Tax Tips Newsletters // Business Advice & Tax Tips
Do your tax payments need adjusting?
Do your tax payments need adjusting? Getting a big tax refund or owing the IRS a lot of money for 2012 could mean it’s time to adjust your income tax withholding. Many people like to receive a refund from the IRS, thinking of it as a form of forced saving. If you’re of this opinion, that’s fine. But ...
IRS Business Update
HOME-OFFICE DEDUCTION SIMPLIFIED. Starting this year, taxpayers who use a portion of their home regularly and exclusively for business may opt to use a simplified method for computing their home-office deduction. Instead of complex calculations for allocating expenses, the simplified method allows $5 a square foot for up to 300 square feet for the home office. The deduction is capped at ...
Lower your tax bill with recently extended tax breaks
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The new tax law signed last month extended a number of tax breaks that had expired at the end of 2011 or 2012. These tax breaks could affect the 2012 return you’ll be filing soon, and they may also lower your 2013 tax bill. Don’t overlook any that apply to you or your business. Here’s a quick overview: EXTENDED ...
Health care reform law brings 2013 tax changes
Recent focus has been on the fiscal cliff and the tax issues connected with it. But there are tax changes coming from another direction: the 2010 health care reform legislation. Here are some of the changes that could affect you this year. Medical expense itemized deduction. The 7.5% income threshold for deducting unreimbursed medical expenses increases to 10% for taxpayers under ...
American Taxpayer Relief Act of 2012
After weeks of negotiations, Congress finally passed legislation to avert the tax side of the “fiscal cliff.” The President signed the American Taxpayer Relief Act of 2012 into law on January 2, 2013. Here is a summary of the major provisions of the new law. Payroll tax rates In 2011 and 2012, taxpayers enjoyed a ...
Most businesses need to file information returns
Every trade or business must file information returns (Forms 1098 and 1099) for each year that certain payments are made to noncorporate recipients. A Form 1099 is generally not needed for payments to corporate vendors other than attorneys and corporations providing medical and health care services. The two most common information returns for most ...
What changes if we go over the “fiscal cliff”?
Unless you’ve been stranded on a deserted island for the past few weeks, you know that we’re facing what Federal Reserve Chairman Ben Bernanke has dubbed a “fiscal cliff,” resulting from the expiration of the Bush-era tax cuts and the automatic across-the-board cuts in government spending set for January 1, 2013. Congress and President ...
The Very Latest on Health Care Reform
Taxes and government spending are going to be on the agenda in Washington during 2013. Where does that leave health care reform, the legislation passed in 2010 overhauling the health care system in this country? Here’s a quick update that covers provisions in the health care legislation that have already gone into effect and those ...
Are you one of the many unsuspecting taxpayers who will be caught by the AMT this year?
According to the Congressional Research Service, 34 million taxpayers could be hit by the alternative minimum tax (AMT) this year. With a better understanding of the rules, you may be able to avoid or reduce adverse tax consequences. The AMT was set up in the 1960s to make sure wealthy taxpayers didn’t use deductions and ...
The tax rules let grandparents help with college costs
Are you a grandparent who wants to help pay for a grandchild’s college education? You’ll find several ways to do this, each with its own limitations and tax consequences. GIFTS. The simplest way is to make an outright cash gift to your grandchild each year. In 2012, you can give up to $13,000 without ...
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