The Affordable Care Act (ACA) has been quite controversial. One of the issues that the U.S. Supreme Court looked at is whether the ACA was a tax when deciding whether the ACA was constitutional. For some taxpayers, the ACA was truly a tax.
The National Society of Accountants reported to its members that some Americans paid an average of $6,091 in new taxes to fund the ACA. Who paid these additional taxes? [Read more…] about AFFORDABLE CARE ACT – AFFORDABLE FOR WHOM?
While traveling from your home to your place of business is generally not tax deductible, there are exceptions. The three exceptions are: [Read more…] about ARE COMMUTING EXPENSES TAX DEDUCTIBLE?
Effective in 2016, health insurance companies will be required to provide to every individual who received minimum essential health care coverage in the 2015 calendar year with Form 1095-B, Health Coverage. Since a copy of this form must also be sent to the IRS, The Affordable Care Act (ACA) requires the insured to provide the health care provider with his/her social security number (SSN), as well as the SSNs of the spouse and any dependents. If any person fails to provide the health care provider with the requested SSNs, it is very likely that the IRS [Read more…] about US GOVERNMENT INCREASING ODDS THAT YOUR IDENTITY WILL BE STOLEN?
For those of you who converted your traditional IRA to a Roth IRA in 2015 and are watching the market value of that IRA fall, there is relief available to you. You can reverse your previously made conversion. This is called an IRA recharacterization and is one of the few “tax loopholes” available to all taxpayers where you almost always come out ahead.
Let’s say that you converted $50,000 from a traditional IRA to a Roth IRA in 2015. If your effective tax rate is 25%, that means that you will incur an additional 2015 income tax liability of $12,500. Let’s assume that the Roth IRA has declined in value by $20,000 and is now worth $30,000. Your “effective tax rate” on this conversion is 41.7% ($12,500/$30,000).
The good news is that the tax law allows you a Mulligan and you can undo what you did. The Mulligan [Read more…] about IRA Recharacterization – “Heads I Win, Tails You Lose”
