Small businesses can breathe a sigh of relief. The dreaded 1099 filing requirement added in last year’s health care law is repealed before it has a chance to take effect. Under the health care law, a business is required to issue a 1099 form to all vendors starting in 2012 if the business purchases $600 […]
Free File Fillable Forms: Not Directly With IRS
Am I the only holdout who refuses to use online tax software or e-file through a third party? I refuse to give my tax data to anyone except the IRS. Putting my tax data online with a third party is out of the question. I use tax software but only software I install on my […]
Retirement Income: OAS and CPP in Canada vs Social Security in US
Canada’s retirement programs OAS and CPP have a much better setup than Social Security in the US.
Social Security Family Benefits Mess
Most of people think of Social Security as a government managed savings program similar to a 401k plan: you pay into the system when you are working; you draw from the system when you retire. More informed people will point out it isn’t so. It’s a pay-as-you-go inter-generation transfer program. The money you (and your […]
Claiming Parent As Dependent On Tax Return
Reader Bill asked me if it’s possible to list his parents as dependents on his tax return. Bill’s parents are foreign citizens. They came to visit him and lived with him for eight months last year. We are all familiar with children as dependents. Can parents also be dependents for tax purposes? I consulted my […]
How To Donate Or Gift Shares to Charity Or Family Member
You probably heard donating appreciated stocks or mutual fund shares to a charity is more cost effective than donating cash. The charity gets the shares. You get a tax deduction for the full value (if you itemize) and you avoid paying capital gains tax. You can also gift appreciated shares to a family member who […]
Three Tax Cuts That Are Not Extended
Although the Bush tax cuts were extended for another two years, some tax incentives were not extended because they weren’t part of the Bush tax cuts. They fall into the one-time stimulus category. Residential Energy Tax Credit The Residential Energy Property Credit provides a 30% tax credit of up to $1,500 over a two-year period […]
Payroll Tax Cut and Social Security Benefits
News came President Obama and Republicans agreed to a “payroll tax holiday” in 2011. For one year only, an employee’s portion of the Social Security tax will be reduced from 6.2% to 4.2%. This will replace the Making Work Pay tax credit in effect in 2009 and 2010. Making Work Pay is a flat tax […]
Let the Bush Tax Cuts Expire
Title says it all. That’s my view on the issue of Bush tax cuts. Let them expire, not just for the rich, but for everybody. Although Greenspan has lot a credibility after the financial crisis, I agree with him on this. For his reasoning, listen to what he said on Bloomberg TV (fast forward to […]
Do You Cheat On Your Taxes?
Do you cheat on your taxes? Before you automatically answer no, hold that thought. Does your state have a sales tax? According to Wikipedia, only five states don’t have a sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon. There is a sales tax everywhere else. For purchases from an out-of-state store that does not […]
1099 Filing Requirement in Health Care Reform Law
I read on FatWallet that a hidden gem in the new health care reform law will require a business to issue a 1099 Form to all vendors starting in 2012 if the business purchases $600 or more in goods or services in a year from that vendor. Currently a business is only required to issue […]
The Best Tax Book
I can tell it’s tax time. Most of the questions posted to my old posts are about taxes. I’m not a CPA; I write about taxes only to the extent they affect me. The best way to get tax questions answered is of course asking a real CPA. I realize not everybody can afford a […]