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We prepare most type of tax returns:

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S Corporation.

C Corporation.

Partnership.

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Amended.

Gary Bode, CPA is a Master's Degreed, nation wide accountant offering tax and business services. Member of AICPA and NCACPA. Our virtual office provides excellent service to long distance and international clients. Call (910) 399-2705 for a free phone consult.

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Client Testimonials

I became totally and permanently disabled after a working for 44 years. I returned to college late in life (while working full-time) to fulfill my dream of becoming an RN and at that time found it necessary to secure student loans. Three years after being declared totally and permanently disabled my student loans were discharged. In January 2013 we received a 1099-C form declaring said student loans that were discharged however that amount could be considered as income for 2012. This was a large amount of money and we live on two pensions and social security income.

I started looking on the internet for information regarding 1099-C and felt that this was something that we could not handle alone. I made phone calls locally to a very reputable tax group in a city near us and they said it would cost $500 for an appointment and that they really prefer to do corporate taxes and they referred me to a local person who had worked for them at one time, we called and explained the situation and an appointment was made and then the comment was made that "I will have to do some research on this" and flags immediately went up and we called back and cancelled that appointment. I had been researching the IRSwebsite and every place else I could think of and I was not comfortable doing our own taxes this year. We called another local tax preparer that we had used in the past and made an appointment, however prior to the appointment, while still seeking information regarding our situation,

I came across a website for Gary l. Bode, MSA, CPA, PC in Wilmington, NC. I called Mr. Bodeand explained our situation and asked if he could help. He spoke very knowledgeably regarding the situation and stated that yes; he felt he could help us. As Mr. Bode was in North Carolina and we were in New York I scanned all of our documents including back-up documents for all of our claims and forwarded all to him. Mr. Bode kept in touch with us via email; we have spoken on the telephone several times and have become very comfortable with his knowledge and professionalism. Also, as I am a true "worrier" I have continued looking into information regarding our tax situation and I came upon another web page for Mr. Bode that included testimonials which spoke of his experience with this type of tax situation as it became prevalent during the recession. This reinforced in our minds that we had made the right decision in hiring this person as our tax preparer.

I share all of this as our taxes are now ready to be filed (we do owe tax for 2012 but not the astronomical figure we thought we were facing), and we are confident that they have been prepared with the utmost care by a gentleman who has an excellent working knowledge of the situation we faced and the tax laws that were applicable to said situation.

 

Bill and Carol

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Even though Gary enjoys helping colleagues, we no longer provide free consults to other tax preparers. He's happy to consult on an hourly billing basis if our schedule allows.

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Form 8941 CPA answers FAQ about the tax Credit for Small Employer Health Insurance Premiums 2012

Form 8941 CPA TN VA SC NC

Gary Bode, CPA: blame Congress, not the IRS if you have trouble with Form 8941. For a free phone consult, please call (910) 399-2705.

Form 8941 seems complex because its calculations are complex. The IRS designs forms to accommodate the tax code as Congress dictates. The IRS is an easy target to blame, but if you look at their mission, Form 8941 is the best it can be. But any CPA that prepares Form 8941 would say clients have difficulty with it. Here’s a list of questions that I encountered most often during the 2012 tax season.

Can I have more than 10 employees?

Yes, the credit uses a Full Time Equivalent (FTE) to define the “number” of employees. So four 20/week workers, employed all year, count as two FTE. The calculation uses a 2080 hour work year and isn’t as simple as my example.

Can I have more than a FTE salary of $25,000 and still qualify?

Yes, but limitations kick in.

Why are there excluded workers?

I don’t know. Specifically, sole proprietors, partners, more-than-2% S corporation shareholder-employees, and more-than-5% C corporation shareholder-employees are excluded workers. An owner’s extended family, including in-laws and dependents, are also classified as excluded workers, and costs to cover them are also ineligible for the credit.

How come my tax credit isn’t the 35% I read about?

Most tax credits go through a multi step limitation process that progressively chips away the largest amount allowed. Form 8941 is typical. First you factor out excluded workers. Next some of the health care insurance your company paid might not qualify for the tax credit. Finally, once your company exceeds 10 FTE with an average FTE wage of $25,000 a complex, two tiered tax credit phase out begins.

I’m a small business CPA that prepares Form 8941. Our virtual office makes tax preparation for long distance clients convenient. So, if you don’t have a CPA, or like what you read on this website, don’t let geography limit your choices. Some local Wilmington NC CPA clients even use the virtual office. We offer a free phone consult: (910) 399-2705.

2 comments to Form 8941 CPA answers FAQ about the tax Credit for Small Employer Health Insurance Premiums 2012

  • Bruce Miller

    I am a Sub S corp. In tax year 2010 I didn’t make a profit. My CPA says I do not quilfy for the small business tax credit because I din’t make a profit.
    I qualify for for the eligibility requirments
    Could you please comment?

    • Gary Bode CPA admin

      Well, my first thought, based on the facts presented, is that you you probably should have paid yourself less, so there was a profit to claim the Credit on. And then taken out the rest of the profit as distributions not payroll. So you lost the Credit and paid payroll taxes on potential distributions. Planning for 2012 should help remedy a repeat.

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