Tag: tax

The IRS publishes several bulletins which contain useful information for tax payers with dependents - e.g parents, grand parents and guardians - that apply to many of my readers. I have summarized the key points below including references to related articles for the latest tax season. Tax Benefits for Parents Dependents. In…

The IRS has published its official 2013 changes reflecting annual inflation adjustments and tax table updates from the recently passed Fiscal Cliff legislation, officially known as the American Taxpayer Relief Act of 2012. Key changes include: For 2013 the 39.6 percent tax rate has been reinstated for individuals whose income exceeds $400,000 ($450,000 for married…

After several years the IRS has raised Roth IRA contribution levels, along with the annually indexed income qualification levels that allow eligible contributions. This is good news for those looking for tax effective ways to manage their retirement savings. [See this article for the latest Roth IRA limits] Unlike 401(k) and Traditional…

A set of three couples sit around an oval table, discussing the future of their newborns. A father asks, "Has anyone actually started saving for college yet?" One parent cries, "Ugh not me." Another parent tries to explain, "No, no you got time." But then the "smart" couple confesses and…

[Updated] Will i still have to pay health insurance penalties (under the Obamacare individual mandate)? This is the question a lot of Americans are asking. The short answer is NO from 2019.  Here is why the individual mandate, a.k.a Obamacare penalty, is no longer in effect from 2019: While Congressional Republicans…

I recently received the following question from Brian on my post that detailed the many versions of the first time home buyer tax credit: I purchased a home in January 2009. This is my primary residence after having purchased my first home in March 2002. My CPA put me in…

Can you open a Roth IRA for your spouse? This question comes up a lot among married couples with just one income. After all, one of the requirements for opening and funding a Roth IRA is earned income, right? And as a general rule, if you don't have taxable earned…

If you are looking for a common and highly effective way to cut your tax bill for this year and/or the next, then consider opening a Traditional IRA or Roth IRA before the IRA contribution deadline. The following brokers have great offers for those looking to open or transfer an…

See this article for the latest Saver's tax credit details and updated annual thresholds. [Updated with 2012 and 2013 information] Despite tough economic times, you should not lose sight of your longer term retirement savings. This is where the little known IRS recommended savers credit can help you to keep contributing…

A lot of people look forward to their tax refund at the end of the year. But I know that if I get a big refund, it usually means I haven't kept up with my paycheck withholding. Why should I wait until next year to get my hands on money…

R.I.P Herman Cain There has been a lot of news lately on Republican presidential candidate Herman Cain's 999 plan. As the new darling and front runner for the parties presidential nomination, Cain's tax plan has gone from a joke (e.g. the price of a pizza) to getting some serious, albeit…

See this updated page for the latest 401K, IRA and Roth IRA contribution limits. [Updated with 2012 details] 2012 tax advantaged retirement plan contribution limits have officially been released by the IRS, with slight increases over 2011 limits; due mainly to cost of living adjustments (COLA). Further with increases in…

During the year many people have personal and financial life changing events that can affect how much they have to pay in taxes. But they often forget to adjust their income or paycheck tax withholding to cater for these events. This means they ending up owing taxes and associated penalties…