Beware of New Phishing Schemes

Cathy Robinson, CPA

Principal

robinson@hwco.com

 

Cybercriminals are continuing to attempt to get personal information from individuals.  Here is the latest scheme the IRS has shared.  The cybercriminals are emailing payroll and human resource employees posing as company executives and who are requesting personal information for   employees.    The email will contain the name of the actual company executive.  A sample email request might be: “Kindly send me the individual 2015 W-2 (PDF) and earnings summary of all W-2s of our company staff for a quick review.”    If you are a payroll or human resource employee, you should confirm with the company executive who received the email request.

 

The IRS is renewing consumer alerts about email schemes after seeing an approximate 400 percent surge in phishing and malware incidents so far this tax season.  In addition, there are emails being sent to individuals from tax software companies seeking information and asking to confirm personal information.

 

Remember, the IRS will not contact you via email or phone.   Also, your tax software company should not need to contact you.

Don’t Forget to Consider the Ohio Business Income Deduction

Cathy Robinson, CPA

Principal

robinson@hwco.com

 

Beginning in 2015, Ohio has increased the benefit to taxpayers for the Ohio Business Deduction.  A business will receive up to 75% deduction on their first $250,000 of business income. This means up to $187,500 of business income will go untaxed by the state of Ohio no matter where it was earned.  The calculation removes the apportionment calculation that was part of the original deduction.  The remainder of the business greater than $250,000 will be taxed at the graduated rate of up to 3%.  The new deduction applies to both pass - through entities and proprietors alike.  The taxpayer should be careful though and take a closer look at what exactly constitutes business income.  Business income includes monies received in the ordinary course of a trade or business operation.

 

The deduction gets even better in 2016 when individuals can deduct 100% of their business income from their personal Ohio income tax.

 

Please remember to consider this tax deduction when preparing your return, and as always when in doubt, consult your advisor.

 

What is a W-4?

Cathy A. Robinson, CPA
Senior Manager
robinson@hwco.com
 

So you are starting a new job.  You will have many forms to fill out the first day including a W-4.  Do you know why you complete a W-4? Not to worry, we are here to help.

What exactly is a W-4?

Simply, it is used by your employer to withhold the proper amount of Federal income tax from your pay.

Why fill out a W-4?

Completing a W-4 accurately can help save you money in two ways. The first way is it helps to prevent you from overpaying your taxes.  Doing this can mean putting more money in your pocket throughout the year. The second way is to ensure you do not owe anything at tax time.

 How do you fill one out?

If you are single, the W-4 is straight forward and easy to complete. For those who are married or have more than one job, the process becomes more complex.  The W-4 includes a series of worksheets to help guide you through this process.  There are also worksheets included for those who have a spouse working as well or for those who have additional employment. 

It is important to keep in mind as well the higher the exemption number claimed, the higher the amount of your net pay. The tradeoff, however,  there will be less withholding deducted from your pay, and you could owe on April 15^th.

 

Remember, ask your tax professional should you have any questions in regards to filling out the W-4 or the tax worksheets attached to it.