REMINDER: Tax Payments, HSA and IRA contributions for 2016

 April 18thTAX RETURNS vs. TAX PAYMENTS:  What is due?

  • Your tax payment is due by April 18th.  Your tax return does not have to be filed by 4/18 as long as we have filed an extension.
  • If we have prepared your taxes in the past, and your taxes are not complete – rest assured, we have filed an extension for you, you do not need to do anything, or sign anything.

** IF YOU OWE TAXES — Your TAX PAYMENT is due by April 18th.  Your filing date can be extended, but not the payment **


EXTENSION PAYMENTS:

If you would like to make a tax payment for April 18th, Please contact us ASAP.  We will be happy to help you with this.  If you had a tax review completed by us for 2016, please refer to the notes from that meeting for our instructions on what you will need to do by 4/18.

If you have questions, please email:  darrellynn@mybbd.com.  He can get your questions to your BBD Accountant in Charge.

HEALTH SAVINGS ACCOUNTS (HSA) for 2016HSA Image

  • Funding for 2016:  Your 2016 HSA contribution needs to be funded by 4/18/17.  HSA contributions can not be extended with a personal tax extension.
  • Family Plan:  The max contribution for a family plan is $6,750.
  • Individual Plan:  The max contribution for an individual plan is $3,350.
  • Age 55+:  If you are 55+, you can add an additional $1,000 to your contribution.

NOTE:  Make sure you qualify to make a HSA contribution prior to making a 2016 contribution.

IRA’s and ROTH IRA’s for 2016 – Personal ContributionsIRA - Image

  • IRA Contributions:  The max IRA contribution is $5,500.   If you are 50 and older, you can an additional $1,000.   The IRA must be opened and funded by 4/18/17.  This contribution can not be extended with a personal tax extension.
  • ROTH IRA Contributions:   The max ROTH IRA contribution is $5,500.   If you are 50 and older, you can an additional $1,000.   The IRA must be opened and funded by 4/18/17.  This contribution can not be extended with a personal tax extension.

NOTE The due date of 4/18 DOES NOT apply to SEP’s and 401K contributions.  Those contributions can be extended with the due date of the Personal or Corporation tax return.

2017 Quarterly Estimated Payments

Quarterly estimated payment due dates:myBBDPass - Tax Due2

    • 1st Quarter Payment due on:  04-18-17
    • 2nd Quarter Payment due on: 06-15-17
    • 3rd Quarter Payment due on:  09-15-17
    • 4th Quarter Payment due on:  01-15-18

If your 2016 returns are currently complete, read here:

If we have completed your 2016 tax returns your estimated tax payments have already been calculated. You will need to log in to your myBBDPass account to access this information.

How much do I pay and how do I print my coupons? myBBDPass How To … Access Estimated Payments

Your 2017 Estimated Payments are printed to a separate .pdf file in your myBBDPass account.  For instructions on how to access your Estimated Coupons and Amounts, click here:  myBBDPass How To … Access Estimated Payments

NOTE:  If you have set your payments up for Automatic Withdrawals:

You will not need to mail in a payment.  Your filing instructions will indicate whether you need to write a check or if you are setup for automatic payments. Please note the amount and make sure the funds will be available in your PERSONAL bank account on the due date listed above.

If you have any questions or cannot locate your payment coupons, please email your accountant in charge or generalquestions@mybbd.com.

BBD has NOT completed my 2016 Tax Returns yet:

If your 2016 return is not complete yet, we HAVE NOT calculated your 2017 estimated payments.  If you think you will need to make a tax payment or want to make a payment, please email your accountant in charge or generalquestions@mybbd.com.


2016 Extension Payments – myBBDPass

April 18thIf you owe taxes, you will need to make a payment by 4/18/17 to avoid a late payment penalty.   We can extend the due date of a return, but the extension does not extend the date to pay.  If you think you might owe for your 2016 taxes, please refer to  your 2016 tax review prepared by BBD in your myBBDPass account.

To make a payment for Federal or MN taxes, please follow the instructions below:

FEDERAL EXTENSION PAYMENTS:

Please print the coupon and write a personal check for the amount listed on Line #7 of this form.  The payments should be postmarked and mailed by 4/18/17.  Please use a PERSONAL check for this payment.

The address for the payment is:   Internal Revenue Service, P.O. Box 802503, Cincinnati, OH 45280-2503

MINNESOTA EXTENSION PAYMENTS:

Please print the coupon and write a personal check for the amount listed on this form.  The payments should be postmarked and mailed by 4/18/17.  Please use a PERSONAL check for this payment.

The address to send the payment is: Minnesota Revenue, P.O. Box 64058, St. Paul, MN  55164-0058


For amounts to pay, please refer to your 2016 tax review prepared by BBD.  To avoid any penalties, you would need to make a tax payment by the 4/18/17 deadline.  At this point, we will be filing an extension for your 2016 personal tax return.  However, if you owe tax, you would need to have it paid in by 4/18 to avoid any late payment penalty.

Sales & Use Tax DUE February 6th, 2017

Sales & Use Tax ImageREMEMBER:  You need to file your sales and use tax return by February 6th, 2017.

If you do not regularly file a sales tax return, you need to file a “Sales & Use Tax” return by February 6th, 2017.  Click here to file: https://www.mndor.state.mn.us/tp/eservices

“. . . 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.

This information is being provided to you as a guide. Business By Design does not have your user name or password and we are not able to reset forgotten passwords. Specific questions regarding Sales and Use Tax and e-services should be directed to the MN Department of Revenue at 651-282-5225.

Business By Design can not file this return for you!  For more information, click below to download details about filing this return and filing requirements:

Click here for everything you need to know to file your Sales & Use Tax Return:   myBBD Sales & Use Tax Reporting Information

For step by step instructions on how to file watch the video below:    

For information on what is or is not taxable, please refer to the MN Fact Sheets here:  http://www.revenue.state.mn.us/businesses/sut/Pages/fact_sheets.aspx

For more information on MN Use Tax please refer to the MN Fact Sheet here:  http://www.revenue.state.mn.us/businesses/sut/factsheets/FS146.pdf

For more information, you can go to the MN Department of Revenue Website at:  http://www.revenue.state.mn.us/Pages/default.aspx

1099 Forms & Independent Contractors

Do you need to send 1099’s for payments made in 2016?

IRS Audit Warning

If you, individually, or your corporation, paid $600.00 or more to any one individual or required business (including LLC’s that are not taxed as a corporation) in 2016, you are REQUIRED to prepare a 1099 for each individual or business. (NOTE:  No 1099 is required if you pay a Corporation).

Please note that the Payee must receive their 1099 by January 31st, 2017 and the IRS needs to receive their copy by January 31st, 2017.

PLEASE NOTE:  The IRS will be imposing a penalty if you fail to provide the recipient and the IRS copies of the 1099’s.  The penalty is $250 for each IRS and payee copy not filed or furnished to the recipient, respectively.  For example, if you were required to do 5 – 1099’s and you do not do them, it would result in a penalty of $2500.

If you are required to issue 1099’s you have two options.  Please choose one.

Option #1:  Prepare these yourself by the due dates stated.

You can get the forms from the IRS directly by calling the IRS or purchasing them at your local office supply store.

Option #2:  Business by Design will prepare these forms for a fee.

Our fee is $100.00 for two (2) 1099 forms and $25.00 for each additional form 1099.  For example:  we prepare 5- 1099’s-the cost is $175.  These fees include preparing the 1099’s and the applicable 1096 form.  We will not prepare these returns without a payment authorization on file.  No charges will be processed until the 1099’s are completed and reviewed by you.

Click for Payment Authorization:  Payment Authorization Form

Click for 1099 request form (FILL-IN):  External 1099 Request – Fill In Form

      1. Who the Payer is (you or corporation name)
      2. Who the Payee is (the name of the person or business that was paid)
      3. Address of the Payee.
      4. Social Security Number of the Payee.
      5. Amount Payee was paid in 2015.
      6. What is payment for:  services, rent, mortgage interest, interest, etc.

FOR 2016: All of your 1099 information will need to be uploaded to us using the Secure Exchange on myBBDPass by January 18th, 2017.  Any handwritten information must be legible.  To view an example of what the Secure Exchange folder looks like, click here:  myBBDPass Secure Exchange Instructions

If you would like to download a complete copy of this information click here: myBBD 1099 Reporting Information 2016

To log into your myBBDPass Account, click heremyBBDPassLogin

PLEASE BE CERTAIN YOUR INFORMATION IS CORRECT:  There is a $200.00 fee for 1099’s that need to be corrected and reissued because of erroneous information received.  Therefore, it is important you send us the correct and complete information.

If you have any other questions, you can contact Karin Horkey at Business By Design (karinhorkey@mybbd.com) or 952-392-1210.