The American Taxpayer Relief Act of 2012, which was signed on January 2, 2013, did not make major changes in the tax rules governing most Americans. But it did create significant tax increases for high-earners. The thresholds identifying “high-earners” differ from one tax provision to the next, leaving many who don’t consider themselves wealthy exposed […]
Take another look at HSAs (health savings accounts)
Year after year, health care and medical insurance costs outpace inflation. One survey, for example, found that health insurance premium costs are growing at five times the rate of wages. It’s little wonder, therefore, that business owners and employees are scrambling for ways to curtail health care expenses. In an effort to address this dilemma, […]
Tax planning if new Medicare taxes apply to you
This year higher-income taxpayers may need to factor additional Medicare taxes into their planning. Not only will the Medicare tax increase on earned income above certain levels, but also a new tax will apply to certain investment income. The traditional Medicare tax has been 2.9% of earned income for self-employed people and 1.45% for employees […]
Take 3 steps now to cut your 2013 taxes
One of the best things about a midyear tax checkup is having the time to investigate, plan, and implement strategies that can reduce your current-year taxes. That’s particularly true this year, since tax legislation enacted in January means many rules for 2013 are already in place, and there’s more certainty about what actions will be […]
Estimated Taxes: Who needs to pay them?
If the bulk of your taxable income is from wages, your tax liability is probably being covered by withholding from your paychecks. However, if you have income that is not subject to withholding, you may need to pay quarterly tax estimates. Many taxpayers who switch from being an employee to being self-employed find out about […]
Tax legislation gets us past the “fiscal cliff”…… for now
The American Taxpayer Relief Act of 2012 was approved by Congress just after we plunged over the “fiscal cliff”. Although it restores and modifies several expired tax breaks, it doesn’t address other issues. This latest tax law is not likely to be the final word on taxes in 2013, since Congress is once again talking […]
IRS Updates on Tax-Exempt Status, HSAs, Health Insurance, and Bonds & Options
December deadline for tax-exempt reinstatement: Here’s an important reminder for small nonprofit organizations: If your organization had its tax-exempt status revoked for failing to file an annual return from 2007 through 2009, the IRS is giving you a chance to get reinstated. The IRS has issued guidance for small organizations with gross annual receipts of […]
Time for a year-end tax review
December 31st will be very important in the lives of taxpayers, because on that date many tax-saving provisions are set to expire. Congress has extended many of these provisions on a year-by-year basis. However, as it stands now, many tax-cutting provisions have already expired or will expire. Here are a few of the more important […]
Use it or lose it – the annual gift tax exclusion
Did you know that this year you can give gifts of up to $13,000 to as many individuals as you want without being liable for gift tax? Normally, any gift you make counts towards your lifetime exemption from gift and estate taxes. That’s so you don’t just give away your estate shortly before death to […]
“Bunching” deductions could >cut< your taxes
Getting the most benefit from tax deductions requires multi-year planning as well as consideration of the alternative minimum tax (AMT). The multi-year part involves “bunching” your expenses. That’s a strategy where you decide to accelerate or delay payments between different years for itemized deductions such as state income taxes, routine health care, and charitable contributions. […]
