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4 Tax Law Changes We Need To Make Permanent

With the presidential election beginning to heat up in America over the next several months, we are all going to hear a lot about income taxes.  We all know that with thousands of pages of tax code, it is impossible for the average citizen to really understand all of the different ways they can save money in taxes.  There are many tax law changes set to take effect in 2013.   If I had the opportunity to set the wheels in motion to make some tax law changes that would be permanent and easy to understand, here are four of them that I would recommend we change to become permanent. 1. Social Security Taxation –   From the day you begin working and earning waged income, 6.2% of your paycheck (the last couple of years 4.2%) goes toward your future social security benefits.    This is also known as your Federal Insurance Contributions Act (FICA) tax.     You only see the 6.2% that comes ...

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Georgia Private School Tax Credit 2011

A HIDDEN GEORGIA TAX CREDIT YOU DON’T WANT TO MISS FOR 2011! Tax write-off.  Tax credit.  Heard these terms before?  Most people have.  The problem is, tax professionals and non-tax professionals alike tend to throw them around as if they mean the same thing.  They do not mean the same thing. Tax write-offs (sometimes called “deductions”) refer to items that can decrease your taxable income, which is the number that the government will use to calculate your tax bill (using the tax rate percentages).  By comparison, a tax credit means something much different.  It is an amount that actually reduces your tax owed.  For example, let’s look at someone with $100,000 in taxable income (at a 30% tax rate) and the difference between a $2,500 tax deduction and a $2,500 tax credit. Tax Deduction:       Tax Credit: $100,000 taxable income $100,000  taxable income        30% tax rate        30% tax rate $30,000 taxes due $30,000 taxes due –2,500tax credit $27,500 adjusted taxes due $100,000 ...

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