E-File Magic 1099 Software – Blog

The IRS has announced that mortgage insurance premiums will be treated as qualified residence interest.  This provision did expire on 12/31/11, it has now been extended, due to The American Taxpayer Relief Act and will expire on 12/31/13.

Mortgage insurance premiums needs to be reported in box 4 of Form 1098.

E-File Magic has updated our software, forms and Excel Template to reflect this change.

Download our 1098 software today!

January is a month we love here at E-File Magic!  It’s our busiest month, and we work all year to get the software and website ready for the 1099 Filing Season.  You might think we’re strange, but we love tax forms and we are more than happy to help you with using our software or submitting your Excel Orders.

If you have a question, send us an email at support@efilemagic.com or give us a call at 877-836-6680. Our customer support hours are: Monday – Friday 8:00am to 5:30pm PST.

At E-File Magic, we love hearing feedback on your experiences with our service.  Please feel free to send an email with any thoughts, concerns or compliments!

We hope using our services will help you enjoy tax season a little more as well.

Download our E-File by Excel Template Today!

Man, every time I go to Vegas I hope to win the car.   You know what I’m talking about, it’s the shiny car sitting on top of the slot machines.  I walk into the casino and think, “I feel lucky today, I should sit down and play a couple rounds on this slot machine.” Alas, the only thing I walk away with from the car giveaway slot machines is an empty purse.

If I did win the car I would be thrilled!  I would be able to drive it home – hair blowing in the wind, radio up loud listening to my favorite music. Along with my shiny convertible the casino would also give me a W2-G!

Form W2-G, Certain Gambling Winnings, will describe the Fair Market Value of the my winnings for the IRS and the amount of taxes I paid, if any, towards my winnings.

Now, here’s something I learned about gambling winnings by reading the W2-G Instructions; you have to pay taxes on your noncash payment.  My shiny red convertible would be a noncash payment.  According to the instructions, “If the FMV exceeds $5,000, after deducting the price of the wager, the winnings are subject to 25% regular gambling withholding. The tax you must withold is computed and paid under either of the following two methods: 1) The winner pays the withholding tax to the payer.  In this case, the withholding is 25% of the FMV (Fair Market Value) of the noncash payment minus the amount of the wager.  Or 2) The payer pays the withholding tax,  In this case, the withholding is 33.33% of the FMV of the noncash payment minus the amount of the wager.

Now, I don’t know about you, but I doubt the casino (payer) will pay the taxes on the gambling winnings of my car so option 1 will probably be the more common scenario.  I guess I better start saving up for the next time I go to Las Vegas.  That way I’ll have extra money to pay for the taxes on my new car!

Download E-File Magic W2-G Software Today!

I don’t know anyone who loves getting a letter from the IRS (unless it’s a letter stating their was a mathematical error on their tax return and they are getting a bigger refund).  And I also don’t know many people who like finding out after the fact that the Tax ID numbers on their  1099 forms  didn’t match the recipients name.  To help avoid both of these issues use our Bulk TIN Matching service.

It’s simple to use, all you have to do is download our software, enter your recipient data, validate the recipient information and click on the TIN Matching Service Tab.  We will send your data to the IRS and let you know when we get a response on whether your recipients names and TINs match or not.

Download E-File Magic Bulk TIN Matching Software!

The deadline for e-Filing your 1099 forms to the IRS for 2012 is April 2nd.  E-File Magic is asking that we receive all form submissions by April 2nd at 5pm Pacific to guarantee e-Filing by the end of the day.  As always, we will still accept your submissions after the cut off time, we just cannot guarantee your forms will be e-Filed by the deadline.

When I play the game Scrabble I always hope to not get the letter Q.  Although Q has a lot of points if you don’t have a U to go with it your pretty much screwed.  Luckily, I rarely get the letter Q.  Just like the letter Q in Scrabble, the Form 1099-Q is a rare form.  Form 1099-Q is for Payments From Qualified Education Programs (Under Sections 529 and 530), if you are either an officer or an employee or the designee of an officer or employee, having control of a program established by a state or eligible education institution; and made a distribution from a qualified tuition program (QTP).  A trustee of a Coverdell education savings account (ESA) must file Form 1099-Q to report distributions made from Coverdell ESAs.

E-File Magic offers 1099-Q Software!  Just print on blank paper – no pre-purchased forms required!

1099-Q Payments From Qualified Education Programs (Under Sections 529 and 530) is a form that needs to be sent out if you have paid from a Qualified Tuition Program (QTP), under section 529 to the recipient or a Coverdell ESA (CESA) under section 530.  E-File Magic’s website has copies of the Form you can look at and copies of the Instructions that you can download.  If you need to send out a 1099-Q to your recipients you should give E-File Magic’s 1099 Software a try.  It works like a charm!

You must send a 1099-LTC, Long Term Care and Accelerated Death Benefits if you paid any long-term care benefits, including accelerated death benefits during 2011.  Most people who are responsible for sending out 1099-LTC’s could probably do them in their sleep since they are mainly in the business of Long Term Health Care.  But I thought I would let you know who receives these forms and where you can find the instructions for them.  As always E-File Magic provides instructions to all of the forms we offer on our website and in our software.  It’s fast, easy, and simple!  Give our 1099-LTC Software a try!

I think it was Albert Einstein that once said, “There are only two things in life you should be sure of; death and taxes.”  Well, that may be the case but something else that I think he could have added was things changing.  I feel like lately change has been the theme of this blog and I’m going to talk about change again today.  On December 22, 2011 the IRS released a new version of the instructions for forms 3921 and 3922.   Our website is now up to date with the new instructions.  So if you haven’t read the new instructions you can check them out.  And if you need to download our 3921 and 3922 Software please feel free to do so!

I was reflecting today about what the weather was like when I started blogging about forms.  It was the middle of October and unseasonably mild for Portland.  I’m pretty sure I hadn’t taken my winter clothes out of storage yet.  Fast forward to January and a bunch of tax form blogs later and it’s cold and windy outside with a threat of snow.  I like snow and I’m looking forward to it.  However, I’m not a fan of blustery days.    Just like the weather changes from season to season, tax forms change from year to year.  Form 1099-H Health Coverage Tax Credit has a few changes that I would like to highlight.

The 80% rate of total health insurance premium payments has been extended to include January and February 2011.

Copy 1 of Form 1099-H needs to be provided to recipients by the IRS Health Coverage Tax Credit Transaction Center.  Copy B must be provided to recipients by all other filers.

The E-File Magic website is full of useful information including form instructions.  Click here to go to Form 1099-H instructions.

January 31st is coming fast! Download our 1099-H software and get working!