SALES TAX (판매세)는 주정부에서 최종 소비자에게 부과하는 세금으로 사실은 판매자가 내는 세금이 아니고 소비자가 낸세금을 판매자가 일정기간 모아서 해당하는 주정부에 납부해는 세금입니다. 상품 이나 SERVICE 판매에 대한 세법이 주정부마다 업종별로 그리고 상품별로 매우 다르기 때문에 세심한 주의를해야하고 상황에 따라 각 주정부에 문의하고 확인하는 것이 바람직합니다.  특희 상품별 SALES TAX 부과 여부는 주정부 마다 매우다릅니다. NJ STATE 의 경우 대부분의 상품이 판매세 과세대상이 되지만 SERVICE, GROCERY, CLOTHING(의복류) 등이 예외조항에 해당되어 면세됩니다.각주가 부과하는 Sales Tax는 타주판매 시 적용되지 않습니다. 한편 애초에 주 Sales Tax가 없는 곳도 있고, Sales Tax가 아닌 Use Tax라 하여 타주로부터 물건을 구입한 경우에도 Sales Tax와 비슷한 비율의 세금을 납부하여야 하기도 합니다.  온라인판매라 하여 Sales Tax가 발생하지 않는 것은 아니고, 타주 간 매매의 경우이어야 Sales Tax가 면제됩니다. 각주에 Processing Center를 두고 있는 Amazon을 통한 판매시 대부분 Sales Tax가 발생합니다. 배송센터에서 소비자에게의 판매가 주내 거래로 처리되기 때문입니다.

Sales tax 에 대한 중요한 질의문답 을 예를 들어봅니다.

질문: 뉴저지에서 일반 상품을 (Taxable item) 팔고있는 회사 이고 일반 손님에게 sales tax 를 받아 주정부에 납부하고 있읍니다.뉴욕에서 사는사람이 와서  구매한 경우 sales tax 를 받아야 하는지요?

답:  각주가 부과하는 Sales Tax는 타주판매 시 적용되지 않습니다. 그러나 손님이 직접와서 구매하고 가저가는 경우 sales tax 를 받아야 합니다. 타주에 상품을 팔았다는 증거가 없기 때문이지요.  그러나 손님이 살고있는 다른 주에 UPS 와 같은  회사를이용하여 물건을 보내줄 경우 sales tax 를 받지않아도 됩니다.  타주에 online 을 이용하여 판매한경우 일반적으로 sales tax 를 받을 의무가 없지만 online marketing 을 전문적으로 하고있는 회사를 통하여 판매한 경우 달라 질수 있읍니다.  타주에 있는 회사가 New Jersey에 있는 사람에게 판매한경우 같은 원칙을 적용 하지만 Sales tax nexus in NJ 경우 sales tax를 받아야 할 경우도있읍니다. 그러한 경우 타주에있는 회사는 NJ 주정부에 영업 허가신청을 하고 받은 세금을 NJ 정부에 납부해야합니다.

Do you have sales tax nexus in New Jersey?

Good news! You only have to begin thinking about New Jersey sales tax if you have sales tax nexus in New Jersey.

“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.

New Jersey considers a seller to have sales tax nexus in the state if you have any of the following in the state:

• An office or place of business
• An employee present in the state
• Goods in a warehouse
• Ownership of real or personal property
• Delivery of merchandise in New Jersey
• Independent contractors or other representatives in New Jersey
• Provide any maintenance program in New Jersey

질문:NJ 에서 여러가지 상품을 도매 와 소매를 동시에 합니다.  Sales tax 어떻게 받아야 하는지?

답: Sales tax는 최종 소비자가 내는 세금이기 때문에 whole sale 에대한 매상은 따로 기록 해야합니다. Retail 에 관한 매상은 역시 taxable,  nontaxable 매상을 따로 분리 기록 해야 합니다. Sales tax 대상 상품은 주별로 매우다르며 상품의 종류가 너무많고 복잡하여 주정부에 확인 해야합니다.

Is what you’re selling even taxable?

Services in New Jersey are generally not taxable. So if you’re an attorney or a hairdresser, you’re in luck and you don’t have to worry about sales tax. But watch out – if the service you provide gives any access to information like stock quotes or marketing trends, that information service is not sales tax exempt.

Tangible products are taxable in New Jersey , with a few exceptions. These exceptions include clothes, groceries, and prescription drugs.

So if you sell jewelry, then charge sales tax to your New Jersey customers.

But if you’re a landscaper, don’t charge sales tax to your New Jersey customers.

If you have sales tax nexus in New Jersey and your products are taxable, your next step is to register for a sales tax permit.

세금 보고시 준비할 사항

미국에 거주하는 대부분의 사람은 일 년에 한 번씩 일 년동안 얻은 소득에 대하여 소득세를 정산하여 보고할 의무가 있다.  소득세를 잘 보고하기 위하여 소득세 대상이 되는 소득이 무엇인지, 소득세 계산은 어떤 절차로 이루어지는 지 이해하는 것이 절세를 위하여 매우 중요하다.

미국에서의 납세소득은 일 년동안 벌어들인 모든 소득을 다 합산하여 보고해야 하고, 소득의 형태는 현금이든 수표이든 혹은 현물까지 포함하여야 한다.  대부분의 수입들은 돈을 지불한 회사나 개인들에 의하여 일 년동안의 금액이 합산되어 여러가지 Form 으로 IRS 와 본인들에게 발송된다.  개인들은 자신들의 수입내력에 대한  W-2 나 1099 Form 과 같은 각종 statement 를 모아서, 종합소득세 형태로 연방정부와 수입이 발생한 각 주, 그리고 거주하고 있는 주에 보고한다.

소득세보고는 매우 복잡한 방정식이라 할 수 있지만 단순하게 분류하면 다음과 같이 5단계로 나누어 설명할 수 있다.

1단계:  개인 정보 및 가족사항  기록
개인 소득세 보고를 위하여 첫 번째 단계로1040 FORM에  개인 및 가족들의 이름 , SSN,
생년월일, 주소. 등 을 기재해야한다.

2단계:  일 년동안 벌어들인 각종 소득 기록
     일년동안  생긴 모든 소득을  수집, 기록하는 과정에서  누락되는 수입이 생길 시,
국세청 에  보고되어 있는  자료와  차이가  나는 경우  감사를  받을  수 있으며 ,추가 세금
및  벌금과  이자를  내야 한다.  의도적인 탈세의 경우 형사적인 책임를 질 수도있으며,
의도적인  탈세는  소멸시효  3년도 적용 받지 못하는  것이 미국 세법과  한국 세법의
다른  점이다.   과세소득을 크게 분류 하면 다음과 같다.

• W-2, 1099 Form 에 나타나는 월급, 급료 및 팁수입
• 은행이나 개인들로부터 받은 이자수입
• 회사들로부터 받은 배당수입
• 주정부에서 받은 환급세금
• 위자료 수입
• 개인사업에서 벌어들인 순소득
• 주식이나 부동산 처분에 의한 양도소득
• 은퇴자금에서 받은 수입
• 부동산등에서 받은 임대수입
• 실업수당
• 기타 수입: 은행에서 탕감받은 융자금, 복권 당첨금, Gamble 에 의한 수입등..

• 과세소득에서 주의할 사항:
  상속받은 수입은 과세소득에 포함되지 않는다. 미국에서는 상속세의 경우 부모가 내는 것이기 때문이고, 타인으로부터 받은 선물도 과세소득에 포함되지 않는다. 선물 (GIFT) 로 받은 수입, 상해로 받은 보상금, 사망에 의한 생명 보험금 등도 과세소득에 포함되지 않는다. 본인이 살고 있던 집을 팔았을 경우 부동산 처분에 의한 양도 소득이 최대 $500,000 까지 과세소득에 포함되지 않는다.

3단계:   수정 소득계산(Adjusted Gross Income)
        2단계에서 계산된 총소득에서 몇 가지 수정항목을 차감하여  수정소득을  계산한다.
예를 들어 흔히 나타나는 항목은 개인 은퇴구좌에 적립한 허용된 금액, 이혼한 배우자에게
지불한 위자료, 직업을 찾기위해 지출한 이사비용, 개인사업자가 지불한 건강보험료등이다.

4단계:  소득세 계산
수정된 총수입에서  2가지 공제 즉, 기초공제와 인적공제를 하면 과세소득액이 산출된다.
기초공제는  Filing  Status 에 따라 금액이 다르며, 2015 년도 기준, 부부가 공동으로 보고하는
경우 기초공제액이 $12,600 이다.    인적공제는 2015년도 일인당 $4,000 이다.
기초공제액대신 선택적으로 다른 방법을 사용할 수도 있다.
특히 집에 대한  은행이자(Mortgage)나 부동산세(Real estate tax)를 냈을 때에는 ,
기타 공제가능한 금액들을 합산하여 기초공제액보다 많은 경우 이를 선택하는데 ,
Schedule A 를 사용하여 공제할 수 있는 비용들은 다음과 같다.

• 수정소득(Adjusted Income) 의 10% 를 초과한 의료비
• 주 정부에 납부한 세금
• 주택에 대한 부동산세(Real Estate Tax)
• 주택에 대한 이자(Mortgage)
• 교회, Salvation, 공익단체에 낸 헌금(물품Donation 현금가 포함)
• 직업상 발생한 여러가지 경비
• 기타 경비

 5단계:  세금 계산
세금 계산은 매우 복잡하고 중요하다.
수정소득에서 기초공제와 인적공제를 하면 과세소득액이 산정된다.
이 과세소득액에 과세율을 곱하여 결정되며, 과세율은 소득금액의 크기에 따라
10%, 15%, 25%, 28%, 33%, 35% 로  단계적으로 적용된다.

* 개인 세금 계산에 소득세외에 사회보장세가 추가되는데,
소득세가 각종 공제액을 뺀 과세소득액에 의해 세금이 산정되는 것과 달리
사회보장세는 급료나 개인사업에서 발생한 수입등 근로소득에 추가적으로 부과되는
세금으로, 2015년 기준, 수입이 $118,500 까지는 15.3% 가 적용되고 추가되는 금액에 대하여
2.9% 가 적용된다.

* 개인세금 보고시 가장 중요한 사항은  Tax Credit 이라 할 수 있다.
Tax Credit 은 서민들의 세금부담을 덜어주기 위한 정부보조금이라 할 수 있는데,
그 종류와 금액이 역시 수입에 따라 매년 다르고 복잡하여 유심히 살피지 않으면 혜택을 보지 못하는 경우가 많다.   대부분의  TAX CREDIT 은 소득 수준과 가족의 수,  상황에 따라 금액이 달라지며 각종 TAX CREDIT의 최대 금액을 정리해보면 다음과 같다.

.

   미국기업이 보고할 세금의 종류

미국에서 회사가 내야할 세금이 여러가지이고 또한 연방정부와 주정부에 따로 보고를 해야 하기 때문에 조금은 복잡해 보이지만  크게 나누어 분류해보면  1.소득세(Income Tax)  2.고용관련세(Payroll Tax)  3.판매세(Sales Tax)  4.기타(수입관세 등)로 나누어 볼수있다

1. 소득세(Incom Tax):

회사가 내야하는 소득세는 회사의 형태에 따라 다르며, 주식회사( Corporation) 의 경우 일년 혹은 회계년도 동안 발생한 연소득에 대한 세금을 연방정부와 주정부에 납부하여야한다.  연방정부에 내는 소득세는 처음 연소득 $50,000 까지는 15%를 내지만 그 이상의 소득에 대하여 누진세를 적용하여 세금 계산을 하며 세율은 아래 도푶와 같다.

주정부는 주마다 다른 세율을 적용하지만 역시 대부분의 주에서 누진세를 적용하며 뉴저지의 경우  최고 9% 까지 세금을 내야한다.

주식회사(Corp) 의 소득세를 피하는 방법으로 회사의 형태를  S-Corp 나 LLC 를 선택 할 수있지만 여러가지 장점과 단점을 고려하여 세무전문가와 상의하여 결정하는것이 매우 중요하다.  소득세는 회사의 총수입에서  모든비용을 공제한 순수입에 대한 세금을 계산하여 내기 때문에 순 소득이 아주 작거나 손실로 나타나는경우가 많아  주식회사의 유일한 단점인 이중과세의 문제를 피할수 있기 때문에 C-CORP 을 사용 하는 것이 유리하며 회사의 규모가 너무 커지거나 양도 소득세가 발생할 수 있는경우 S-Corp 나 LLC의 회사형태를 선택 하는 것이 바람직 하다.

S-Corp 나 LLC 의 회사형태를 선택하는 경우, 회사의 소득이나 손실이 회사의 주주들이나 member들 에게로 넘어가기 때문에 회사는 소득세를 내지않고 주주들이나  member들의 개인소득에 추가되어 개인소득세를 내게된다.

 2. 고용에 관한 세금(Payroll Tax):

회사에서 직원 (임원 및 사장포함) 에게 임을 지불 할때 원천 징수한 직원의 세금과 회사에서 부담 해야할 세금을 기간별로 계산하여 연방정부와 주정부에 납부하고 분기열로 결산 보고한다.  회사가 직원을 위하여 부담해야 할 세금은 직원의 사회 보장세(FICA Tax)의 절반인 7.65% 와  실업 보험금이 있으며 대략 전체 금료의 10% 정도 이다.  회사는 1월 1일부터 12월 31일 까지 직원들의 임금 지급과  세금지급 내력을 정리하여 다음해 1월 31일까지 W-2 form 을 작성하여  해당 직원에 주어야 한다.

회사가 직원들의 임금을 지불 내력서 로서 발행하는 form으로 W-2 form 과 1099 form 이 있다.   1099 form은 회사가 정규 직원이 아닌 독립적 계약직 사람들에게 돈을 지급하였을 때 발행하는 form이다.  회사가  외부인에게 일을 시키고 돈을 지불하고 1099 form을 발행할 경우 세금을 원천징수를 하지 않으며 FICA Tax 나 실업 보험을 내지 않는다.   예를들어 회사의 판매원이 회사에 출퇴근 시간이 정해지지 않고 판매한 금액의 일정 부분을 받는 것으로 계약이 되었다면,  회사에서 1099 form을 발행 할수 있다.   w-2 form 과  1099 form 을 발행하는 규정은 엄격하게 구분되어 있으며 IRS 에서 Payroll Tax를 회피하는 방법으로 1099 form 을 사용하는 회사를 수시로 감사하고있다.

세금은 아니지만 매우 중요한 비용은 상해보험과 의료보험이 있다. 상해보험(Worker’s Compensation Insurance)은 직원이 근무중이나 업무를 수행하기위하여 부상을 당한 경우 보상을위한 보험이며 주정부에서 법으로 강행하고 있다.  위반시 벌금이 심각한 금액이어서 반드시 들어야하며 보험이없는 상태에서 문제가 생길 경우 법정에서 매우불리한 상태에서 손해배상 판결을 받게된다.  의료보험은 직원이 50 인 이상일 경우 의무적으로 들어야 하며 역시 보험전문가 와 상의 하는것이 바람직하다.

 3. 판매세(Sales Tax):

판매세(Sales  Tax)는 한국에서의 부가가치세와 비슷한 세금으로서,  소비자들이 상품(서비스상품 포함)을 구입할 때 내는 소비세이다.  Sales Tax 는 최종 소비자가 내는 세금이기 때문에  회사가 최종소비자에게 상품을 판매했을 경우 받은 세금을 대신 보관한 후 주정부에 납부하는 것이다.   판매세가 주정부에서 부과하는 세금과 지방자치 정부에서 부과하는세금으로 구성 되어 있기 때문에 주정부 마다 그리고 지방 정부 마다 세율이 다르다.   예를들면 같은 뉴욕주에있지만 뉴욕시의 판매세는 8.625%  이고 뉴욕시가 아닌 다른 지역은 지역마다 조금씩 다른 세율을 적용 한다.   상품별로도 판매세의 과세대상이 되고 안되고가 주마다 다르지만  일반적으로 가공되지않은 음식과 같은 기본적 생필품이 면세인 경우가 많다.  판매세 과세대상에 대하여 상품의 종류가 너무많아 전문가의 도움이 반듯이 필요하다.

회사의 입장에서 보면, 판매세는 소비자가 내는 세금을 회사가 신탁인으로써 주정부에 납부하는 역활을 하는것이지 회사가 내는 세금은 아니다.  상품이 판매세에 적용이 되는경우 소비자로 부터 세금을 받아야할 의무가 회사에 있으며  회사는 월별 혹은 분기 별로 Sales Tax 를 주정부에 보고하고 납부 해야한다.

 4. 기타 세금:

기타세금으로 수입관세나  부동산세가 있다.  수입관세는 수입하는 상품의 종류에 따라 다르며 전문 관세사의 도움을 받아야한다.  부동산세는 회사가 부동산을 소유할때 발생하는 세금이지만 사무실이나 빌딩을 리스할 때는 리스 계약상 부동산세를 부담하는 경우도있다.

세금보고 및 납부의무 위반의 경우,  벌금이 과중하기 때문에 전문가의 도움이 매우 중요하다.  세무조사나 감사에 의하여 세금을 추징당할 경우대부분의 경우 어떠한 방법으로든 세금을 내면 되지만 의도적인 탈세로 인정된 경우 형사로 처벌을 받을 수있으며 의도적 탈세의 경우  소멸시효가없어지기  때문에 매우 조심하여야 한다.

The Basics

1. What is the premium tax credit?

The premium tax credit is an advanceable, refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace, also known as the Exchange, beginning in 2014. You can choose to have the credit paid in advance to your insurance company to lower what you pay for your monthly premiums, or you can claim all of the credit when you file your tax return for the year. If you choose to have the credit paid in advance, you will reconcile the amount paid in advance with the actual credit you compute when you file your tax return.

2. What is the Health Insurance Marketplace?

The Health Insurance Marketplace, also known as the Exchange, is the place where you will find information about private health insurance options, purchase health insurance, and obtain help with premiums and out-of-pocket costs if you are eligible. Open enrollment to purchase health insurance for 2014 through the Marketplace begins Oct. 1, 2013, and continues through March 31, 2014. The Department of Health and Human Services (HHS) administers the requirements for the Marketplace and the health plans offered. Learn more about the Marketplace at HealthCare.gov.

3. How do I get the premium tax credit?

When you apply for coverage in the Marketplace, the Marketplace will estimate the amount of the premium tax credit that you may be able to claim for the tax year, using information you provide about your family composition and projected household income. Based upon that estimate, you can decide if you want to have all, some, or none of your estimated credit paid in advance directly to your insurance company to be applied to your monthly premiums. If you choose to have all or some of your credit paid in advance, you will be required to reconcile on your income tax return the amount of advance payments that the government sent on your behalf with the premium tax credit that you may claim based on your actual household income and family size.

If you do not opt for advance credit payments, you may claim the credit when you file your tax return for the year, which will either lower the amount of taxes owed on that return or increase your refund.

4. What happens if my income or family size changes during the year?   The actual premium tax credit for the year will differ from the advance credit amount estimated by the Marketplace if your family size and household income as estimated at the time of enrollment are different from the family size and household income you report on your return. The more your family size or household income differs from the Marketplace estimates used to compute your advance credit payments, the more significant the difference will be between your advance credit payments and your actual credit. If your actual allowable credit on your return is less than your advance credit payments, the difference, subject to certain caps, will be subtracted from your refund or added to your balance due. If your actual allowable credit is more than your advance credit payments, the difference will be added to your refund or subtracted from your balance due.

Notifying the Marketplace about changes in circumstances will allow the Marketplace to update the information used to determine your expected amount of the premium tax credit and adjust your advance payment amount. This adjustment will decrease the likelihood of a significant difference between your advance credit payments and your actual premium tax credit. Changes in circumstances that can affect the amount of your actual premium tax credit include:

• Increases or decreases in your household  income.
• Marriage.
• Divorce.
• Birth or adoption of a child.
• Other changes to your household composition.
• Gaining or losing eligibility for government sponsored or employer sponsored health care coverage.

Eligibility

5. Who is eligible for the premium tax credit?

You are eligible for the premium tax credit if you meet all of the following requirements:

• Purchase coverage through the Marketplace.
• Have household income that falls within a certain range (see question 6).
• Are not able to get affordable coverage through an eligible employer plan that provides minimum value (see questions 8 and 9).
• Are not eligible for coverage through a government program, like Medicaid, Medicare, CHIP or TRICARE.
• File a joint return, if married.
• Cannot be claimed as a dependent by another person.

6. What are the income limits?

In general, individuals and families whose household income for the year is between 100 percent and 400 percent of the federal poverty line for their family size may be eligible for the premium tax credit. An individual who meets these income requirements must also meet the other eligibility criteria described in question 5. Thus, if you have household income between 100 percent and 400 percent of the federal poverty line, but are eligible for coverage through your state’s Medicaid program (for example, because your state provides Medicaid to individuals with household income up to 133 percent of the federal poverty line), you are not eligible for the premium tax credit.

For 2013, for residents of one of the 48 contiguous states or Washington, D.C., the following illustrates when household income would be between 100 percent and 400 percent of the federal poverty line:

• $11,490 (100%) up to $45,960 (400%) for one individual.
• $15,510 (100%) up to $62,040 (400%) for a family of two.
• $23,550 (100%) up to $94,200 (400%) for a family of four.

Note: The federal poverty guidelines — sometimes referred to as the “federal poverty line” or FPL — state an income amount considered poverty level for the year, adjusted for family size. HHS determines the federal poverty guideline amounts annually. The government adjusts the income limits annually for inflation. The Federal Register publishes a chart reflecting these amounts at the beginning of each calendar year. You can also find this information on the HHS website. HHS provides three federal poverty guidelines: one for residents of the 48 contiguous states and D.C., one for Alaska residents and one for Hawaii residents. For purposes of the premium tax credit, eligibility for a certain year is based on the most recently published set of poverty guidelines at the time of the first day of the annual open enrollment period. As a result, the tax credit for 2014 will be based on the 2013 guidelines.

7. What is household income? For purposes of the premium tax credit, your household income is your modified adjusted gross income plus that of every other individual in your family for whom you can properly claim a personal exemption deduction and who is required to file a federal income tax return. Modified adjusted gross income is the adjusted gross income on your federal income tax return plus any excluded foreign income, nontaxable Social Security benefits (including tier 1 railroad retirement benefits), and tax-exempt interest received or accrued during the taxable year. It does not include Supplemental Security Income (SSI).

8. How do I know if the insurance offered by my employer is affordable?

An employer-sponsored plan is affordable if the portion of the annual premium you must pay for self-only coverage does not exceed 9.5 percent of your household income. (See question 7 for what is included in household income.) The affordability test applies only to the portion of the annual premiums for self-only coverage and does not include any additional cost for family coverage. If the employer offers multiple health coverage options, the affordability test applies to the lowest-cost option available to you that also satisfies the minimum value requirement. If your employer offers any wellness programs, the affordability test is based on the premium you would pay if you received the maximum discount for any tobacco cessation programs, and did not receive any other discounts based on wellness programs.

9. How do I know if the insurance offered by my employer provides minimum value?

An employer-sponsored plan provides minimum value if the plan covers at least 60 percent of the expected total allowed costs for covered services. Beginning in 2014, your employer will provide you with a document called a Summary of Benefits and Coverage. That document will give you information about the benefits and coverage under your employer-sponsored plan, including whether the plan provides minimum value. Also, under the Fair Labor Standards Act, most employers will provide employees with a notice about their options in the Marketplace and their potential eligibility for a premium tax credit. This one-time notice will include information about whether the employer has a plan that provides minimum value.

10. Am I eligible for the premium tax credit if I enroll in coverage through an employer?

If you enroll in an employer-sponsored plan, you are not eligible for the premium tax credit even if the plan is unaffordable or fails to provide minimum value.

Reporting and Claiming

11. Will I have to file a federal income tax return to get the premium tax credit?  

For any tax year, if you receive advance credit payments in any amount or if you plan to claim the premium tax credit, you must file a federal income tax return for that year. If you receive any advance credit payments, you will use your return to reconcile the difference between the advance credit payments made on your behalf and the actual amount of the credit that you may claim. This filing requirement applies whether or not you would otherwise be required to file a return. If you are married, you must file a joint return to be eligible for the premium tax credit.

12. If I get insurance through the Marketplace, how will I know what to report on my federal tax return?

The Marketplace will send you an information statement showing the amount of your premiums and advance credit payments by January 31 of the year following the year of coverage. For example, you will receive the 2014 information statement by Jan. 31, 2015, and can use this information to compute your premium tax credit on your 2014 tax return and to reconcile the advance credit payments made on your behalf with the amount of the actual premium tax credit.

13. How is the amount of the premium tax credit determined?

The law bases the size of your premium tax credit on a sliding scale. Those who have a lower income get a larger credit to help cover the cost of their insurance. In other words, the higher your income, the lower the amount of your credit.

Additionally, the premium tax credit is a refundable tax credit. This means that if the amount of the credit is more than the amount of your tax liability, you will receive the difference as a refund. If you owe no tax, you can get the full amount of the credit as a refund. However, if you receive advance payments of the credit, you will reconcile the advance payments with the amount of the actual premium tax credit that you calculate on your tax return. If your actual allowable credit on your return is less than your advance credit payments, the difference, subject to certain caps, will be subtracted from your refund or added to your balance due. If your actual allowable credit is more than your advance credit payments, the difference will be added to your refund or subtracted from your balance due. (See question 4 for information on changes in circumstances.)

외국에 있는 금융자산에 대하여 미국의 시민권자나 영주권자가 해외에 금융 자산을 가지고 있는 경우 미국 국세청에 두가지의 다른 보고서를 제출하여야 한다.   해외 금융자산을 보고하는 Form 8938 과 해외은행 구좌를 보고하는 Form TDF 90-22.1 이다.

Foreign Account Tax Compliance Act (FATCA)는 2010 년 3월 18일 발효 되었으며 이 규정에 의하면

1)        IRS 는 외국의 금융기관과 협약하여 해외 금융기관이 미국 시민권자나 영주권자의 구좌에 대한 예금주 이름, 주소, 잔고 및 거래내력을 IRS에 알려주게 만든다.

2)        IRS Code 6038D 로 제정되었으며 미국의 시민권자나 영주권자는 2010년 3월 18일 이후 해외구좌에 있는 돈,이나 주식등을 포함한 금융자산을 합산하여 $50,000 이 넘는 경우 Form 8938 을 이용하여 개인세금 보고시 같이 보고 하여야 한다.

Report of Foreign Bank and Financial Account (FBAR) 의 규정에 의하면

미국의 시민권자 나 영주권자 (법인 등 회사 포함) 는 해외구좌에 합산한 금액이 $10,000 을 넘을 경우Form TDF 90-22.1 을 이용하여 다음해 6월 30일 까지 보고하여야 한다.  FBAR 규정은 3/28/2011 을기준으로 발효되어 2010 년 부터 적용 되었다.

자세한 내용은 아래의 도표와 IRS 규정을 참조하시기 바랍니다.

Comparison of Form 8938 and FBAR Requirements

The new Form 8938 filing requirement does not replace or otherwise affect a taxpayer’s obligation to file Form TD F 90-22.1 (Report of Foreign Bank and Financial Accounts). Individuals must file each form for which they meet the relevant reporting threshold.

Report of Foreign Bank and Financial Accounts (FBAR)

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Internal Revenue Service by filing a Report of Foreign Bank and Financial Accounts (FBAR). See the ‘Who Must File an FBAR’ section below for additional criteria.

Current FBAR Guidance

FBAR final regulations

On February 24, 2011, the Treasury Department published final FBAR regulations. These regulations became effective March 28, 2011, and apply to FBARs required to be filed with respect to foreign financial accounts maintained at any time during calendar year 2010, and for FBARs required to be filed with respect to all subsequent calendar years. The FBAR form and instructions were revised to reflect the amendments made by the final regulations.

Filing deferral for certain individuals with signature authority only, effective through June 30, 2014

On May 31, 2011, the Financial Crimes Enforcement Network (FinCEN) issued FinCEN Notice 2011-1 (revised June 6, 2011), to provide an extension of time for certain individuals with signature authority over, but no financial interest in, foreign financial accounts of their employer or a closely related entity. The filing deadline to report signature authority over these accounts was extended to June 30, 2012, for the following individuals:

• An employee or officer of an entity under 31 CFR § 1010.350(f)(2)(i)-(v) who has signature or other authority over and no financial interest in a foreign financial account of a controlled person of the entity; or
• An employee or officer of a controlled person of an entity under 31 CFR § 1010.350(f)(2)(i)-(v) who has signature or other authority over and no financial interest in a foreign financial account of the entity, the controlled person, or another controlled person of the entity.

For purposes of FinCEN Notice 2011-1, a controlled person is a United States or foreign entity more than 50 percent owned (directly or indirectly) by an entity under 31 CFR § 1010.350(f)(2)(i)-(v).

On June 17, 2011, FinCEN issued Notice 2011-2 to provide an extension of time to file for certain officers or employees of investment advisors registered with the Securities and Exchange Commission who have signature authority over, but no financial interest in, foreign financial accounts of their employer. The filing deadline for employees and officers to report signature authority over these accounts was similarly extended to June 30, 2012.

Due to additional questions and concerns regarding the signature authority filing exceptions within Notice 2011-1 and Notice 2011-2, FinCEN twice extended the revised filing deadlines imposed by those two notices. On February 14, 2012, FinCEN issued FinCEN Notice 2012-1, extending the deadline to file to June 30, 2013, for those persons identified in Notice 2011-1 and Notice 2011-2. More recently, on December 26, 2012, FinCEN issued Notice 2012-2, further extending the due date for filing to June 30, 2014.

Who Must File an FBAR

United States persons are required to file an FBAR if:

1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.

United States person means U.S. citizens; U.S. residents; entities, including but not limited to, corporations, partnerships, or limited liability companies, created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.

Exceptions to the Reporting Requirement

Exceptions to the FBAR reporting requirements can be found in the FBAR instructions. There are filing exceptions for the following United States persons or foreign financial accounts:

1. Certain foreign financial accounts jointly owned by spouses;
2. United States persons included in a consolidated FBAR;
3. Correspondent/nostro accounts;
4. Foreign financial accounts owned by a governmental entity;
5. Foreign financial accounts owned by an international financial institution;
6. IRA owners and beneficiaries;
7. Participants in and beneficiaries of tax-qualified retirement plans;
8. Certain individuals with signature authority over but no financial interest in a foreign financial account;
9. Trust beneficiaries (but only if a U.S. person reports the account on an FBAR filed on behalf of the trust); and
10. Foreign financial accounts maintained on a United States military banking facility.

Review the FBAR instructions for more information on the reporting requirement and on the exceptions to the reporting requirement.

Reporting and Filing Information

A person who holds a foreign financial account may have a reporting obligation even though the account produces no taxable income. The reporting obligation is met by answering questions on a tax return about foreign accounts (for example, the questions about foreign accounts on Form 1040 Schedule B) and by filing an FBAR.

The FBAR is a calendar year report, which must be filed with the Department of Treasury on or before June 30 of the year following the calendar year reported. Generally, extensions of time to file an FBAR are not granted. The FBAR is not filed with a federal tax return. Any filing extensions of time granted by the IRS to file a tax return does not extend the time to file an FBAR.

A person required to file an FBAR who fails to properly file a complete and correct FBAR may be subject to a civil penalty not to exceed $10,000 per violation for violations that are not due to reasonable cause. For additional guidance when circumstances such as natural disasters prevent the timely filing of an FBAR, see FinCEN guidance, FIN-2013-G002 (June 24, 2013).

Effective July 1, 2013 – Electronic filing of FBARs is mandatory

E-filing is a quick and secure way for individuals to file FBARs. Filers will receive an acknowledgement of each submission. For more information about electronic filing, read the FinCEN news release . Help with electronic filing technical questions is available at BSAEfilinghelp@fincen.gov or through the BSA E-Filing Help Desk at 866-346-9478.

There are now procedures to allow the filing of an FBAR by a third party (such as a paid preparer or a spouse) on behalf of the person who has the obligation to file an FBAR. For information pertaining to authorizations for third parties to electronically file and sign FBARs on behalf of an obligated filer, see FinCEN FAQ, Understanding What BSA E-Filing is and What It Offers (June 2013).

U.S. Taxpayers Holding Foreign Financial Assets May Also Need to File Form 8938

Taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets, which is filed with an income tax return. The new Form 8938 filing requirement is in addition to the FBAR filing requirement. A chart providing a comparison of Form 8938 and FBAR requirements may be accessed on the IRS Foreign Account Tax Compliance Act Web page.

Offshore Voluntary Disclosure Program

On Jan 9, 2012, the IRS reopened the Offshore Voluntary Disclosure Program  following continued interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. This program offers people with unreported taxable income from offshore financial accounts or other foreign assets another opportunity to resolve their tax and information reporting obligations, including the FBAR. Although the program does not have a closing date, the IRS may end the program at a later time.

FBAR Assistance

Help in completing the FBAR is available Monday through Friday, 8 a.m. to 4:30 p.m. Eastern Time, at 866-270-0733 (toll-free inside the U.S.) or 313-234-6146 (not toll-free, for callers outside the U.S.). Questions regarding the FBAR can be sent to FBARquestions@irs.gov. Filers residing abroad may also contact U.S. embassies and consulates for assistance.

Help with electronic filing technical questions is available at BSAEFilingHelp@fincen.gov or through the BSA E-Filing Help Desk at 866-346-9478

Rate the Small Business and Self-Employed Website

FATCA has three main provisions:

1. It requires foreign financial institutions, such as banks, to enter into an agreement with the IRS to identify their U.S. account holders and to disclose the account holders’ names, TINs, addresses, and the accounts’ balances, receipts, and withdrawals.^[12] U.S. payors making payments to non-compliant foreign financial institutions are required to withhold 30% of the gross payments.^[13][14][15] Foreign financial institutions which are themselves the beneficial owners of such payments are not permitted a credit or refund on withheld taxes absent a treaty override.^[16]
2. U.S. persons owning these foreign accounts or other specified financial assets must report them on a new Form 8938 which is filed with the person’s U.S. tax returns if they are generally worth more than US$50,000;^[17] a higher reporting threshold applies to overseas residents and others.^[18][19] Account holders would be subject to a 40% penalty on understatements of income in an undisclosed foreign financial asset.^[14][20] Understatements of greater than 25% of gross income are subject to an extended statute of limitations period of 6 years.^[21] It also requires taxpayers to report financial assets that are not held in a custodial account, i.e. physical stock or bond certificates.^[22]
3. It closes a tax loophole that foreign investors had used to avoid paying taxes on U.S. dividends by converting them into “dividend equivalents” through the use of swap contracts.^[23][24]

These reporting requirements are in addition to reporting of foreign financial accounts to the U.S. Treasury;^[25] this most notably includes Form TD F 90-22.1 “Report of Foreign Bank and Financial Accounts” (FBAR) for foreign financial accounts exceeding US$10,000 required under Bank Secrecy Act regulations issued by the Financial Crimes Enforcement Network (FinCEN).^[26]

사업상의 비용을 인정받기 위하여 보편적으로 그 비용에 대한 기록과 그 기록을 설명할 수 있는 증빙서류(예: 영수증) 를 보관하여야 한다.

세무감사를 위하여 필요한 서류는 크게 두가지로 나누면 회사의 수입과 지출에 관한 회계기록 과 그 기록을 증명할 수 있는 증빙서류이다.

증빙서류를 분실하였거나 없을 때 세금보고를 어떻게 해야 합니까?  라고 질문하는 경우가 무척 많은 것이 현실이다.

세금보고 당시 증빙서류가 없다는 이유로 부당하게 세금을 내서는 안될 것이다.   증빙서류가 필요한 것은 사실 감사를 받을 때 제시하려 하는 것이므로, 회계사와 상의하여 일단 세금보고를 함으로써 불필요한 벌금을 내지 않도록 해야 할 것이다.

세무감사를  대비하여 사후에라도 증빙서류를 만들어 놓는 것이 바람직하다.   이런 복잡함을 피하기 위해서는 비용을 지불할 때 현금이 아닌 회사 Check 를 사용하여 Check Copy 를 보관하는 것이 매우  바람직하다.

check copy 는 비용이 실질적으로 지출되었다는 믿을만한 기록이지만 항상 회사에연관된 비용이라고는 할 수 없기때문에 영수증과 같은 증빙서류도 보관하여야 한다.

Generally, you cannot deduct amounts that you approximate or estimate. You should keep proper records to prove your expenses or have sufficient evidence that will support your own statement. You must generally prepare a written record for it to be considered Proper. This is because written evidence is more reliable than oral evidence alone. However, if you prepare a record on a computer, it is considered a proper record.

What Are Proper Records?  You should keep the proof you need in a log, account book, diary, statement of expense, or similar record. You should also keep documentary evidence that, together with your record, will support each element of an expense.You generally must have documentary evidence, such as receipts, canceled checks, or bills, to support your expenses.

         Exception.   Documentary evidence is not needed if any of the following conditions apply.

·     You have meals or lodging expenses while traveling away from home for which you account to your employer under an accountable plan, and you use a per diem allowance method that includes meals and/or lodging. (Accountable plans and per diem allowances)

·     Your expense, other than lodging, is less than $75.

·     You have a transportation expense for which a receipt is not readily available.

Proper evidence.   Documentary evidence ordinarily will be considered Proper if it shows the amount, date, place, and essential character of the expense.  For example, a hotel receipt is enough to support expenses for business travel if it has all of the following information.

·     The name and location of the hotel.

·     The dates you stayed there.

·     Separate amounts for charges such as lodging, meals, and telephone calls.

A restaurant receipt is enough to prove an expense for a business meal if it has all of the following information.

·     The name and location of the restaurant.

·     The number of people served.

·     The date and amount of the expense.

A cleared check, together with a bill from the vendor, ordinarily establishes the cost.  However, a canceled check by itself does not prove a business expense without other evidence to show that it was for a business purpose.

Timely-kept records.   You should record the expense at or near the time of the expense use and support it with sufficient documentation. A timely-kept record has more value than a statement prepared later when generally there is a lack of accurate recall.  If you maintain a log, diary or account book on a weekly basis that is sufficient and considered a timely-kept record.

What If I Have Incomplete Records? If you do not have complete records to prove that an expense was for business purpose, the following would be required:

·     Your own written or oral statement containing specific information about the specific expense, and

·     Other supporting evidence that is sufficient to establish the business purpose.

This chart should help you with understanding it better.

Exceptional circumstances.   If you cannot produce a receipt because of reasons beyond your control, you can prove a deduction by reconstructing your records or expenses. Reasons beyond your control include fire, flood, and other casualty.

Separating expenses.  Each separate payment is generally considered a separate expense. For example, if you entertain a customer or client at dinner and then go to the theater, the dinner expense and the cost of the theater tickets are two separate expenses. You must record them separately in your records.

Combining items.  You can make one daily entry in your record for reasonable categories of expenses. Examples are taxi fares, telephone calls, or other incidental travel costs. Meals should be in a separate category. You can include tips for meal-related services with the costs of the meals.

Car expenses.  You can account for several uses of your car that can be considered part of a single use, such as a round trip or uninterrupted business use, with a single record. Minimal personal use, such as a stop for lunch on the way between two business stops, is not an interruption of business use.

Allocating total cost.  If you can prove the total cost of travel or entertainment but you cannot prove how much it cost for each person who participated in the event, you may have to allocate the total cost among you and your guests on a pro rata basis. To do so, you must establish the number of persons who participated in the event.

If your return is examined.  If your return is examined, you may have to provide additional information to the IRS. This information could be needed to clarify or to establish the accuracy or reliability of information contained in your records, statements, testimony, or documentary evidence before a deduction is allowed.

How Long To Keep Records and Receipts? You must keep records as long as they may be needed for the administration of any provision of the Internal Revenue Code. Generally, this means you must keep records that support your deduction (or an item of income) for 3 years from the date you file the income tax return on which the deduction is claimed. A return filed early is considered filed on the due date. For a more complete explanation of how long to keep records, see Publication 583.

A taxpayer who trades securities, reports his/her trades on schedule D of form 1040.  He/she is subject to the $3,000 annual limitation that applies to net realized capital losses.  Also, securities are subject to the Wash Sales rules (in a nut-shell; loses will not be recognized for tax purposes if you sell a security at a loss and within 30 days you buy identical security).  However, if you devote a great deal of time (see later what this means) trading stock, bonds, options or any other security, you might be able to qualify as a Trader for tax purposes.

This is accomplished by electing IRS Code Sec 475(f), also know as mark-to-market (M2M).  By doing so, the Trader elects to mark his/her stock holdings to market at the end of the year.  Under this method, all gains and losses are treated as ordinary income or loss.  All the securities held as of December 31st are deemed to be sold at the year-end market value.  If you were profitable, the realized capital gains from trades are not subject to Self-Employment tax, under IRC Sec 1402 (a)(3)(A).  So by making this IRC Sec 475(f) election, a Trader avoids the $3,000 limitation on net capital losses and also he/she is not subject to the Wash Sale rules.  If you made mark-to-market election you should report all gains and loses in Part II of Form 4797, instead of Schedule D.  Once this election is made, it become irrevocable and cannot be changed without prior approval from the IRS. With mark-to-market, you elect to treat open positions as being sold on the last day of the year at Fair Market Value and immediately re-acquired at FMV in first day of the following year.

After making this election, you also should change the method of accounting by filing Form 3115 Application for Change in Accounting Method as outlined in the Revenue Procedure 2008-52. The 3115 should be attached to the 1040 for the first effective year, and a copy should be sent to the national office. See “Special Rules for Traders in Securities” in Publication 550. Because you are changing the accounting method, you need to figur out the Sec. 481 (a) adjustment.

Example: At the end of 2010 you held shares with $26,000 in cost basis (your cost or purchase price) but value of $28,000 (the FMV of those shares at the end of the year). You made the mark-to-market election effective beginning in 2011.  On 1/1/2011 the FMV of those shares is $32,000.  You will report $4,000 of capital gain (32,000-28,000), in addition, you have also a Sec. 481(a) adjustment of $6,000 (32,000-26,000) in the first year you made the change.  The Sec. 481(a) adjustment is the unrealized gain or loss in a trader’s trading account at the end of the prior year. In other words, it is the difference between the cost of the securities owned at the end of the prior year and the market value on January 1st of the following year.

After the Sec. 481(a) adjustments is calculated and the result is positive, i.e. you have a gain, you may either spread out that gain over four taxable years or elect to take the entire gain as Sec. 481 adjustment as long as it is below $25,000.  However, if the Sec. 481(a) adjustment is greater than $25,000, a trader is required to prorate the adjustment on their income tax return over four taxable years.  So, lets say your Sec 481 adj. is a 40,000, the first 10,000 is reported on form 4797 for the year of adjustment and the remaining 30,000 is devided evenly over the next three tax year.  If Sec. 481 adjustment is negative i.e. you have a loss, the entire amount may be taken in the year of change.  (Rev. Proc. 2002-19)

A Trader who materially participates in trading business, can also deduct other ordinary and necessary expenses on schedule C of form 1040.  See the list of common deductable expenses below.  Otherwise, these expenses are reported on schedule A of form 1040 subject to 2% AGI floor.

Note that the security trades should be accounted for by matching purchases (cost basis) and sales (proceeds) on a FIFO (First In First Out) system, some exceptions apply.

The mark-to-market election must be made by the due date (not including extensions) of the tax return for the year prior to the year for which the election becomes effective.  To make the mark-to-market election for 2011, you must file a statement by April 15, 2011.  This statement should be attached to either your 2010 individual income tax return or to the extension to file that tax return. The statement should include the following information:

• That you are making an election under section 475(f) of the Internal Revenue Code
• The first tax year for which the election is effective
• The trade or business for which you are making the election

Tax Summary:  If you make the IRC Sec 475 election for Securities/Commodities:

• Securities are not subject to the Wash Sale rule
• Losses in securities held at year-end are deductible over $3,000 general limit
• Gains in securities held at year-end are taxable as ordinary income not subject to SE taxes
• Gains in securities held over 12 months are not taxed at long-term tax rates rather at ordinary income tax rates
• Old Capital Loss Carry-forwards may be trapped on Schedule D
• §1256 contracts have no long-term gain rate for 60% of gains
• §1256 contracts are not limited for deductibility of any trading losses

Now you know all the benefits of IRC Sec 475 election.  So the question is; do you qualify to be called a Trader for tax purposes, so you may use the IRC Sec 475 election?  Well, many taxpayers will be surprised that most of them do not meet the requirements.  So no Trader status, no mark-to-market election for you!

Here are just few basic and general requirements to meet the definition of a Trader:

• You must seek to profit from daily market movements in the prices of securities and not from dividends, interest, or capital appreciation.
• Your activity must be substantial.
• If you make 1,000 trades or more during the year, this most likely would qualify you for Trader status.
• If you make between 500 to 1,000 trades during the year, often it can qualify you for Trader status, but you most probably be under more scrutiny during an IRS audit.
• Traders with less than 500 trades will have a tougher time substantiating trader status
• You must carry on the activity with continuity and regularity.  So making trades everyday is a good habit.

See Holsinger v. Comm., TC Memo 2008 –191.  There, a Trader is when a taxpayer trades at least 50% of all trading days.

As mentioned earlier, a Trader can also deduct ordinary and necessary expenses related to his/her trading business.   Note that commissions paid to purchase or sale of a security are added to the cost basis of that security.  Once applied, it reduces capital gains or increase capital loss when you sell that security.

Here are some of the most common tax deductions:

• Subscriptions to financial magazines and newspapers
• Trader guides and books
• Custodial fees
• Tax preparation fees, planning and advice
• Continuing professional education such as seminars, courses.
• Office Expenses: Telephone usage and long distance, cable, DSL, T1, cleaning and maintenance, rent, utilities, etc.
• Office supplies
• Wire fees
• Cell phone,
• Real-time quotes, charting and analysis
• Interest expense paid on loans used for the purchase of the securities
• Including, in certain circumstances, your credit card interest under the §1.163-8T general tracing rules.

Religious organization can provide to clergy ministers non-taxable benefits referred to as parsonage allowance. It’s done as part of total compensation paid to the minister.

How does this work?Religious organization can provide to a minister with rent-free furnished apartment or housing that is owned by the religious organization. Religious organization also can pay the fair market value of furnished apartment or house directly to the landlord or reimburse the minister. Religious organization pays directly or reimburses the minister for the mortgage and escrow payments of purchased apartment or a house. Based on the above, cash for housing allowance can be provided to the minister to rent or purchase a home. An allowance continues to be income tax free even during minister’s retirement, but it will be stopped once minister will depart this life.

How to qualify for a Parsonage Allowance.Under Sec. 1.107-1(a), the parsonage allowance is tax free if provided as remuneration for services that are ordinarily the duties of an ordained minister. What qualifies someone to be an ordained minister? Under Sec. 1.1402(c)-5(a)(2), an ordained minister is one who is “duly ordained, commissioned, or licensed” as a minister and it’s available for ministers in all-religious faiths. The parsonage allowance is excluded for income tax purposes, but is subject to SE tax. The minister may elect to be excluded from Social Security coverage (SE tax). Sec. 1402(e) provides that a minister may elect to be exempt from SE tax by filing Form 4361. This form is due no later than the due date of the return for the second year in which the minister has at least $400 of SE income, any part of which is derived from services as a minister.

How to adapt Parsonage Allowance.It is strongly recommended to outline the parsonage allowance and other non-taxable benefits on a written document. It can be adapted annually in official minutes, resolution, budget, bylaws or any other appropriate documentation evidencing official action. The religious organization also needs to have a written document signed by the receiver (minister) of the parsonage allowance and other non-taxable benefits.

The religious organization should:

• ·         Prepare job descriptions for minister who will receive compensation.
• ·         Determine the amount that qualifies as a tax-free allowance.
• ·         Obtain parsonage allowance approval from the board of directors or other committee.
• ·         Record the action adapting allowances in the official minutes.
• ·         Provide each minister with written statement identifying the compensation amount designated as an allowance.
• ·         Remind each minister to maintain detailed records of expenditures related to the allowance.

A good example of the above provision is an employment contract where religious organization can specify these requirements. If actual out-of-pocket expenses exceed designated allowance, the minister must report the excess as income. In light of that, the religious organization may consider overestimating the allowance amount to cover unexpected expenses and increased costs.

Expenses Covered by the Allowance.The housing allowance must relate to a dwelling place including furnishings. Under Sec. 1.107-1(c), the exclusion is allowed when: renting a home, purchasing a home and/or costs related to providing a home. A minister who is a common-law employee may participate in an employer-sponsored retirement or annuity plan. The minister may also contribute to an IRA, subject to the income limitation applicable to IRAs. Based on Rev. Rul. 73-258, tax-free parsonage allowance is considered compensation for retirement limitation purposes.

What expenses qualify as parsonage allowance?

• ·         Mortgage payment (principal & interest)
• ·         Property taxes
• ·         Home insurance
• ·         Structural repairs and remodeling
• ·         Cost of utilities
• ·         Furnishings and appliances (purchase and repair)
• ·         Yard maintenance and improvements
• ·         Maintenance items (household cleansers, light bulbs, pest control, etc.)
• ·         Other housing costs
• ·         Rental value of the house (furnished) plus utilities

Effect on SE TaxReligious organization are exempt from income tax under Sec. 501(c)(3), but are covered by the Social Security Act. An employee’s wages of a religious organization are subject to FICA. Under Sec. 1402(a)(8), a minister is considered to be self-employed and thus is responsible for SE tax payments. Parsonage allowance is included in SE taxable income. The religious organization may provide an allowance or reimbursement for the minister’s SE tax, although the minister must report this payment as additional income subject to SE tax.

How to report parsonage allowance?Compensation to the minister, other than the housing allowance, is reported as wages on W-2. Sec. 31.3402(p)-1 provides that a minister may request the religious organization to withhold Federal income taxes from his/her paycheck. By doing this, it eliminates the need for the minister to submit estimated SE tax payments to the IRS. The housing allowance is indicated in Box 14 on Form W-2. The minister wages from a religious organization are reported on Form 1040, line 7, along with wages from other sources. Amounts received for weddings and similar non-wage type of services are reported on Schedule C. The SE income includes housing allowance, salary and net income from Schedule C. If the religious organization withholds FICA taxes from minister’s paycheck (as noted above), then only housing allowance and Schedule C income will be subject to SE tax.

Taking Deductions.Under Sec. 265(a)(6), a minister who purchases a home can deduct interest and property taxes related to the home, even though those costs are paid or reimbursed by the religious organization. Yes this is one of the legal double tax deduction allowed by the IRS. In most cases, the minister is an employee, so if a minister incurred employee-business expenses and he/she was not reimbursed for those expenses by the religious organization, those unreimbursed expenses are deductible as miscellaneous itemized deductions on Schedule A of form 1040 and are subject to the 2% floor.

As explained above its imperative that th5 and IRS Tax Guide for Religious Organizations

Many business owners are curious and interested to know about different ways to save money on taxes.  This article will introduce you to a legal way of reducing businesses or corporate taxable income by paying your minor children. The payments to minor children have to be reasonable. The minor child needs to be compensated for the services actually performed as a bona fide employee of your business or a corporation.  This tax deduction might be appropriate for some business owners.   Minor child is referred to a child between 7 to 18 years of age.  Each state has different guidance and laws about the definition of minor, so please consult your legal advisor.

Paying minor children has many tax benefits.  For instance, payments to minor children by the parents’ business are not subject to either FICA (Social Security & Medicare Taxes) or FUTA taxation, IRC §3121(b)(3)(A) and 3306(c)(5).  This works great for businesses that are operating as sole-proprietorships or Single Member LLC.  But what about a corporation; can a corporation employ a child of a shareholder?  Based on Rev Rul 72-23 this would be allowed.  However, publication 15 page 10, states that a corporation wholly owned by the parent(s), have to withhold FICA (social security and medicare) taxes from child’s salary.  So consult with your tax advisor about your specific case.  Many taxpayers abuse and do not follow the proper way of paying and documenting minor child’s employment.  To show the legitimacy and legality of this tax deduction, it’s imperative that the business or a corporation keeps proper records and documentation.

How does this work in practice?  For illustration purposes, lets say you are a sole-proprietor and have a printing business.  For 2009 your Accountant or Tax Advisor, estimated that the business will generate a 25K in net income (Revenue minus Expenses).  Your personal federal/state tax bracket is at 30%.  So out of 25K, you will pay about 7.5K in taxes.  You also have 2 kids that can perform legitimate and valid duties for your business.  In 2009 you want to reasonably compensate them for their time and pay them 5K each.  No FICA or Federal/State withholding are required.  By paying 10K to your children, you will reduce your net business income from 25K to 15K.  With that, your tax will be about 4.5K instead of 7.5K – a savings of 3K in taxes!  A parent can also establish a traditional IRA or a Roth IRA on the child’s name and start saving for their retirement early.

How to report child’s wages?  The wages paid to minor children are reported on form W2.  If the total amount of payments or total compensation reported on W2 does not exceed individual exemption currently $5,700 (this amount is adjusted annually for inflation) no Federal, State, FICA or FUTA withholdings are necessary and the minor child does not need to file his/her own tax returns.  When the minor child gets paid, the money can be deposited to child’s custodian account UGMA/UTMA opened under the state law.

If you have decided to hire your minor child, then you need to understand that many states have different rules enforcing and regulating laws relating to the employing of minor children.  In NY for example, in most cases a child of 14 years or older can be employed.  In NJ it ranges between 16-18 years of age.  You need to register the minor child as an employee by filing appropriate forms with your State.  You also need to pay required filing fees, get workers compensation and disability insurances.  So before you do anything, you need to contact your state department of labor or legal advisor.