Posted by Nick Tylipakis on March 26, 2012
Many taxpayers hope to keep their tax liability to a minimum, especially during these tough economic times. But without being sure of what’s in store for the future, it might be a better idea to begin saving for retirement. I’m sure you’ve heard on the radio, or seen it on the television - or perhaps you’ve even heard it through someone else - that social security might not be available in the years to come. It’s really nothing to fear because despite these grim prophecies, there are many individual options available. From employer-sponsored p...
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Posted by Chris Pace on March 07, 2012
Remember the good old days when clothing and footwear purchases in NYC were completely tax exempt for items under $110.00? Well, beginning on April 1, 2012 you can expect these rules to be reinstated. “The exemption applies only to clothing and footwear worn by humans,” according to the New York State Department of Taxation and Finance’s most recent tax publication. “It also applies to most fabric, thread, yarn, buttons, snaps, hooks, zippers and similar items that become a physical component part of exempt clothing, or that are used to make or...
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Posted by Raymond Pace on March 01, 2012
Gift Tax A gift tax is a tax on transfers over one's lifetime of property made without consideration (payments). The tax is imposed on the person making the gift and not on the person receiving it. In a calendar year, gifts that are valued over $13,000 and which are given to someone other than a spouse or charity are subject to this tax. And even though a gift ‘tax return’ must be filed on form 709, no tax is required to be paid until the taxpayer exhausts the 5 million dollar limit. Gift tax exclusion A taxpayer can give any amount of m...
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Posted by Jeanette Calabrese on February 29, 2012
Beware of Cyber Criminals The IRS receives thousands of e-mails and phone calls a year from taxpayers who have received suspicious e-mails, phone calls, faxes or notices claiming to be the IRS. These cyber criminals fraudulently use the IRS name and logo to lure taxpayers into thinking they are real. The goal of these criminals is to trick you into giving them your personal and financial information, which they will use to commit identity theft or to steal your money. How do you know if it’s really the IRS or if it’s a scam? 1. The IRS ...
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Posted by Nick Tylipakis on February 01, 2012
For tax year 2011, employees had 2% less withheld from their gross paychecks from both social security and medicare tax withholdings. This gave these same employees a slightly higher net paycheck throughout the year. Unfortunately, this immediate incentive took the place of the "Making Work Pay" credit that taxpayers enjoyed for tax years 2009 and 2010. The "Making Work Pay" credit was awarded in the amount of $400 for individuals and $800 for joint filers; with the latter amount doing one of two things for joint filers: it either increased the...
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Posted by Raymond Pace on January 26, 2012
What is probate and when is it required? We hear so often that when someone dies, their estate must be probated. Basically, what that means is that a state court implements a system to approve how the assets of the deceased are transferred to others. Every state has different requirements as to what the value of the assets must be before probate is necessary. Generally, these requirements fall between $20,000 to $100,000 in what are termed "probate assets." In New York State, for example, the probate asset amount is set at $30,000. So, what are...
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Posted by George Tylipakis on January 19, 2012
If you file as a married couple, have children and your annual combined gross income is greater than $110,000 but less than $129,000 (one child) or $149,000 (two children), you should be making a valiant effort to maximize the child tax credit. Clients ask me for suggestions about ways to increase their refund and save their hard-earned money. You might be surprised by how many married filing joint taxpayers with two children who earn $150,000 lose the child tax credit due to phase-out rules. Many of them have a 401(k) plan at work into which...
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Posted by Jeanette Calabrese on January 09, 2012
“How much can I give someone as a gift before I have to file a gift tax return”? This is the typical question I get asked a lot in my years being an Accountant. The Annual Gift Tax Exclusion has not gone up from 2011, it will remain at $13,000 a year per donee (person who receives the gift) for 2012. The exclusion for a Married couple will be $26,000 a year per donee. If a taxpayer goes beyond the exclusion for a donee, then a gift tax return needs to be filed (Form 709). A married couple that are Citizen’s have unlimited exclusion and co...
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Posted by Chris Pace on January 04, 2012
On July 24, 2011 the Marriage equality act was passed giving Same-Sex couples in NYS the right to marry. Couples married as of December 31, 2011 in NY or in any other state or country that recognizes same-sex marriage will be considered married for the entire year, which means they MUST file a NYS Joint tax return or file as Married Filing Separate. Not to spoil the excitement, but same sex married couples will not have it easy when filing their income tax returns for 2011. Filing taxes for same-sex spouses will be more complicated since the f...
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Posted by Chris Pace on October 20, 2011
Included among the many important individual and business incentives extended and enhanced by the massive tax bill passed in late December is a 100-percent exclusion of gain from the sale of qualified small business stock. Under the Tax Relief, Unemployment Reauthorization and Job Creation Act of 2010 (2010 Tax Relief Act) individuals and other noncorporate taxpayers should not overlook the benefit of investing in qualified small business stock considering the ability for qualifying taxpayers to exclude 100-percent of gain from the sale or exch...
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