Archives for November 2012

What is the fiscal cliff? From a tax perspective, it is the expiration of more than 50 temporary tax provisions (extenders), the expiration of the Bush 2001/2003 tax cuts, the expiration of the payroll tax cut, and the expiration [Read more…] about Fiscal Cliff Tax Planning

A taxpayer can claim a nonrefundable child and dependent care tax credit if someone is paid by the taxpayer to watch his under-age-13 dependent child or children (who are eligible to be claimed as dependents of the taxpayer) so that the taxpayer [Read more…] about Child Care Tax Considerations

Employees may be surprised to a new item reported on their 2012 W-2s. Beginning with the issuance of 2012 W-2s, the employer is required to report the value of health care coverage [Read more…] about Form W-2 Reporting of Employer-Sponsored Health Care

If you use your vehicle in pursuit of a trade or business, you may be allowed to deduct the ordinary and necessary expenses incurred while operating the vehicle. However, any expenses associated with the personal use of the vehicle are not deductible.

Personal vs. business miles. Business use of your car can include traveling from one work location to another work location within your tax home area; visiting customers; attending a business meeting away from the regular workplace; traveling to the bank for making daily deposits of cash; going to the post office if business related; and traveling from home to a temporary workplace if you have one or more regular places of work. The costs of travel between home and a regular place of work, however, are nondeductible commuting expenses.

Standard mileage rate vs. actual cost method. In lieu of proving the actual costs of operating an automobile owned by them, employees and self-employed individuals may compute the deductible costs for their business use of an auto using a standard mileage rate. The 2012 standard mileage rate is [Read more…] about Vehicle Depreciation and Deductions

The IRS is warning taxpayers about scams that involve websites that mimic the IRS e-Services online registration page. Apparently, taxpayers are being contacted and told to register on the IRS e-Services online registration page. The address of the official IRS website is www.irs.gov. Don’t be mislead by sites claiming to be the official IRS website and ending [Read more…] about IRS WARNS TAXPAYERS ABOUT PHONEY IRS WEBSITES

There are numerous tax law changes to occur beginning January 1, 2013 (assuming that Congress and the White House cannot agree to extend these tax provisions). While the items below are not all-inclusive, they are items that will affect many taxpayers and are all part of the falling off of the fiscal cliff scenario being discussed.

• Annual gift tax exclusion will increase from $13,000 to $14,000
• The amount used  to reduce the net unearned income reported on a child’s tax return to calculate the Kiddie tax  increases from $950 to $1,000
• The elective contribution limit for employees who participate in Sec. 401(k), 403(b) or 457(b) plans increases from $17,000 [Read more…] about RECENTLY ANNOUNCED 2013 TAX ADJUSTMENTS