Individual Tax Blog

American Opportunity Tax Credit Expands Education Benefits
In addition to the Hope Credit and Lifetime Learning Credit, the IRS is adding a new education credit to the mix.  The American Opportunity Tax Credit (AOTC) sweetens the deal and picks up where the Hope Credit and Lifetime Learning Credit leave off. The AOTC provides a maximum credit for 2009 and 2010 of $2,500.  […]
Healthcare Debate Takes Precedent Over Tax Issues
The Senate has been as busy as Santa’s elves on Christmas Eve trying to pass their healthcare bill, even though most of the provisions won’t even go into effect until 2011 and 2014.  In the meantime, they have tabled many important tax issues that will affect 2010. Every year Congress promises an AMT fix, and […]
First Time Homebuyer Credit Extended
The First Time Homebuyer Credit has been extended once again.  This time, it has been extended to more than just first time homebuyers.  You may be able to take advantage of this credit now even if you already own a home. Under the Worker, Homeownership and Business Assistance Act of 2009, taxpayers buying their first […]
Good and Bad News on the Death Tax
Thursday afternoon, December 3rd, 2009, the House of Representatives voted 225-200 in favor of H.R. 4154 which makes the current estate tax (death tax) exemption, or and rates permanent.  For the majority of Americans this is good news.  For many others, it could have been better. H.R. 4154 makes the first $3.5 million of an individual’s estate exempt […]
Making Work Pay Tax Credit Issues
Normally, new tax credits can be a great way to stimulate the economy.  Here is why Making Work Pay tax credit could end up making you owe taxes at the end of the year. Earlier this year, the administration passed a massive stimulus program that included Federal grants, projects and a tax credit for many […]
Protecting Account and Routing Numbers @IRS.Com
Every year we get calls from our clients regarding scam emails and notices that they have received.  The nature of the financial and accounting industry makes computer stored information a valuable resource.  Here are some tips on protecting account and routing numbers, personal information and/or your identity in one of these scams. Computer privacy attacks are on […]
The IRS Wants You In A New Car – New Vehicle Tax Breaks
From Cash for Clunkers to new vehicle credits, the government is brainstorming ways to save Detroit with new vehicle tax breaks.  The result is that this may be the best time to purchase a new vehicle personally or for your business. One of the significant tax breaks for new vehicles is a sales tax deduction […]
Two New Home Energy Tax Credits
The American Recovery and Reinvestment Act (Recovery Act), enacted earlier this year, expanded two home energy tax credits: the nonbusiness energy property credit and the residential energy efficient property credit.  Both are 30 percent tax credits for different types of qualified home energy improvements.  Tax credits, unlike deductions, are direct dollar for dollar reductions in […]
Reducing Foreclosure Tax Consequences, Pt. 2
According to the Mortgage Bankers Association, 1 out of every 200 homes will be foreclosed upon.  In an effort toward reducing foreclosure tax consequences associated with the cancellation of debt that often times accompany foreclosure, Congress passed The Mortgage Forgiveness Debt Relief Act of 2007 (“Mortgage Act”).  The Mortgage Act provides taxpayer relief by excluding […]
What If you Can’t Pay your Income Taxes?
Another deadline has come and gone.  Perhaps many out there have not yet filed their income tax return because you know you have a substantial balance due to the IRS and you just can’t pay it right now.  Maybe you have that one project or deal that you are waiting on to come through so […]
Bankruptcy Protection for your IRA
If you are forced to file bankruptcy there are certain assets your creditors cannot normally touch.  Typically, your IRA is one of those protected assets.  It may now be necessary ensure bankruptcy protection for your IRA. A district court has recently decided that you can lose that bankruptcy exemption if you misuse your IRA.  Although creditors cannot […]
A Precious Metal Investments Negative
Gold and precious metal investments have often been considered a “safe” investment during times of economic instability.  Unfortunately, the IRS has ruled privately that capital gains from the sale of precious metals in exchange-traded funds do not receive the same favorable treatment as other long term investments. Investors of exchange traded funds that include precious […]
Yes, The Rich Pay Taxes
Do the wealthy pay their fair share?  The IRS has just released the statistics for 2007 on who is paying what portion of the total income tax burden in the United States, and in answer to the quesiton, yes, the rich pay taxes. The upper incomers of our nation continue to bear a record share […]