There are two federal tax credits available to help individuals offset the costs of higher education for themselves or their dependents. They are the American Opportunity Credit and the Lifetime Learning Credit. To qualify for either credit, a taxpayer must pay post-secondary tuition and fees for themselves, their spouse or their dependent. The credit is claimed by the … [Read more...] about Two Tax Credits to Help Pay Higher Education Costs
Did You Take an Early Distribution from Your Retirement Plan?
In today’s economy, some taxpayers may need to take money out of their retirement plans to make ends meet. If you have or are contemplating on taking a distribution, there are some very important and unexpected tax issues you need to be aware of. Withdrawals from tax-deferred retirement accounts, such as Traditional IRAs are generally taxable and will be added to … [Read more...] about Did You Take an Early Distribution from Your Retirement Plan?
100 Percent Write-Off for Qualified Leasehold Improvements
In an effort to get the economy back on the rails again, the 2010 Tax Relief Act permits businesses to claim a 100% depreciation deduction (100% bonus depreciation allowance) in the year that qualifying assets are placed in service. Qualified leasehold improvements clearly are eligible for this special 100% write-off. Bonus depreciation basics - In general, a leasehold … [Read more...] about 100 Percent Write-Off for Qualified Leasehold Improvements
Tax Tips about Tip Income
If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes: Tips are taxable - Tips are subject to federal income, Social Security and Medicare taxes. The value of non–cash tips, such as tickets, passes or other items of value, is also income and subject to … [Read more...] about Tax Tips about Tip Income
Tax Filing Deadline Rapidly Approaching
Just a reminder to those who have not yet filed their 2010 tax return that April 18, 2011 is the due date to either file your return and pay any taxes owed, or file for the automatic six-month extension and pay the tax you estimate to be due. Normally the deadline is April 15, but when a due date falls on a weekend or holiday, the due date is extended until the next business … [Read more...] about Tax Filing Deadline Rapidly Approaching