Monthly Bulletin
Date July 2022 | Issue 2022.6
Certified QuickBooks Desktop Staff

We would like to introduce you to our Certified QuickBooks Desktop staff.
(Left to Right, Top to Bottom)

Brian Hidy, Accountant/Auditor
Andrea Flores, Accountant
Tomi Stoner, IT Specialist
Kayleigh Watts, Accountant
Who Files Decedent’s Final Tax Return

If the decedent is married, their surviving spouse can file the decedent's final income tax return. The surviving spouse may file a joint return with the decedent or file a separate return. 
Note. The IRS considers someone married for the entire year of their spouse's death as long as they didn't remarry the same year.

If the decedent isn't married, a representative (usually someone named in the decedent's will or appointed by a court) will take charge of the decedent's property (their estate, for example).

While you can't file a joint return for a tax year after the year in which your spouse died, you can continue to use the joint return rates for two more years if you qualify as a “surviving spouse.” The joint return rates are more favorable than the single rates or the head-of-household rates. A surviving spouse also gets a larger standard deduction than a single taxpayer or head of household and has other tax advantages.

Qualifying as a “surviving spouse.” You can qualify as a surviving spouse if you meet all of these requirements:
·  Your spouse died during one of the two years immediately preceding the tax year for which the return
is being filed.
·  You have a child (by blood or adoption) or stepchild, but not a foster child, who qualifies as your
“dependent” for the tax year.
·  The child lived with you for the entire year, except for temporary absences, such as for vacation,
school, medical care, or military service. There are exceptions for a child who was born or died
during the year.
·   You paid over half the cost of maintaining your home.
·   You were eligible to file a joint return with your deceased spouse for the tax year of the death (even if
you didn't actually file jointly).
·   You haven't remarried before the end of the tax year for which the return is being filed.

Adjusting income tax withholding. As a result of your spouse's death, you may be have to adjust the amount of income tax that your employer withholds from your paycheck. To ensure that the correct amount of tax is withheld, you should check your withholding and, if necessary, submit a new Form W-4 with the revised information.

Filing in later years. As noted above, you can only qualify as a “surviving spouse” for two tax years. In later years, you may qualify as a “head of household,” which is a more favorable tax status than “single.”

You may claim head-of-household status if you furnished more than half the cost of maintaining a household that was the main home for more than half the year for your qualifying child.

Also, you may claim head-of-household status if you (1) pay more than half of the cost of maintaining as your home a household that is the principal place of abode for more than half the year of a dependent or (2) maintain a household (not necessarily your own) that for the tax year is the principal place of abode for either of your parents, if either parent qualifies as your “dependent.”

Remarriage. If you remarry, you won't be able to file as a surviving spouse, but you'll be able to file a joint return with your new spouse.
Missouri SALT Cap
Workaround Enacted

Missouri Governor Michael L. Parson has signed legislation creating the SALT Parity Act, under which pass-through entities such as partnerships and S corporations may elect to pay Missouri income tax on the owners' combined income at the entity level rather than individual owners paying state tax on their share of the entity's income. For tax years beginning on or after January 1, 2023, a pass-through entity may elect to elect to pay the tax at the entity level. 

This favorable provision allows the taxpayer to receive a tax deduction for state taxes paid at the business level, rather than being limited by the $10,000 SALT Cap on the individual taxpayer’s itemized deduction for state and local taxes paid.
2nd Quarter Payroll Reports -
 due date rapidly approaching

Federal Form 941, Missouri Form 941, Missouri and Kansas unemployment, Missouri sales tax return and Missouri use tax return are all due August 1, 2022.
Upcoming Due Dates

July 15
  • Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in June.
  • Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in June.

August 1              
  • Employers – Federal unemployment tax. Deposit the tax owed through June if more than $500.
  • Employers – If you maintain an employee benefit plan, such as a pension, profit sharing, or stock bonus plan, file Form 5500 or 5500-EZ for calendar year 2021. If you use a fiscal year as your plan year, file the form by the last day of the seventh month after the plan year ends.
  • Certain Small Employers – Deposit any undeposited tax if your tax liability is $2,500 or more for 2022 but less than $2,500 for the second quarter.
  • Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2022. Deposit any undeposited tax. (If your tax liability is less than $2,500, you can pay it in full with a timely filed return.) If you deposited the tax for the quarter in full and on time, you have until August 10 to file the return.

August 10           
  • Employees – who work for tips. If you received $20 or more in tips during July, report them to your employer. You can use Form 4070.
  • Employers – Social Security, Medicare, and withheld income tax. File Form 941 for the second quarter of 2022. This due date only applies if you deposited the tax for the quarter timely, properly, and in full.

August 15
  • Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in July.
  • Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in July.