Simplified Home Office Deduction Starting This Year

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IRS Announces Simplified Option for Claiming Home Office Deduction Starting This Year; Eligible Home-Based Businesses May Deduct up to $1,500; Saves Taxpayers 1.6 Million Hours A Year IR-2013-5, Jan. 15, 2013 WASHINGTON — The Internal Revenue Service today announced a simplified option that many owners of home-based businesses and some home-based workers may use to figure their deductions for the … Read More

IRS Plans Jan. 30 Tax Season Opening For Tax Year 2012 Form 1040 Filers

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IR-2013-2, Jan. 8, 2013 WASHINGTON — Following the January tax law changes made by Congress under the American Taxpayer Relief Act (ATRA), the Internal Revenue Service announced today it plans to open the 2013 filing season and begin processing individual income tax returns on Jan. 30. The IRS will begin accepting tax returns on that date after updating forms and … Read More

“Fiscal cliff” legislation includes huge number of tax provisions

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Here are the act’s main tax features: Individual tax rates All the individual marginal tax rates under EGTRRA and JGTRRA are retained (10%, 15%, 25%, 28%, 33%, and 35%). A new top rate of 39.6% is imposed on taxable income over $400,000 for single filers, $425,000 for head-of-household filers, and $450,000 for married taxpayers filing jointly ($225,000 for each married … Read More

“Dirty Dozen” Tax Scams

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IRS Commissioner Doug Shulman recently stated “taxpayers should be careful and avoid falling into a trap with the Dirty Dozen. Scam artists will tempt people in-person, on-line and by e-mail with misleading promises about lost refunds and free money. Don’t be fooled by these scams.” The Dirty Dozen are the 12 most prevalent scams detected by the IRS. Taxpayers should … Read More

Maximizing the Deduction for Start-Up Expenses

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Individuals starting a new business or acquiring the assets of an existing business often incur start-up expenses, which can be considerable, in the investigation and acquisition phase before actual business operations begin.  Most start-up expenditures can be segregated into two broad categories (a) investigatory expenses and (b) business pre-opening costs. Taxpayers can immediately deduct up to $5,000 of start-up expenses … Read More

4th Quarter 2012 US Federal Estimates

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Timing is everything and the IRS has chosen a particularly inauspicious time to close the Atlanta lock boxes used by taxpayers living in Georgia, South Carolina, Alabama, Tennessee, Kentucky, North Carolina, Missouri, New Jersey, and Virginia to mail their federal estimated tax payments. The IRS has recently announced that effective January 1, 2013, the Atlanta lockbox will be closed and … Read More

Tax Rate Update

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For the past several years, year-end tax planning has been a challenge for so many people.  Trying to anticipate whether Congress will act to extend some or all of the Bush tax cuts has been the cause of many a sleepless night for tax advisors.  The HIRE Act had small business in an uproar over the possibility of expanded reporting … Read More

Expiration of Bush Tax Cuts

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The tax law changes – commonly referred to as the “Bush tax cuts” – are scheduled to expire on January 1, 2013.  If Congress fails to extend them, many Americans will experience a tax increase.  Many are skeptical that Congress – which has not moved on extending the cuts in two years – will take action before the presidential election. … Read More

0.9% Medicare Surtax on High Income Earners

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Under the Affordable Care Act, effective January 1, 2013, there is an increase in Medicare tax for certain high earners.  An individual is liable for the additional tax to the extent his or her wages, other compensation, or self-employment income (together with that of his or her spouse if filing a joint return) exceed the following threshold amounts for the individual’s filing status: Filing … Read More

3.8% Medicare Surtax on Investment Income

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Beginning in 2013, certain investment income will be subject to an additional 3.8% surtax, enacted as part of the Health Care and Education Reconciliation Act of 2010.  This is sometimes referred to as the “Medicare” surtax because the legislation enacting this tax created a new section of the tax code entitled: “Chapter 2A – Unearned Income Medicare Contribution.” However, this was simply a … Read More