Personal Tax

Uncertainty dominates year-end tax planning this year. Unless Congress acts, the Bush-era tax cuts will expire and bring higher tax rates and the loss of many deductions and credits starting in 2013.  More individuals will be snared by the alternative minimum tax, which has not been patched for 2012 as it has for many years in the past. Even with the uncertainty, there are … [Read more...] about Year-End Tax Planning Moves for Individuals

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 2012 Individual Due Dates

A question frequently asked by individuals who are approaching the age at which they can draw Social Security benefits is, “At what age should I begin taking my benefits?”  To make an informed decision, a number of issues should be considered, including how doing so affects your benefits, what the tax ramifications are, the historical longevity of your family, and your … [Read more...] about When Should You Start Taking Social Security?

A frequent taxpayer question is whether it is better to invest for tax-free or taxable interest. Generally, taxable interest will provide a greater return, but this may not hold true after taking into account taxes on the income. Therefore, the question is really which provides the greater "after-tax" return. Making a decision will take on another layer of complexity for … [Read more...] about What’s Best, Tax-Free or Taxable Interest Income?

The tax code includes a number of incentives that, with proper planning, can provide tax benefits while you, your spouse, or your children are being educated.   Education Financing – A major planning issue is how to finance your children’s college education.  Those with substantial savings simply pay the expenses as they go, while others begin setting aside money far in … [Read more...] about Reap the Tax Benefits of Education Planning