The “Ohio Economic Dashboard” is indicating some positive numbers in job creation, wages, job retention, the housing market and new business.  Based on the latest update in mid-January, here are some highlights:

Job Creation is Up
Ohio ranks ninth in the nation in job creation, up from 47th four years ago.
Ohioans created nearly 160,000 new private sector jobs from January 2011-November 2013. January 2007-November 2009: 47th in the nation, January 2011-October 13: ninth in the nation.
Source: U.S. Bureau of Labor Statistics

Wages Are Up
Since January 2011, Ohio incomes are growing twice as fast as the national rate.
Weekly Wages, January 2011-November 2013 Ohio: +9.3 percent
US: +4.5 percent
Source: U.S. Bureau of Labor Statistics

Labor Market Grows
The number of Ohioans with a job or looking for one has increased over the past 12 months, reflecting increased strength and confidence in Ohio’s economy. This contrasts with the national level, where the size of the labor force decreased during the same period.
Source: U.S. Bureau of Labor Statistics

Job Retention is Up
More Ohioans are staying on the job – initial claims for unemployment in 2013 were the lowest since 2000; down 8 percent from last year, and down 24 percent from 2010.
January 2013-December 2013: 587,340 initial unemployment claims
January 2012-December 2012: 638,021
January 2010-December 2010: 768,594
Source: Ohio Department of Jobs & Family Services

Housing Market Is Strong
Ohio’s housing market is reflecting our state’s strengthening economy and is experiencing its 29th straight month of year-over-year growth—an all-time record—and home values are up more than 5 percent in 2013.
January 2013-November 2013: $142,295 average home price
January 2012-November 2012: $135,258 average home price
Source: Ohio Association of Realtors

New Businesses Are Being Created
In 2013, 89,735 businesses were created in Ohio, the most in state history, surpassing the old record set in 2012.
January 2013-December 2013: 89,735 new businesses
Source: Ohio Secretary of State 

With the well-publicized security breach at major retailer Target recently, identity theft is likely on your mind. And stolen credit isn’t your only risk.

In an increasingly common scam, identity thieves use victims’ personal information to file fraudulent tax returns electronically and claim bogus refunds. When the real taxpayers file their returns, they’re notified that they’re attempting to file duplicate returns. It can take months to straighten things out, causing all sorts of headaches and delaying legitimate refunds.

You can reduce your likelihood of becoming a victim by filing your return as soon as possible after you receive your W-2 and 1099s. If you file first, it will be the thief who’s filing the duplicate return, not you.

Also, if you did shop at Target during the security breach, be sure to check your bank and credit card accounts frequently, and consider signing up for the free year of credit monitoring the retailer is offering potential victims.

If you’d like to file your tax return early this year, please contact us. We’d be happy to help. Also let us know if you have questions about protecting yourself from tax return fraud and identity theft.

 Image courtesy of www.freedigitalphotos.net.

Under the Affordable Care Act (ACA), beginning in 2013, taxpayers with FICA wages over $200,000 per year ($250,000 for joint filers and $125,000 for married filing separately) had to pay an additional 0.9% Medicare tax on the excess earnings.

Unlike regular Medicare taxes, the additional Medicare tax doesn’t include a corresponding employer portion. But employers are obligated to withhold the additional tax to the extent that an employee’s wages exceed $200,000 in a calendar year. The $200,000 amount doesn’t include the employee’s income from any other sources or take into account his or her tax filing status.

In November 2013, the IRS released final regulations regarding the additional Medicare tax and the employer withholding requirements. The only substantial change from the proposed regulations is that employers no longer have access to relief from payment liability for any additional Medicare tax that was required to be withheld but that they didn’t withhold — unless the employer can provide evidence that the employee in question has paid the tax.

Please let us know if you have questions about the requirements. We’d be happy to answer them and help you ensure you’re in compliance with these as well as other ACA requirements.

Now that we’re in the new year, it’s time for an estate plan checkup. Why? First, various exclusion, exemption and deduction amounts are adjusted for inflation and can change from year to year, so it’s a good idea to see if they warrant any updates to your estate plan:

But inflation adjustments aren’t the only reason for an estate plan checkup. You should also review your plan whenever there are significant changes in your family, such as births, deaths, marriages or divorces. And your estate plan also merits a look if your financial situation has changed significantly.

If you want to find out if your estate plan needs updating — or if you don’t have an estate plan and would like to put one in place — please contact us. We can help you ensure you have a plan that will achieve your goals.

If you’ve recently purchased or built a building or are remodeling existing space, consider a cost segregation study. It identifies property components and related costs that can be depreciated much faster, perhaps dramatically increasing your current deductions. Typical assets that qualify include decorative fixtures, security equipment, parking lots and landscaping.

The benefit of a cost segregation study may be limited in certain circumstances, such as if the business is subject to the alternative minimum tax or is located in a state that doesn’t follow federal depreciation rules.

For more information on cost segregation studies — or on other strategies to maximize your 2013 depreciation deductions — contact us today.