Six Things to Know About the Expanded Adoption Tax Credit

Do more with ABA Tax Accounting! If you are adopting a child in 2011, the Internal Revenue Service encourages you to familiarize yourself with the adoption tax credit. The Affordable Care Act increased the amount of the credit and made it refundable, which means it can increase the amount of your refund.

Here are six things to know about this valuable tax credit:
The adoption tax credit, which is as much as $13,170, offsets qualified adoption expenses making adoption possible for some families who could not otherwise afford it. Taxpayers who adopt a child in 2010 or 2011 may qualify if you adopted or attempted to adopt a child and paid qualified expenses relating to the adoption.
Taxpayers with modified adjusted gross income of more than $182,520 in 2010 may not qualify for the full amount and it phases out completely at $222,520. The IRS may make inflation adjustments for 2011 to this phase-out amount as well as to the maximum credit amount.

You may be able to claim the credit even if the adoption does not become final. If you adopt a special needs child, you may qualify for the full amount of the adoption credit even if you paid few or no adoption-related expenses.

Qualified adoption expenses are reasonable and necessary expenses directly related to the legal adoption of the child who is under 18 years old, or physically or mentally incapable of caring for himself or herself. These expenses may include adoption fees, court costs, attorney fees and travel expenses. For more information contact:
ABA Tax Accounting
Amare Berhie, Senior Tax Accountant
Direct 612-282-3200
Toll free 866-936-0430

100% U.S. based affordable Finance and Accounting Outsourcing Services

100% U.S. based affordable Finance and Accounting Outsourcing Services
ABA Tax Accounting provides customized, high-quality, cost effective and 100% U.S. based finance and accounting outsourcing solutions for Accountants / CPA firms as well as other small, medium, large businesses, non-profit organizations, and federal, state, local governments who wants to reduce accounting process (BPO) costs significantly. Our aim is to reduce the burden of “behind the scene” functions of businesses so that they can focus on their core revenue generating roles.

ABA Tax Accounting Finance & Accounting Outsourcing (BPO) provides a valuable strategy for companies seeking new ways to achieve better result by controlling costs, reducing risk, fostering collaboration and increasing transparency. Outsourcing finance and accounting presents a series of unique challenges that require expertise and sophisticated technology. The competitive advantage in every industry goes to those financial managers who strategically leverage lower costs and streamline their business processes. Equally, this must be balanced with ensuring compliance with GAAP, IFRS and the Sarbanes-Oxley Act.

The task of the Chief Finance Officer and other finance executives has changed drastically with the constant effort companies are employing, seeking to align company objectives with finances. Aside from fulfilling the tasks expected of CFO’s, controllers and finance executives, they are also being expected to contribute to the enhancement of the company, by driving down costs while improving efficiency.

By outsourcing certain finance and accounting functions your company can gain the necessary room for innovation that you need in order to cut on costs, while improving internal controls, and thus driving a transformation of your finance and accounting operations. ABA Tax Accounting is ready, willing and able to assist you in performing finance and accounting services which include:

General Accounting and Bookkeeping Outsourcing
Accounts Payable Outsourcing
Accounts Receivable Outsourcing
Outsourced Tax Return Preparation Services
Outsourced Staffing Services
IC-DISC tax incentive Outsourcing

Why offshore while you can outsource onshore for about the same amount and create jobs here in the USA! If you want to get started utilizing ABA Tax Accounting Outsourcing Solution, please contact us Today.
ABA Tax Accounting
Amare Berhie, Managing Member
10670 Hawthorn Trail
St. Paul, MN 55129
Direct: 612-282-3200
Toll free 866-936-0430

Tax Tips for Students Starting a Summer Job

Tax Tips for Students Starting a Summer Job
School’s out and many students will be starting summer jobs. The Internal Revenue Service reminds students that not all the money you earn may make it to your pocket. That’s because your employer must withhold taxes. Here are six things the IRS wants students to be aware of when they start a summer job, please click to read.
For more information contact us.
ABA Tax Accounting
Amare Berhie, Senior Tax Accountant
Direct 612-282-3200
Toll free 866-936-0430

Published in: on July 8, 2011 at 11:40 pm  Leave a Comment  

IRS Increases Mileage Rate to 55.5 Cents per Mile

The Internal Revenue Service today announced an increase in the optional standard mileage rates for the final six months of 2011. Taxpayers may use the optional standard rates to calculate the deductible costs of operating an automobile for business and other purposes.

The rate will increase to 55.5 cents a mile for all business miles driven from July 1, 2011, through Dec. 31, 2011. This is an increase of 4.5 cents from the 51 cent rate in effect for the first six months of 2011.

In recognition of recent gasoline price increases, the IRS made this special adjustment for the final months of 2011. The IRS normally updates the mileage rates once a year in the fall for the next calendar year.

“This year’s increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices.

While gasoline is a significant factor in the mileage figure, other items enter into the calculation of mileage rates, such as depreciation and insurance and other fixed and variable costs.

The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.

Mileage Rate Changes
Purpose Rates 1/1 through 6/30/11 Rates 7/1 through 12/31/11
Business 51 55.5
Medical/Moving 19 23.5
Charitable 14 14
For more information please feel free to contact us.
ABA Tax Accounting
Amare Berhie, Senior Tax Accountant
Direct 612-282-3200
Toll free 866-936-0430

Summer Day Camp Expenses May Qualify for a Tax Credit!

Summer Day Camp Expenses May Qualify for a Tax Credit!
Along with the lazy, hazy days of summer come some extra expenses, including summer day camp. But, the IRS has some good news for parents: those added expenses may help you qualify for a tax credit. Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation.

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the summer and throughout the rest of the year.

1. The cost of day camp may count as an expense towards the child and dependent care credit.
2. Expenses for overnight camps do not qualify.
3. Whether your childcare provider is a sitter at your home or a daycare facility outside the home, you’ll get some tax benefit if you qualify for the credit.
4. The credit can be up to 35 percent of your qualifying expenses, depending on your income.
5. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.
For more information contact us:
ABA Tax Accounting
Amare Berhie, Senior Tax Accountant
Toll free 866-936-0430

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