1. This credit – still available for 2010 – equals 6.2 percent of a taxpayer’s earned income. The maximum credit for a married couple filing a joint return is $800 and $400 for other taxpayers.
2. Eligible self-employed taxpayers can benefit from the credit by evaluating their expected income tax liability and, if they are eligible, by making the appropriate adjustments to the amounts of their estimated tax payments. (more…)
The Internal Revenue Service issues a list of the top 12 tax scams each year – known as the Dirty Dozen. The scams are illegal and can lead to problems for taxpayers including significant penalties, interest and possible criminal prosecution. These scams don’t just happen during the tax filing season, they can happen anytime during the year. Here are five scams from the 2010 Dirty Dozen list every taxpayer should be aware of this summer. (more…)
School’s out and many students now have a summer job. Some students may not realize they have to pay taxes on their summer income. Here are the six things the IRS wants everyone to know about income earned while working a summer job.
Did you know that you may be able to deduct some of your job search expenses on your tax return?
Many taxpayers spend time during the summer months updating their résumé and attending career fairs. If you are searching for a job this summer, you may be able to deduct some of your expenses on your tax return. Here are six things the IRS wants you to know about deducting costs related to your job search. (more…)
Starting July 1, 2010, many businesses offering tanning services must collect a 10 percent excise tax on the tanning services they provide. This excise tax requirement is part of the Affordable Care Act that was enacted in March 2010. (more…)
One of the most misunderstood taxes is by far the federal gift tax. The federal gift tax applies to transfers of property from one person to another where the recipient does not pay fair market value for the property, or, in the case of gifts of cash, the recipient does not give anything of value in return for the cash. If one or more of these types of transfers are made during the course of the same year, then an IRS Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return, will be required to be filed under the following circumstances: (more…)
When tax preparation time comes there can be an array of questions about federal tax deductions and what to report as income on your federal tax return. This Insurance Tax Dos and Don’ts list of federal tax tips will hopefully help many with federal tax questions regarding insurance whether on a personal or business level.
Although some of the federal tax preparation points below may be confusing if one is not familiar with the federal tax laws, this list will still be very beneficial to even those who use a tax preparer. Just print out the list below and give it to your tax preparer to make sure they don’t forget any deductions you may have coming on your tax return. (more…)
Tax-favored Section 529 college savings plans (sometimes called qualified tuition programs) have been around long enough that many people are now taking withdrawals. Qualified withdrawals are always federal-income-tax-free (and usually state-income-tax-free too). That’s the big advantage of investing in 529 plans. However, the full story on withdrawals is pretty complicated. Here are four important things you should know.
1. You have two payment options
You can have the withdrawal check cut in the name of the account beneficiary (the student for whom the account was set up, which is usually your child or grandchild). (more…)
WASHINGTON —The Internal Revenue Service has posted on its website the newly-revised payroll tax form that most eligible employers can use to claim the special payroll tax exemption that applies to many new workers hired during 2010.
Designed to encourage employers to hire and retain new workers, the payroll tax exemption and the related new hire retention credit were created by the Hiring Incentives to Restore Employment (HIRE) Act signed by President Obama on March 18. (more…)
WASHINGTON — The Internal Revenue Service today issued new guidance to make it easier for small businesses to determine whether they are eligible for the new health care tax credit under the Affordable Care Act and how large a credit they will receive. The guidance makes clear that small businesses receiving state health care tax credits may still qualify for the full federal tax credit. Additionally, the guidance allows small businesses to receive the credit not only for regular health insurance but also for add-on dental and vision coverage. (more…)
