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Tax Planning & Preparation

Tax Planning & Preparation

The world of tax legislation is always changing. Whether your tax needs are simple, or complex, relate to individual or business, or compliance or consulting, at Yoss & Allen, we will do our best to provide the tax planning and preparation services that meet your needs.

About Our Services

About Our Services

As a full-service accounting firm, we provide complete outsourced accounting, payroll, tax planning and preparation, QuickBooks start-up and implementation, elder financial care, assurance (compilation & review), estate & trust, non-profit, and high net worth client services.

About Our Firm

About Our Firm

Yoss & Allen (Y&A) is the longest established Certified Public Accounting firm in Claremont, California, providing distinguished professional services since 1945. After 70 years of service to the Claremont community, the faces and names may have changed, but the vision has not.

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Do you or a loved one need assistance performing some or all of your day-to-day financial activities? To learn more about the services we can provide for you, visit Our "Elder Care" page, under Services above.  

  • Tax Planning & Preparation

    Tax Planning & Preparation

  • About Our Services

    About Our Services

  • About Our Firm

    About Our Firm

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    Our "Elder Care"

Welcome to Yoss & Allen

Yoss & Allen is a client-driven accounting firm with a proactive, hands-on approach, and a qualified team of associates. We pride ourselves in having the resources, expertise, and willpower of a Big Four, with a keen responsiveness and accessibility of a local accounting firm. 
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If you are looking for personalized services from a firm that truly cares about your current and future financial needs, we encourage you to give us a call today.


~Important News from Yoss & Allen~

Tax Identity Theft Victims Can Now Get Copies of the Fraudulent Returns

PPC

Five-Minute Tax Briefing®
November 24, 2015
No. 2015-22

Tax Identity Theft Victims Can Now Get Copies of the Fraudulent Returns:  The IRS has begun allowing victims of identity theft to request a redacted copy of a fraudulent return that was filed and accepted by the IRS using the identity theft victim's name and SSN. [  Editor's Note:  This change is attributable to a request made in a letter dated 5/17/15 from U.S. Senator Kelly Ayotte to IRS Commissioner Koskinen stating that it was "deeply troubling that the IRS does not help victims by providing them with copies of the fraudulent returns so they can determine what information was stolen."] Due to federal privacy laws, the IRS will disclose the return information only to victims whose name and SSN are listed as either the primary or secondary taxpayer on the fraudulent return and not to any person listed only as a dependent. Instructions for requesting copy of fraudulent returns can be found at https://www.irs.gov/Individuals/Instructions-for-Requesting-Copy-of-Fraudulent-Returns.

Social Security changes will hit couples, divorced women hard

Editor's note: On Monday, President Obama signed into law the Bipartisan Budget Act of 2015. Among its provisions are changes that shut down two popular Social Security claiming tactics: the-file-and-suspend and the restricted-application strategies. This column explains the changes to the Social Security laws and provides questions from readers and answers from experts.

If you're married...

The impact on planning for couples is nuanced, according to Joe Elsasser, founder of Social Security Timing. There are now three sets of rules:

1. For people born on or before May 1, 1950

People born on or before May 1, 1950 (those who turn 66 for Social Security purposes in April 2016) have access to voluntary suspension that allows auxiliary beneficiaries (the spouse of a retired worker and the children of a retired worker) to claim as long as the request for voluntary suspension occurs on or before April 30, 2016, and can file a restricted application at any time between ages 66 and 70.

Restricted application: With a restricted application, an individual who was eligible for both a spousal benefit based on the work record of a spouse and a retirement benefit based on his or her own work could choose to take only a spousal benefit at full retirement age. This allowed his or her own benefits to accumulate 8%-a-year delayed retirement credits, and then they could switch to their own larger benefits at any point in the future up to and including age 70. The new law phases out this option.

Voluntary suspension: Under the existing (old) law, the higher wage earner in a couple could file for Social Security benefits and then immediately request those benefits be suspended. The checks to the higher wage earner would stop, which allowed for their benefits to grow 8% a year. While the benefit was suspended, the lower wage earner spouse could collect a spousal benefit. Under the new law, only people who suspended their benefits in the past or within the first 180 days after enactment of the new bill will be covered under the old rules, and they will continue to fall under the old rules until they reach age 70 or un-suspend their benefits.

2. For people born on or after May 2, 1950, but before Jan. 2, 1954

People born on or after May 2, 1950 but before Jan. 2, 1954 can still do a restricted application under the new law. However, voluntary suspension will also suspend the benefits of other auxiliary beneficiaries, including spouses and children, and under this change to the law, the spouse benefiting cannot receive spousal excess while a voluntary suspension is in effect. (The spousal excess is the difference between one half of the higher wage earner’s full retirement benefit and the lower wage earner’s spouse’s full retirement benefit.)

3. For people born on or after Jan. 2, 1954

For these people: Under the new law, voluntary suspension suspends the benefits of the spouse and children, and the lower wage earner cannot receive spousal excess. There is also no option for a restricted application.

Questions and answers

Question: At 66 years of age, my full retirement age (FRA), I filed for Social security benefits and immediately suspended. My wife, also 66 (her FRA), filed for spousal benefits only on my account. We initiated this in August, 2014 and have received spousal benefits each month since September, 2014. Now, I am at a complete loss on what to do next because of the new law. We are both working full time and our intent is to maximize our Social Security benefits and start taking it at 70. How do we do this under the new law? —Howard

Answer: You will squeak under the wire for the effective dates of the new Social Security rules, according to Andy Landis, founder of Thinking Retirement, author of Social Security, The Inside Story and a MarketWatch RetireMentor.

The file-and-suspend changes will affect only new requests to suspend, starting six months from bill being signed into law, so there’s no problem with your already-requested suspension, Landis said. And the changes to spousal benefits affect only people born Jan. 2, 1954 and later, so your wife’s benefits also will not change.

Source: MarketWatch.com. Published: Nov 7, 2015

Tax Preparedness Series: Employees Should Take Time to Check Withholding

WASHINGTON — The Internal Revenue Service reminds taxpayers that the earlier in the year they check their withholding, the easier it will be to get the right amount of tax withheld.

Besides wages, income tax is often withheld from other types of income, such as pensions, bonuses, commissions and gambling winnings. Ideally, taxpayers should try to match their withholding with their actual tax liability. If not enough tax is withheld, they will owe tax at the end of the year and may have to pay interest and a penalty. If too much tax is withheld, they will lose the use of that money until they get their refund.

This is the first in a series of weekly tax preparedness releases designed to help taxpayers begin planning to file their 2015 return.

When Should Taxpayers Check their Withholding?

  • When a taxpayer gets a big refund, or finds that they have an unexpected balance due.
  • Any time there are personal or financial changes that might affect their tax liability, such as getting married, getting divorced, having a child or buying a home.
  • When there are changes in federal tax law that might affect their tax liability.

How to Check the Amount being withheld

Use the IRS Withholding Calculator on IRS.gov. This easy-to-use tool can help figure the taxpayer’s federal income tax withholding so their employer can withhold the correct amount from their pay. This is particularly helpful if they've had too much or too little withheld in the past, their situation has changed, or they started a new job.

Taxpayers may also use the worksheets and tables in Publication 505, Tax Withholding and Estimated Tax, to see if they are having the right amount of tax withheld.

How to Change the Amount Being Withheld

Events during the year may change a taxpayer’s marital status or the exemptions, adjustments, deductions, or credits they expect to claim on their return. When this happens, taxpayers may need to give their employer a new Form W-4, Employee's Withholding Allowance Certificate, to change their withholding status or number of allowances.

Generally, taxpayers should give their employer a new Form W–4 within 10 days after either:

  • A divorce, if they have been claiming married status, or
  • Any event that decreases the number of withholding allowances they can claim.

Other Considerations

  • Taxpayers, who bought 2015 insurance coverage through the Health Insurance Marketplace, should report changes in circumstances to the Marketplace when they happen. Reporting changes in income or family size will help taxpayers avoid getting too much or too little advance payment of the premium tax credit. Receiving too much or too little in advance can affect the amount of their refund or how much they may owe when they file their tax return. For help getting it right, see this change in the circumstances estimator
  • Taxpayers may need to include Additional Medicare Tax and Net Investment Income Tax  when figuring withholding and estimated tax. Taxpayers may request that employers deduct and withhold an additional amount of income tax withholding from wages on Form W-4 if they are affected by these taxes.

Find more information on this and other tax topics by visiting: www.irs.gov/Individuals.

IR-2015-120, Oct. 22, 2015

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