The IRS recently announced mileage rates to be used for travel in 2014. The Business, Medical, and Moving mileage rates decrease one half cent versus 2013 while charitable rates remain unchanged. Business mileage decreases 1/2 cent per mile. 2014 New…
Author: Andre Rayford
Understanding Tax Terms: the kiddie tax What you know can help you
The term “kiddie tax” was introduced by the Tax Reform Act of 1986. The IRS introduced this rule to keep parents from shifting their investment income to their children and have this income taxed at their child’s lower tax rate.…
2014 Social Security Benefits Announced
The Social Security Administration recently announced monthly social security and supplemental security income benefits (SSI) will increase in 2014 by 1.5%. This increase is based upon the Consumer Price Index over the past 12 months ending in September 2013. In…
Research Your Preferred Charities
November and December seem to be the months we are rained upon with charitable organization solicitations. Some of the groups, such as the American Red Cross, the Salvation Army, United Way, and the American Cancer Society are household names. Others…
Use it or Lose it! Health Flex Spending Arrangement Rules Changing
Do you have funds in an employer provided Health Flexible Spending Arrangement (FSA)? If you worry about the long-standing rule of using up those funds or you’ll lose them, then a new notice from the IRS could be helpful for…
Document those Non-cash Charitable Donations! Tips to ensure their deductibility
One often over-looked way to reduce your tax obligation is to donate gently used items to a favorite charity. Too often this is done without the necessary forethought to ensure you can deduct the value of these donations on your…
Defending Fair Market Value
“Fair market value (FMV) is the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and…
Change in Tip Reporting is Coming Mandatory gratuities (tips) to become service charges
The long-standing practice of automatically charging you a 15 – 20% gratuity at your favorite restaurant is changing as we speak. The practice of charging customers for tips is normally applied to large parties (tables of 8 or more) or…
I’m Being Audited!
Less than 2% of over 145 million individual tax returns filed during 2012 will be selected for audit. The percentage increases for higher income groups and tax returns in areas of specific interest to the IRS. If you should receive…
Reduce Your Income: Hire Your Kids
If you own your own business, by hiring your children you can save in the following ways: Salaries paid to children under 18 are not subject to Social Security or unemployment taxes (in most states). No Federal withholding taxes are…