2009 Virginia Legislative Summary - State Taxes
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CATCH A SUMMER BREEZE...
AND
EARN SOME CPES
ASV's 61stAnnual Conference was held on June 19-20, 2009!
Everyone had a BLAST! Click here for the pictures!
ASV ANNOUNCES IT'S ONLINE PAYMENT SYSTEM!
ASV has instituted an ONLINE PAYMENT System through PayPal.com. It is fast and completely SECURE. You may become a member, renew your membership and pay for seminars!
Click here to take you to our ONLINE PAYMENT page.
  
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LIVE STREAMING VIDEO ASV now offers you Live Streaming Seminars via Jennings Seminars and Bob Jennings! AND you SAVE 10% off the Seminar cost by registering through ASV's site! |
2009 Tax Stimulus Bill
Here are a couple of highlights from the Stimulus Package:
COBRA
- If unemployed, the IRS will subsidize 65% of COBRA if job was involuntarily lost between 9/1/2008 and 12/31/2009. (The former employer should be called immediately for more details.)
- Maximum of 9 months will be subsidized (Not retroactive)
- Terminates on offer of new coverage
- People who did not elect COBRA have 60 days to elect
- Phaseout starts at $125,000 for single taxpayers and $250,000 for married filling joint taxpayers
- Must have been participating in the health insurance plan when laid off
- Employer must continue to exist
Unemployment Income
- People getting unemployment compensation during 2009 will not have to pay taxes on the 1st $2,400
A summary of the tax provisions in the bill prepared by congressional staff may be found at the following weblink: http://waysandmeans.house.gov/media/pdf/111/arra.pdf
IRS Releases Information to Help Employers Claim COBRA Medical Coverage Credit on Payroll Tax Form
IR-2009-015
WASHINGTON — The Internal Revenue Service today released new detailed information that will help employers claim credit for the COBRA medical premiums they pay for their former employees.
The IRS unveiled new information on this Web site, IRS.gov, that includes an extensive set of questions and answers for employers. In addition, the Web site contains a revised version of the quarterly payroll tax return that employers will use to claim credit for the COBRA medical premiums they pay for their former employees.
Form 941, Employer’s Quarterly Federal Tax Return, will also be sent to about 2 million employers in mid-March. The form is used to claim the new COBRA premium assistance payments credit, beginning with the first quarter of 2009.
“This is the first step in our effort to provide employers with information on this important health benefit for people who have lost their jobs,” said IRS Commissioner Doug Shulman. “We will continue our work in the weeks ahead to help employers implement this crucial change for the nation’s unemployed.”
The American Recovery and Reinvestment Act of 2009, which became law last week, includes changes to the health benefit provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985, commonly referred to as COBRA. The new law will affect former employees and their families, employers and others involved in providing COBRA coverage.
Under the new law, eligible former employees, enrolled in their employer’s health plan at the time they lost their jobs, are required to pay only 35 percent of the cost of COBRA coverage. Employers must treat the 35 percent payment by eligible former employees as full payment, but the employers are entitled to a credit for the other 65 percent of the COBRA cost on their payroll tax return.
Employers must maintain supporting documentation for the credit claimed. This includes:
- Documentation of receipt of the employee’s 35 percent share of the premium.
- In the case of insured plans: A copy of invoice or other supporting statement from the insurance carrier and proof of timely payment of the full premium to the insurance carrier.
- Declaration of the former employee’s involuntary termination.
COBRA provides certain former employees, retirees, spouses, former spouses and dependent children the right to temporary continuation of health coverage at group rates. COBRA generally covers health plans maintained by private-sector employers with 20 or more full and part-time employees. It also covers employee organizations or federal, state or local governments. It does not apply to churches and certain religious organizations. The new COBRA subsidy provisions also apply to insurers required to offer continuation coverage under state law similar to the federal COBRA.
More information about COBRA payments and the new law is available on www.dol.gov.
IRS Announces 2009 Standard Mileage Rates
WASHINGTON — The Internal Revenue Service today issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) will be:
- 55 cents per mile for business miles driven
- 24 cents per mile driven for medical or moving purposes
- 14 cents per mile driven in service of charitable organizations
The new rates for business, medical and moving purposes are slightly lower than rates for the second half of 2008 that were raised by a special adjustment mid-year in response to a spike in gasoline prices. The rate for charitable purposes is set by law and is unchanged from 2008.
The business mileage rate was 50.5 cents in the first half of 2008 and 58.5 cents in the second half. The medical and moving rate was 19 cents in the first half and 27 cents in the second half.
The mileage rates for 2009 reflect generally higher transportation costs compared to a year ago, but the rates also factor in the recent reversal of rising gasoline prices. While gasoline is a significant factor in the mileage rate, other fixed and variable costs, such as depreciation, enter the calculation.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs as determined by the same study. Independent contractor Runzheimer International conducted the study.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for any vehicle used for hire or for more than four vehicles used simultaneously.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
Revenue Procedure 2008-72 contains additional information on these standard mileage rates.
New Online Retirement Estimator!
Social Security has unveiled a new online financial and retirement planning tool, the Retirement Estimator, which allows individuals to get an immediate and personalized estimate of their potential Social Security retirement benefits.
Based partly on Social Security records and partly on user-entered information, e.g., last year's earnings, the Retirement Estimator provides real time estimates of retirement benefits at specific points in time - age 62, full retirement age, and age 70. "What if" scenarios can also be run by varying the information provided.
The Retirement Estimator is secure; only the benefit estimates are provided online and no personal information is revealed. Some identifying information is required to access the Estimator.
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