Article Highlights: • Parsonage Allowance • Primary Residence • Fair Market Value Limitation • Designation by Employing Organization • Business Expenses and Excluded Income • Retired Clergy • Vow of Poverty • Self-Employment Tax Exemption Members of the clergy may qualify for two unique tax benefits: a tax-free parsonage allowance and exemption from self-employment tax on … [Read more...] about Tax Benefits for Members of the Clergy
Personal Tax
Understanding the Fine Points of Capital Gains and Losses
Article Highlights: • What is a Capital Asset? • Long-Term Capital Gains Rates • Capital Loss Limitations • Asset Basis • Net Investment Income Tax • Home Sales • Wash Sales There is a category of income resulting from the sale of capital assets that receives special treatment for tax purposes. A capital asset is defined to include property of any kind, whether held for … [Read more...] about Understanding the Fine Points of Capital Gains and Losses
What Are the Tax Implications of Paying or Receiving Alimony?
Article Highlights: • Definition of Alimony • When Is It Income, and When Is It Deductible? • IRA Qualification • Effect of Child Support • Need for Estimated Payments • IRS Matching Program Recently divorced individuals may pay or receive alimony. If this is your situation, here are some tips for how to correctly treat the payments on your tax return. The first … [Read more...] about What Are the Tax Implications of Paying or Receiving Alimony?
Was Your Refund Too High or Did You Owe Taxes? You Probably Need to Adjust Your W-4
Article Highlights: • Large Refund or Tax Due • Employers Withhold Based on W-4 • IRS Online Withholding Calculator • Self-employed Taxpayers If you are a wage earner and that is your primary source of income and you received a very large refund—or worse, if you owed money—then your employer is not withholding the correct amount of tax (but it probably isn’t your employer’s … [Read more...] about Was Your Refund Too High or Did You Owe Taxes? You Probably Need to Adjust Your W-4
April 2016 Individual Due Dates
April 1 - Last Day to Withdraw Required Minimum Distribution Last day to withdraw 2015’s required minimum distribution from Traditional or SEP IRAs for taxpayers who turned 70½ in 2015. Failing to make a timely withdrawal may result in a penalty equal to 50% of the amount that should have been withdrawn.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 2015 were required to make their 2015 IRA … [Read more...] about April 2016 Individual Due Dates