Important Tax FAQ (April 2010)
On March 18, 2010, President Obama signed into law The Hiring Incentives to Restore Employment Act (HIRE) also know as the Jobs Bill. This Act is a plan to create jobs by providing a temporary tax break to companies that hire the unemployed.
Critical Things You Should Know:
- The HIRE Act will exempt an employer from paying the employer portion of Social Security taxes for the remainder of the year on new hires who were previously unemployed. A qualified employee is one who meets the following requirements:
- Begins employment with a qualified employer after February 3, 2010, but before January 1, 2011.
- Has not been employed for more than 40 hours total during the previous 60 days. The individual must sign an affidavit attesting to the employer that this is true (click here for form W-11).
- Is not hired to replace another employee unless the previous employee was separated from employment voluntarily or for cause.
- Is not a family member of the business owner.
- The 6.2% employer portion of the Social Security tax would be exempt for any qualified individual hired after February 3, 2010 and before January 1, 2011, for wages paid in 2010 up to the $106,800 Social Security wage base. Qualified employers may begin claiming this tax credit on the second quarter 2010 Form 941.
- A business tax credit can be claimed by the employer for each qualified individual who stays with the employer for 52 weeks. The credit is the lesser of $1,000 or 6.2% of the wages paid to the retained worker during the 52-week retention period. Wages paid during the second 26-week period must equal at least 80% of wages paid during the first 26-week period.
Important Tax FAQ (December 2009)
Q: What is the 2010 standard mileage rate?
A: The standard mileage rate for 2010 is $.50 per mile.
Important Tax FAQ (December 2009)
Q: When will the state of Ohio tax booklets be out?
A: Typically, tax booklets are sent the first week of January. HOWEVER due to the state of Ohio's budget problem the 2009 booklets probably will not arrive until February 1, 2010. No need to be worried if Corwin & Jenkins prepares your tax returns. Send us your information as soon as possible because you do not need the booklet.
Important Tax FAQ
Q: Is my military pension taxable?
A: It is taxable for Federal purposes, however, starting in 2008, Ohio will exempt military pensions from taxation. Governor Strickland signed this into law on December 20, 2007. Any 1099-Rs received from Defense Finance Accounting Services (DFAS) or US Military Retirement Pay will be subtracted from income on the Ohio tax return.
Important Tax FAQ
Q: Are my unemployment benefits taxable?
A: Anyone receiving unemployment benefits during 2009 can exclude the first $2,400 of these benefits from income on his/her 2009 federal income tax return. For married couples who both collect unemployment in 2009, both spouses can exclude their own $2,400 of benefits.