Penalty for Healthcare Non-Enrollment May Run Higher
According to the Tax Policy Center, the oft quoted $95 price tag for not having health insurance under the Affordable Care Act most likely will end up costing many households more than that, as this figure only applies to relatively low-income households. The Center recently rolled out the ACA Tax Penalty Calculator, which assists…
2013 higher education breaks may save your family taxes
Tax credits can be especially valuable because they reduce taxes dollar-for-dollar; deductions reduce only the amount of income that’s taxed. A couple of credits are available for higher education expenses: The American Opportunity credit — up to $2,500 per year per student for qualifying expenses for the first four years of postsecondary education. The Lifetime…
Don’t overlook reinvested dividends
One of the most common mistakes investors make is forgetting to increase their basis in mutual funds to reflect reinvested dividends. Many mutual fund investors automatically reinvest dividends in additional shares of the fund. These reinvestments increase tax basis in the fund, which reduces capital gain (or increases capital loss) when the shares are sold….
Could deducting state and local sales taxes save you more?
For the last several years, taxpayers have been allowed to take an itemized deduction for state and local sales taxes in lieu of state and local income taxes. Although this break hasn’t yet been extended to 2014, it is available for 2013. It can be valuable if you reside in a state with no or…
Short-term ACA relief now available for midsize and large employers
Recently released IRS final regulations for the Affordable Care Act’s (ACA’s) employer shared-responsibility provision provide some short-term relief for midsize and large employers. Under the ACA, the shared-responsibility provision (commonly referred to as “play-or-pay”) applies to “large” employers — those with the equivalent of 50 or more full-time employees. Play-or-pay had been scheduled to go…
IRS Issues Final Regulations on Employer Shared Responsibility Penalty
On February 10th, the IRS issued final regulations regarding the employer shared responsibility penalty. The most significant items to note in the regulations are a one-year delay of the employer mandate for midsize employers and a phased-in coverage requirement for large employers. For employers that have 50 to 99 full-time equivalent (FTE) employees, the employer…
There’s still time to get substantiation for 2013 donations
To support a charitable deduction, you need to comply with IRS substantiation requirements. This generally includes obtaining a contemporaneous written acknowledgment from the charity stating the amount of the donation, whether you received any goods or services in consideration for the donation, and the value of any such goods or services. “Contemporaneous” means the earlier…
Retirement Saving Tax Strategies
When looking at retirement savings it is important that you have all the necessary facts regarding the different tax strategies associated with various plans. Not all retirement plans have the same tax rules and some may be more beneficial than others. There are three “tax buckets” that should be reviewed when considering a retirement savings…