| It's
August 10th, Let's Go Shopping
|
Tax
Due Date Calendar
JULY
15th
·
Last day for filing 2000 Form 1041 for trusts that
obtained an automatic three-month filing extension.
·
Last day for filing 2000 Form 1065 for partnerships that
obtained an automatic three-month filing extension.
JULY
31ST
·
Second quarter 2001 payroll tax returns due.
·
DC Annual Personal Property Tax Return due date.
·
Due date for Annual Return/Report of Employee Benefit
Plan (Form 5500).
AUGUST
15TH
·
Last day for filing 2000 income tax return by
calendar-year individuals who obtained automatic four-month filing
extensions.
AUGUST
31ST
·
Due date for Heavy Vehicle Use Tax Return (Form 2290).
SEPTEMBER
17TH
·
Calendar-year corporations must pay third installment of
2001 estimated tax.
·
Payment of third installment of 2001 estimated tax by
individuals,
trusts and estates.
·
Last day for filing 2000 income tax return by
calendar-year corporations that obtained automatic six-month filing
extensions.
OCTOBER
15TH
·
Last day for filing 2000 individual income tax returns
for those who obtained an additional two-month filing extension.
·
Last day for filing 2000 Annual Return/Report of Employee
Benefit Plan (Form 5500) for those who obtained a 2 ½ month filing
extension.
OCTOBER
31ST
·
Third quarter 2001 payroll tax returns due.
DECEMBER
17TH
·
Calendar-year corporations must pay fourth installment of
2001 estimated tax. |
| By
now many of us have heard about Maryland’s 2001 Tax-free Week.
The idea behind this special one-week event is to encourage
Maryland shoppers to shop in state for back-to-school and fall
fashions. In an effort
to make Tax-free week a success, the Comptroller’s office worked
with Maryland’s retailers and drew upon the experience of other
states that have instituted similar events.
Before you head out to the mall, here are some of the
highlights of the program that both consumers and retailers should
be aware of:
When
is tax-free week?
Friday,
August 10 through Thursday, August 16, 2001
What’s
tax-exempt?
Clothing
and footwear priced at $99.99 or less.
As long as each item is less than $100 it doesn’t matter
how many items are sold at the same time.
Articles of clothing or footwear that costs $100 or more are
taxable on the entire amount; the first $99.99 is not tax-free.
What’s
Taxable?
Accessories,
such as jewelry, watches, ties, scarves, handkerchiefs, will all be
taxable. In addition,
special protective gear like football pads will be taxed.
Items used to make clothing (fabric, buttons, zippers, etc.)
will also be taxable. Alteration
charges will be taxed as well, even if the article being altered is
tax-free.
What
about coupons?
Discounts
or coupons that bring the selling price of an item below $100 will
generally qualify the article for the exemption.
Manufactures coupons, however, won’t lower the price for
tax
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purposes
because a third party will reimburse the retailer.
“Buy one, get one free” promotions also present problems
since the prices can’t be averaged to qualify for the exemption.
(If a dress sells for $140 and the second dress is free,
neither dress will be tax-free.)
Are
Internet, Phone & Mail Orders eligible?
If
a qualified article is both ordered and paid for during Tax-free
week and immediate shipment is requested it will be eligible for the
exemption even if it is not actually received until after the
Tax-free week. Shipping
and handling charges are not included in the sale price of an
otherwise qualified item as long as the charges are separately
stated.
Many
retailers and consumers may still have questions as Tax-free week
approaches. Please feel
free to call our office or check out the Maryland Comptroller’s
website at www.marylandtaxes.com
which can also be accessed through our website at www.bormel-grice.com. |
ADVANCE
INCOME TAX REFUNDS: THE CHECK’S IN THE MAIL!
The Economic Growth and Tax
Relief Reconciliation Act of 2001 was recently passed by Congress
and signed into law by President Bush.
One of the items from the new tax law that is receiving
everyone’s attention is the advance income tax refund.
Everyone wants to know what they have to do to get the refund
and when will they get such a refund.
The
advance tax refund is a direct result of the new lower 10 percent
(originally 15 percent was the lowest rate) income tax rate.
The new 10 percent rate technically starts January 1, 2002. Congress decided instead of waiting to apply the five percent
rate reduction when we file our 2001 income tax returns next year,
the IRS would issue credits that will be paid in the form of advance
refund checks. Taxpayers
will not have to complete any tax forms or call the IRS for their
rebates. The rationale
for the advance refunds is to help stimulate the economy now by
giving the taxpayers additional money to spend sooner instead of
later.
The
maximum refund to be received will be $600 for joint filers, $500
for head of household and $300 for single filers.
The filing status will be based upon the year 2000 tax
return. Those who did
not file a return or filed after April 16, 2001 will need to wait to
claim the credit on their 2001 tax return.
For those
who have filed year 2000 tax returns, the checks will be issued
between late July and early October.
Generally, the last two digits of the taxpayer’s social
security number will determine when the 2001 rebates are to be
mailed. The lower the
last two digits of the social security number are the sooner you
will receive your check.
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