Surplus Refund (Kicker) Percentage

Posted on: October 18, 2017

On October 1, 2017, the Oregon Office of Economic Analysis announced that the surplus refund (kicker) rate is 5.6 percent. The kicker is a refundable tax credit claimed on the Oregon personal income tax, composite tax, or fiduciary income tax return for 2017. To determine the credit amount, multiply the 2016 tax liability before credits, excluding credit for taxes paid to another state, by 5.6 percent. To receive the kicker, taxpayers must file a 2017 return, even if they're not otherwise required to do so.

The Oregon Department of Revenue (DOR) will have a "What's my kicker" calculator available online, for personal income tax filers only, before filing season begins. Taxpayers who don't have access to their 2016 returns should visit the Oregon DOR website in January 2018 for help calculating their kicker credit. Fiduciary and composite return filers will need to look at the form instructions for how to calculate the kicker.

For individuals, if their filing status changed between the 2016 and 2017 tax years, here are general instructions to help determine their credit amount:

  • If their filing status changed from single, head of household, qualifying widow(er), or married/RDP filing separately in 2016 to married filing jointly in 2017, the surplus credit allowed on the joint return is the combination of each individual’s surplus credits as calculated based on their separate 2016 returns.
  • If their filing status changed from married filing jointly in 2016 to single, head of household, or mar­ried filing separately in 2017, the surplus credits claimed by each taxpayer on their 2017 separate returns are prorated based on each individual’s percentage of the 2016 federal adjusted gross income (AGI).
  • Death of individual or spouse. If an individual died during 2016 or 2017, the taxpayer’s representative may file a return on his or her behalf to claim the surplus credit. If one of the two taxpayers on the jointly filed Oregon return dies, the surviving taxpayer may claim the full amount of the surplus credit.

More detailed information on calculating the surplus credit can be found in the forms instructions for 2017 personal, composite, or fiduciary returns, available in January on the Oregon DOR website.

If you have additional questions, please contact your Geffen Mesher advisor.

Alert: EQUIFAX Breach!

Posted on: September 13, 2017

Oregon Joins the Nationwide Trend to Market-Sourcing Sales

Posted on: August 16, 2017 by Ashley Klaus

The new contract revenue guidance goes live in 2018

Posted on: August 2, 2017

The sweeping new revenue recognition standard goes into effect soon. But many companies are behind on implementing it. Whether your company is public or private, you can’t afford to delay the implementation process any longer.

IRS Encourages Vigilance to Avoid Potential Scams

Posted on: May 18, 2017

Unsolicited Telephone Calls/Emails

There have been numerous reports about taxpayers who have received unsolicited telephone calls from individuals demanding payment while fraudulently claiming to be from the Internal Revenue Service (IRS). Recently, the IRS issued a warning:

New Payroll and Information Considerations

Posted on: January 24, 2017

To our Clients and Friends:

As we start a new year, there are new payroll and information considerations that apply to 2016 returns filed in 2017, or payroll after December 31, 2016. We have compiled a new memorandum for you to use throughout the new year. We hope that the enclosed memorandum will answer some of the frequently asked questions. Of special note are the following:

The New Filing Deadlines for 2016 Forms W-2 and Some Forms 1099-MISC

Posted on: December 20, 2016

Final DOL Overtime Rule Released

Posted on: August 11, 2016

On May 18th, 2016 the DOL released a final rule that radically increases the thresholds for overtime rules, expanding the number of employees eligible for overtime pay. Under the FLSA, employees who work more than 40 hours in a week are entitled to overtime pay, unless they meet the requirements of certain wage and duties tests. The new rule doubles the minimum salary threshold from $455 per week to $913 per week (which amounts to $23,660 annually to $46,476 annually) and raises the exemption level for those considered to be "highly compensated employees" from $100,000 to $134,004 annual salary.

Significant Lease Accounting Change

Posted on: March 29, 2016 by Matthew S. Wright

Many companies choose to lease certain assets, rather than buy them outright. Leasing arrangements are especially common among construction contractors, manufacturers, retailers, health care providers, airlines and trucking companies that rely on expensive equipment or real estate in their day-to-day operations.

Does your company have ANY operating leases? Building leases? Office equipment leases? Vehicle leases? If so, this new guidance will likely affect your financial statements.

Congress Passes the Extenders Package

Posted on: December 21, 2015

This holiday season, taxpayers are receiving a "gift" from Washington, D.C. It's the Protecting Americans from Tax Hikes Act of 2015 or, simply, the PATH Act. It does more than just extend expired tax provisions for another year. The bipartisan deal makes about one-third of these tax provisions permanent. Many others have been extended for periods ranging from two to five years.

Several of these provisions can produce significant savings for taxpayers on their 2015 income tax returns, but quick action (before January 1, 2016) may be needed to take advantage of some of them. Here are some details on this tax savings package.

The Tax Increase Prevention Act of 2014

Posted on: December 22, 2014 by Richard L. Hawkins, Blake Salamon

The U.S. House of Representatives and the U.S. Senate have approved H.R. 5771, the Tax Increase Prevention Act of 2014, which extends almost all of the tax incentives that expired on December 31, 2013. President Obama signed H.R. 5771 into law on Saturday, December 20. The $42 billion in reinstated tax incentives can only be claimed for the 2014 tax year which will be fortunate for millions of businesses and individuals.

New Revenue Recognition Rules

Posted on: September 26, 2014 by David S. Porter

Over the past decade, the FASB has worked on a project to simplify revenue recognition standards. After much deliberation, re-working and public comment, the final ASU for the revenue recognition project, ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606, was released in May 2014. The guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts).

Oregon Tax Legislation Update

Posted on: October 22, 2013 by Richard L. Hawkins, Blake Salamon

House Bill 3601 (H.B. 3601) was passed by the Oregon legislature and signed by the Governor on October 8, 2013. It contains several important tax provisions relating to businesses and individuals.

These provisions are effective starting in 2013, except the preferential tax rate provision is effective starting in 2015. Here’s a brief summary of the most important provisions.

Tax Bill has Consequences for Real Estate Professionals

Posted on: April 2, 2013 by Kyle A. Podd

Geffen Mesher professionals Kyle Podd, CPA, and Tasha Ravinowich, CPA, co-authored a bylined article that appeared in the Portland Business Journal's Real Estate Daily blog. In early January 2013, The American Taxpayer Relief Act of 2012 was signed into law by President Obama.  Many of its provisions may provide tax benefits to real estate professionals, although the result also leads to increased taxes on high income individuals.

Visit the publication's website to read this timely article

American Taxpayer Relief Act Addresses the “Fiscal Cliff”

Posted on: January 10, 2013

The American Taxpayer Relief Act averts the United States’ descent over the "fiscal cliff" — a combination of higher taxes and forced spending cuts scheduled to go into effect in 2013. The act prevents income tax rate increases for about 98% of taxpayers and makes other changes affecting individuals and businesses. Here’s a brief summary of the most important provisions.