The Child and Dependent Care Credit helps working families offset some of the cost of childcare.
Now that I have your attention, let’s try that again. Free Money! What we’re talking about here is the “Retirement Savings Contributions Credit”. It was first created as part of the 2001 tax cut package called the “Economic Growth and Tax Relief Reconciliation Act of 2001” and was made permanent as part of the 2006 […]
American Taxpayer Relief Act of 2012 (HR8 as amended by the Senate) The first two items below directly affect nearly every taxpayer. The third affects anyone with earned income, and the fourth affects every married couple. The rest are much narrower in scope (ie. highest income folks, large estates, etc): All Bush-era tax rates made […]
Harvey Golub’s op-ed piece from the Wall Street Journal on June 14, 2012: http://online.wsj.com/article/SB10001424052702303768104577462353639535464.html?mod=googlenews_wsj Harvey Golub: A Simple Tax Code Is a Fair Tax Code The top 1% pays more in federal income taxes than the bottom 90%. But the system is biased toward the powerful in other ways. [some bit from the article:] The […]
For all the silly bluster about the “Buffett rule” in Congress, the fact is that the vast majority of folks who earn a lot do pay a lot in taxes. And the very well known exceptions – such as Buffett himself claiming to pay a lower tax rate than his secretary – are due to […]
A must-read from Morningstar for anyone with kids in daycare, with a nanny, etc. http://news.morningstar.com/articlenet/article.aspx?id=539497 In particular, there are some great examples of how much less is going to be paid in taxes one way vs. the other. The dependent care FSA lets one put away money (through one’s employer, only) on a pre-tax basis […]
http://content.govdelivery.com/bulletins/gd/USIRS-31e552?reqfrom=share Worth reading the article linked to above. When working with folks on their taxes, the question of itemizing vs. taking the standard deduction comes up very frequently. The short story is that you should do whichever allows you to pay less in taxes. Your standard deduction (if you are allowed to take it) effectively […]
From the IRS: http://content.govdelivery.com/bulletins/gd/USIRS-266f7f For folks who earn $57,000 or less (and – don’t be surprised – it’s an awful lot of folks — 70% of the nation’s taxpayers!) may use brand-name software and secure e-filing for free. The providers who are participating include H&R Block, TurboTax, Liberty Tax services and others. Start here and […]