American Opportunity Tax Credit Extended Through 2012
This 40% refundable credit makes college more affordable for low and moderate-income students.
Attention Small Business Owners: Hiring Family Members Could Possibly Save You Tax Dollars
If you are self-employed, you may be able to hire your spouse or children as employees and take advantage of several tax deductions. The rules the IRS has for employing family members are very reasonable and simple to follow. For more detailed information on what tax benefits come with employing family members, read this C.P.A. Insight
Planning Can Lead to Valuable Tax Savings
Tax planning is not strictly for the April deadline. Taxpayers have opportunities year-round to minimize their overall tax bill. These include bunching deductions, tax loss selling and income deferral. For more information on how these methods can help reduce your tax liability, read this C.P.A. Insight.
New Qualified Retirement Plan
The Pension Protection Act of 2006 created a hybrid retirement plan called the Defined Benefit 401(k), which combines a defined benefit plan, based on final average pay with a safe-harbor 401(k). This plan becomes available January 1, 2010. For more information on the specifics of this plan, read this C.P.A. Insight
Retirement Plans
Companies can choose from several different types of retirement plans, each with a varying levels of complexity and involvement in the way of employer contributions. For more information on the contribution limits and requirements for several common plans, read this C.P.A. Insight.
SIMPLE Plans Really Are Simple
SIMPLE plans have eligibility and contribution requirements like most other employer-sponsored retirement plans, however, they allow employees to save a generous amount for retirement. For details on the types of SIMPLE plans and some of the rules that govern them, read this C.P.A. Insight.
Medical Checklist
After 2012, the floor on deductible medical expenses increases for most taxpayers to 10% of AGI. Learn more in this week’s Tax Tip.
Tax Breaks for the Self-Employed and Small Business Owners
The following is a compilation of a number of tax breaks available to self-employed individuals and/or small business owners. Some can be implemented before year’s end, providing benefits for your 2011 return, while others will provide planning opportunities for 2012.
Standard Mileage Rates Announced for 2012
The IRS announced the standard business use of auto mileage rate is 55.5 cents per mile for 2012. See additional rates in this Tax Tip.
Unmarried Couples and Home Mortgage Interest
If you pay on a mortgage but your name is not on the loan document, you may not be able to deduct mortgage interest. Read this Tax Tip for more info.