Office Closing

In observance of Independence Day, our office will close at 4p Thursday, July 3rd and will be closed Friday, July 4th.

Have a happy and safe 4th of July weekend!


An MJW EA & Company LLC FYI Bulletin:

For all those hardworking teachers out there, starting in 2015, a portion of Connecticut teachers’ pensions will be non-taxable (in Connecticut). In 2015, 10% will be non-taxable. In 2016, 25% and from 2017 on, 50% of pensions will be non-taxable.

If you have any questions, we are here to answer them for you.


Community Forum

MJW EA & Company LLC is starting something new and we want to hear from you:  What do you think about sharing what you’ve learned on various topics?  If you have had experience/insight/fun filling out a FAFSA or AccesHealth form, or if you have come across tricks of the trade in your small business that you want to pass along, we want to share your tips on our Community Forum Page (coming soon to our website).

Send us your story and we will post your tips on our new page (anonymously, if so desired).

We look forward to your feedback!


Check Out Your Links!

We have a new page on our website – and it’s just for you, Small Business Owner!

Email us the link to your website and we will gladly post it on our website on the page.  If you have a Facebook page for your business, let us know and we will follow you on Facebook (we already “like” you!).

We will also be designing and putting up an MJW EA & Company LLC exclusive display board in our office.  Stop in and when you take one of our cards, give us some of your business cards and they will be displayed prominently in our office.


Second Quarter Estimated Taxes Are Due Soon

The Second Quarter of 2014 is winding down and estimated taxes are due again.  If we prepared estimates for you, in the tax return packet we gave you, we provided pre-addressed envelopes and vouchers with the amount due.  Please make sure that your payments are mailed on or before June 16th.  They are also available here for download:

Federal Estimated Tax Vouchers 2014 CT Estimated Tax Vouchers 2014

As always, we are here to answer any questions you may have.


To Amend or Not Amend: Domestic Partnerships Have a New Question to Ponder

2014 marks a significant milestone in both cultural and clerical purposes – same sex couples are now required to file federal income tax returns that reflect their married status.

The changes in the tax law are the result of the monumental Supreme Court decision last June, which gave same-sex marriage two legal victories.  However, with the changes come confusion and lots of questions. Should previous returns be amended? Under the law, couples can choose to refile their last three tax returns using a married filing status — a potentially worthwhile move if it generates a nice refund. But how to approach that process? And there are other issues: Can you easily recover the extra taxes many you as an employee incurred when you bought health insurance for your spouse? And what do couples living in states that don’t recognize their unions need to know?

At MJW EA & Company LLC, Mary Jo is an Accredited Domestic Partner Advisor (an ADPA) and will be your guide through the odyssean sea of paperwork, questions, scenarios and options that are now available for same sex married couples. Schedule an appointment to come in and figure out what the best plan for you is. We are always here to help!



Your Average Wait Time Is…

A recent annual report to Congress from the National Taxpayer Advocate sites declining customer service (mostly due to budget cuts) as one of the major concerns for the IRS.

In fiscal year 2013, the IRS answered only 61% of calls from taxpayers who called wanting to speak with a customer representative.  The average wait was 17.6 minutes.

Here’s how the report describes steps the IRS is taking to improve the level of service on taxpayer phone calls:

“During the filing season (January through April), it will answer only “basic” tax law questions; it will not answer “more detailed” questions. After April, it will not answer any tax law questions (even basic ones), including from the millions of taxpayers who obtain filing extensions and prepare their returns later in the year. At the risk of vast understatement, it is a sad state of affairs when the government writes tax laws as complex as ours — and then is unable to answer any questions beyond “basic” ones from baffled citizens who are doing their best to comply.”

Have questions? MJW EA & Company LLC is here to answer basic, complex, simple, convoluted, easy, unusual and the occasional “Can I deduct my pet if I use it as a security system?” all year, with no average wait time. And with a smile.


Health Care, Investments and Phase Outs – Oh My: Changes to 2013 Tax Laws

In case you were wondering why this year was different than returns past, MJW EA & Company LLC wanted to shed some light on the changes that went into effect for the 2013 tax year:

  • The top tax bracket increased from 35% to 39.6%
  • The long-term capital gains rate was raised to 20% for couples who earn more than $450,000.
  • The Medicare payroll tax increased by 0.9 percentage point in 2013, but only for couples earning more than $250,000 and unmarried taxpayers earning more than $200,000. The increase applies to investment income, not just to wages.
  • There was also an additional 3.8% Medicare tax on “net investment income” for those couples earning more than $250,000. That includes long-term capital gains and qualified dividends on stock, income that until now was taxed at a maximum rate of just 15%. But it also includes other income that had been taxed at the same rate as earned income, including rent, royalties, interest and short-term capital gains.
  • Including the Medicare surcharge, the top rate on investment income (like interest and short-term capital gains (like interest and short-term capital gains) is now 43.4%.
  • There were a significant number of phase-outs that occurred in 2013, that were more than likely the culprit for our clients (please see the table below)

phase out tableMJW EA & Company LLC is, as always, available for strategizing with you to maximize your benefits.


In Other News…

We have a new member of the team, Christine (check out our team page)!  One of Christine’s children has Prader Willi Syndrome.   Prader Willi Syndrome is a deletion of Chromosome 15 and therefore no cure will exist.  Early in life, the disorder will present with low muscle tone (Mac is just learning to sit up at 1 year old), failure to thrive to eat and developmental delays, as well as other symptoms.  Later on, she will wake up one day and never feel full.  She will do anything for food and eat anything.  Many children have eaten out of the trash or ingested things like coins because they are so hungry.  There are many more aspects of this disorder and research is ongoing.  There are amazing clinical trials in progress right now that will hopefully one day help with appetite control.

There is a fundraiser for Mackenzie and her PWS friends on Saturday May 17th at Middletown High School.  There will be a 5k walk, touch-a-truck, raffles, face painting, balloon animal artist, DJ and much more.  If you would like to attend, you can register online at the below link.  Your donation is tax deductible!

MJW EA & Company LLC is proudly supporting this cause!