By: Dina Graves
In this day in age, there are many different opportunities to invest your money. Some offer the ability to make more money others to defer tax on portions of income, but have you considered investing in yourself, in your future, or in the future of your chosen benefactors?
As a self-employed taxpayer, there are many retirement options available, some of which allow you to reduce your taxable income. To learn more about these options, please review the following resources:
IRS publication 560
- Retirement Plans for Small Business and
IRS Publication 3998
- Choosing a Retirement Solution for Your Small Business.
Similarly to the traditional taxpayer, self-employed taxpayers can opt to put money into a Traditional Individual Retirement Account (IRA) and/or a Roth Individual Retirement Account. For most individuals, especially those who are younger and just starting their career, a Roth IRA is the best option. Although a Roth doesn't allow you to receive a current-year tax benefit, the funds in the account grow tax-free, and the retirement distributions are also tax-free. It is the opinion of most financial advisers that you should start your retirement savings with a Roth IRA before you do anything else. The maximum annual contribution for an IRA or Roth is $5000 (or $6000 if you are over the age of 50).
Outside of the common retirement plans listed above, self-employed individuals can opt to fund a Simplified Employee Pension plan (SEP), and SIMPLE plans such as a SIMPLE IRA and SIMPLE 401(k). These plans can be a little more complicated to setup when compared to the traditional IRA or Roth, however, these plans allow for higher contribution limits. With this in mind, if your preference is to contribute more than $5000 a year (the IRA and Roth limit), then you should speak to a finance adviser about one of these plans.
You could also consider setting up a Living Trust (also known as a revocable trust). Among the chief advantages of trusts are; putting conditions on how and when your assets are distributed after you die, reducing estate and gift taxes, distributing assets to heirs efficiently without the cost, and delaying the publicity of probate court. You cannot put your IRA in a trust while you are living. You can however, name a trust as the beneficiary of your IRA and dictate how the assets are to be handled after your death. This applies to all types of IRAs, including traditional, Roth, SEP, and SIMPLE IRAs.
1099-MISC Information Forms
By: Sandy Dake
Please contact Abacus CPAs if you
would like assistance with the
preparation of 1099-MISC forms
for your business.
If you paid a co-driver $600 or more, outside of W-2 earnings, you are REQUIRED to provide them with a 1099-Misc. The required tax documents need to be mailed to the IRS on, or before, January 31st and Abacus can help prepare them for you! You will just need to provide us with each of the co-drivers addresses, social security numbers, and the amounts you paid each person.
DUE DATE: 1099-MISC forms are due to the Recipient and the IRS on January 31, 201
PENALTIES: There are penalties to file and failure to file correct and timely 1099-MISC forms.
NOTICES: Please contact us if you receive a notice from the IRS regarding 1099-MISC forms.
If you have any questions, please do not hesitate to reach out to Abacus CPAs at 417-380-5000!
If you filed an amended return and want to check on its status...look at the IRS website. The agency has a tool to make it easier for filers to find out about the status of amended individual returns filed on Form 1040-X. Go to
to access the system. You'll need to enter your Social Security number, date of birth and ZIP code.
Setting Up Your Account:
You should have or will soon receive an email from Abacus CPAs with the subject: "Please register your Abacus Access account". The message will contain a link through which you can create a login and password for your Abacus Access account. If you have not received this email, please contact us. Also, check your spam or junk folders as the email may be there. In the email, click the Register link. Once you click Register, you will be redirected to the registration screen, where you will enter a login (username). Do not use your email address as a login. Enter and confirm your password. Click the Register button and you're done!
Accessing Your Portal:
After registering your account, you can log in to Abacus Access from our website at
. You'll see Abacus Access links at both the top and bottom of every page.
After you contact us to request documents, simply click on Client Flow on the far left toolbar. You will see a folder that has your name and your client number. Click on that folder and you will see your requested documents. You may also see a folder on the left toolbar with your name on it. There you will find current and previous year tax returns that we have prepared for you. Whenever your tax return is completed by us, it will appear in this folder. If you do not see Client Flow in the toolbar, please contact us.
When you need to send documents to Abacus, you will upload them through File Exchange. After logging into your Abacus Access portal, click on File Exchange on the far left toolbar. After clicking File Exchange, you should see a folder named "Upload your files here". Click on that folder. To upload a document or picture, click on the Upload icon on the toolbar at the top of the page. This will open up a box where you can either drag and drop your documents or click on Add Files to browse your computer for them. Once your documents are chosen, click Start Upload. You can close the box once your documents have been uploaded. If you see them in the "Upload your files here" folder, they were successfully uploaded and we will be able to access them. If you do not see the File Exchange folder in the toolbar, please contact us.
On the Road Recipes!
Italian Cocktail Meatballs
1-12 ounce pack refrigerated or thawed frozen cooked turkey meatballs
1/2 cup bottled roasted red and/or yellow sweet peppers, drained and cut into 1 inch pieces
1/8 teaspoon crushed red pepper
1 cup bottled reduced-sodium pasta sauce
Fresh basil to taste (optional)
- Add all ingredients to crockpot.
- Cook on low for 6 hours. Stir every hour.
Tip: For easy cleanup, line your slow cooker with a disposable slow cooker liner. Add ingredients as directed. Once your dish is finished cooking, spoon the food out of your slow cooker and simply dispose of the liner. Do not lift or transport the disposable liner with food inside.