Child and Dependent Care Credit

If you paid someone to care for a child under age 13, or a qualifying spouse or dependent to allow you to work or look for work, you may be able to reduce your tax by claiming the Child and Dependent Care Credit on your federal income tax return.  To qualify, your spouse, children over […]

Important Facts about Dependents and Exemptions

Some tax rules affect every person who may have to file a federal income tax return; these rules include dependents and exemptions. Here are some important facts you need to know that are related to dependents and to claiming exemptions on your tax return. Exemptions reduce your taxable income – There are two types of […]

2011 Required Minimum IRA Distributions

Now that the New Year is here, you can begin taking your required minimum distribution (RMD) for 2011. The following is an overview of the rules regarding these mandated distributions for older taxpayers. The IRS does not allow IRA owners to keep funds in a Traditional IRA indefinitely. Eventually, assets must be distributed and taxes […]

New Roth IRA Opportunities

2010 is the first year in which taxpayers—including married taxpayers filing separately—are able to convert funds in regular IRAs (including SEP and Simple IRAs) to Roth IRAs, regardless of income level.  This can provide a significant opportunity for certain taxpayers. There are several advantages to a Roth IRA – All future earnings and distributions at […]

Beware of a New Fraud Risk!

There is a fraud risk related to the Electronic Federal Tax Payment System (EFTPS) that you need to be aware of. Always remember that the IRS does not initiate taxpayer contact by e-mail.  Therefore, if you receive an e-mail that appears to be from a tax agency telling you that your federal electronic funds transfer (EFT) […]

Tax Rumors Abound

There are two false tax rumors that have been circulating around and troubling clients.  To set the record straight, a brief explanation of both rumors is provided below. False Rumor #1 – “Employer-paid health insurance benefits will be taxable in 2011.” Not true! Starting in 2011, the amount of employer-paid healthcare benefits was to be […]

Congress Will Have to Take Action to Stop Tax Increases

Normally, one would think that Congress would have to take some action to increase taxes. However, it is quite the opposite for 2011. If Congress fails to take action, in spite of the fact that President Obama vowed no new taxes for individuals earning less than $200,000 and families earning less than $250,000, there will […]

Top Ten Facts about Taking Early Distributions from Retirement Plans

Some taxpayers may have needed to take an early distribution from their retirement plan last year. The IRS wants individuals who took an early distribution to know that there can be a tax impact to tapping your retirement fund.  Here are ten facts about early distributions. Payments you receive from your Individual Retirement Arrangement before […]