When you enroll in Jackson Hewitt’s Tax School, our experienced instructors will provide education and training for beginners, as well as ongoing tax education and training to meet IRS requirements for experienced tax professionals. And, learning to prepare taxes is a skill that could even lead to extra income at tax time!*

 

Enrollment is starting now and class sizes are limited—so don’t delay. Visit JacksonHewitt.com to find out more or to find the Tax School location nearest you!

 

*Enrollment in, or completion of, a course is neither an offer nor a guarantee of employment. Additional training, experience or skills may be required to be employed as a tax preparer.

 

  

Important Tax Information for Small Business Owners!

 

As a small business owner, there are some important tax issues that could impact your 2012 return: 

 

  • New rules for online sales! Beginning in 2012, online businesses that accept credit card payments will receive a Form 1099-K reporting the payments received from payment settlement entities (PSEs), such as PayPal. Deductible charges such as handling fees, sales taxes collected and cash-back amounts will be included in the Gross amounts reported on the 1099-K and must be accounted for and claimed as either an adjustment (sales taxes paid) or a business expenses (per payment charges) on the business return.

 

  • The IRS allows a business to have a loss only two years out of any five consecutive years. If a business can show the IRS a five-year business plan and can show that local or national economics contributed to more than the two allowed losses, the IRS may allow the extra loss. If a business has more than the allowed two years of losses, but is making progress towards making a profit, has a solid business plan and it is common in the type of industry to take more than two years to make a profit, the IRS may allow the business loss.

 

  • The IRS reclassifies a business as a hobby when they determine the business is not run as a potentially successful business. A hobby is not subject to self-employment taxes. The IRS does not allow a taxpayer to claim a hobby loss and requires the income to be reported as “other income” on Form 1040. Hobby expenses are allowed up to the total income only and are reported on Schedule A, Itemized Deductions as an “other miscellaneous deduction.”

 

  • Keep all receipts for purchased items, contracts for purchased items, bills, log books and other back-up for all income, expenses, and taxes on your business return for at least three years past filing the return. Keep payroll information for four years and employee information for four years after the employee has left your employ.
  • The IRS requires detailed record keeping on mileage for a vehicle, including total miles for the year and miles driven daily for business. Acceptable documentation includes: daily mileage log and calendar/daytimer entries for business mileage.

 

When it comes to your small business...don’t take chances. Let the Jackson Hewitt tax pros help you get every deduction and credit your entitled to get. Call your neighborhood office to speak with a local tax pro today!

 

  

Will You Be Ready if Disaster Strikes?

 

Floods, hurricanes, wildfires, tornadoes...are you ready for the worst that nature can dish out? Safeguard yourself and your business against natural disasters by taking a few simple steps now.

 

Create a Set of Electronic Backup Records 

Always keep a set of backup records in a safe place, stored away from the original set.

 

If you’re a Jackson Hewitt® client, you can sign up for MyTaxManager—a FREE online tool which lets you safely upload and store all of your important documents in one easy-to-access place.

  

Document Your Valuables 

Try to photograph or videotape the contents of your home, particularly when pertaining to high-value items. Jackson Hewitt has a Home Inventory Guide on our website, which can help you compile a room-by-room list of your belongings.

 

Having photographic records can help prove the market value of your items for insurance and casualty loss claims. Store photos with a friend or family member who lives outside the area of your home business.

  

Update Your Emergency Plans 

Annually review your emergency plans to make sure that your personal or business situation still matches your existing plan. Your emergency plan may need to evolve over time to suit certain changes.

 

If your business hires new employees or changes functions, plans should be updated accordingly and employees should be informed of the changes made.

  

Check on Fiduciary Bonds 

Employers who use payroll service providers should ask the provider if it has a fiduciary bond in place. The bond could protect the employer in the event of default by the payroll service provider.

 

Want to find out more? Just visit www.JacksonHewitt.com.

 

TaxTips 

If you use a vacation home as a residence and rent it for fewer than 15 days per year, you do not have to report any of the rental income. Schedule A, Itemized Deductions, may be used to report regularly deductible personal expenses, such as qualified mortgage interest, property taxes, and casualty losses.

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