|
2010 Standard Mileage Rates
Washington – The Internal Revenue Service today issued the 2010 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning Jan.1, 2010, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
· 50 cents for mile for business miles driven
· 16.5 cents per mile driven for medical or moving purposes
· 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than last year’s. The mileage rates for 2010 reflect generally lower transportation costs compared to a year ago.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Sales Tax Update
EFFECTIVE SEPTEMBER 1, 2009
The combined sales and use tax rate will increase to a total of 7.75% (5.5% state rate and 2.25% county rate)
EFFECTIVE OCTOBER 1, 2009
The combined sales and use tax rate will remain at a total of 7.75% but the breakdown between the state and county rates will be different. (5.75% state rate and 2.00% county rate)
IMPORTANT 2009 TAX UPDATE INFORMATION
Please click on the links below to read either the condensed or expanded versions of the tax act signed February 17, 2009 by President Obama:
2009 American Recovery and Reinvestment Tax Information
Expanded Version
American Recovery and Reinvestment Tax Act of 2009 Information
Frederick Hutchins, Kurt Canning, and Erin Hughes of Hutchins Allen & Company attended this year's twenty-fifth Annual Vacation Rental Management Association in Washington, DC, Oct. 26-28. Managing partner, Frederick Hutchins, CPA, presented two workshops at the conference: Planning for Profits: After the Budget is Complete; and Using Financial Statements for Business Decision Making. Pictured left to right: Frederick Hutchins, Erin Hughes, Alex Risser, Cort Roussel, Kurt Canning
Hutchins Allen & Company recently participated in Hotline's annual Festival of Trees on December 5, 2009. The basket (Outer Banks Dining Tour from Duck to Manteo) raised $500 at auction. An essential part of the Outer Banks community for nearly three decades, Outer Banks Hotline is a private, non-profit human services organization that provides crisis intervention, temporary shelter, information and referrals, advocacy and prevention education services to residents of and visitors to the Northern Outer Banks.
Erin Hughes Elected President of the Local Chapter of the NCACPA
Media Contact: Frederick Hutchins, 252-261-1040
Kitty Hawk – Erin Hughes, a CPA and senior accountant at Hutchins Allen & Company, P.A., is the newly-elected president of the Albemarle-Outer Banks chapter of the North Carolina Association of Certified Public Accountants. She will serve until June 2009.
The local chapter covers the northeast region of North Carolina, extending from Moyock to Edenton and from Corolla to Hatteras. Its membership is comprised of 108 certified public accounts who are in both public practice and industry. The local chapter is one of 11 statewide with more than 12,000 members. Under the auspices of the state headquarters in Raleigh, the Albemare-Outer Banks chapter provides local continuing education classes to members and serves as a meeting locale for state officers and staff.
“One of my goals as president is to plan and help facilitate bringing more of the continuing-ed classes to the Outer Banks so we don’t have to travel to Raleigh to take them,” said Hughes. “I think that will encourage members to be more involved in the organization and it’s one way the organization can help meet the needs of its membership.”
At Hutchins Allen & Company, P.A., Hughes is responsible for accounting and financial reporting matters. She has worked with the firm for four years, relocating to the Outer Banks from Texas where she was employed as a staff accountant in the auditing and public accounting department of the San Antonio office of Arthur Andersen & Company.
Since 2006, Hughes has served on the accounting and auditing committee of the North Carolina Association of CPA’s. She is also a charter member of the Wild Goose Rotary Club in Currituck County.
“We’re pleased with Erin’s service in the NCACPA, as well as in other professional groups. These professional activities benefit Erin, our clients and the firm. She is an outstanding leader. Her abilities and involvement enhance the accounting profession and we’re proud she is representing our region as president,” said Frederick Hutchins, managing partner with Hutchins Allen & Company, P.A.
Hughes is a graduate of East Carolina University, where she played competitive volleyball. She resides in Point Harbor with her husband, Michael, and their two children, six-year-old Emma and four-year-old Ben.
Founded in 1979, Hutchins Allen & Company, P.A., is a regional firm based in Kitty Hawk that offers accounting and tax services, retirement planning, payroll assistance, consulting, and financial forecasts and analysis.
W-4 Information for Non-Resident Aliens
Because previous rules caused over-withholding from nonresident aliens
working in the U.S., the IRS has issued new rules. For wages paid after Jan. 1, 2006, nonresident aliens completing a W-4 are required to:
1. Not claim exemption from withholding and request withholding as if they are single, regardless of actual marital status
2. Claim only 1 allowance (except for residents of Canada, Mexico, or South Korea); and
3. wrlte "Nonresident Alien" or "NRA" above the dotted line on line 6 of the W-4.
For 2006, employers must add an additional amount to a nonresident alien's income solely for purposes of computing the withholding (to offset the standard deduction incorporated into the tables). The additional amount depends on the length of the payroll period and is listed in a table in Pub. 15. The table will be revised yearly. [Notice 2005-76; 2005-46 IRB 1]
2009 Mileage Rates
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
-
55 cents per mile for business miles driven
-
24 cents per mile driven for medical or moving purposes
-
14 cents per mile driven in service of charitable organizations
North Carolina Minimum Wage Information
Contribution Limits:
401k, Simple IRA, Traditional IRA, Roth IRA
401k Plan:
Below is an outline of the contribution limits for 2008 and 2009.
2008:
$15,500/year
$20,500/year if you are 50+ years old (includes catch-up contribution)
2009:
$16,500/year
$22,000/year if you are 50+ years old (includes catch-up contribution)
Simple IRA:
Below is an outline of contribution limits for 2008 and 2009.
2008:
$10,500/year
$13,000/year if you are 50+ years old (includes catch-up contribution)
2009:
$11,500/year
$14,000/year if you are 50+ years old (includes catch-up contribution)
Traditional IRA & Roth IRA:
Below is an outline of contribution limits from 2008-2009.
2008:
$5,000/year
$6,000/year if you are 50+ years old (includes catch-up contribution)
2009:
$5,000/year
$6,000/year if you are 50+ years old (includes catch-up contribution)
Helpful End of the Year Hint For Employers
The publication Keep Up To Date Payroll has provided some information to help alleviate the tax time dilemma of having to find up to date address and social security number information for W 2's and 1099's. They suggest enclosing a flyer with your employees paycheck starting now urginig them to check their paycheck for accurate name, address information and social security number. In addition they suggest adding an explanation of what is in it for the employee such as "Errors in your name or Social Security number means SSA won't be able to post your wages to you lifetime Social Security earnings record-that could mean reduced benefits when you need them".
|
