Making Work Pay Credit in 2011?
“Making Work Pay” provision is dropped in favor of the 2% FICA reduction (Social Security part) to the employee from the 2010 rate of 6.2% to 4.2% for 2011. […]
Author: LONYOUNG
Posts by LONYOUNG
Regular IRA Maximum Contribution for 2009
$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction. Add $1,000 if over age 50. Can contribute till April 15th, 2010 for 2009. Can file your tax return WITH the Regular IRA as if it has […]
ROTH IRA Maximum Contribuiton for 2009
$5,000 into a REGULAR IRA is the max for a single individual UNDER age 50 who does not participate in an employer sponsored retirement plan and still receive a tax deduction. Add $1,000 if over age 50. Can contribute till April 15th, 2010 for 2009. Note: There is NO tax deduction for contributing to a ROTH IRA. The […]
2009 Simple IRA Maximum Contribution
If you participate in an Employer sponsored Simple IRA, you can put an max of $11,500 in 2009 PLUS $2,500 for being over age 50. That total is $14,000 maximum as an employee deferral. Additionally, the employer has some matching options. By far we have found the most popular Employer matching option to be… the […]
Health Insurance goes on W2 in 2011!
There is a lot of mis-information out there about Health Insurance being taxable…….. Starting in 2011, (next year folks), your W-2 tax form sent by your employer will beincreased to show the value of whatever health insurance you are given by the company. It does not matter if that’s a private concern or governmental body […]
Alimony can be used as Compensation for IRA purposes.. yup!
Taxable alimony and separate maintenance payments received by an individual are treated as compensation for IRA purposes. For a summary of what compensation does and does not include, see Publication 590 – Table 1-1 on page 4. […]
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Compensation for IRA purposes is what exactly?
To contribute to a traditional IRA, you must be under age 70 1/2 at the end of the tax year. You, and/or your spouse if you file a joint return, must have taxable compensation, such as wages, salaries, commissions, tips, bonuses, or net income from self–employment. Taxable alimony and separate maintenance payments received by an individual […]
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S Corp Shareholder Sells – Short Year Accounting
Taxpayer decided to sell his stock in the company, as opposed to an asset sale. This means the buyer has the responsibility to prepare the corporate tax return. Taxpayer has agreed to do an accounting of the year up to the date of sale and present this information to the buyer. In the contract, please […]
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Pools & Hot Tubs Deduction
There is a great deal of mis-conception about the deductibility of Hot Tubs & Pools. First, you must have a doctor’s prescription. Second, how much did it really cost you? The theory is the Pool or Hot Tub has added value to the home. Let’s say the item cost $15,000. It has not added $15,000 […]
HIRE ACT
SUMMARY The Hiring Incentives to Restore Employment Act. Businesses can receive two tax incentives for each new worker. To qualify the employee must have been unemployed during the 60 days before beginning their new job or worked fewer than 40 hours during that 60 day period. It applies to anyone hired between February 3rd and December 31st of […]