Category Taxes
Making tax-free transfers from your IRA to a charity
In 2011, there was a provision in the law which allowed one to make direct transfers from one’s IRA to a charity. By doing so, one could satisfy his RMD requirements while avoiding paying taxes on that transfer. Moreover, it was a better tax break than if you’d taken the distribution in cash (taxable income, […]
Ultra-Short Summary of American Taxpayer Relief Act of 2012 (HR8 as amended by the Senate)
American Taxpayer Relief Act of 2012 (HR8 as amended by the Senate) The first two items below directly affect nearly every taxpayer. The third affects anyone with earned income, and the fourth affects every married couple. The rest are much narrower in scope (ie. highest income folks, large estates, etc): All Bush-era tax rates made […]
AMT Patch proposed for 2012 and 2013
“The Family and Business Tax Cut Certainty Bill of 2012 (Sen 3521 ) would patch the alternative minimum tax (AMT) for the 2012 and 2013 tax years for an estimated revenue loss of $132.2 billion.” Full text of the bill: http://www.govtrack.us/congress/bills/112/s3521/text It also extends several other popular tax provisions: the deduction for teachers who buy […]
Tax Simplification – Harvey Golub op-ed piece in the WSJ
Harvey Golub’s op-ed piece from the Wall Street Journal on June 14, 2012: http://online.wsj.com/article/SB10001424052702303768104577462353639535464.html?mod=googlenews_wsj Harvey Golub: A Simple Tax Code Is a Fair Tax Code The top 1% pays more in federal income taxes than the bottom 90%. But the system is biased toward the powerful in other ways. [some bit from the article:] The […]
BusinessWeek: 10 Strategies used by the ultra wealthy to avoid taxes
For all the silly bluster about the “Buffett rule” in Congress, the fact is that the vast majority of folks who earn a lot do pay a lot in taxes. And the very well known exceptions – such as Buffett himself claiming to pay a lower tax rate than his secretary – are due to […]
Morningstar article on dependent-care FSA vs tax credit
A must-read from Morningstar for anyone with kids in daycare, with a nanny, etc. http://news.morningstar.com/articlenet/article.aspx?id=539497 In particular, there are some great examples of how much less is going to be paid in taxes one way vs. the other. The dependent care FSA lets one put away money (through one’s employer, only) on a pre-tax basis […]
IRS: Standard Deduction vs. Itemizing – Seven Facts to Help You Choose
http://content.govdelivery.com/bulletins/gd/USIRS-31e552?reqfrom=share Worth reading the article linked to above. When working with folks on their taxes, the question of itemizing vs. taking the standard deduction comes up very frequently. The short story is that you should do whichever allows you to pay less in taxes. Your standard deduction (if you are allowed to take it) effectively […]
(Almost) Everyone can file their federal individual income taxes electronically for free
From the IRS: http://content.govdelivery.com/bulletins/gd/USIRS-266f7f For folks who earn $57,000 or less (and – don’t be surprised – it’s an awful lot of folks — 70% of the nation’s taxpayers!) may use brand-name software and secure e-filing for free. The providers who are participating include H&R Block, TurboTax, Liberty Tax services and others. Start here and […]
Year-End Deadlines
While we recommend planning and managing your finances all year long – this is a process, not a singular task – there are a few deadlines which come up at year-end which cannot be ignored. Some of them represent potential missed opportunities, while at least one of them represents something that if you don’t do […]
John Steele Gordon: A Short History of the Income Tax (WSJ op-ed piece)
http://online.wsj.com/article/SB10001424052970204422404576594471646927038.html A Short History of the Income Tax One original sin was the separation of the corporate and personal tax, giving lawyers, accountants and the wealthy a chance to game the system. […] The other pernicious consequence of the separate corporate and personal income taxes has been a field day for demagogues and the misguided […]
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