There has been a commercial airing lately touting a particular antacid. A guy goes into a burger joint and orders a meal to which the order taker responds “Do you want that to hurt now or later?”. That is in some way the main difference between a traditional IRA and a Roth IRA. With a…
Roth IRA accounts are subject to the same limits as a traditional IRA which we discussed last week. The way a Roth works differently than a traditional IRA is that if you keep your investment in a Roth IRA for at least five years then none of your withdrawals are taxable, even the money you…
$8 million. That’s what The Inspector General says that the IRS has missed in revenue generation from sole proprietors. “Tests for unreported income during IRS audits of sole proprietors are critical to the process of verifying that the correct amount of tax is reported,” said TIGTA Inspector General J. Russell George in a statement. “Our results indicate…
As the holiday season approaches I am reminded of that sick in the gut feeling I used to get when the credit card bills came in January. Time to pay up for all the holiday gifts and extras that seemed a great idea at the time. What was I thinking? Similarly, I think Obama and…
Most people want to make more money without necessarily paying more taxes. We will leave the making more money part up to you but we can help with the paying less taxes part. Usually this means finding more deductions. As the first installment in this series we need to set things up. A little history…
While the new law tax changes in the bipartisan legislation that was enacted in late 2010 were the most significant developments in the fourth quarter of 2010, many other tax developments may affect you, your family, and your livelihood. These other key developments in the fourth quarter of 2010 are summarized below. Please call us…
Deductible medical expenses can include not only the expenditures made on behalf of the taxpayer but also the spouse and all dependents listed on the return. When submitting your medical expenses to your tax preparer they should be organized as follows: Medicine and drugs; Fees paid to doctors, dentists, and medical professionals; Hospital and laboratory…
On January 25, Senate Finance Committee Chairman Max Baucus (D-MT) and Senate Majority Leader Harry Reid (D-NV) introduced a bipartisan bill that would repeal the new Form 1099 reporting requirements for businesses. The bipartisan legislation would repeal requirements for businesses to report payments made for goods and certain services to IRS using Form 1099. As…
Moving down the list of itemized deductions our next topic is deductible taxes. Deductible taxes include: State, local or foreign real property taxes, State or local personal property taxes, State, local or foreign income, war profits or excess profits taxes, Generation-skipping transfer tax imposed on income distributions, State and local general sales tax (in liew…
Your children may help you qualify for some tax benefits. Here are 10 tax benefits parents should consider when filing their tax returns this year. 1. Dependents In most cases, a child can be claimed as a dependent in the year they were born. For more information see IRS Publication 501, Exemptions, Standard Deduction, and Filing Information.…