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By Woods & Durham, Jul 1 2017 04:00PM

Is your business located in a designated community? Do you have employees that live in a designated community? You may qualify for a Work Opportunity Tax Credit (WOTC) if you answered yes to either of these questions. The credit for Designated Community Residents is a maximum of $2,400 per qualifying employee.


Requirements:

1. Employee is a new hire, not a rehire

2. Employee is 18 to 39 years old

3. Resides in one of the counties below.

4. Not a relative of the business owner


Eligible counties include:


Kansas Counties


Atchison, Barber, Barton, Brown, Clay, Cloud, Comanche, Decatur, Edwards, Elk, Ellsworth, Gove, Graham, Greeley, Greenwood, Harper, Hodgeman, Jewell, Kiowa, Labette, Lane, Lincoln, Marshall, Mitchell, Montgomery, Ness, Osborne, Phillips, Rawlins, Republic, Rooks, Rush, Russell, Scott, Sheridan, Sherman, Smith, Stafford, Trego, Wallace, Washington, Wichita, and Woodson.


Nebraska Counties


Antelope, Banner, Boone, Box, Butte, Boyd, Burt, Cedar, Chase, Deuel, Dundy, Fillmore, Franklin, Garden, Garfield, Greeley, Hayes, Hitchcock, Holt, Jefferson, Johnson, Logan, Nance, Nemaha, Nuckolls, Pawnee, Perkins, Red Willow, Richardson, Rock, Sheridan, Sherman, Thayer, Thomas, Valley, Webster, and Wheeler.


Reminders


Proper documentation must be submitted for approval no later than 28 days after hiring a qualifying employee.


Other classes of employees that may qualify for the WOTC are Veterans, TANF (Temporary Assistance for Needy Families) Recipients, SNAP (Food Stamp) Recipients, Designated Community Residents (employees 18-39 years old living in a designated rural renewal county), Vocational Rehabilitation Referrals, Ex-Felons, and SSI (Supplemental Security Income) Recipients.


If you county information for another state or have any questions about the WOTC please contact us.


More info can be found at, https://www.doleta.gov/business/incentives/opptax/


By Woods & Durham, Jun 8 2017 08:02PM

On June 6th Kansas Lawmakers overturned Brownback’s veto of the proposed tax bill. This bill rolls back a majority of Governor Brownback’s tax cuts of 2012. This will allow the state to get closer to balancing the budget for the next two years and provide additional funding for schools. Major changes are listed below.



What does this mean for the individual taxpayer?



1. There will now be three tax brackets


Married Filing Jointly

• Tax bracket 1 - not over $30,000 of income

• Tax bracket 2 - $30,001 to $60,000 of income

• Tax bracket 3 - over $60,000 of income


All other individuals

• Tax bracket 1 - not over $15,000 of income

• Tax bracket 2 - $15,001 to $30,000 of income

• Tax bracket 3 - over $30,000 of income


2. Tax rates will be increasing

• Tax bracket 1 tax rate will be increasing from 2.9% to 3.1% over the next two years.

• Tax bracket 2 tax rate will be increasing from 4.9% to 5.25% over the next two years.

• Tax bracket 3 tax rate will start out with a rate 5.2% and increase to 5.7% in 2018.


3. Corporations will now be taxed at a normal tax rate of 4% on all taxable income and a surtax of 3% on taxable income over $50,000.


4. All businesses and farmers will now be taxed at the state level.


5. No penalties or interest for underpayment will be assessed due to the above changes as long as the tax is paid by April 17, 2018.



What can you do?



Plan ahead! Schedule a tax planning session with one of the Woods & Durham offices.


NOTE: The state budget is not yet complete, we expect more tax changes to be issued. Stay tuned for updates.


The full Senate Bill can be found here: http://www.kslegislature.org/li/b2017_18/measures/documents/sb30_enrolled.pdf


If you have questions or concerns please contact our office.




By Woods & Durham, May 15 2017 02:32PM

Are you planning on hiring summer help? Consider whether your summer help will qualify you, as an employer, for a Work Opportunity Tax Credit (WOTC). The credit is $1,200 per summer employee.


Requirements:

1. Employee is a new hire, not a rehire

2. Employee is 16 or 17 years old

3. Starts work no earlier than May 1st

4. Ends work no later than September 15th

5. Resides in an empowerment zone.


Empowerment Zones include:


Kansas Counties


Atchison, Barber, Barton, Brown, Clay, Cloud, Comanche, Decatur, Edwards, Elk, Ellsworth, Gove, Graham, Greeley, Greenwood, Harper, Hodgeman, Jewell, Kiowa, Labette, Lane, Lincoln, Marshall, Mitchell, Montgomery, Ness, Osborne, Phillips, Rawlins, Republic, Rooks, Rush, Russell, Scott, Sheridan, Sherman, Smith, Stafford, Trego, Wallace, Washington, Wichita, and Woodson.


Nebraska Counties


Antelope, Banner, Boone, Box, Butte, Boyd, Burt, Cedar, Chase, Deuel, Dundy, Fillmore, Franklin, Garden, Garfield, Greeley, Hayes, Hitchcock, Holt, Jefferson, Johnson, Logan, Nance, Nemaha, Nuckolls, Pawnee, Perkins, Red Willow, Richardson, Rock, Sheridan, Sherman, Thayer, Thomas, Valley, Webster, and Wheeler.


Reminders


Proper documentation must be submitted for approval no later than 28 days after hiring a qualifying employee.


Other classes of employees that may qualify for the WOTC are Veterans, TANF (Temporary Assistance for Needy Families) Recipients, SNAP (Food Stamp) Recipients, Designated Community Residents (employees 18-39 years old living in a designated rural renewal county), Vocational Rehabilitation Referrals, Ex-Felons, and SSI (Supplemental Security Income) Recipients.


If you need empowerment zone information for another state or have any questions about the WOTC please contact us.


More info can be found at, https://www.doleta.gov/business/incentives/opptax/


By Woods & Durham, May 4 2017 07:02PM

The Internal Revenue Service today reminded employers planning to hire new workers that there's a valuable tax credit available to those who hire long-term unemployment recipients and others certified by their state workforce agency. During National Small Business Week—April 30 to May 6—the IRS is highlighting tax benefits and resources designed to help new and existing small businesses.

The Work Opportunity Tax Credit (WOTC) is a long-standing income tax benefit that encourages employers to hire designated categories of workers who face significant barriers to employment. The credit, usually claimed on Form 5884, is generally based on wages paid to eligible workers during the first two years of employment.

To qualify for the credit, an employer must first request certification by filing IRS Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. Other requirements and further details can be found in the instructions to Form 8850.

There are now 10 categories of WOTC-eligible workers. The newest category, added effective Jan. 1, 2016, is for long-term unemployment recipients who had been unemployed for a period of at least 27 weeks and received state or federal unemployment benefits during part or all of that time. The other categories include certain veterans and recipients of various kinds of public assistance, among others.

The 10 categories are:

•Qualified IV-A Temporary Assistance for Needy Families (TANF) recipients

•Unemployed veterans, including disabled veterans

•Ex-felons

•Designated community residents living in Empowerment Zones or Rural Renewal Counties

•Vocational rehabilitation referrals

•Summer youth employees living in Empowerment Zones

•Food stamp (SNAP) recipients

•Supplemental Security Income (SSI) recipients

•Long-term family assistance recipients

•Qualified long-term unemployment recipients.

Eligible businesses claim the WOTC on their income tax return. The credit is first figured on Form 5884 and then becomes a part of the general business credit claimed on Form 3800.

Though the credit is not available to tax-exempt organizations for most categories of new hires, a special rule allows them to get the WOTC for hiring qualified veterans. These organizations claim the credit on Form 5884-C. Visit the WOTC page on IRS.gov for more information.

Document Title:IR News Release 2017-92 05/02/2017

Checkpoint Source:IR News Releases (RIA)

© 2017 Thomson Reuters/Tax & Accounting. All Rights Reserved.

By Woods & Durham, Jan 24 2017 05:00PM


The Kansas Department of Revenue announced that taxpayers receiving a 1099G form will soon receive a corrected document in the mail.


Monday, the department discovered some of the 1099Gs sent out for the tax year 2016 listed refund amounts that did not match the amount the taxpayer actually received.


Taxpayers who received a 1099G from the Kansas Department of Revenue should destroy the form. The new forms will be marked CORRECTED on the form and envelope and will be mailed by Monday, Jan. 31.


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