The IRS began to process personal income tax returns for most filers on January 30. If you were not in the initial onslaught of filers, here are some differences to note from last year: Tax forms Th...
If you have a health savings account (HSA), it is up to you to retain proof that withdrawals from the account were for qualified medical expenses. Keep the following records along with the copy of you...
Form 1040, which is the most comprehensive income tax return that can be used for 2011, has a number of changes from the prior year. Here are 5 key changes to note:Schedule D revised. Instead of ...
Barbara Weltman, tax expert and contributing editor at the J.K. Lasser Institute, offers tax tips and hints for small businesses....
If you work for a company, are you an employee or an independent contractor? It depends on a number of factors. Basically, if the company has the authority to tell you when, where, and how your work g...
As a self-employed person, you have to contribute to Social Security and Medicare based on your net earnings from self-employment (i.e., your profits). You pay both the employee share and employer sha...
If you are self-employed and pay for health coverage for yourself, your spouse, your dependent, and any child of yours under age 27 (even if not your dependent), the premiums are a deduction from gros...
If you are self-employed and profitable, you can shelter profits from your business and save for your retirement on a tax-advantaged basis. By setting up a qualified retirement plan, you get:Tax ...
To deduct car expenses, you need to keep track of the following for each trip:Date of the use of the car Business destination Purpose of the trip Mileage for each business use (and total mi...
Mileage rate for business use of vehicle. The rate in 2010 is 50...
A farm or business may be the single largest asset within the owner's estate. It is important to plan ahead to ensure that:The interest in the farm or business passes to the intended heir or heirs (...
A family limited partnership (FLP) is a partnership in which the general partnership interest is usually held by a senior family member, with limited partnership interests owned by younger or junior f...
The answer to this important question matters because a real estate professional may be able to deduct losses from real estate activities, such as rental properties, while a non-real estate profession...
If you run a business from your home and use a portion of the space regularly and exclusively for this activity, you can write off expenses allocable to the space. Such expenses include not only real ...
You may be able to generate income by renting out your main home or a second home for part of the year. For instance, say you own a beachfront condo in Miami or a house on Cape Cod. If you're willing ...
Your job may entitle you to more than just a paycheck. Your employer may help pay the cost of education for you, and perhaps your spouse and children as well. This can be a highly valuable fringe bene...
With summer approaching, taxes may be the farthest thing from your mind. However, there could be some savings in what you do this summer. Here are some points to help you make summertime plans. Short...
- For purposes of the 3.8% additional Medicare tax on net investment income in 2013, how does this relate to rental income?
- Can I make a direct transfer of my IRA to my church and qualify for tax-free treatment (up to $100,000)? I’m 72 years old.
- I sold my residence at a loss. How do I report this on my tax return?
- We had a cleaning service clean our home because my wife could not because of her medical issues and my being away on business. Can I deduct this cost?
Charitable Transfers of IRA Distributions
There is a special break for those age 70 and older. Such individuals could have made direct transfers (rollovers) of distributions from their IRAs to a public charity and avoided any income tax on such distributions. No charitable contribution deduction is allowed for this rollover. There is an annual limit of $100,000 on this break, so even if a rollover of up to $100,000 was made in 2008, it can be repeated in 2009.
You can use this rule even though there are no required minimum distributions for 2009.
From 1997 to 2007, federal income tax credits claimed by individuals rose from $15.7 billion in 1997 to $63.8 billion in 2007. The child tax credit, created in 1998, accounted for about half ($31.6 billion) of the total credits in 2007 in terms of dollars.
Source: Statistics of Income Bulletin Spring 2011
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