E-File Magic 1099 Software – Blog

I have a friend who is thinking about taking a new job (don’t worry devotees, my friend is not me, I promise!) and she will need to move to a new town because the distance between where she lives currently and the new job is too far away.

She asked me the other day if she moves, will her moving expenses be deductible, and exactly what part of her moving expenses will be deductible.  I told her that deductible moving expenses can be complicated, the IRS has a publication that is 19 pages long and devoted solely to moving expenses, but I would give her a quick overview and then after I shared this information with her, I thought I should share it with you while it’s still fresh on my mind.

You first have to pass the distance test. Your new job has to be 50 miles farther from the distance between your former residence and your old Job.  Basically if your morning commute was 10 miles, your new job has to be 60 miles away for you to qualify for moving expenses.

The next test is the Time Test.  If you are an employee you need to work full time for at least 39 weeks during the first 12 months after you move.  These 39 weeks do not need to be consecutive.  If you are self employed you must work for 39 weeks during the first 12 months AND for at least 78 weeks for the first 24  months.

Okay, if you can pass both the distance and the time test, you will be able to deduct some of your moving expenses.  Remember to keep your receipts!!

You can deduct moving household goods, personal effects and traveling to your new home.  Lodging, as long as it’s reasonable, is deductible, but meals are not.

If you are traveling by car, you can deduct the mileage at 16.5 cents per mile for 2010.

I was surprised to find out you can also deduct the cost of shipping your dog or cat!  This maybe one of the only places you’ll be able to get a deduction for owning a pet ever!

Well, that was my quick overview of deductible moving expenses, if you want to read more, grab an extremely large coffee and IRS Publication 521.

But for something a little bit more exciting, check out the E-File Magic website.  This site is full of wonderful screen shots of our software, and let’s face it, the E-File Magic Software is just pretty to look at.

Aw, fall, although the weather starts getting colder, there are a lot of things that happen every year that make this season magnificent ~ apple picking, leaves changing color, and the new E-File Magic Software..

Every year in September we start receiving phone calls at the E-File Magic headquarters asking when the next years’ software will be available for download.  Well, today I am happy to announce that the updated version of the software will be available for download on October 24th!

So, in the mean time while you are waiting anxiously to download, enjoy the beautiful fall foliage and tasty fall harvest!

If you want to learn more about E-File Magic – Click Here!

Although many Americans have a hard time agreeing on many things when it comes to politics, most of the people I have spoken to recently are not pleased with the way that the politicians handled the debt crisis a few months ago.  Well, here is a way that each person can help with the US debt… Buy a US Savings Bond!

A lot of times the people who buy US Savings Bonds are grandparents for their grandchildren. And when the grandchildren finally cash the bonds in, who is responsible for the income tax that needs to be paid with the bond?  This explanation should help clear up some of the confusion on who is responsible…. If the grandparent buys a bond in their name and in the name of their grandchild, but the funds are supplied solely by the grandparent, the grandparent is responsible for paying for the taxes when the bond is cashed.  If the grandparent buys a bond for the grandchild and the grandchild is the only person on the bond, then the grandchild is responsible for the taxes.  And lastly, if two people purchase the bond together, each contributing a share of the bond, then when the bond is cashed the two owners must split the tax due.

I hope this clears up some confusion on who is responsible for paying for the income tax owed on a bond when the bond is cashed.

Download E-File Magic Software! It’s easy and fun to use!!!

I’ve been wanting to throw a candle party at my house.  You know the kind, a bunch of ladies get together, eat food and get talked into purchasing over priced products so their friend can have free gifts and special prizes.

These parties come in many forms – the one that probably started them all is the Tupperware Parties of the 60′s.  Now, there are many different types of products sold through the “party plan” concept, where one person is the consultant and the party is hosted at an individual’s house.

Well, a little none tax fact is, the hostess gifts that you receive when hosting one of these parties is taxable income and the fair market value of the products you receive must be reported.

Download E-File Magic Software!

The other day I was listening to a radio program on NPR.  The gentlemen on the radio was talking about how he lives on a farm and he barters many of his food, clothing, and other household items with others in his community.  The main thing I thought of during his five minute interview was, I hope he realizes that bartering is considered “Other Taxable Income” according to the IRS.

Publication 17 has the IRS definition of bartering,

Bartering is an exchange of property or services.  You must include in your income, at the time received, the fair market value of property or services you receive in bartering.  If you exchange services with another person and you both have agreed ahead of time on the value of the services, that value will be accepted as fair market value unless the value can be shown to be otherwise.

There is a 1099 form that relates directly with Bartering.  It’s called 1099-B.  If you have been involved with an exchange of property or services through a barter exchange you will need to either send to your recipient or receive Form 1099-B by February 15, 2012.

Download 1099-B Software Today!

Form 5498 is an informational form that reports regular and rollover contributions on individual retirement accounts such as; Traditional IRA, Simplified Employee Pension (SEP), Roth IRA, and Savings Incentive Match Plan for Employees (SIMPLE).  Because this is an informational form for you, you do not need to include it on your tax return.  Instead, your retirement plan provider will send the information to the IRS via e-filing.  The deadline to for your retirement provider to mail out Form 5498 is May 31st of the following year.

Download Form 5498 E-File Magic Software Today!

As the story goes; a CPA and a Software Engineer sat down for lunch at one of their favorite Mexican restaurants.  The CPA is complaining to the Software Engineer that he is having a hard time finding a simple and easy way to print and e-file the 1099 forms he needs to produce for the company he is working for.  After many hours of brain storming E-File Magic was born!  E-File Magic software has helped thousands of people and companies get the forms to their recipients and e-filed to the IRS since 2006.

You no longer need to make an extra trip to the office supply store to purchase pre-made 1099, 1098, 5498, and W2-G Forms.  Instead, all you need to do is simply download the E-File Magic Software, enter in your recipient data, and pay a small fee.  You can use your office printer and blank paper to print the completed forms.  Or if you like, you can choose to have E-File Magic print and mail the forms for you.

See what all the buzz is about and Download E-File Magic Today!

Even though summer is not officially over until Friday, September 23rd, the temperature in Portland seems to be taking a down turn.  During this transition period of seasons, it might be a good idea to start thinking ahead and start organizing for tax season.

Some good ideas to get yourself prepared would be:

• Start looking through your mileage log, and make sure everything is up to date.
• Double check to make sure you have made all of the charitable contributions you wanted to make for the year.
• Did you purchase a home this year?  If so, make sure all of your paperwork is together.
• Keep important receipts, such as education and non-compensated business expenses.

There are many taxable items you will need to wait for before you can file your tax return, but starting to organize will help speed up the tax process at the beginning of next year.

Do you need to send out 1099′s?  E-File Magic can help!

In The United States and around the world, it seems like there is at least one major disaster a year.  One thing you might not think of when you are making a disaster kit is adding a USB drive.

What should you add on this USB drive you ask?  Some good suggestions would be scanned or electronic bank statements, tax returns, copies of your 1099s and insurance information.  Adding pictures of your valuables will also help keep track of these items if you need to make an insurance claim.

By storing the USB drive with your emergency kit will make sure that if you need to leave in a hurry all of your items will be in a safe spot.

Please be careful.  Not all organizations that ask for donations qualify for charitable contributions on your tax return.  If your concerned about an organization that you donate to, or want to know whether it qualifies or not.  There are a few different resources the IRS website has to help you narrow down the qualifying versus the non-qualifying organizations.  The first one would be Publication 78, this publication will give you the low down with some helpful hints as to whether the organization qualifies to be a deductible organization.  Here is a link to Publication 78, http://www.irs.gov/charities/article/0,,id=119392,00.html

To find out if an organizations’ tax-exempt status has been revoked would happen if the organization did not file their annual information return for three or more years.   There are so many charitable organizations that have lost their tax-exempt status the IRS has them listed by state and you can choose to look them up via Adobe or Excel.  Here is a link to look at the organizations that have had their tax-exempt status revoked. http://www.irs.gov/charities/article/0,,id=240099,00.html

E-File Magic will help you with all of your 1099 needs! Download the software today!