In 2012 federal estate taxes return with a top rate of 35%. Estates worth up to $5.12 million will be excluded from paying federal estate tax. This means that the federal government could 'inherit' a significant portion of your estate unless you take measures to preserve your wealth.
If you have numerous itemized deductions such as mortgage interest, charitable contributions, etc., it may make sense for you to itemize your deductions instead of using the standard deduction for your tax filing status.
Each April many taxpayers are surprised as they realize that they have either over withheld or under withheld on their taxes. Use this calculator each year to help determine whether you are likely to be on target based on your current withholding status.
Interest paid on debts incurred in order to invest (such as 'margin accounts') is generally deductible to the extent that it offsets investment income (such as interest, dividends and short term capital gains). Interest payments in excess of investment income can be carried forward in hopes of offsetting future investment income.
Self employment taxes are comprised of two parts: Social Security and Medicare. For 2013, you and your employer each pay Social Security taxes of 6.2 percent on the first $106,800 of your covered wages.
Did you know that up to 85% of your Social Security Benefits may be subject to income tax? If this is the case you may want to consider repositioning some of your other income to minimize how much of your Social Security Benefit may be taxed and thereby, maximize your retirement income sources.
Interest paid may or may not be tax-deductible depending on the type of interest paid.
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