.9% additional medicare tax

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

For tax years beginning Jan 1, 2013, there is an additional Medicare tax imposed on taxpayers whose FICA wages including self-employment income exceed certain thresholds $200,000 for single and $250,000 for joint.

Nert Investment Income and the 3.8% tax

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Per the Health Care and Education tax act that was passed to help fund health care reform, there will be an additional 3.8% tax on net investment (unearned) income for taxpayers filing jointly whose adjusted gross income is $250,000 and above. For single and head of household taxpayers the threshold is $200,000. The act isContinue Reading

american taxpyer relief act of 2012

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

american Taxpayer Relief Act of 2012 finally passed and signed by president. Some highlights: educator expense deduction of $250 reinstated; sales tax deduction reinstated; discharge of home mortgage indebtedness exclusion of up to $2 million reinstated; qualified tuition expenses reinstated. There are many more- call or email for detailsContinue Reading

AMT ( alternative Minimum Tax) and it’s consequences

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

If Congress does not enact an AMT patch before the 2012 year end, approximately 28 million taxpayers will face an unexpected and large tax liability. Additionally, about 60 million taxpayers wil not be able to file their returns or receive their refunds due to the complex nature of these system changes. It’s fpreseeable that theyContinue Reading

Post Election News-Business Decisions

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Now that the election is over and 2013 is just around the corner, there are still timing related decisions that can be need to minimize your tax hit for next year: 1- If planning to take a bonus, take it in 2012 while tax rates are lower 2- If you are a higher income earner,Continue Reading

What all taxpayers should know about penalty abatement

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

There is a first time waiver of penalties allowed for taxpayers who do not timely file or pay their taxes if their history shows they have been compliant in the prior 3 tax years. Most taxpayers do NOT know this is available. A properly written letter requesting abatement of penalties is all it takes.Continue Reading

Taxpayer friendly advice

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

With the end of another filing season, the IRS has included a link entitled “After You’ve Filed” as one of the five topics on the homepage of www.irs.gov. In the information provided, the IRS reminds taxpayers that (1) the refund status of an e-filed return can be checked 72 hours after the IRS acknowledges receipt,Continue Reading

Florida Minimum wage

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

Florida’s minimum wage will increase from $7.67 per hour to $7.79 per hour effective Jan. 1, 2013. Additionally, the minimum wage for tipped employees will increase from $4.65 to $4.77 per hourContinue Reading

2013 Social Security Base Income

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

The numbers are out for 2013. The first $113,700 of wages or SE income will be subject to social security tax at the rate of 6.2% for both employers and employees. Additionally, remember that higher income wage earners ($200,000 for single filers, $250,000 for joint filers) will have the medicare component of the tax increaseContinue Reading

Additional year end planning

  • Facebook
  • Twitter
  • Delicious
  • Digg
  • StumbleUpon
  • Add to favorites
  • Email
  • RSS

No one knows what 2013 will hold for capital gains on long term investments. Under current law, high income taxpayers will have a 3.8% surtax added to their capital gains tax. The current rate of 15% is due to sunset at 12/31/12. You may want to think about harvesting long term gains in 2012.Continue Reading