The Lifetime Learning Credit 2010 gives a tax credit of up to $2,000 dollars for types of higher learning. It differs from the American Opportunity Tax Credit because it can be claimed for part-time students and even for courses that don’t count towards a degree. This credit has been made available through 2011, 2012, and again this year. Eligible Expenses include Tuition but not room and board, Books, Equipment, and fees that may be required by the University. The Lifetime Earning Credit isn’t eligible with tuition paid fro by a scholarship, employer funds or a grant. Even if multiple students are eligible the Lifetime Learning Credit can only be claimed once a year per household. The tax credit reduces taxes by 20% for non qualified expenses for up to $10,000 dollars for a total of up to $2,000.
A construction project to repair and update the building façade at the Department of Education headquarters in 2002 resulted in the installation of structures at all of the entrances to protect employees and visitors from falling debris. ED redesigned these protective structures to promote the “No Child Left Behind Act”. The structures were temporary and were removed in 2008. Source: U.S. Department of Education, (Photo credit: Wikipedia)
You may claim the credit if you, a dependent or your spouse attends an eligible university or educational institution. even if only one class is taken, the tax credit may be claimed. All accredited colleges and universities are eligible as well as vocational schools as long as their also eligible for the US Department of Education’s Federal Student Aid Programs. Single head of households and qualifying widows earning between $53,000 and $63,000 have been phased out for 2013. If you’re married and filing jointly, the phase amount is $107,000 to $127,000. This amount is up from 2012’s phase out range of $52,000 to $62,000 for qualifying widows and single, head of household and a range of $104,000 to $124,000 for Married couples filing jointly.
Talk with your tax professional to have full knowledge on how Obamacare may affect your company or the company you work for. This should make employers take notice on how they are affected, since they are the primary tax targets.
Remember companies are up against the situation of uncontrollably increasing healthcare costs. Over 12 times the health costs have increased and we know that not many firms have not tripled their profits since 1999. I am wondering about those companies who have not done any redundancy, what will they do when they ponder over $24k per-employee increases.
Barack Obama signing the Patient Protection and Affordable Care Act at the White House (Photo credit: Wikipedia)
The tax penalty for 3rd party health care is about $2,000 annually per full-time worker. This tax is a heavy duty to any tax payer and the more information we know, the more we discover. A full-time worker is anybody working 30 or more hours in a week and is subject to the penalty. Only the first 30 workers are exempt of the $2,000 tax penalty.
However, the law defines ‘expensive’ on the sliding scale as maybe not charging the worker more than 3.01% to 9.5% of his or her ‘family income.’ The household income range increases to 400% of the federal poverty level or $93,000 in a single year. The Act’s language basically says: you’re perhaps not going to know your family income, therefore the IRS will figure it out and send you a bill. The government estimates depict collecting about ten million in taxes here. It is obvious that avoiding charges has been nearly impossible. An employer can never estimate the earnings of employees and their family. Think, commissioned revenue representatives, incomes of couples, cutbacks, changing amounts of relationship, dependents, divorce and so much more.. it is quite impossible to estimate it all!
The ‘budget’ charge makes falling party protection and sending employees to private health dealings via HRA, an extremely attractive alternative for the government. Individual plans are generally 50% – 66% cheaper than group protection. Moreover, the HRA allows workers the freedom to have personal insurance that most readily useful fits their particular needs. The employers contribute some tax-free fixed number of dollars described by the employer.
A McKinsey study showed that of employers within the Obamacare tax regime absolutely engage 60-inch intend to drop group health coverage just after January 2014. Described Benefit Programs that get a handle on the cost of company health benefits and may replace group coverages as employees transfer from company to individual coverage. This can be performed with an arrangement from the Health Reimbursement (HRA).
Expense Surcharge – The relation of the expense surcharge to health has not been described, but it can use a 3.8% boost to dividends and capital gains for households making over $250,000. Small business are hitted by this disproportionately difficult as many small business owners fall in this type of expense, and this totally does not refer to people like Donald Trump.
‘Special Needs’ Tax – Caps the amount that may be preserved in Flexible Spending Accounts at $2500 per year. It is called the ‘Special Needs’ tax because it particularly hurts families with special needs like children. The tax is a pain as families spend proportionally more on medical care and tuition for special education.
Medical Spending Deductions Cap – The new tax increases the threshold for the amount on medics above which the spending might be taken from 7.5% of incomes to 10% of incomes. People with continuing medical expenses that fall under the ceiling can no longer apply for the discount, and people with higher expenses miss out on 2.5-4 of what they had previously been able to deduct.
The price employers should pay will definitely increase, with bonuses already squeezed by the old economy, companies it is likely that raises will not take place as the number of the damaged employees increases.
Medical Device Manufacturers Tax – A 2.3-liter excise tax on medical devices worth significantly more than $100. An excise tax is one that is required on a production of goods rather than on the intake of that object. It’s a ‘hidden’ tax since many people do not see the tax, only a growth in the prices. This has already hit the devices industry difficult and numerous companies have reported layoffs.
It is good to take count on the Obamacare tax as it affects a lot of the low income earners in the US…
Welcome to the June 18, 2013 edition of Tax Carnival Ecstasy. In this edition we start with an article by Jason Hull on tax accountants for your business. John Schmoll has a great post on retirement planning and saving for college together. Bill Smith takes a look at the online sales tax proposals that have been made. And we have an article on fake charities popping up after the recent events in Boston and how to protect yourself. Hope you like all the articles, bookmark, share, tweet, and like on Facebook.
Bill Smith’s gold medal (Photo credit: Waikiki Natatorium)
filing
Jason Hull presents Tax Accounts for Your Business posted at Hull Financial Planning, saying, “Don’t forget that if you own a business which is treated as a partnership for tax purposes, you’ll be personally liable for the taxes at the end of the year!”
retirement
John Schmoll presents Retirement Planning and Saving For College: Can They Co-exist? posted at Frugal Rules, saying, “Retirement planning and saving for college are both items that take years to save for. While it may not always be easy to balance the two, it can be possible to do so without sacrificing the other.”
John Schmoll presents How to Invest in Stocks When You Do Not Know Where to Start posted at Frugal Rules, saying, “Investing in stocks, or anything in the market, can be overwhelming for many. The key to overcoming that fear is knowing where to start and educating yourself so that you can set up an investment portfolio that’ll help you grow your wealth and reach your long-term retirement goals.”
Cherry Liu presents 30 Blogs Featuring the Most Reliable Tips for Estate Shoppers posted at House Sitting Jobs, saying, “Real estate laws, taxes and investment options constantly change to reflect the state of the economy, which is why the smartest investors know stay ahead of the game.”
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
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Each year, Americans are forced to go through last year’s financial information and prepare a tax return. For some people, this is a happy time because they will be getting a tax refund, which can mean several thousand dollars in their bank account. But for others, they will own more money to the Internal Revenue Service.
Day 093/365 – Tax Time Phat Cash! (Photo credit: Great Beyond)
The Internal Revenue Service can not look at every single tax return because there are simply too many filed each year. They do audit some returns, but it is only equal to one percent of all tax returns. Most people will never have to worry about being audited by the IRS in their life time. People cheat on their taxes to avoid paying more taxes each year or to try to get a bigger refund from the government.
The good news is that the majority of people do not cheat on their taxes. Perhaps this peer pressure will deter other people from cheat on theirs.
Recently, the IRS Oversight board conducted a telephone survey that found that 87 percent of Americans felt that is is not acceptable to cheat on your taxes. The main reason they were against cheating on taxes is due to personal integrity and not the possible punishment. Just over 10 percent of people polled said it was acceptable to cheat a little bit on their taxes.
Some people cheat on their taxes without even realizing it. They may omit important financial information or deduct something that should not be deducted. These errors are not made intentionally, but they can mean big trouble if they get caught.
Using free Turbo Tax 2013 can help people prepare their taxes and increase the odds that their taxes will be accurate.
Sometimes an error or omission helps the individual by reducing the amount of tax they owe. But sometimes it helps the government by raising their tax amount. When this happens, you may not get as big of a refund as you normally would.
TurboTax is an easy to use program that many people use by themselves without hiring a tax professional. It is less expensive than hiring a tax preparer, and you can use it at any time.
The computer program walks users through each step of preparing their taxes. It asks questions and offers advice for every item that you need to enter, and it makes it easy for users to file their taxes.
Not only can free Turbo Tax 2013 help make your tax return more accurate, but it can also increase your refund. Some people find they are eligible for more tax credits if they use a program to help them prepare their return. When your tax return is accurate, you reduce the risk of an Internal Revenue Service audit.
Welcome to the February 7, 2013 edition of Tax Carnival Ecstasy. In this edition we start with a post on Xero by Rachel Frishe who examines why to switch to the bookkeeping software from a different option. Bill Smith has a couple of tax filing articles about the system you need to run TurboTax 2012 on your PC and a new service from Intuit to help small business find a CPA in their area call CPA Select. Finanly Basit has some tax planning tips for employees that receive a W2 tax form. Hope you find the information useful this tax season, bookmark, share, like on Facebook, tweet on Twitter and come back soon.
Bill & Don (Photo credit: iluvcocacola)
Rachel Frishe presents » Why should I switch to Xero? posted at Virtual Techniques, saying, “Xero offers an efficient, collaborative environment for bookkeeping and account with robust reporting and excellent customization options.”
filing
Bill Smith presents TurboTax2012 System Requirements posted at 2013 Taxes, saying, “Filing Tax is one of the tedious tasks to accomplish. However, since a last few years, there has been a change in the process.”
Bill Smith presents Pros And Cons Of Filing Your Taxes With TurboTax posted at 2011 Taxes, saying, “Filing your taxes with TurboTax or another online tax program is something that people often loathe doing, therefore they try to procrastinate or push it off for later hoping that they would be excused and the year would pass by.”
Bill Smith presents Super Saturday In Ohio: Day Of Help For Filing Taxes posted at 2012 Taxes – Free Tax Filing Options, saying, “Super Saturday is a day of help in Ohio for residents in need of help filing taxes. Formerly known as the Franklin County EITC Coalition, the Tax Time Coalition of Central Ohio is ready with professionals in the tax business to help others in need of their services.”
retirement
John Schmoll presents How to Take the Emotion Out of Investing posted at Frugal Rules, saying, “The stock market is driven largely by emotion, some say upwards of 90%. If you have a solid investment plan though you can easily separate the emotions from the day to day activity of your investments.”
taxes
AYOUBBLIDI presents Tekenen en symptomen Mange Honden posted at Over Honden.
Bill Smith presents Tax Preparation Reviews posted at 2013 Taxes, saying, “Clients continue to use TurboTax every year as it is easy to use.”
basit presents Tax Planning for Salaried Employees- A Last Minute Guide posted at Fintotal.
That concludes this edition. Submit your blog article to the next edition of tax carnival ecstasy using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.
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Technorati tags: tax carnival ecstasy, blog carnival.
Seal of the United States Internal Revenue Service. The design is the same as the Treasury seal with an IRS inscription. (Photo credit: Wikipedia)
Tax payers often seek out tax lawyers so they don’t have to deal with the Internal Revenue Service alone. In turn, an Arizona tax attorney offer expert tax resolution services that often helps clients save money.
For instance, one satisfied customer said his Phoenix tax attorney offer detailed recommendations about how to deal with the IRS at a time when “we really needed help.”
The customer went on to explain how he relied on these tax lawyers experience to both resolve current tax bill issues; while also avoiding problems with the IRS in the future.
Reliable tax assistance
When it comes to the IRS and tax bills, many people hire a professional tax attorney to not only help them with their personal income tax and their business related taxes.
For example, one small business owner said he needed reliable and knowledgeable tax assistance because his business could not function under a cloud of IRS tax issues.
Thus, the business owner consulted with expert tax lawyers to sort out the back taxes that the IRS said he owed.
At the same time, people who hire these experienced and trustworthy tax experts for personal tax help say it really offered them peace of mind because they no longer have to worry about their IRS bills.
