September 24, 2012 12:00 am
Published by Mark
Year-end planning for 2012 is extremely challenging because we don't yet know what the tax rules will be next year. Unless Congress acts, tax rates will go up next year, many more individuals will be snared by the alternative minimum tax (AMT), and various deductions and other tax breaks will be unavailable. How Congress will resolve these issues may depend on what happens in the November elections, Year-end planning is a bigger challenge this year than in past years because, unless Congress act...
September 24, 2012 12:00 am
Published by Mark
Thanks to legislation passed by Congress in 2010,the gift and estate tax exemption are both $5.12 million and both rates are currently 35%. In addition, the unused exemption of a deceased spouse may carryover and increase the surviving spouse's unused exemption resulting in a surviving spouse's estate tax exemption that can total up to $10 million. In other words, an estate up to $10 million may be passed to surviving beneficiaries (e.g., children) intact without any federal estate tax.
August 27, 2012 12:00 am
Published by Mark
Individual Retirement Arrangements (IRAs) can be a great way to save for retirement because of the tax benefits they may provide. If you're eligible, you can choose a traditional IRA for an up-front tax deduction and defer paying taxes until you take withdrawals in the future. Or if eligible, you might opt for a Roth IRA and contribute after-tax money in exchange for tax-free distributions down the road.
August 27, 2012 12:00 am
Published by Mark
The Bush tax cuts will automatically expire atthe stroke of midnight on December 31, 2012 -- unless Congress takes action. Inaddition, the 2 percent Social Security tax rate reduction, often called thepayroll tax holiday, is also scheduled to expire at December 31, 2012. Finallythe 2010 healthcare legislation includes two other unfavorable changes thatwill affect many individuals, starting in 2013: 1.
August 27, 2012 12:00 am
Published by Mark
Within a reasonable period before any year, each eligible employee must be given written notice of their rights and obligations under the 401(k)arrangement. The notice must be accurate, comprehensive, and written in understandable language. It must be provided at least 30 days (and no more than 90 days) before the beginning of the plan year.
August 20, 2012 12:00 am
Published by Mark
Individual Retirement Arrangements (IRAs) can be a great way to save for retirement because of the tax benefits they may provide. If you're eligible, you can choose a traditional IRA for an up-front tax deduction and defer paying taxes until you take withdrawals in the future. Or if eligible, you might opt for a Roth IRA and contribute after-tax money in exchange for tax-free distributions down the road.
August 20, 2012 12:00 am
Published by Mark
Guidelines for Monetary Donations To deduct any charitable donation of money, regardless of amount, a taxpayer must have a bank record or a written communication from the charity showing the name of the charity and the date and amount of the contribution. Bank records include canceled checks, bank or credit union statements, and credit card statements. Bank or credit union statements should show the name of the charity, the date, and the amount paid.
August 15, 2012 12:00 am
Published by Mark
Most taxpayers get a refund from the Internal Revenue Service when they file their tax returns. For those who don’t get a refund, the IRS offers several options to pay their tax bill. Here are eleven tips for taxpayers who owe money to the IRS.
August 15, 2012 12:00 am
Published by Mark
Individual Retirement Arrangements (IRAs) can be a great way to save for retirement because of the tax benefits they may provide. If you're eligible, you can choose a traditional IRA for an up-front tax deduction and defer paying taxes until you take withdrawals in the future. Or if eligible, you might opt for a Roth IRA and contribute after-tax money in exchange for tax-free distributions down the road.
August 13, 2012 12:00 am
Published by Mark
Alternative Minimum Tax Could Affect You The Alternative Minimum Tax (AMT) was originally intended to prevent wealthy individuals from reducing their tax bill too much. The AMT removes a wealthy taxpayer's ability to claim many deductions and then imposes a tax rate of either 26 percent or 28 percent. The taxpayer pays the higher of his normal tax or the AMT.
