The due date for 2011 tax return filing has been extended to April 2012, because April 15 is a Sunday and April 16 is the Emancipation Day holiday in the District of Columbia. Remember Jaya Naiken CPA, LLC is available to answer your tax filing questions and assist you with your tax filing requirements. You can contact me through my website www.jayanaikencpa.com or call me at 317-218-3318.

Welcome!

We are down to a month before the New Year kicks in. If you have not taken the time to analyze the tax planning opportunities all is not lost. You still have a few days remaining in December.

 As my business continues to evolve and grow, I want to thank those clients who sent me referrals. Keep mentioning my name to your colleagues, friends and family, as I truly appreciate your referrals.

 Some of Jaya’s 30-day last minute tax tips that you still can take advantage of before 2011 is over are:

 As an employee, if your employer offers a retirement savings plan, you still have time to maximize your 401k or Simple plan contributions for 2011. For 2011, the maximum limit you can contribute to your 401K plan is $16,500. If you are over age 50, you can make an additional contribution of $5,500.

 The maximum limit to contribute to your Simple plan is $11,500. If you are over age 50 the catch-up contribution for the Simple plan is $2,500. Some of you may qualify for an IRA deduction of up to $5000.

 Some of you may be eligible for the health care savings deduction. If you are an Indiana resident, you may get a tax deduction for contributions to the 529 Choice education plan.

 You can still make a charitable contribution to your favorite charity. Make sure you obtain a receipt for  monetary donations exceeding $250. If you plan on making any non cash donations such as household goods, clothing and other items, make sure you have good records documenting the fair market value, the cost, date acquired, and how you acquired the items.

 You can call Jaya A. Naiken CPA to guide you and answer your questions to maximize your tax deductions.

 Happy Holidays.

2011 is almost over.  In the last 6 months Jaya’s business has made a gradual transition and relocated offices. I have incorporated my business name to Jaya A. Naiken CPA, LLC.  My existing company, AJS Consulting, Inc. will now predominately offer consulting, payroll processing and IT services.

It has been a challenging year, but with the help of family, friends and clients, this move is finally beginning to see the light at the end of the tunnel.  The old sage says “a referral is the best source to grow your business”… Jaya A. Naiken CPA, LLC. is still growing. I want to thank all of you for my continued growth and I ask that you continue to “Refer My Name” to your colleagues, friends, family, acquaintances and business partners.  I will continue to serve you and your business, and do my best to assist with your growth whether large or small.

With that, I would like to offer you some tax deduction tips to consider for the current year:

1. Charitable contributions
2. Points on the purchase or refinancing of your personal residence
3. Old points when you refinance your personal residence
4. Health insurance premiums
5. Medicare part B as self employed health insurance
6. Education expenses
7. Residential energy credit
8. Investment related expenses
9. Casualty loss deduction
10. Retirement tax credit
11. Job search expenses
12. Health savings and flexible spending accounts
13. Retirement contributions
14. Home office deduction
15. Cafeteria plans – provided by employer
16. Child care for dual working parents

While you are thinking on how to baste the turkey for Thanksgiving and planning for the upcoming holidays, don’t forget to call me to talk about tax saving ideas before the year is over.

By adopting certain IRS code sections, the reimbursements made to your employees for travel and entertainment expenses will not be considered additional compensation. This will save the company employment taxes such as FICA, FUTA and unemployment. For employees this arrangment will not include the reimbursements on their W-2 statement.

The Company must adopt the plan which requires: a reasonable accounting by the employee for the expenses reimbursed; a business reason for the expenses; repayment of an excess reimbursements by the employee within a reasonable time.  More detail is listed in IRS publication 463.

You should file an amended return if your filing status, your dependents, your total income or your deductions or credits were reported incorrectly.

In some cases, you do not need to amend your tax return. The IRS usually corrects math errors or requests missing forms – such as W-2s or schedules – when processing an original return. In these instances, do not amend your return.

Use IRS form 1040x to report tax return amendments.