Last week we gave you the first six scams of the IRS’s “Dirty Dozen.” This week’s column presents the second half of 2013’s “Dirty Dozen”. Don’t fall prey to these schemes. Including income that was never earned, either as wages or as self-employment income in order to maximize refundable credits, is a popular scam. Claiming… Read More
On March 26 the IRS released its annual list of the worst 12 tax scams for the year. The IRS cautions taxpayers not to fall for any of these scams – often these scams are at their peak during the filing season as people prepare their tax returns. This week’s column presents one-half of the… Read More
Congratulations! You’re having a baby. It’s so exciting, and nerve-wracking, and fun, and OMG how are we going to do this? You’re picking out a crib, wondering which diapers to use, what color should you paint the room. But, there is something more important than all of that. You need to make sure your baby… Read More
Sequestration is a series of automatic, across-the-board cuts to government agencies, totaling $1.2 trillion over 10 years. The cuts are to be split 50-50 between defense and domestic discretionary spending. It started in 2011 with the standoff over the U.S. debt ceiling. Congress and the administration agreed to more than $2 trillion in spending cuts.… Read More
Most of the tax increases in the American Tax Relief Act of 2012 (ATRA) were aimed at the wealthiest taxpayers. Unfortunately, the tax increases will hit trusts hard. The Tax Changes First, the Patient Protection and Affordable Care Act (often called “Obamacare”) imposes a 3.8% surtax on net investment income. “Net investment income” generally… Read More
Pennsylvania has a new corporate form called a “Benefit Corporation”. It was signed into law October 24, 2012. Written by Philadelphia lawyers William Clark and Lizzie Babson, the new law has received wide bipartisan support across the country. Pennsylvania is the 12th state to adopt the legislation, joining California, Illinois, New York and other states.… Read More
The American Taxpayer Relief Act of 2012 (“ATRA”) creates a unique opportunity for charitable giving. If a taxpayer acts during January 2013, taxpayers who have attained age 70 1/2 may make a tax-free distribution (commonly referred to as a “charitable rollover”) from their IRA to charity of up to $200,000. In general, distributions from IRAs… Read More
They call it the American Taxpayer Relief Act. Funny, that. Overall it produces tax increases – that’s relief? Early January 1, 2013, the Senate, by a vote of 89-8, passed the “American Taxpayer Relief Act”. Late on that same day- after the government had technically gone over the “fiscal cliff” – the House of Representatives,… Read More
Many folks wait until the end of the year to make their gifts – both gifts to charities and gifts to individuals. This year the annual exclusion from the gift tax is $13,000. (On January 1, 2013 it rises to $14,000.) A person may give up to $13,000 to as many recipients as he or… Read More
A new 3.8% surtax on certain investment income starts January 1, 2013, as part of the health care reform legislation. It applies to net investment income of higher-income individuals. The 3.8% surtax is in addition to your regular income tax, and it is also in addition to any alternative minimum tax. “Net investment income” includes… Read More