When taking business deductions on a tax return, it is important that you know the sometimes-complicated rules. One couple learned this lesson the hard way. Marlene Robinson was employed as the general manager for Influence Marketing, a wholly owned subsidiary of QVC, Inc. As general manager, she was in charge of two operations – one …
First, a federal district judge in Virginia ruled that the minimum essential coverage provision of the Patient Protection and Affordable Care Act is unconstitutional (Virginia v. Kathleen Sebelius, Dec. 13, 2010). Now, a federal district judge in Florida has declared the entire healthcare law unconstitutional for the same reason (Florida v. Department of Health and …
Key Provision of New Healthcare Law Declared Unconstitutional Read More »
Higher grain prices and increasing milk prices should lead to higher income for farmers and many planning opportunities for accountants. One of the opportunities is the strategic use of farm income averaging.Farm income averaging has been available since 1998 and allows individuals engaged in farming to elect to average farm income over three years to …
A number of significant income tax issues should be considered in connection with a divorce. For example, alimony is deductible by the person making the payment. However, alimony is taxable income to the recipient. Child support payments are neither taxable nor deductible. In a recent case (Nancy Gallagher Maes v. U.S., 106 AFTR 2d 2010-6752, …
ROTH conversions have been in the news and on the minds of tax preparers and investment advisors for years, thanks impart to periodic legislation providing for deferral on the taxable income created from the conversion. And although the rules covering 2011 conversions do not provide for deferral of income and taxes as was possible in …
With the calendar year 2010 Form 990 filing date for tax exempt organizations (TEOs) just around the corner (May 15, 2011), some new tax related items should be considered. A few of these items include:Form 990-N (e-Postcard): The IRS announced in January that small TEO organizations may be able to shift from the simpler Form …
The Internal Revenue Service has announced new steps to help people get a fresh start with tax liabilities by changing its lien filing practices that will lessen the negative impact on taxpayers.The changes include: Significantly increasing the dollar threshold when liens are generally issued, resulting in fewer tax liens Making it easier for taxpayers to …
The Affordable Care Act, enacted on March 23, 2010, contains some tax provisions that took effect in 2010. Others became effective for 2011. More will be implemented during the next several years. The IRS has provided a list of provisions now in effect:Small Business Health Care Tax Credit – This new credit helps small businesses …
If you or your children work in an occupation in which tips are part of total compensation, you need to be aware of several facts relating to federal income taxes. Here are four things you should know about tip income: Tips are taxable. Tips are subject to federal income, Social Security and Medicare taxes. The …
The 2010 Tax Relief Act, enacted during December 2010, impacts all taxpayers. One provision has an immediate impact on employees and the businesses that employ them, as well as not-for-profit organizations with employees and individuals who have household employees. The Social Security tax, also known as the Old-Age, Survivors and Disability Insurance (OASDI) tax, has …
Important Change in Payroll Tax Withholding for 2011 Read More »