A recently released Congressional Research Service (CRS) Report entitled “The Alternative Minimum Tax for Individuals” examines the effects of the Alternative Minimum Tax (AMT) without yet another Congressional fix. The AMT is another way of computing an individual’s income tax with limited deductions and the elimination of certain tax preferences. Taxpayers pay the higher of … [Read more...] about Without a Fix, the AMT will Snare Millions of Taxpayers —Are You in the Crosshairs?
Will Your Deductions Be Cut to Solve Deficit Woes?
The Joint Select Committee on Deficit Reduction (JSC) is set to convene soon with the goal of reducing the deficit by $1.5 trillion. How will they come up with that amount? Some sources think they may consider fundamental tax changes that include cutbacks to itemized deductions for individuals. Although both parties purport to be against increasing taxes for the middle class … [Read more...] about Will Your Deductions Be Cut to Solve Deficit Woes?
Don’t Forget Your Retirement!
Even though retirement may be years away, and it may not be the most pressing issue on your mind these days, don’t forget your retirement contributions, especially with generous government incentives involved. There are a variety of retirement plans available to small businesses that allow the employer and employee a tax-favored way to save for retirement. Contributions made … [Read more...] about Don’t Forget Your Retirement!
Did Your 2010 Roth-Converted Account Decline in 2011?
If you converted your traditional IRA to a Roth IRA during 2010 and paid (or will pay) the tax on the conversion and then watched the value of the account decrease due to the overall decline of the stock market in 2011, you still have an opportunity to do something about it. If you filed your return on time or are on extension, you automatically receive a 6-month … [Read more...] about Did Your 2010 Roth-Converted Account Decline in 2011?
Don’t Miss Out on the Domestic Production Deduction
Originally enacted to help offset the repeal of a tax break for U.S. exporters, this provision of the tax code provides a deduction for many U.S. businesses that’s allowed for both regular tax and alternative minimum tax (AMT) purposes. And, despite the deduction’s history, it’s fully available to taxpayers who don’t export. For 2010 and later years, the deduction equals 9% … [Read more...] about Don’t Miss Out on the Domestic Production Deduction