Unlike a C corporation, which itself pays the tax on its taxable income, an S corporation does not directly pay taxes on its income; instead, its income, losses, deductions, and credits are distributed across its shareholders’ individual tax returns on a pro rata basis. These distributions are not subject to self-employment (Social Security and Medicare) […]
The IRS is now auditing to see if too much home equity debt interest is being deducted from your taxes. Remember, equity debt is debt not incurred to acquire or improve the home and taxpayers frequently exceed the equity debt limit and fail to adjust their interest deduction accordingly. Normally, you are allowed to deduct […]
Predict Your Future Social Security Income Are you ignoring your future retirement needs? If you are younger, that’s probably the case since retirement is far in the future, and you think you have plenty of time to save for it. It’s not wise to ignore the issue until late in life and then have to […]
Cut Your Taxes & Save on Energy Bills with Home Energy Credits Recently passed legislation has given new life to two homeowner energy credits that had expired or were about to expire, providing renewed opportunities to homeowners wanting to take advantage of these credits and reduce their energy costs.
Take a look at the Pros & Con of Roth Conversions The tax provision that allows taxpayers to convert a Traditional IRA to a Roth IRA is a great tax-planning tool when used properly, and timing is everything. Conversions can be tricky, so if you are considering a conversion, take a look at this article regarding […]
How to identify Scams and Avoid Becoming a Victim It’s natural for thieves to use the IRS and other government entities to ply their scams against the public through email and phone scams in order to steal your money. They can trick you into giving out your date of birth, account numbers, passwords and even […]
It’s the holiday season and that means it’s that time of year when the majority of charities start soliciting for year-end donations. And that means that it’s the perfect time of year when fake charities start showing up in force hoping to convince you to give them a monetary donation.
Take Advantage of Tax Breaks Now! Once again, this year is similar to the last few years when it comes to year-end tax planning due to the uncertainty over whether Congress will extend any of the many expired or expiring tax provisions. However, this is not a reason to wait as tax savings can still […]
In 2014, Benjamin Miller from Indiana posted a tweet that included a picture of notice he received from the IRS indicating that he owes a penalty of $2,344 because he didn’t have health insurance. Needless to say, his tweet went viral and ignited a firestorm.
If you’re thinking about retiring or leaving your current employer, you would be required to take a distribution from your employer’s retirement plan. Depending upon the terms of the plan as well as your age, a distribution may not be required immediately. However, it is important that when you do have to take the distribution […]
