BTB Notes & News

December 16, 2011

Dear Friends, Clients, and Colleagues, I know this is a busy time for everyone and thoughts are anywhere but on taxes. However, as the end of the year approaches, there are several things we would like to point out to make your upcoming income tax reporting, well, less 'taxing'.

For those of you who itemize deductions and pay estimated taxes, prepaying the fourth state voucher by December 31st instead of January 15th may provide you an additional deduction this year. Don't forget the same strategy holds true for property taxes if you consider pre-paying your February/April payment. Also, this is a good time of the year to go through your closets and cupboards and donating your 'treasures' to one of the many organizations that will gladly issue you a tax-deductible receipt.

For those thinking of funding their retirement, if you participate in a deferred compensation plan at work make sure you have maxed out you contributions, or at least taken full advantage of any matching programs if your employer still provides that benefit. Self-employed individuals will have some options they can consider with their preparer when they come in for their taxes this year. You can also discuss Traditional and Roth IRAs with your preparer when you come in to do your 2011 taxes before April 15th.

One big change we saw this year that will be noticed on your 2011 return is to the Make Work Pay Credit. The $400 per qualified taxpayer was replaced with the 2% reduction in the employee's share of Social Security to each paycheck. If you are wondering what all the current newscasts describing tax wrangling are all about, part of it is Congress considering extending this 'payroll tax deduction' for 2012.

These tax strategies may or may not apply to everyone, as each individual situation is different. And obviously we are not able to cover every tax item that could impact every taxpayer. Hopefully this gives you something to consider as you plan for your 2011 reporting coming up shortly. Look for your organizers from us around mid January, and feel free to contact the office at your earliest convenience to set up an appointment with your preparer.

Other notes and news - Our office will be open through mid day Thursday, December 22nd. We will then be on short hours and short staff the week of December 26th through December 30th, returning to regular hours Tuesday January 3rd, 2012.

We here at BTB wish you a Merry Christmas, Happy Holiday Season, and a Prosperous New Year.