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“Taxing” is a word synonymous with “onerous” and “wearing.” Bond Beebe, Accountants & Advisors, have created a user friendly blog called “It’s Taxing” to inform and educate our clients and business associates on timely topics related to tax, estates, accounting and finance. We hope our blog answers your questions and alleviates the heavy burden and anxiety related to understanding complicated tax laws and related matters.
You may have new reporting responsibilities when filing your W-2’s this month. Employers sponsoring group coverage will have new reporting responsibilities according to the Affordable Care Act and the Internal Revenue Service. You may need to report costs associated with employer-sponsored health coverage on IRS Form W-2.
With Maryland being the latest state to recognize same-sex marriages and the tax filing season inching ever closer, same-sex couples should be aware of their rights and obligations when properly filing their tax returns. Since the laws and requirements are different for each taxing jurisdiction: Federal, Maryland, Virginia, and the District, this article will be broken up into four parts.
By now it is no secret; we have been saved from tumbling off the ‘Fiscal Cliff’ after Congress and the President passed the American Taxpayer Relief Act of 2012. Granted, the legislation came right down to the wire before an affirmative vote. We are now entering a time of increased certainty with respect to U.S. transfer taxes (estate, gift, generation-skipping transfer, etc.).
The 2012 American Taxpayer Relief Act extended the ability to make tax-free IRA distributions to charity until December 31, 2013 for qualified donors (age 70 ½ and older). These distributions, up to $100,000, are not treated as taxable income to the donor but are still counted towards the required minimum distributions (RMDs) for the year, as long as they are made directly to the charity. The best part of this is that qualified donors do not have to wait until the 2013 tax year to take advantage of this extension thanks to a pair of special elections:
As everyone has heard the past several days, the “Fiscal Cliff” has been averted with the passing of The American Taxpayer Relief Act of 2012. You’ve read so far about how individuals were impacted but what about businesses? Below is a listing of the some of the key developments from the act which will affect businesses in the next few years:
The American Taxpayer Relief Act of 2012 was passed by both The Senate and Congress on January 1st, thus averting the now infamous “Fiscal Cliff,” which would have caused major tax hikes to take place as well as many favorable tax breaks to expire.
Here are some of the highlights of the Act:
As signs of progress are surfacing in an effort to avoid the Country’s dive off the “fiscal cliff,” it’s a good time to take a look at which tax issues are being negotiated as the ledge quickly approaches. The tax provisions set to expire on December 31, 2012 are comprised of the following key components:
Bush Tax Cuts
In recent years, fines imposed by various professional sports teams and organizations on professional athletes have become commonplace. But what are the tax implications of these fines paid by players? Professional athletes may be able to claim these fines on their Schedule A as a miscellaneous deduction for unreimbursed employee expenses subject to the 2% adjusted gross income (AGI) floor.
According to Internal Revenue Code (IRC) §162, a miscellaneous deduction is allowed for “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” The two key words in that statement are “ordinary and necessary”. A professional athlete is in the business of playing sports and by not paying a fine levied upon them by the governing organization of their sport or their employer, they would no longer be able to continue in their profession. Therefore, these fines may be considered necessary in their profession. As stated before, the fines levied by these organizations have become common in the industry and would satisfy the “ordinary” requirement of the expense.