Archive for the ‘ Income Taxes ’ Category
No IRA Spousal Roll-over for Same Sex Couples
In the case of federally recognized marriages (i.e., opposite sex spouses), the surviving spouse is allowed to roll-over the deceased spouse’s 401(k) and IRA balances into an IRA for the surviving spouse. The same is not true for same-sex couples or non-married couples. For them, the best they can have is an inherited IRA.
10 Things About the 2010 Tax Relief Act
1. Tax Rate Status Quo. The Act holds steady the 2010 income tax rates for 2011 and 2012. Personal income tax rates will continue to range from 10% to 35%, and long-term capital gain tax rates will again be 0% or 15%. Also, qualified dividends will continue to be taxed at long-term capital gain tax [...]
Update Your W-4
With the 2009 tax season coming to an end, it’s a good time to update your IRS Form W-4 on file with your employer (or yourself, if you are an S corporation owner). Form W-4 tells your employer who much to withhold from your paychecks for income taxes. For most of us who are paid [...]
Roth IRA Conversion Rules of Thumb
As a professional advisor, I hate giving “It depends” advice as much as clients hate hearing it. That’s why I particularly appreciated a meeting I had last week with Marc Angle, from Bernstein Global Wealth Management, on Roth IRA conversions. Marc actually had some rules of thumb about when converting a traditional IRA to a [...]
Filing the Estate or Trust Income Tax Return
An income tax return for the decedent’s estate must be filed if the estate had income for the year of $600 or more. The estate’s income tax return is filed on IRS Form 1041. The preparer must collect all the IRS Forms 1099 and Schedules K-1 evidencing income to the estate during the year. These [...]
Noncustodial Parent Must File IRS Form 8332 to Claim Child Exemption
Under new IRS rules, for divorces finalized in 2009 and after, the noncustodial parent must file IRS Form 8332 in order to claim exemptions for children of the marriage. This situation occurs where the custodial parent agrees to allow the noncustodial parent to claim exemptions for some or all of the children. IRS Form 8332 [...]
Filing the Final Individual Income Tax Return
For individuals who passed away in 2009, the decedent’s final individual income tax return must be filed by April 15, 2010. Generally, the final return of a decedent should be prepared in the same manner as the return of a living person. The return is filed on IRS Form 1040. The preparer must collect all [...]
100% Deduction for Meals & Entertainment? It’s Possible.
Ordinarily, a company is allowed to deduct only 50% of its expenses for meals and entertainment. In some situations, meals and entertainment expenses are 100% deductible. Business-related expenses for meals and entertainment are 100% deductible when: the expenses are for recreational, social or similar activities that are mainly for the benefit of employees who are [...]