Personal Tax

Article Highlights: Health Saving Accounts Tax Breaks Eligibility Contribution Limits Example A health savings account (HSA) is a trust account into which tax-deductible contributions can be deposited by qualified taxpayers who have high-deductible medical insurance plans. These accounts are set up at a bank or other financial institution. Income earned on the HSA … [Read more...] about Health Savings Accounts Offer Tax Breaks

Article Highlights: New tax return complexities caused by Obamacare Penalty for not being insured Premium assistance credit Insurance marketplace subsidies and possible repayments New 1095 series reporting forms Obamacare – or, more officially, the Affordable Care Act (ACA) – insurance mandate, along with its health insurance premium subsidies available from insurance … [Read more...] about Obamacare Adds New Levels of Complexity to Tax Returns

For tax year 2015, the Internal Revenue Service announced today annual inflation adjustments for more than 40 tax provisions, including the tax rate schedules, and other tax changes. Revenue Procedure 2014-61 provides details about these annual adjustments. The tax items for tax year 2015 of greatest interest to most taxpayers include the following dollar amounts - The tax … [Read more...] about In 2015, Various Tax Benefits Increase Due to Inflation Adjustments

Article Highlights Reason for the Kiddie Tax Legal Ways to Avoid It Investments that Avoid the Kiddie Tax Other Tax-advantaged Moves for Children Congress created the “Kiddie Tax” to prevent parents from placing investments in their child’s name to take advantage of the child’s lower tax rate. Kiddie Tax rules apply most often to children through the age of 17, … [Read more...] about Getting Around the Kiddie Tax

Article Highlights: Potential medical deductions Medical dependent Divorced parents Medical AGI limitations Taxpayers are allowed a deduction for medical expenses paid during the taxable year, not compensated for by insurance or otherwise, for medical care of the taxpayer, the taxpayer’s spouse, or a dependent. Alcoholism and drug addiction are treated as medical … [Read more...] about Alcoholism & Drug Addiction