If you have a qualified child you can claim an exemption for that child on your tax return, which results in a $3,800 deduction for 2012 (up from $3,700 in 2011). Depending upon your tax bracket, that deduction can produce a substantial tax savings. To be treated as a qualified child, a child must be under the age of 19 or a full-time student under the age of 24. Generally, … [Read more...] about Is Your Child a Full-Time Student?
Personal Tax
Identity Theft and Tax Fraud Are Growing Problems
Cyber criminals have been using stolen identities to file tax returns and obtain fraudulent refunds. Tax preparers have reported an increase in e-file rejections because the taxpayers’ or their children’s SSNs have already been used in a previously e-filed return, which results in the e-filed return being rejected. Generally, identity thieves use personal data to steal … [Read more...] about Identity Theft and Tax Fraud Are Growing Problems
Big Changes Coming for Investors in 2013
2013 will bring some big changes for investors, and none of them for the better. Taxpayers affected by these upcoming changes may wish to consider taking actions in 2012 to mitigate the impact of these changes. The following are the changes that will affect investors in 2013. Long-Term Capital Gains Rates Increase – Taxpayers have enjoyed reduced long-term capital gains … [Read more...] about Big Changes Coming for Investors in 2013
Read This before Tossing Old Tax Records
Now that you’ve completed your taxes for 2011, you are probably wondering what old records can be discarded. If you are like most taxpayers, you have records from years ago that you are afraid to throw away. To determine how to proceed, it is helpful to understand why the records needed to be kept in the first place. Generally, we keep “tax” records for two basic reasons: (1) … [Read more...] about Read This before Tossing Old Tax Records
April 2012 Individual Due Dates
April 2 - Last Day to Withdraw Required Minimum Distribution Last day to withdraw 2011’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ in 2011. Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn. Taxpayers who became 70½ before 2011 were required to make their 2011 … [Read more...] about April 2012 Individual Due Dates