Exxon Valdez litigation. If you received qualified settlement income made up of interest and punitive damages in connection with the civil action In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. Alaska), you may treat… Read More »Income Averaging for Farmers and Fisherman
Discharge of Qualified Principal Residence Indebtedness The Emergency Economic Stabilization Act of 2008 extended the exclusion from gross income for the discharge of qualified principal residence indebtedness by an additional 3 years. The exclusion now… Read More »Home/Residence-Related Tax Changes
The tax law permits generous deductions for mortgage interest paid in connection with “acquisition debt” and “home equity debt” of a qualified residence. Now a new ruling from the IRS says that you can combine… Read More »New mortgage interest break
Archer Medical Savings Accounts (MSAs) 2010 Changes For Archer MSA purposes for 2010, the minimum annual deductible of a high deductible health plan increases to $2,000 ($4,050 for family coverage). The maximum annual deductible of… Read More »Health/Medical-Related Tax Changes
What is a SEP? A SEP is a simplified employee pension plan. A SEP plan provides employers with a simplified method to make contributions toward their employees’ retirement and, if self-employed, their own retirement. Contributions… Read More »Simplified Employee Pension Plan
Student Loan Interest Deduction 2009 For 2009, the amount of the student loan interest deduction is phased out (gradually reduced) if your filing status is married filing jointly and your modified adjusted gross income (AGI)… Read More »Education-Related Tax Changes
For 2009, qualified individuals with small businesses may be eligible to make smaller estimated tax payments. If you qualify, your required annual payment for 2009 is the smaller of 90% of the tax shown on… Read More »Decreased Estimated Tax Payments for Qualified Individuals With Small Businesses
The following paragraphs explain the changes to the credit for 2009. Amount of credit increased. The maximum amount of the credit has increased. The most you can get for 2009 is: $3,043 if you have… Read More »Earned Income Credit – 2009 Changes
Adoption Benefits Increased For 2009, the maximum adoption credit has increased to $12,150. Also, the maximum exclusion from income for benefits under your employer’s adoption assistance program has increased to $12,150. These amounts are phased… Read More »Child-Related Tax Changes
Any economic recovery payment you receive during 2009 is not taxable. These $250 payments are being made to most people who: Receive social security benefits, supplemental security income (SSI), railroad retirement benefits, or veterans disability… Read More »Economic Recovery Payment
The following changes to the AMT went into effect for 2009: AMT exemption amount increased. The AMT exemption amount has increased to $46,700 ($70,950 if married filing jointly or qualifying widow(er); $35,475 if married filing… Read More »Alternative Minimum Tax (AMT) – 2009 Changes
If you pay your income tax (including estimated tax payments) by credit or debit card, you can deduct the convenience fee you are charged by the card processor to pay using your credit or debit… Read More »Deduction for Credit or Debit Card Convenience Fees