E-File Magic 1099 Software – Blog

At the end of every year right before tax season starts, I like to remind everyone of what the mileage rates the IRS will recognize for that tax year.

Business miles -                   From January 1st, 2011 – June 30th, 2011 the rate is 51 cents per mile.

From July 1st 2011 – December 31st, 2011 the rate is 55.5 cents per mile.

Medical & Moving Miles -From January 1st, 2011 – June 30th, 2011 the rate is 19 cents per mile.

From July 1st, 2011 -  December 31st, 2011 the rate is 23.5 cents per mile.

Volunteer Miles -                 From January 1st, 2011 – December 31st, 2011 the rate stays at 14 cents

per mile.

Downloading E-File Magic’s 1099 Software wont help you with deciphering mileage deductions, but it will help you with deciphering 1099-MISC Forms.  Try it today!

Form 1099-K, people are really talking about this little form (hey, I’m an accountant, we talk about tax forms a lot).  For those of you who need some clearing up about who should file a 1099-K, I thought I would jump in and help you out.

Form 1099-K, Merchant Card and Third Party Network Payments, must be filed by a payment settlement entity which, for payments made in settlement of reportable payment transactions for each calendar year.  Basically, what the IRS is telling us is, if you have a credit card machine at your office the third party that runs the credit card must send your company a 1099-K at the end of the year.  You need to use the 1099-K’s that you receive as part of your revenue.

Wow! I hope that clears it up a bit, these instructions are a bit mind boggling, but some people consider them a good read.

Download E-File Magic’s 1099-K Software for all of your 1099-K needs!

Form 1099-G is a familiar form to many Americans.  This is the form you receive when you have income from a government entity.  The main two reasons that people get this form is they either have unemployment compensation during the year of $10 or more or they received a state or local income tax refund, credit or offset of $10 or more.  Not much has changed on this form from the previous year, as a matter of fact, it looks like the IRS anticipates not many changes to this form for 2012 either, since they have already published the instructions for the form.

E-File Magic offers 1099-G instructions on our website.

You can also download our 1099-G software!

There is a business out there that purchases big companies, and restructures them.  These companies would need to send out 1099-CAP to all the shareholders in which the paid cash, stock or other property to.

Form 1099-CAP, Changes in Corporate Control and Capital Structure is given to shareholders of a corporation in which control of the corporation underwent a substantial change in capital structure during the year.  This form should be given to recipients who have received cash, stock, or other property from an acquisition of control or a substantial change in capital structure.

E-File Magic 1099 Software would make filing Form 1099-CAP extremely easy, you can upload an Excel sheet into the software, the software populates all the correct information into the forms and pow! You have completed forms to send to your clients.  Did I also mention that we offer a print and mail service so you wouldn’t even need to mail these forms out?  Check out our 1099 software and give it a try!

As the year winds down, almost everyone is thinking about finishing up their shopping and what treats they are planning on making and eating during the year end.

Well, here are E-File Magic, we are preparing for the January rush.  Our website, www.efilemagic.com is ready and full of 1099 resources including my wonderful blogs which talk about many of the forms we offer, the website also offers instructions for all forms and samples of how they will appear once you have finished entering your recipient data into the software.

Download E-File Magic Software Today and get yourself ready for the January 1099 rush!

There are things you never forget how to do, ride a bike is one of them.  But even though it’s something you’ll never forget how to do, you still might need to be reminded on how to do it.  I did try, a few years ago to hop on a bicycle and ride for 20 miles in 90+ temperatures, I hadn’t ridden for over 15 years.  Needless to say, it didn’t turn out to well, I did complete the trip, but I was exhausted at the end.

Like riding a bike, filling out Form 1099-C is something you will never forget and as long as you ease back into it, it shouldn’t be too painful, here are some extremely important reminders for filing Form 1099-C this year;

• The Creditor’s phone number must be provided in the Creditor’s information box.
• Do not file Form 1099-C when fraudulent debt is canceled due to identity theft.
• Form 1099-C needs to be filed even if the debtor is not required to report the debt as income.

I’m just reminding you of some helpful tips for completing this form, here is a link to the instructions if you would like to check them out.

E-File Magic is so easy to use you will never forget how to use it.  Download our 1099-C software today!

One of the newest forms to the E-File Magic line-up, 1097-BTC was completely redesigned by the IRS for 2011.  You need to file a separate 1097-BTC for each tax credit distributed after January 1, 2010 here is the list of tax bond credits that are required for Form 1097-BTC:

• Qualified forestry conservation bonds.
• New clean renewable energy bonds.
• Qualified energy conservation bonds.
• Qualified zone academy bonds.
• Qualified school construction bonds.
• Clean renewable energy bonds.
• Midwestern tax credit bonds.
• Build America bonds (tax credit).

If you are unsure when you need to file the 1097-BTC you must file it with the IRS by February 28, 2012 or use E-File Magic and we will file it electronically, the deadline for electronic filing is April 2, 2012.

If you would like to check out the instructions to 1097-BTC, E-File Magic offers a PDF version on our website.

Download E-File Magic’s 1097-BTC Software! It’s easy to use!

The other weekend, my husband and I had to put a piece of furniture together.  Like most men, he felt he didn’t need the instructions to put it together.  I disagreed, but once I read the instructions to him I think he was relieved.  I feel that sometimes following instructions are extremely helpful.  I don’t believe that you should follow ALL instructions, the key is to know when to follow instructions and when not.  A lot of my friends like to cook but hate to bake because of how closely you should follow instructions.  Well, baking is a lot like taxes, you should follow the instructions completely.  I cannot stress that enough, following the instructions will make your life so much easier when it comes to filing you 1099′s and your taxes.   IRS instructions can be a bit tricky and hard to read, especially if you aren’t used to reading these documents, but keep it up and you’ll get used to them.

My little rant about following instructions came up because I was reading the instructions for 1099-A and they are very important and rather hard to read.  Some of the things you need to know when filing 1099-A’s according to the IRS, is a “1099-A is for Acquisition or Abandonment of Secured Property, if you have lent money to a borrower in connection with your trade or business and, in full or partial satisfaction of the debt, you acquire an interest in property that is security for the debt, or you have reason to know that the property has been abandoned.”   Basically what that means, if you have loaned someone money and the borrower gives you the property back that they borrowed the money for instead of paying back their loan you should file a 1099-A.  But even if you haven’t received anything for the debt but you know that the property has been abandoned by the borrower you need to file a 1099-A.

If you need to file a 1099-A, I would suggest you check out the 1099-A instructions.

Now that you have read a bunch of instructions, you can do something that is easy and doesn’t require a bunch of instructions!  Download E-File Magic’s 1099-A Software!

When you win at a casino you are ecstatic!  Sometimes you just put a quarter in the slot and you get lucky.  Who hasn’t walked through a casino and seen the BMW sitting above a bank of slot machines and thought to themselves, it would be so cool to win that car.

Gambling winnings are taxable income, and if you have significant winnings you will be receiving a W-2G.  You will receive a W-2G for winnings of $1,200 or more from a bingo game or slot machine, $1,500 or more from a keno game, $5,000 or more from a poker tournament, and the winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are; $600 or more, and at least 300 times the amount of the wager.

If you need to send out Form W-2G for gambling winnings.  E-File Magic is easy to use, affordable, and nice to look at.  Download our W-2G Software today!

Have you or your company maintained an HSA, Archer MSA, or Medicare Advantage MSA (MA MSA) for someone during 2011?  If so, please file form 5498-SA with the IRS on or before May 31, 2012. You must file a separate form for each type of plan.

New for 2011 excess employer contributions withdrawn from employee HSAs by the employer are no longer required to be reported as a contribution on Form 5498-SA.

Download E-File Magic’s 5498-SA Software Today!