Manage the Tax on Your Social Security Benefits!

Social Security (SS) income is not taxable until a taxpayer’s AGI (without Social Security income) plus 50% of their Social Security income plus tax-exempt interest income, and plus certain other infrequently encountered additions exceeds a specific threshold. The threshold is $32,000 for married taxpayers filing jointly, zero for married taxpayers filing separately and $25,000 for […]

Did You Take an Early Distribution from Your Retirement Plan?

In today’s economy, some taxpayers may need to take money out of their retirement plans to make ends meet. If you have or are contemplating on taking a distribution, there are some very important and unexpected tax issues you need to be aware of. Withdrawals from tax-deferred retirement accounts, such as Traditional IRAs are generally […]

Plan Your Withholding & Estimates for 2011

April 18 is the due date for the first estimated tax installment for the 2011 tax year and only a couple of weeks away. You may not realize it, but taking a few minutes to plan your estimated tax payments and/or proper withholding amounts for the year can actually insulate you from underpayment penalties in […]

Tax Filing Deadline Rapidly Approaching

Just a reminder to those who have not yet filed their 2010 tax return that April 18, 2011 is the due date to either file your return and pay any taxes owed, or file for the automatic six-month extension and pay the tax you estimate to be due.  Normally the deadline is April 15, but […]

Tips to Avoid a Tax Audit

An IRS tax audit can come in a number of forms.  The most demanding are the face-to-face audits, which require sitting down with an auditor and reconciling income and deductions.  Others are the less demanding correspondence audits where the IRS has reason to believe that the taxpayer failed to include reported income or has overstated […]

Is the Income Taxable or Non-Taxable?

A question that comes up frequently is whether income you received is taxable or not. Generally, most income you will receive is considered taxable, but there are situations when certain types of income are partially taxed or not taxed at all. To help taxpayers understand the differences between taxable and non-taxable income, the Internal Revenue […]

Millions of Self Prepared Tax Returns Filed Wrong

Millions of Americans file their own tax returns and pay the wrong amount each year.  Tax software and the leading tax preparation franchises will help you fill out the forms; but they are tools, NOT a solution. Did you know that some of the leading tax preparation franchises only require their preparers to have 84 […]

It’s Tax Time!

If you’re like most taxpayers, you find yourself with an ominous stack of “homework” around TAX TIME! Unfortunately, the job of pulling together the records for your tax appointment is never easy, but the effort usually pays off when it comes to the extra tax you save! When you arrive at your appointment fully prepared, […]

Congress Extends Tax Breaks

Congress, in an eleventh-hour compromise agreement worked out with the Obama Administration and the GOP Leadership, has extended many of the Bush era tax reductions.  The following is an overview of the more frequently encountered tax changes that will have an effect on just about every taxpayer. INDIVIDUAL PROVISIONS Individual Tax Rates – Under the […]

Is The Tax Stalemate Finally Broken?

In a news conference held December 7, and carried live by most major networks, President Obama discussed the tax agreement he had worked out with the GOP’s Congressional leaders the previous day. Although there is some discontent with the agreement among some liberal Democrats, it is expected to pass Congress before year-end. Keep in mind that this agreement – which primarily addresses tax cuts enacted in 2001 and 2003 (the “Bush era”) that have or will soon expire – has not yet become law and must first pass both houses of Congress, and there could be some modification to the original agreement.