Admin Books newsletter

Issue #117 October 29, 2013     Newsletter   2013 will be over in almost 2 months...hard to believe!  I recommend that you use this time to “spring clean” in the fall/winter.  Look at your past year and refine your systems in your business: marketing, HR, IT, sales, financial.  How can you improve your system for your staff and improve the experience for your clients/customers? To Your Success, Renee and Team IRS Gives Free Money to Taxpayers  By: Renee Daggett I want free money!!  How do I get it?  Back in 1975, Congress approved this Earned Income Credit (EIC) to provide an incentive to working taxpayers.  To qualify, you must meet certain requirements. To qualify, you must have earned income from employment (W-2), self-employment or another source of income.  You don’t need to have children to qualify, but the more kids you have, the higher the credit.  You can be single, head of household or married filing joint with your spouse to qualify.  If you are married and have at least one child, there are 4 tests that you must meet to qualify: 1. The relationship of the child (son/daughter/adopted child/stepchild/foster child/grandchild/sibling/niece/nephew) 2. The age of the child (younger than you, younger than 19 or younger than 24 and a full-time student, or disabled) 3. Residency (child must live with you in the US for more than ½ the year) 4. Must file a joint return (child cannot file a joint return) If you are married and have no children, you must meet 3 tests: 1. You and your spouse must have lived in the US more than ½ the year 2. You or your spouse must be between the ages of 25 and 64 3. You or your spouse cannot qualify as a dependent of another person In order to qualify in 2013, your adjusted gross income (AGI) must be less than: •$46,227 for single or HOH filers ($51,567 married filing jointly) with 3 or more qualifying children •$43,038 for single or HOH filers ($48.378 married filing jointly) with 2 qualifying children •$37,870 for single or HOH filers ($43,210 married filing jointly) with 1 qualifying child •$14,340 for single or HOH filers ($19,680 married filing jointly) with no qualifying children Tax Year 2013 maximum credit: •$6,044 with 3 or more qualifying children  • $5,372 with 2 qualifying children •$3,250 with 1 qualifying child • $487 with no qualifying children 60% of the errors in filing this credit are due to 3 things: 1. Claiming a child who does not meet the age, relationship, residency or joint return test mentioned above 2. Filing as a single or head of household when legally married 3. Over or under reporting income or business expenses to maximize the credit For more information, you can check out the IRS publication 596 here: http://www.irs.gov/pub/irs-pdf/p596.pdf Download PDF copy. Did You Know? •Thank you for being a fan of Admin Books!  Please help us share business tips by suggesting to your friends to “like” our Facebook page!  www.facebook.com/adminbooks •In an audit, the IRS will look closely at the following expenses: travel, entertainment, meals, and auto deductions. •If you receive an audit letter from the IRS or Franchise Tax Board it could mean that their computer pulled your number.  Certain numbers can trigger this: high mortgage interest, high charitable contributions, high business expenses, business losses for many years, no W-2 for Officers, high travel expenses, etc. Our Featured Client: Deborah Faryniarz M.D., Inc.  We have some fabulous clients that have amazing businesses.  As an added value of working with Admin Books, clients are highlighted in our newsletters.  See their answers to our interview questions below. 1. What is your industry?  Orthopedic surgeon. 2. What is unique about what your business offers?  Specializes in disorders of the shoulder and knee; sport-related injuries. 3. Who is your ideal client?  Anyone with an injury of knee or shoulder from 16 years and up. 4. What is the best business advice you can pass on?  Treat your patients/clients/customers as if they were your family members. 2430 Samaritan Drive in San Jose, CA 95124 www.Shoulder2Knee.com "The first great gift we can bestow on others is a good example." ~Thomas Morell, Librettist      Looking forward to connecting with you, 408.782.9640 Enter Website Enter Facebook Fan Page  Subscribe to Newsletter     © 2010 - 2013 Administrative Bookkeeping Company, Inc. To unsubscribe from this email, please click "update email preferences" below and follow the instructions.