Over six hundred thousand people who tried to claim educational credits on Form 8863 on H&R Block’s software were unable to, causing an additional six-week delay in their tax refunds. The company received thousands of complaints because the software did not allow tax filers to complete the mandatory information on the form.
Forms filed in February were the ones mainly affected because that is when the IRS changed the format of certain fields. H&R Block says it is working with IRS to rectify the situation and address the problems associated with the changes in the form to make it easier to answer questions that used to be “Yes” or “No” instead of the newly required “Y” or “N”. The IRS is still able to process the forms, but according to them, it will take longer because they must perform more steps to fix the problem.
This delay is sure to cause problems for cash-strapped taxpayers, students who need federal financial aid, and those wanting to pay off debt. Students are the most widely affected because they face deadlines for the following school year. The IRS states that students can update their information as necessary to complete their forms after they have been accepted.
Contact Us
For more information on ways to avoid the complications arising from filling out tax forms online, contact the tax experts of Gonzalez & Arrambide, Inc. at 956-447-9009.
More
Apple, according to a recent congressional investigation, avoided paying upwards of $70 billion in taxes between 2009 and 2012. Apple has placed a good amount of money in offshore accounts, something to the tune of $44 billion. Apple’s CEO, Tim Cook, said in their defense, “To our knowledge Apple is the largest corporate taxpayer in America.” Mr. Cook told a senate panel Apple paid $6 billion in taxes last year.
How Apple Avoided Paying Taxes
The congressional report found that Apple had avoided paying billions in taxes by using subsidiaries in other countries. Apple created multiple companies that were being run by top employees from California. These companies didn’t have employees themselves; rather they simply collected profits from abroad and paid little to no taxes in the region where the subsidiary is located. The senate panel has said that, while Apple didn’t break any laws in their tax practices, it did exploit numerous tax loopholes to its (financial) advantage.
Contact Us
If you have any questions about your business taxes or what kind of corporate structure your business should emulate, contact Gonzalez & Arrambide, Inc. at 956-447-9009.
More
Small businesses are beginning to gain steam as they recover from the recession. This revival has led to a rise in approval rates in small business loans from the nation’s largest banks. Banks had been hesitant to lend out money to small business in recent years due to high default rates and low credit quality, but the trend is slowly working its way back.
Self-Employment, Made Possible Through a Small Business Loan
Investing in a small business is a daunting and a potentially complicated task. The paperwork required to apply seems like Mount Everest on your desk, and the time required to fill it out (correctly) is substantial. Any mistake on an application can result in a setback, anywhere from a couple of days to weeks. Because of this, many small businesses owners seeking a loan turn to a professional to help them sort out the paperwork. In theory, your business is only an application away from being a reality.
Contact Us
If you need professional help in applying for a small business loan, obtaining financing, or financial projections contact Gonzalez &Arrambide, Inc. at 956-447-9009. We will help guide you through the process, and answer any questions you may have along the way.
More
Clothing giant Tommy Hilfiger revealed in the September 23 issue of Forbes magazine how the pitfalls of poor business decisions resulted in bankruptcy early on in his career. It was through these lessons that he learned how to be a savvy businessman, which resulted in the global success that he is today.
His journey in the retail industry began his senior year in high school selling jeans. His jeans’ initial ascent into mainstream popularity resulted in the opening of his first store, and led him subsequently to make the decision not to attend college. He believed that his own real world experience could substitute for a college education. He then proceeded to grow his brand, open multiple locations and focus his energy entirely on the creative aspect of the company.
This rapid overexpansion and his fast paced lifestyle distracted him from day to day operations and his business suffered because of it. His accountant informed him of his financial troubles and advised him to file Chapter 11 because he could not pay back his loans. After doing so, he forced himself to learn the financial aspect of his business and since then, has never looked back. His brand earns between $5 billion and $6 billion dollars in over 1,200 stores worldwide.
Contact
If you are suffering shortfalls because of your business practices or need guidance on restructuring your business after filing bankruptcy, contact our expert CPAs in McAllen of Gonzalez & Arrambide, Inc. at 956-447-9009.
More
Texas has 2.5 million residents (more than any other state) who are eligible for tax credits to reduce the cost of buying health insurance for new exchanges. These findings were unveiled in a study released Tuesday, November 12th, 2013 by the Kaiser Family Foundation. 25% of Texans are currently uninsured and the new tax credits are intended to provide financial assistance to those who need it most. Texans in certain income brackets can apply for credits or subsidies to help offset the cost of plans purchased through the health care exchange.
Millions of Americans Will Qualify
The report estimates that 17 million Americans qualify for the credits. It has been spotlighted that eligibility for these tax credits will be based primarily on income.
Those qualifying must earn between 100 and 400% of the federal poverty level (between $23,550 and $94,200 annually for a family of four). Qualifiers must also be ineligible for health coverage from an employer or from Medicaid.
Determining Tax Credit Eligibility
If a single person earns no more than $45,960 of income in 2014, he/she will qualify for a health care credit. A family of four can qualify despite earning as much as $94, 200. Tax credits are only available for those who apply for coverage through state and federal health insurance marketplaces. Those with the lowest incomes will receive the largest tax credits.
How it Works
The payments made under Obamacare are really government-funded subsidies, although they are called credits. Texans may still receive the credit despite not owing income taxes. It is paid directly to health insurance companies when people enroll in health insurance plans. This means Texans will not be required to wait until their taxes have been filed and processed to receive the credit.
Contact Us
The Obamacare tax credit can make the cost of purchasing health insurance through the Marketplace more affordable for individuals and families with low to moderate incomes. For assistance with this or any other tax issue, contact McAllen’s Certified Public accountants of Gonzalez & Arrambide, Inc. at 956-447-9009.
More
