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
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 Business Due Dates
April 1 - Electronic Filing of Forms 1098, 1099 and W-2G If you file forms 1098, 1099, or W-2G electronically with the IRS, this is the final due date. This due date applies only if you file electronically (not paper forms). Otherwise, February 28 was the due date. The due date for giving the recipient these forms was January 31. April 15 - Social Security, Medicare and … [Read more...] about April 2014 Business Due Dates
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 Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn.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