Article Highlights Bunching allows you to maximize your itemized deductions in one year and take the standard deduction in the next. The medical expense threshold for deductibility has been increased to 10% of AGI for individuals under the age 65. You have the option of deducting the larger of: (1) State and local income tax paid, or (2) state and local sales tax paid … [Read more...] about Make the Most of Your Deductions
Tax related
Don’t Overlook the Portability of a Deceased Spouse’s Unused Estate Tax Exemption
Article Highlights Estates may elect to transfer the unused estate tax exclusion to the surviving spouse. Election must be made on an estate tax return for the decedent. The estate tax return must be timely filed. Estates of decedents who die after December 31, 2010 may elect to transfer any unused exclusion to the surviving spouse. The amount received by the surviving … [Read more...] about Don’t Overlook the Portability of a Deceased Spouse’s Unused Estate Tax Exemption
Selling Your Home
Article Highlights Individuals can exclude up to $250,000 ($500,000 for a married couple filing jointly) of gain from the sale of their primary residence. Generally, to qualify for the exclusion, the home must have been owned and used as a primary residence for two of the prior five years. Reduced exclusions apply in certain circumstances where the home was owned … [Read more...] about Selling Your Home
October 2013 Individual Due Dates
October 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during September, you are required to report them to your employer on IRS Form 4070 no later than October 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient … [Read more...] about October 2013 Individual Due Dates
Give Withholding and Payments a Check-up to Avoid a Tax Surprise
Article Highlights 2013 could hold some unpleasant tax surprises because of : o Increased long-term capital gains rates. o Increased ordinary tax rates. o A new 3.8% tax on net investment income. o The new additional 0.9% HI (Medicare) payroll and self-employment tax. o Life-changing events such as marriage, birth of a child, or new job. o One-time increase in income from … [Read more...] about Give Withholding and Payments a Check-up to Avoid a Tax Surprise