Make Gifts to Minimize Estate Taxes
If your estate planning indicates a potential estate tax liability, consider making gifts before year-end to minimize estate taxes. Example: You can give away $13,000 a year ($26,000 if you are married and your spouse elects to participate) to each of a number of donees free of gift tax, thereby reducing your estate tax liability.
Year-End Tax Review Meeting
Estimate your taxes due for the year, and consult with us on the steps you should take before year-end to minimize negative tax consequences.
Review October’s Budget vs. Actuals
Compare October income and expenditures with your budget. Make adjustments as appropriate to your November expenditures. Make sure you have invested your planned savings amount for October.
Tax Due Dates
AnytimeEmployers – Income Tax Withholding. Ask employees whose withholding allowances will be different in 2011 to fill out a new Form W-4.Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the third quarter of 2010. This due date applies only if you deposited the tax for the quarter in full and on time.Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in October.
Employers – Earned Income Credit. Ask each eligible employee who wants to receive advance payments of earned income credit during 2011 to fill out a Form W-5. A new Form W-5 must be filled out each year before payments are made.
November 10 - Employees who work for tips – If you received $20 or more in tips during October, report them to your employer. You can use Form 4070.
November 15 - Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in October.
Expanded Adoption Credit
If you adopted a child this year, you may be eligible for this credit. Make sure you contact us early, though. To claim this tax relief, we must file a paper return, which means your refund will be slower than if you could file electronically.
© 2010, Bruce Mc. All rights reserved.
