Article Highlights: Non-working spouses can contribute to an IRA based upon the working spouse’s earned income. The combined contributions of both spouses cannot exceed the combined earned income. Each spouse’s contribution is limited to a maximum of $5,500 ($6,500 if over age 49). One frequently overlooked tax benefit is the “spousal IRA.” Generally, IRA contributions are … [Read more...] about Don’t Overlook the Spousal IRA
Personal Tax
Getting Hit With the Alternative Minimum Tax?
Article Hightlights: The alternative minimum tax, originally created to curb tax shelters and tax preferences of the wealthy, can now apply to the average taxpayer. Six commonly encountered deductions routinely cause the average taxpayer to be hit by the AMT. Incentive stock options can also have a profound impact on the AMT. There are two ways to determine your … [Read more...] about Getting Hit With the Alternative Minimum Tax?
Haven’t Filed an Income Tax Return?
Article Highlights: Late filing penalties Three-year statute of limitations Forfeited refunds Earned income credit Self-employment income If you have been procrastinating on filing your 2013 tax return or have other prior year returns that have not been filed, you should consider the consequences. The April 15 due date for the 2013 returns is just around the corner. That … [Read more...] about Haven’t Filed an Income Tax Return?
April 2014 Individual Due Dates
April 1 - Last Day to Withdraw Required Minimum Distribution Last day to withdraw 2013’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ in 2013. Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn.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 2013 were required to make their 2013 IRA … [Read more...] about April 2014 Individual Due Dates
March 2014 Individual Due Dates
March 3 - Farmers and Fishermen File your 2013 income tax return (Form 1040) and pay any tax due. However, you have until April 15 to file if you paid your 2013 estimated tax by January 15, 2014. March 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during February, you are required to report them to your employer on … [Read more...] about March 2014 Individual Due Dates