Encourage clients to make the most of their payroll tax cut For 2011 only, new tax law imposes a historic reduction in Social Security (FICA) taxes, cutting by two percentage points the employee’s portion of the 6.2% tax. Savings per worker will vary with income, but could be as much as $2,136 for those earning
Government action on the nation’s deficit in the coming months may result in future tax increases, adding to the challenge of long-term planning. As a result, it makes sense for clients to focus on tax strategies now, and take advantage of the clarity in tax law that exists through 2012. The most recent debate on
As taxpayers begin collecting their W-2s, 1099s and other tax forms, many are not aware of new provisions benefiting itemized deductions and personal exemptions. Prior to 2010, the value of claiming deductions and exemptions on the tax return diminished (or “phased out”) at higher income levels. For example, see phase-out limits from 2009: Personal exemptions
On February 14, 2011, President Obama unveiled the U.S federal government budget for fiscal year 2012, which includes steps to reduce the federal budget deficit by over $1 trillion over the next ten years. At roughly 2% lower than last year’s budget, it calls for the freezing of discretionary spending (outside of the Department of
The federal tax law extended today’s historically low tax rates through 2012 and created potential savings opportunities for taxpayers. Clients may want to explore ways of capitalizing on the tax rates now before future changes occur. Higher taxes are already on the horizon, including a new 3.8% Medicare surtax on investment income that becomes effective
Since the estate tax was technically repealed at the start of 2010 as a result of a sunset provision within EGTRRA, planning has been challenging due to uncertainty around potential legislative changes that would impose different rules. The signing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. into law in
Several tax credits for investors saving for college were extended for two years in the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. The contribution limit for the Coverdell Education Savings Account program, which was scheduled to revert to $500, was maintained at $2,000 and extended through 2012. Depending
The recent signing into law of H.R. 4853 — the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 — represents the most significant tax law in a decade. At a cost of $858 billion, it represents a tremendous investment at a time when the nation’s economic recovery is fragile. In addition to
President Obama’s bipartisan National Commission on Fiscal Responsibility and Reform fell short of the 14 votes necessary today to send its deficit reduction plan to Congress for immediate action. But the plan did receive majority approval with 11 out of 18 members supporting the final recommendations. Following the vote, President Obama and congressional leaders will
Already, some high profile estates drew attention this year to the fact that, for the first time since 1915, there is no federal estate tax. While the suspension of the estate tax may serve as a temporary benefit for heirs, it could also cause complications for investors who have included trusts in their estate planning.