Dramatic tax increases are scheduled to go into effect in 2013 make 2012 tax planning imperative. The following taxes may be impacted: · Not only are the Bush Administration tax cuts set to expire, but a new 3.8 percent surtax on investment income and a possible reinstated claw-back of itemized deductions could raise the tax rate on ordinary income to as high as an effective 44.6 percent for some taxpayers. · &nbs...
November 12, 2012 12:00 amThe goal of income tax planning is to minimize your federal income tax liability. You can achieve this in different ways. Typically, though, you'd look at ways to reduce your taxable income, perhaps by deferring your income or shifting income to family members.
November 12, 2012 12:00 amTaxes will rise at the start of the year, Regardless of whether Congress acts during the lame duck session to extend the 2001 and 2003 tax cuts. Among these new taxes are the Affordable Care Act's 3.8 percent surtax on capital gains and dividend income and a 0.9 percent surtax on earned income for individuals earning more than $200,000 per year. There will also be a small number of taxpayers who will be affected by the alternative minimum tax for the first time—even if Congress raises the exempt...
November 5, 2012 12:00 amFederal Unemployment Tax Act (FUTA) Background Employers pay federal unemployment taxes on the first $7,000 of each worker’s annual wages. The FUTA tax for 2012 is a flat rate of 6.0 percent. However, businesses that pay their state unemployment taxes on time and in full can receive up to a 5.4 percent credit if the state is not subject to any credit reductions.
November 5, 2012 12:00 amEach plan year a notice must be provided to all employees who are eligible to participate in the plan. This notice must be provided to employees within 30 to 90 days prior to the beginning of the plan year. If an employee becomes eligible to participate in the plan after the notice is distributed, then a notice must be provided to the employee no earlier than 90 days before and no later than the date the employee becomes eligible to participate in the plan.
November 5, 2012 12:00 amSocial Security Tax Would Increase by 2 Percent A temporary reduction in Social Security payroll taxes is due to expire at the end of the year and hardly anyone in Washington is pushing to extend it. The expiration of this payroll tax reduction will cost a typical worker about $1,000 a year, and two-earner family with six-figure incomes as much as $4,500. If legislation is not approved to extend the Social Security tax cut, the rate for employees would revert to 6.2 percent from 4.2 percent.
November 1, 2012 12:00 amYear-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...
October 15, 2012 12:00 amThe IRS issued guidance on situations in which employer nontaxable reimbursements were recharacterized as wages and whether they satisfied the business connection and other requirements to be treated as paid under an accountable plan under Sec. 62(c) (Rev. Rul.
October 15, 2012 12:00 amThe Internal Revenue Service reminds taxpayers that it's not too late to adjust their 2012 tax withholding to avoid big tax refunds or tax bills when they file their tax return next year. Taxpayers should act soon to adjust their tax withholding to bring the taxes they must pay closer to what they actually owe and put more money in their pocket right now. Most people have taxes withheld from each paycheck or pay taxes on a quarterly basis through estimated tax payments.
October 11, 2012 12:00 amUnder current law, higher-income taxpayers will face a 3.8%surtax on their investment income and gains. Additionally, if the EGTRRA and JGTRRA sunsets go into effect, all taxpayers will face higher taxes on investment income and gains, and the vast majority of taxpayers also will face higher rates on their ordinary income. This fourth part of a multi-part year-end planning article explains various retirement plan strategies for coping with the surtax and the possibility that tax rates will be hi...
October 11, 2012 12:00 amThis website uses cookies and other tracking technologies to improve your browsing experience for the following purposes: to enable basic functionality of the website, to provide a better experience on the website, to measure your interest in our products and services and to personalize marketing interactions, to deliver ads that are more relevant to you.
