IRS Announces 2015 Tax Brackets, Standard Deduction Amounts And More

The Internal Revenue Service has announced the annual inflation adjustments for a number of provisions for the year 2015, including tax rate schedules, tax tables and cost-of-living adjustments for certain tax items. If you’re looking for 2015 tax rates, here you go!

11 Changes You Must Know Before Filing Your Tax Return for 2012

With so many changes looming for 2013, it’s easy to forget that there were some significant tweaks to the Tax Code for 2012. Here’s a list of eleven changes to keep in mind before you file your 2012 tax return, due April 15, 2013: 1. Payroll tax credit will still affect self-employed taxpayers. The expiration of the payroll tax credit for 2013 was big news – but don’t forget that the credit was still in place for 2012. While that means nothing for employees subject to withholding (no additional breaks on your federal income tax return since you’ve already received …

IRS Announces 2013 Tax Rates, Standard Deduction Amounts and More

The IRS has released the tax tables for 2013 as well as the cost-of-living adjustments for inflation for certain tax items. But wait… before you read any further, promise me something? You understand that these are the applicable rates for the tax year 2013, right? They are NOT the rates that you’ll use to prepare your 2012 tax returns in 2013 but rather the rates that you’ll use to prepare your 2013 tax returns in 2014. I know it’s confusing but promise you won’t mix up the two (or at least that you’ll trust your tax preparer to keep them …

House Passes Senate Budget Bill Convincingly: We Have A Tax Deal!

Well, color me surprised. The House voted on the budget after all, and they voted up or down, rather than amending the Senate bill. The House voted “Yea” and they did so quite convincingly (257 YEA to 167 NAY). Here’s what the bill does: Income tax The tax cuts were extended – permanently – for all but those at the top. For this purpose, the top means $400,000 for individual filers and $450,000 for married couples. The top tax rate will increase to 39.6% from 35%. The Pease and PEP (personal exemption phaseout) restrictions on limitations were also extended. The …

The Waiting Game and AMT

As a parent, I spend a lot of time waiting. I have watched my son eat a peanut butter and jelly sandwich for an hour. Just this morning, my six year old took over ten minutes to change a pair of shoes (slip ons). And my eight year old, book in front of her face, can take fifteen minutes to walk to the car. So I wait. I guess this must be what it’s like to be IRS Commissioner Doug Shulman. Shulman continues to wait for Congress to act on oh, so many things. Today’s target: alternative minimum tax, or …

Congress Promises AMT “Relief “

But don’t get too excited. It’s totally lame – again. You see, when it comes to the AMT (alternative minimum tax), Congress has no answer. So every year – without fail – at the very, very end of the year, Congress gives us a band aid in the form of temporary relief. Don’t believe me? Google “taxgirl” and “AMT”. But it makes for a good headline, right? Mine isn’t the only one that makes you think it’s something more. CNN announced: “Bipartisan vow: We’ll fix AMT” and MSNBC touted: “Dems, GOP vow to spare millions from AMT.” What they (as …

2011 Budget & Tax Proposals

I got a glimpse of the 2011 budget proposal on the news last night. It’s big. As in big thick book big. And I will admit to not having read all 192 pages yet. But I’m making progress. You can download the whole thing at once – or in little bits (as I have done) – by visiting the White House’s web site. While there’s a lot in the budget to digest, I’m going to focus on Obama’s tax proposals, which I have reviewed. You’ll see some of the same themes that were mentioned in last week’s State of the …

Tax Trivia: The Dreaded AMT

We have a winner! It’s Andrew! For the answer, see the comments! Our next tax trivia question for the giveaway is: Which President was in office when the AMT went into effect? The first correct answer wins free CCH tax prep software. My answer on this one is final. Remember that you have to comment on the actual post, not on email, Twitter or Facebook, in order to win (though feel free to comment that way for fun). You can read the rules for the giveaway and more about the prizes here. What’s your guess?

Hey Congress, Why Don’t You…? Take a Second Look

Robert D Flach, the internet’s “Wandering Tax Pro“, writes: If I ruled the world, or at least had a voice in rewriting the Tax Code, not only would every man be as free as a bird and every voice be a voice to be heard, but I would also make the following changes to our current convoluted tax system to remove some of the its “inequities” – 1) First and foremost I repeal the dreaded Alternative Minimum Tax (AMT). 2) I would do away with “refundable” tax credits, such as the ones for Earned Income Credit and the Child Tax …

Hey Congress, Why Don’t You…? Fix the AMT

Eric Satterley writes: An immediate need is to change the alternative minimum tax recapture law. On stock options you were forced to pay the alternative minimum tax even if you exercised any options (even if you did not sell the stocks). The law was that you could recapture/apply the tax paid toward the capital gains when you sold the tax. A couple of years ago that changed and you can nolonger recapure/apply the tax paid toward capital gains if you are subject to alternative minimum tax. Net effect is that you are now double taxed on the same shares of …