to make sure you are not making your data available to somebody else.
1) Pick the correct network
2) Pick a secure network
3) Ask for permission to connect
4) Subscribe to Hotspots
5) Use Hotspot 2.0
6) Be your own Hotspot
7) Use a Virtual Private Network (VPN)
8) Avoid using personal data in Hotspots
9) Avoid using your passwords
10) Disable sharing features
11) Use HTTPS and SSL when inputing website domains
12) Take your Hotspot with you
13) Keep your Operating System (OS) and Apps updated
14) Use a Firewall if possible
Our Client Appreciation Contest now runs throughout the entire year. Each month we will draw a winner for gift cards and other great prizes, like the sweet new backpack pictured. Are you entered in the contest? Every referral that you send our way gets you 5 entries. You can also earn entries by giving us a review on Google, Yelp, or Facebook...that sounds pretty easy! Other ways to enter include: donating to MDA, taping a video testimonial, and more!
On Wednesday, August 23rd, one of the largest Powerball jackpots ever was won. Mavis Wanczyk, of Massachusetts, had the lucky winning ticket. The total jackpot was listed at $758.7 million.
Lottery winners have two options to receive their winnings. They can choose the one time lump sum payout, or they can receive it in 30 payments over a 29 year period. Mavis chose the lump sum payment. In this case, the lump sum came out to be $480.5 million. The lottery automatically deducts 25% of that for federal taxes and Massachusetts took 5% in their own right. However, Mavis will owe even more tax than that when she files her 2017 income tax return. The State of Massachusetts has a flat income tax rate of 5.1%, so she should be fine with what was already withheld. The federal income will be taxed at the highest rate of 39.6%. When it is all said and done, Mavis will pocket a net amount of approximately $265 million.
For comparison, the annuity payment over 30 years would result in a net take home of approximately $419 million. However, who knows what tax rates will be in 30 years, let alone next year! You also have the ability to invest more now if you take the lump sum.
The Powerball drawing has reset to a measely $40 million jackpot. Make sure you have our number on speed dial when you select the lucky numbers!
Is there a certain tax or financial topic you would like to see in next month's newsletter? Let us know!!
Hammernik & Associates
2448 S. 102nd Street #130
West Allis, WI 53227