Working parents should be aware that the child and dependent care tax credit is available to offset some of the expenses for child care. Six facts the IRS wants taxpayers to know about the credit: ● Children must be under age 13 to qualify for the credit. ● The credit applies whether the childcare provider is a sitter at home...
Tags: child credit
Category: Taxes
Although the tax code contains some exceptions, income is generally taxable in the tax year received and expenses are claimed as deductions in the year paid. But “carryforwards” and “carrybacks” have special rules. Here are four examples. * Capital losses. After you net annual capital gains and capital losses, you can use any excess loss to offset up to $3,000...
Tags: carry backs and carry forwards
Category: Taxes
“Timely mailing/timely filing” is a familiar tax rule. It means that when you mail a return on time, the return is considered to be filed on time – as long as you use the proper delivery service and type of delivery. The rule is of special importance when you’re in the position of submitting a return on the due date....
Tags: tax delivery services
Category: Taxes
he Internal Revenue Service is reminding all taxpayers with a filing requirement for a foreign bank account report to report their foreign assets by the June 30 deadline. The IRS is encouraging taxpayers with foreign assets, even relatively small amounts, to check if they have a filing requirement. Separately, certain taxpayers living abroad may also have to file the FATCA-related...
Tags: FBAR and FATCA
Category: Taxes
Don’t ignore your opportunity to save on taxes just because it’s summertime. Here are some summertime tips to keep your tax plans going. If you are a sole proprietor with children, you might consider putting them on the payroll during the summer months. Wages paid to your children under age 18 are not subject to social security and Medicare taxes....
Tags: tax planning
Category: Taxes
If you own or manage your own business, you’re probably busy monitoring operations and dealing with everyday problems. But there are a few things that you should make time to do every year. These are important for your long-term business and personal success. 1. Review your business insurance coverage. Don’t just automatically write a check to renew your insurance policies...
Tags: business owners
Category: Taxes
It’s important for S corporation shareholders to know their basis in the corporation. Basis is the key to determining whether current-year losses can be deducted by the shareholder or not. Losses in excess of basis are generally “suspended” for use in later years when the business has income. Basis is also important when shareholders plan to take nontaxable distributions. In...
Tags: basis S corporation
Category: Taxes
As you review your income tax situation at midyear, consider your exposure to the alternative minimum tax (AMT). The alternative minimum tax involves a separate tax calculation that disallows many of the deductions and credits used to calculate regular income tax. If you have high levels of deductions or exemptions, or if you exercise incentive stock options this year, it’s...
If you itemize your deductions, you can deduct the mortgage interest and property taxes paid for your vacation home. A boat or RV can qualify as a vacation home if it has sleeping quarters, cooking facilities, and a bathroom. If a retreat also serves as rental property, you can control your tax deductions by changing the number of days you...
Tags: vacation homes
Category: Taxes