Newsletters     At Mayer and Company, we believe that an informed client is our best customer.  We know that there is a wealth of information available on the Internet so we have summarized some important new tax bulletins for your reading.  If you have any questions concerning the information included in these newsletters please don't hesitate to call one of our staff members.   Affordable Care Credit  You could earn a new tax credit of up to 35% of the health insurance premiums you pay thanks to the recently enacted Patient Protection and Affordable Care Credit. To be eligible for the new credit you must generally:   Pay at least 50% of the health care coverage (based on single coverage rate) for your employees under a qualifying arrangement Employ less than 25 full-time employees or the equivalent of 25 full-time employees. Pay average wages of less than $50,000   (For purposes of the Affordable Care Credit, owners, partners, and family members and dependents of owners and partners are not considered employees. They, their salaries and the cost of their health care cannot be included when calculating the new credit).   If all three of these requirements are met by your business you may qualify for a tax credit of up to 35% of the health insurance premiums you pay. For more information about this credit click on the following link to the IRS website http://www.irs.gov/newsroom/article/0,,id=220839,00.html, or call our office and one of our staff members will walk you through it.       New Employer Tax Credit for Indiana  A new Indiana Tax credit, effective after December 31, 2009, provides New Indiana Businesses that locate or relocate the operation of a business in Indiana a credit. The credit is equal to 10% of wages paid to qualified employees. To qualify for the credit new businesses must employ at least 10 qualified employees. They must also file an application with the Indiana Economic Development and receive a certificate of approval. The credit is limited to their state tax liability, but is eligible for a nine year carry forward. For more information about the New Employer Tax Credit read Information Bulletin #106 by clicking on the following link to the Indiana Department of Revenue website http://www.in.gov/dor/reference/files/ib106.pdf, or call our office and one of our staff members will walk you through it.

American Opportunity Credit For tax years beginning in 2009 and 2010, the Stimulus Act includes taxpayer-friendly modifications to the Hope Scholarship higher education tax credit (Hope Credit).   Borrowing from Your 401(k) Plan Individuals who participate in a 401(k) plan sometimes borrow from their plan.   Traditional to Roth IRA Conversions Four years ago, the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) relaxed some restrictive rules preventing many taxpayers from converting a traditional IRA to a Roth IRA, but this favorable change was not effective until 2010.