If you received income in 2015 that wasn't subject to federal income tax withholding, you may have paid the tax you owed in installments. Those estimated tax installments were due in four payments: April, June, and September of 2015, and January of 2016. In most cases, you'll include the total of all four on your return. But some situations require more planning.

For instance, say you filed joint estimates with your spouse for 2015. If you're filing a joint federal income tax return, you'll report the entire amount in the "payments" section. That's true even if your spouse died during the year. But what if you and your spouse decide to file separately for 2015? In that case, you have to decide how to split the joint payments. The two of you can agree to any method you choose.

Can't reach an agreement? You'll have to use a formula. The first step is for you and your spouse to prepare separate returns for 2015, each claiming your own income and deductions. Then you split the estimated tax you paid in proportion to the tax shown on those returns.

Illustration. If the tax on your separate Form 1040 is $4,000, and the tax on your spouse's return is $1,000, you can claim 80% of the 2015 estimates because your tax is 80% of the total owed ($5,000).

Use the same method if you and your spouse got divorced in 2015. In this case, remember to include your spouse's social security number on your return, either in the space on page one or beside the line in the "payments" section of Form 1040. That helps the IRS track the total payments you made.

Did you marry during 2015 and change your name? Attach a statement to your return to claim estimated payments you made under your former name.

For more information about these and other estimated tax rules, contact our office.

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Expect the deluge of 2015 tax documents to include new forms, courtesy of additional Affordable Care Act reporting requirements that take effect this year. If you had health coverage during 2015, you may receive one or more information returns you haven't seen before.
Here's an overview of three health insurance-related returns.

• Form 1095-A. You'll get this form, the "Health Insurance Marketplace Statement," if you bought your health coverage from the online healthcare.gov marketplace. The form has information about your insurance, who was covered by your policy, and when the coverage was in effect.

• Form 1095-B. Your insurance company or other health insurance provider will send you this new-for-2015 information statement if you purchased your insurance outside of the government marketplace. "Form 1095-B, Health Coverage," provides information about who your health policy was issued to, who was covered by the policy, and the months of coverage.

• Form 1095-C. You may receive this new form from your employer if you're a full-time employee and your employer meets certain requirements. "Form 1095-C, Employer-Provided Health Insurance Offer and Coverage," tells you what coverage your employer offered, who in your family was covered, and when the coverage was in place.

You don't need to attach any of these forms to your federal income tax return. However, you will need to have Form 1095-A in hand to complete your return. (You can file before you receive Forms 1095-B or 1095-C.)
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Not sure which forms to look for? Contact us for help.

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

Remember that retirement account withdrawal you made last year? If not, you'll get a reminder when you receive Form 1099-R. Your plan trustee or custodian sends this information return to you and to the IRS to report distributions you received from pensions, annuities, IRAs, profit-sharing, and other retirement plans.

Form 1099-R looks simple. But do the numbers on the form tell the whole story? While the reported distributions are generally taxable, in some cases the amount shown and the amount you'll pay tax on will differ.

For instance, say you took money from a traditional IRA in which you have basis. This could happen if you were unable to deduct your entire contribution in the year you made it. In this situation, the taxable portion of your withdrawal will be less than the gross distribution reported on Form 1099-R. You account for the difference on "Form 8606, Nondeductible IRAs."
Qualified charitable contributions transferred directly from your IRA to the charity of your choice also reduce the taxable amount of the distribution shown on Form 1099-R. In this case, you indicate the reason for the difference on the first page of your federal income tax return, Form 1040, with the notation "QCD."
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Did you roll part or all of the distribution from one IRA into another qualified IRA? As long as you made only one transfer during the past twelve months, and did so within a 60-day time period, the amount you rolled over is generally tax-free. If you qualify for this exception, enter "Rollover" beside the line where you report the amount on page one of Form 1040.

Please get in touch with us for more information. We'll be happy to explain the tax treatment of IRA and other retirement account withdrawals.

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

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When it comes to deadlines, March is to your business what April is to your personal taxes: a time of due dates and decision-making. Here are three business-related tax events — and due dates — to be aware of this month.

• Subchapter S election. If you plan to convert your C corporation to an S corporation, the due date for making the election is March 15. That's also the final day for choosing S corporation status for a new business with an incorporation date of January 1, 2016. What happens if you forget? In some cases, late filing relief is available.

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• Corporate returns. Calendar-year corporations must file federal income tax returns (Form 1120 for C corporations and Form 1120-S for S corporations) by March 15. If you're not ready to file, you can get an automatic six-month extension. Just remember the extension only grants extra time for filing the return. Any tax owed is due March 15.
  
  Note: You may have heard about changes to corporate due dates made by a law passed in December 2015. Those changes will affect your 2016 federal income tax return — the one you'll file in 2017.
• Information returns. When you file electronically, 2015 information returns, such as Form 1099, are due to the IRS by March 31.
  
  If you're an applicable large employer, you must furnish "Form 1095-C, Employer-Provided Health Insurance Offer and Coverage," to your employees by March 31. You're generally considered an applicable large employer if you had 50 or more full-time employees last year.
  
  March 31 is also the deadline to send copies of 2015 Forms W-2 to the Social Security Administration if you file electronically.

Call us for more information, recent changes, and current tax due dates and deadlines. 

We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Monarch Accounting Group, Inc
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720

To better serve our clients and friends, to keep you up-to-date and informed , here is IRS's Tax Tip on Early Retirement Distributions and Your Taxes
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Many people find it necessary to take out money early from their IRA or retirement plan. Doing so, however, can trigger an additional tax on top of the income tax you may have to pay. Here are a few key points to know about taking an early distribution:

1. Early Withdrawals.  An early withdrawal normally means taking the money out of your retirement plan before you reach age 59½.

2. Additional Tax.  If you took an early withdrawal from a plan last year, you must report it to the IRS. You may have to pay income tax on the amount you took out. If it was an early withdrawal, you may have to pay an additional 10 percent tax.

3. Nontaxable Withdrawals.  The additional 10 percent tax does not apply to nontaxable withdrawals. They include withdrawals of your cost to participate in the plan. Your cost includes contributions that you paid tax on before you put them into the plan.
A rollover is a type of nontaxable withdrawal. A rollover occurs when you take cash or other assets from one plan and contribute the amount to another plan. You normally have 60 days to complete a rollover to make it tax-free.

4. Check Exceptions.  There are many exceptions to the additional 10 percent tax. Some of the rules for retirement plans are different from the rules for IRAs.

5. File Form 5329.  If you took an early withdrawal last year, you may need to file Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, with your federal tax return. See Form 5329 and its instructions for details.

6. Use IRS e-file. Early withdrawal rules can be complex. IRS e-file is the easiest and most accurate way to file your tax return. The tax software that you use to e-file will pick the right tax forms, do the math, and help you get the tax benefits you’re due. Seven out of 10 taxpayers qualify to use Free File, which is only available through the IRS website at IRS.gov/freefile.
More information on this topic is available on IRS.gov.
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
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http://content.govdelivery.com/accounts/USIRS/bulletins/13a1b6a?reqfrom=share
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We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, and all Chicago land area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.   
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain.Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Online Advisor Newsletters, Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Art Bradley CPA & Janice Papais CPA 
145 Tower Drive, Suite 4
Burr Ridge, IL 60527
Phone (630) 320-3720
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