February 1. 2012 | Sara Woods

Wedding Write-Off

With my own wedding just months away, I have become quite familiar with the wedding section at Barnes & Noble.  However, it wasn’t until I found out that the average spent for a NJ wedding is between $27,521 and $45,868(!!) (http://www.costofwedding.com/ to find your hometown average) that I started looking for ways to decrease the cost of my big day.

When I was younger, I remember hearing people talk about inviting business associates to big events and deducting part of it as a business expense because they were “networking.”  Okay, do people really talk about corporate strategy while dancing the Electric Slide?  While that is a little questionable, there are legitimate ways of deducting a wedding.  As a good little accountant and a shopper of deals, I discovered that Turbo Tax even has a “wedding write-off” section to help turn that big day into a big deduction.

The Venue
Just one example of a tax-deductible venue in Virginia:  Oatlands Plantation, a National Trust Historic Site and a National Historic Landmark.

Food/Flowers
Donate the flowers to Hospice or a Children’s Hospital (just remember what types of flowers you picked because some contain A LOT of pollen, which is an allergen).  Leftover food can be donated to a homeless shelter.

The Dress
Donate the wedding dress to a non-profit organization, such as Brides Against Breast Cancer, Making Memories, or the I Do Foundation.  These organizations take tuxes, bridesmaids’ gowns, etc.

Favors?
Give your guests the gift that keeps on giving – make a donation in their name to you and your fiancé’s favorite charity.

Presents!
If you set up your registry through IDoFoundation.org, you can create a charity registry or a wedding gift registry with its partner stores and up to 10% of gift purchases will be donated to your favorite charity.

Honeymoon
Yes, you can even donate your honeymoon – well, your time, that is.  Take a ‘Volunteer Honeymoon’!  Hands Up Holidays' website can help you plan a “meaningful” honeymoon.  Whether it be ‘Naigani for a relaxing week, then working on the school in Suva’ or a ‘Luxury river cruise in Wat Kai, then work on a volunteer project in Phang Nga,’ this site helps you tailor your honeymoon experience to combine a luxury adventure with a rewarding volunteer experience.

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January 25. 2012 | Beth Dodson

It’s That Time of Year Again!

It’s that time of year again!  For those of you who are new to Watkins Meegan, welcome to the madness that we call “busy season.”  This busy season will be my seventh at Watkins Meegan, and while I’m still learning and growing professionally, there two things that I know for sure will help you get through the next few months:

1. Make plans!  Identify something that you can look forward to after April 15th and put it on your calendar.  Noting it on your calendar is important because it’s a visible reminder to you on those particularly tough days at the office that in just X-number of weeks you’ll be doing something you love (and that whatever it is will most likely will have nothing to do with using your 10-key).
2. Make friends!  Find a colleague who can relate to the challenges you’re facing.  While maintaining friends outside of work is important, having someone just a few cubicles away to vent to when you’re at your breaking point is priceless.  It will make you feel 300 times better in a matter of seconds.  Think of it as free therapy.  But don’t forget to return the favor!
   

You will undoubtedly encounter a whole series of highs and lows between now and April 15th, but think of this and every busy season as an opportunity for professional growth.  You CAN do this and you will.  And when all is said and done, you will know more on April 16th than you do today – no matter what your level of experience is.  Good luck!

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January 17. 2012 | Bill Russell

The Benefits of Volunteering

In the spirit of looking for ways to contribute to my local community, I joined a volunteer organization this year.  The organization is structured around several fundraisers held during the year with all proceeds going to those in need.  One fundraiser, among many, consisted of an annual Christmas tree sale.  The plan was to sell Christmas trees from 6:00pm-9:00pm Monday through Friday and 9:00am-9:00pm on Saturday and Sunday.  To be honest, I was a little overwhelmed by the potential commitment and effort required to coordinate such a large fundraising effort.

After a few cold evenings of selling trees, I began to realize that I was benefiting more from the volunteer experience than originally anticipated.  My expectations began to change and I was pleasantly surprised to learn that my fellow volunteers, dressed in old sweats and jackets, soon became identified as highly polished individuals.  The people around me consisted of former major airline operation managers, decorated Army majors, and Naval Aviation pilots.  One gentleman, originally mistaken as an older man of small stature, was later identified as a block of steel with years of Vietnam Black Ops experience.  Another younger gentleman, originally perceived as a college freshman, soon was appropriately identified as an airborne infantry soldier who was awarded the Purple Heart for injuries sustained during his tours in Iraq.  As I was exposed to the experiences of those around me, the once chilly evenings soon became a classroom for military and local community history lessons.

Although our lives may seem chaotic with all the pressures of work, relationships, and time restraints, the benefit of helping others in such a noble cause provides us with new outlooks.  Had I not been in a position to listen and take in what was going on around me, I may have missed the boat.  I have learned that the strongest communicators are normally the best listeners and the best lesson learned is to not judge a book by its cover.

Happy New Year!

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January 11. 2012 | Jim Wagenmann

Checking the Retirement Plan Box on the W-2 Form

An employee’s W-2 form requires that you check the box if they are benefiting from a retirement plan.  The term benefiting has different meanings depending on the type of plan that you offer.  Just because you have a plan does not mean that the box should always be checked if an employee is eligible to participate in the plan.  In some situations, an account balance will require that the box be checked; in other cases, an account balance does not matter.

If you offer a plan that would require a contribution, such as a defined benefit plan or a money purchase plan, the box will always be checked for those participants with an account balance in the plan.  This is the case even if the plan is frozen and you are not making a current contribution.

If you offer a profit sharing plan, such as a Simple plan, a SEP-IRA, or a discretionary profit sharing plan, you will always check the box for those participants who receive a contribution for the year – not in that calendar year.  If you don’t make a contribution, you have to determine if there are forfeitures in the plan that are being allocated to the participants; if so, check the box.  If you do not make a contribution and no forfeitures are allocated, then you leave the box blank even if the participant has an account balance.

Checking the box matters because you are informing the IRS as to the employee’s participation in a retirement plan.  The rules for contributing to an IRA and determining if such contribution is deductible on the employee’s tax return is dependent on their participation in an employer plan.  Checking the box incorrectly may negate the employee making a deductible IRA contribution.

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January 4. 2012 | Jeffrey Walsh

Do You Own Hidden Treasure?

• Bank accounts and safe deposit box contents
• Stocks, mutual funds, bonds, dividends
• Uncashed checks and wages
• Insurance policies, CD’s, trust funds
• Utility deposits, escrow accounts

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