A new unearned income Medicare contribution tax, with an effective date of Jan. 1, 2013, was enacted as part of the healthcare act. That date has come and gone, and the tax is now applicable. The new Medicare tax applies to net investment income of individuals whose modified adjusted gross income exceeds certain threshold amounts. […]
In June 2012, the U.S. Supreme Court ruled in favor of the constitutionality of the Patient Protection and Affordable Care Act, often called Obamacare, clearing the way for the law’s implementation. The Affordable Care Act, along with the Healthcare and Education Reconciliation Act, represents the most significant regulatory overhaul of the U.S. healthcare system since […]
There are always plenty of reasons to speed up the process of filing your individual return. The primary reason has always been that, if you’re expecting a refund, you shouldn’t wait any longer than necessary to receive it. Well, you can add identity theft to your reasoning now. Identity thieves have found ways to fraudulently […]
If you and your spouse have self-employment earnings or wages in excess of $250,000, you should be aware of the new tax increase starting in 2013. The Health Care and Education Reconciliation Act of 2010, which was signed into law on March 30, 2010, created two methods of raising revenue by increasing Medicare taxes by […]
Dual state residency issues are becoming more frequent audit issues as states seek to increase their revenue. In the digital data-sharing world, it’s very important to maintain good tax records. If you own property such as a vacation home in a state where you work, and you reside in another state, you may find yourself […]
Dear Client, Many clients (like yourself) have asked us about the tax impact of the health care reform law now that the U.S. Supreme Court has indicated that the law is largely constitutional. The following paragraphs provide a broad outline of some of the key individual tax provisions in that law. The Personal Responsibility Tax […]
With the looming expiration of the $5 million estate and gift tax exemptions and the current favorable top tax rate of 35 percent, estate tax planning has become a significant area of focus among many tax advisers. Possible expiration of these provisions has fueled the emphasis on the importance of addressing the impact on individuals […]
The IRS recently issued guidance on the difference between a tip and a service charge. The distinction is important because service charges are considered revenue of the establishment. To the extent that the service charges are, in turn, paid to the employees, that amount is compensation, subject to all payroll taxes and withholdings. The employer’s […]
With the Supreme Court’s finding that the 2010 federal healthcare act is constitutional, it’s time to consider one of the revenue-raising provisions of the act and the ways it may affect next year’s tax situation. As a generalization, the net investment income of taxpayers with total income over a certain threshold is subject to a […]
The volume of claims for the Small Business Health Care Tax Credit has been lower than expected, according to a Treasury Inspector General for Tax Administration audit released Nov. 7, 2011. As of mid-May 2011, only 228,000 taxpayers out of an estimated potential pool of 4.4 million taxpayers have made claims for the credit. Less […]