Welcome to Money Tips!
A publication of Johnson Financial Services

In This Issue                                                    November 2009

~A Note from JFS: Wrapping up 2009

~Tax Changes: Changes for Social Security and Medicare, Tax Credits Extended, and more….

~New for You:  New Consent forms required to be signed

~Our NEW LOCATION: You’re Invited…to our OPEN HOUSE next month

A Note From JFS

As you prepare to enjoy the upcoming holidays, we are feverishly working on gathering the latest and greatest in tax laws.  Please do not hesitate to call or email us with any questions or concerns about you or your business.

Tax Planning

Social Security

www.ssa.gov

The Social Security benefits will not change for 2010.  The maximum monthly benefits remain at $2323.  .  The amount of earnings subject to Social Security taxes will also stay the same at $106,800.

Medicare

www.cms.hhs.gov

The 2010 premiums vary depending on the taxpayers’ income as shown on their 2008 income tax returns and their filing status.   The Part B monthly premiums increase from $96.40/month in 2009 to $110.50/month in 2010.  A”hold harmless” provision in the law allows for 73% of beneficiaries to be protected from a decrease in their net Social Security benefits, therefore these protected taxpayers will not experience this increase in Medicare premiums.  Of the 27% who will experience the higher Medicare premiums are those where new enrollees in Social Security during the year, those subject to the income-related additional premiums mentioned below, those that do not have Part B withheld from their SS benefits, and those who qualify for both Medicare and Medicaid and have their Part B premiums paid on their behalf by Medicare.  The Part B Medicare deductible for 2010 is $155.

Tax Credits

For Individuals:

·          Deduction for State and Local Sales taxes

·          Qualified Tuition and Expenses Deduction

·          Teacher Expense Deduction

·          Standard Deduction for Non-Itemizer’s Real Estate Taxes

·          IRA Charitable Distributions

For Businesses:

·          Research Credit

·          New markets Tax Credit

·          15 year MACRS Recovery Period for Qualified Leasehold Improvements

·          15 year MACRS Recovery Period for Restaurant Improvements and Buildings

·          15 year MACRS Recovery Period for Qualified Retail Improvement Property

·          Tax Treatment Modification of Payments to Controlling Exempt Organizations

·          Tax Credit for Maintenance of Railroad Tracks

·          Work Opportunity Tax Credit for Hurricane Katrina Employees

New for You

Consent Forms Required

IRS now requires that tax preparers have the consent of taxpayers prior to utilizing information to prepare income tax returns.  This was designed to provide added safeguards regarding the transfer and use of your personal tax return information.  The new rules reaffirm that you control your tax return information, not us or the IRS.  The rules ensure that you know who your tax return information may be shared with, with and without your consent, and when it may be shared with and without your consent.  These new rules give you even greater control over the use of your tax return information.  Unless the law allows us otherwise (in very limited circumstances), we can not disclose, without your signed permission, your tax return information to third parties for purposes other than for the purposes of preparing your tax return.

We must obtain your consent to disclose or use your return information to any third-party who is not a U.S. return preparer assisting in the preparation of your return.  For example, if your mortgage lender, attorney, or bank contacts our office for information about your return, or asks for information from it, we must obtain your written consent beforehand.  Moreover, you can establish the time at which you would like the consent to expire in the form itself.  If you do not provide a specific date, your consent will lapse one year after the day you signed the form. 

Please feel free to contact us with any questions.  We will have these forms posted on our website very soon.  Paper copies are available at the office now.   

Our NEW Location

As some of you may know, JFS will be expanding by acquiring my uncle’s (Thomas Ceselski) accounting and tax practice.  This will be effective January 1, 2010.   We are currently in the process of moving into the office and preparing for the upcoming tax season.  We will have an OPEN HOUSE on December 16 and 17, 2009 from 10:00AM – 5:00 PM.  Please feel free to stop to visit.  There will be refreshments and a drawing, so bring your family, co-workers and friends.  You are also welcomed to call to schedule an appointment.  We look forward to seeing you!

Johnson Financial Services 
phone: 913-788-7852 mobile phone:  816.289.0476  Office: 

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IRS CIRCULAR 230 Disclosure: Under U.S. Treasury Department regulations, we are required to inform you that, unless expressly indicated, any tax advice contained in this email, or any attachment hereto, is not intended or written, to be used, and may not be used to (a) avoid penalties imposed under the Internal Revenue Code (or applicable state or local tax law provisions) or (b) promote, market, or recommend to another party any tax-related matters addressed herein.