Manage the Tax on Your Social Security Benefits

Social Security (SS) income is not taxable until a taxpayer’s AGI (without Social Security income), 50% of their Social Security income, tax-exempt interest income, and certain other infrequently encountered additions total and exceed a specific threshold. The threshold is $32,000 for married taxpayers filing jointly, zero for married taxpayers filing separately and $25,000 for all others. Once the threshold is exceeded, the Social Security income subject to tax varies from 50% to 85%. Few taxpayers understand this threshold for SS taxation and...

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Tips to Help You Determine if Your Gift is Taxable

If you give someone money or property, you may be subject to the federal gift tax. Most gifts are not subject to the gift tax, but here are some tips to help you determine whether your gift is taxable or if you are required to file a gift tax return. 1. Most gifts are not subject to the gift tax. For example, there is usually no tax if you make a gift to your spouse or to a charity. If you make a gift to someone else, the gift tax usually does not apply until the value of the gifts you give that person exceeds the annual exclusion for the year....

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Is the IRS Withholding Some or All of Your Refund?

If the IRS kept all or a portion of your federal refund, it may be because you owe money for certain delinquent debts. If that is true, the IRS or the Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, can offset or reduce your federal tax refund or withhold the entire amount to satisfy the debt. Here are some important facts you should know about tax refund offsets. If you owe federal or state income taxes, your refund will be offset to pay those tax liabilities. If you had other debt such as child support...

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Limited Window of Opportunity on Bush-era Tax Breaks

Last December, Congress extended a number of the Bush-era tax breaks, but only for a limited length of time. It is probably a safe bet that most won’t get extended further, considering the size of the national debt. Although numerous tax breaks were extended, only a few provide you with an opportunity to take actions that can reduce your tax bite. But if you want to take advantage of those tax breaks, you need to act this year or next. Here is a list of those extended tax breaks and what will happen when they expire. Individual Tax Rates – The...

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Standard Mileage Rate Boosted July 1

The IRS recently announced that it is revising the optional standard mileage rates for computing the deductible costs of operating an automobile for business, medical, or moving expense purposes and for determining the reimbursed amount of these expenses that is deemed substantiated. This modification results from recent increases in the price of fuel. These increased rates are effective July 1, 2011. Business Use increases to 55.5 cents per mile (up from 51 cents for the first half of 2011. Medical & Moving increases to 23.5 cents per mile...

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