Beginning January 1, 2009, the monthly exclusion for commuter highway vehicle transportation and transit passes increased to $120 and the monthly exclusion for qualified parking increased to $230. Beginning March 1, 2009, the monthly exclusion… Read More »Qualified Transportation Fringe Benefits
2008 Changes The amount you can deduct for each exemption has increased to $3,500 for 2008. You lose part of the benefit of your exemptions if your AGI is above a certain amount. The amount… Read More »Personal Exemptions
The new “Worker, Homeownership and Business Assistance Act of 2009” extends and expands the tax break for net operating losses (NOLs) created by the 2009 economic stimulus law. What’s more, some business owners may be… Read More »Double tax benefit for NOLs
Revocation of release of claim to an exemption. For tax years beginning after July 2, 2008 (the 2009 calendar year for most taxpayers), new rules apply to allow the custodial parent to revoke a release… Read More »New Rules for Children of Divorced or Separated Parents
2009 The limit on the exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract increases for 2009 to $280 per day. The limit applies to the… Read More »Increase in Limit on Long-Term Care and Accelerated Death Benefits Exclusion
Keeping detailed records of employee travel expenses is a hassle. But there’s a way your business can simplify matters without any tax downside: Use the IRS-approved “per diem rates”. This way, employees don’t have to… Read More »IRS raises per diems for 2010
Exxon Valdez litigation. If you received qualified settlement income made up of interest and punitive damages in connection with the civil action In re Exxon Valdez, No. 89-095-CV (HRH) (Consolidated) (D. Alaska), you may treat… Read More »Income Averaging for Farmers and Fisherman
Discharge of Qualified Principal Residence Indebtedness The Emergency Economic Stabilization Act of 2008 extended the exclusion from gross income for the discharge of qualified principal residence indebtedness by an additional 3 years. The exclusion now… Read More »Home/Residence-Related Tax Changes
The tax law permits generous deductions for mortgage interest paid in connection with “acquisition debt” and “home equity debt” of a qualified residence. Now a new ruling from the IRS says that you can combine… Read More »New mortgage interest break
Archer Medical Savings Accounts (MSAs) 2010 Changes For Archer MSA purposes for 2010, the minimum annual deductible of a high deductible health plan increases to $2,000 ($4,050 for family coverage). The maximum annual deductible of… Read More »Health/Medical-Related Tax Changes
What is a SEP? A SEP is a simplified employee pension plan. A SEP plan provides employers with a simplified method to make contributions toward their employees’ retirement and, if self-employed, their own retirement. Contributions… Read More »Simplified Employee Pension Plan
Student Loan Interest Deduction 2009 For 2009, the amount of the student loan interest deduction is phased out (gradually reduced) if your filing status is married filing jointly and your modified adjusted gross income (AGI)… Read More »Education-Related Tax Changes