With the national debt and tax simplification taking front burners these days, there has been a great deal of discussion by both political parties and bi-partisan groups about doing away with or substantially altering itemized deductions. Itemized deductions have been around for as long as most of us can remember, and altering these deductions would have a profound effect on … [Read more...] about Will Itemized Deductions Be A Thing of the Past?
Personal Tax
Will Capital Gains Be Changed?
Currently, capital gains rates for the sale of assets held over one year are taxed at 15% (0% to the extent a taxpayer is in the 15% or lower regular tax bracket), compared with a top tax of 35% for ordinary income. Without Congressional action, these rates will increase to 20% (18% for assets held over 5 years) in 2013. Although there has been some discussion related to … [Read more...] about Will Capital Gains Be Changed?
Saver’s Credit Can Help You Save for Retirement
Low- and moderate-income workers can take steps to save for retirement and at the same time earn a special tax credit. The saver’s credit helps offset part of the first $2,000 that workers voluntarily contribute to traditional or Roth Individual Retirement Arrangements (IRAs), SIMPLE-IRAs, SEPs, 401(k) plans, 403(b) plans for employees of public schools and certain tax-exempt … [Read more...] about Saver’s Credit Can Help You Save for Retirement
Eldercare Can Be a Medical Deduction
With people living longer, many individuals find themselves becoming the care provider for elderly parents, spouses and others who can no longer live independently. When this happens, questions always come up regarding the tax ramifications associated with the cost of nursing homes or in-home care. Generally, the entire cost of nursing homes, homes for the aged, and assisted … [Read more...] about Eldercare Can Be a Medical Deduction
Are You Required to File 1099s?
If you use independent contractors to perform services for your business and you pay them $600 or more for the year, you are required to issue them a Form 1099-MISC after the end of the year to avoid facing the loss of the deduction for their labor and expenses. The 1099s for 2012 must be provided to the independent contractor no later than January 31 of 2013. It is not … [Read more...] about Are You Required to File 1099s?