IRS Rules: .9% Additional Medicare Tax In 2013

With Obamacare kicking into to full speed here in 2013, last week I blogged about the 0% long-term capital gains tax. With so many different tax law changes happening, my fear is some tax-payers aren’t planning correctly and will get stung with an extra bill come tax time. For those individual filers who make more than $200,000 modified adjusted gross income (MAGI) and married couples making more than $250,000 MAGI, it is really important to understand how the additional .9% Medicare Tax will be collected here in 2013. Will your payroll company do this for you? Will you have to do it yourself? Is there a special form to fill out this year? Here it is straight from the IRS Website- BTW, this was about 46 different questions and answers, but I trimmed down the key items for you. (Source for all questions: www.irs.gov) When does Additional Medicare Tax start? Additional Medicare Tax applies to wages and compensation above a ...

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The Home Office Deduction: Is This Really An IRS Red Flag?

During this time of tax season, we often find last minute filers asking questions about what deductions they can or cannot take based upon whether they think they’ll owe money or get a tax refund.   People will ask about charitable deductions, mileage expenses, and other miscellaneous items that they can write off.    With so many people having  jobs involving telecommuting, jobs that are part time businesses, or simply people who have become freelancers, the big question that is often asked is, “Is claiming a home office deduction really an IRS red flag?” This was a tax tip offered on the IRS website on March 16th, 2011 (source: www.irs.gov) Whether you are self-employed or an employee, if you use a portion of your home for business, you may be able to take a home office deduction. Here are six things the IRS wants you to know about the Home Office deduction. 1. Generally, in order to claim a business deduction for ...

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