REMEMBER: You need to file your sales and use tax return by February 5th, 2013.
If you do not regularly file a sales tax return, you need to file a “Sales & Use Tax” return by February 5th, 2013. Click here to file: https://www.mndor.state.mn.us/ur/jsp/Login.jsp
“. . . but I do not collect sales tax or have taxable services!”
Many people think this, however you must file a return for USE TAX as well as SALES TAX. USE TAX is the sales tax you should have paid on purchases you may have bought over the internet or in other situations where you did not pay the sales tax at the time of purchase. This sales tax must be paid in voluntarily and must be paid online.
Business By Design can not file this return for you! For more infomation, click below to download details about filing this return and filing requirements:
Explanation of Sales & Use Tax -2012.pdf
Frequently Asked ??’s:
MN Sales and Use Tax FAQ’s – 2012.pdf
Directions to MN online filing:
Online Filing instructions using e-Services.pdf
For more information, you can go to the MN Department of Revenue Website at: http://taxes.state.mn.us/sales/pages/index.aspx
As many of you have heard – the House and Senate have agreed to some terms on what will happen with the tax laws to avoid the so called “Fiscal Cliff”. Currently – there is not a lot of details out yet on what is in the bill – but we do know some highlights. I thought it might be a good idea to pass some of this along to you since many of you were wondering what might change for 2013.
Here are some of the key points effecting our clients:
- Income limits for changes: $400K for singles and $450K for married tax payers.
- Capital Gains Tax Rates: Capital Gains and Dividends will be taxed as 15%, unless you are over the income limited stated. That top rate will go up from 15% to 20%.
- Obamacare Tax: The income limit is still $200K for single and $250 for married tax payers. If your income is over this limit – you will have an extra 3.8% (interest income, capital gains, annuities, royalties, and net rental profit)
- Estate Taxes: $5,120,000 exemption per person.
- Alternative Minimum Tax: New fix – stays at 2011 level
- 50% Bonus Depreciation: Will still be available for NEW assets purchased in 2013.
- Section 179 Depreciation: Max deduction for 2013 will go back to $500,000 of qualifying assets placed in service.
- Foreclosure or Canceled Debt: Taxpayers can exclude up to $2,000,000 of cancelled debt income for their primary residence.
- Payroll Tax Credit: No longer in effect. All employees will have to pay the 6.2% Social Security tax instead of the reduced rate of 4.2%
We will be passing along more information and details as it becomes available.