Older Americans with individual retirement accounts have a new reason to celebrate this month. The tax break for charitable donations from IRA accounts has been reinstated for 2011, allowing older citizens to make up to $100,000 in donations to their favorite charity without having that money count as taxable income.
Archive for the ‘Taxes’ Category
As the end of the year is in sight, we are already starting to think about when we file tax return for next year. Around this time of year we start seeing the Christmas decorations, thinking about New Year’s resolutions, and planning financially for the time to file tax returns.
We are hearing a lot in the news about the AMT Tax. Who does the AMT tax affect? How do we know if we are liable to pay it?
Multiple articles in various newspapers and money magazines have been explaining the tax. Forty-one years ago, the tax started out targeting 155 extremely rich tax payers who had figured out how to wiggle out of taxes. However, because the AMT tax is not always adjusted with inflation, more and more middle class citizens are required to pay it.
In his weekly “Tax Guy” column for Smart Money, Bill Bischoff explains some tax literacy, some world events, and how the government looks at your money. In this blog we discuss the differences between tax deductions and tax credits.
We’ve all been frustrated with what we see each year as we e-file state taxes. Many of us are just struggling to make ends meet, but the state and the federal taxes simply seem to increase! Isn’t there a way to make budget without draining hard-working citizens dry?
In an article published this week, four governors wrote about how to cope with budgets in a tough economy. Governor Bob McDonnell of Virginia points out something you don’t normally hear a governor say. He declares you can’t keep raising the budget; you can cut spending and end up with a surplus! Hard to believe?
There are several choices when it comes time to file your tax return. You can hire tax preparer, use tax software or fill out the forms by hand. Another option is to use Free File. It is easy to do, takes only minutes and costs you nothing. The IRS has partnered with some private software companies to provide this free service.
How to Save Money When You File Tax Returns
Smartmoney Magazine has plenty of tips when it comes to tax filing. A recent article from their “tax guy” Bill Bischoff had a summary of several of his favorite ideas that will help us, consumers and small business owners, to save money when we go to file out tax return next year.
A major battle is brewing in Washington, D.C. , over Bush-era tax cuts due to expire at the close of 2010. The tax cuts were originally passed in 2001, and income tax rates will rise if they are allowed to expire. The 33% income tax rate would increase to 36% , and the top income tax rate would return to 39.6%. Taxes on lower bracket taxpayers would also increase, potentially affecting millions.
If you are a newlywed, likely one of the last things on your mind is your taxes. At some point however, after you get home from your honeymoon and perhaps before you send out all the thank-you cards, give some consideration to how tying the knot will affect your tax filing status.
For starters, remember that you are no longer single, and you cannot file under that status on your tax return. If you said your ‘I do’s’ on the last minute of the last month of the year, the IRS considers you married for that entire tax year.
Under current rules, if a child receives more than $1,900 in investment income (such as interest, dividends and capital gains), then the amount that exceeds that threshold is taxed at the rate that mirrors the parent’s tax bracket.