Tax News

September 16, 2010 12:00 am

With the school year beginning, now is a great time to focus on financial aid for your college-age dependents. If you are applying for financial aid for college for your child, you are required to com...

September 7, 2010 12:00 am

Coverdell Education Savings Accounts, or ESAs, were greatly enhanced by the Economic Growth Tax Relief Act of 2001 as a tax-advantaged way to pay for education. However, the provisions in that act are...

September 6, 2010 12:00 am

Retirement plans are primarily designed to provide income during retirement years. However, in tough economic times, individuals short of cash to pay for housing, medical costs, and other necessities ...

September 3, 2010 12:00 am

by Seymour Goldberg, CPA, MBA, JD A power of attorney (POA) is a vital part of an individual's overall estate plan. Many POAs are comprehensive in nature, but many POAs may leave out important financi...

August 30, 2010 12:00 am

Much attention is focused on federal income taxes. For many individuals, state income taxes also represent a substantial expenditure. For example, Hawaii has the highest state income tax rate of 11% o...

August 23, 2010 12:00 am

Some taxpayers expecting tax refunds take out short-term loans, called refund anticipation loans (RALs). Money is advanced to taxpayers to the extent of the refund they expect to receive, and the loan...

August 23, 2010 12:00 am

The interest rates paid on overpayments and underpayments remain the same in the fourth quarter of 2010 as they have been all year. Individuals will pay 4% on underpayments and receive interest of 4% ...

August 13, 2010 12:00 am

After more than 30 years, the opportunity for low-income workers to receive the earned income credit on an advanced basis has ended. Effective after 2010, eligible workers will have to wait until they...

August 9, 2010 12:00 am

According to one study, about 71% of employees have access to a 401(k) or similar plan at work, of which 77% currently contribute or have money invested in the plan. For many individuals, this is a pr...

July 30, 2010 12:00 am

The cost of vehicles purchased for business can be recovered by expensing (limits may apply), which provides a greater up-front write-off than depreciation claimed over a number of years. In one recen...

Tax-Advantaged Ways to Pay Back-to-School Expenses
July 29, 2010 12:00 am

According to the U.S. Census Bureau (www.census.gov/newsroom/releases/pdf/cb10ff-14_school.pdf), 27% of the population over the age of 3 is enrolled in school. In a few short weeks, children will be r...

July 26, 2010 12:00 am

Tax return preparers who prepare returns after December 31, 2010, will have to obtain a preparer tax identification number (PTIN) each year from the IRS, as provided by proposed regulations. The IRS a...

July 25, 2010 12:00 am

The Affordable Care and Patient Protection Act of 2010 and the Health Care and Education Reconciliation Act of 2010 comprise the historic health care reform package that will overhaul health care in A...

July 25, 2010 12:00 am

If you are affected by the BP oil spill in the Gulf, you may be dealing with serious financial and personal concerns, and taxes may be the last thing on your mind. However, it is helpful to know that ...

July 19, 2010 12:00 am

A federal law, called the Defense of Marriage Act of 1996, until now has barred same sex couples from filing joint federal income tax returns even where they are legally married under state law. Howev...

Actor’s Conviction for Tax Evasion Upheld
July 19, 2010 12:00 am

It looks like Wesley Snipes is going to jail. An appellate court has upheld his conviction on tax evasion and his sentence of 36 months in prison. The case involved three years in which the actor f...

July 12, 2010 12:00 am

Those who were in contract by April 30, 2010, to purchase a home that would qualify them for a tax credit as a first-time buyer or long-term resident now have more time to complete the sale. Originall...

July 6, 2010 12:00 am

Gain on the sale of a principal residence can be excluded up to $250,000 ($500,000 for joint filers). This exclusion applies only if the homeowner has owned and used the residence for at least 2 of th...

July 1, 2010 12:00 am

Receiving cash or property at no cost to you is a good thing. But not all of the bounties you receive in this way are tax free. Here are some gifts or other no-cost items that you may receive that wil...

Bad Events Can Result in Good Tax Outcomes
June 28, 2010 12:00 am

When things go bad, causing personal injury or even death, there often is monetary compensation from some source. Fortunately, the receipt of certain types of compensation arising from bad events is t...

advertisement
Tax Glossary

Investment interest

Interest on debt used to carry investments, but not including interest expense from a passive activity. Deductions are limited to net investment income.

More terms