If you are facing a tax bill on money your spouse didn't claim and you had no knowledge of on your joint return, you may qualify for innocent spouse relief. It is not easy, but here are some steps to try to find relief from your spouse's (or ex-spouse's) tax bills.
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The IRS has held that stock received from an insurance company during a demutualization has no cost basis and if you take the cash, the proceeds are 100% capital gain.
A recent court case has told them their position is wrong, but the details about what your basis in the stock is is still cloudy. Some point to the amount (or a percentage of) the premiums you have paid over the years. Others point to the IPO price as a good value of what the stock ownership was valued at. We'll wait and see how this one plays out.
You may have received these kind of proceeds from Met Life or Prudential, two popular insurance companies that went through his many years ago. If you are still holding the stock, then you will want to stay up to date on this issue.
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A recent court case has told them their position is wrong, but the details about what your basis in the stock is is still cloudy. Some point to the amount (or a percentage of) the premiums you have paid over the years. Others point to the IPO price as a good value of what the stock ownership was valued at. We'll wait and see how this one plays out.
You may have received these kind of proceeds from Met Life or Prudential, two popular insurance companies that went through his many years ago. If you are still holding the stock, then you will want to stay up to date on this issue.
[Link]
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With each new year, many aspects of the IRS tax code is adjusted for inflation. Inflation is very low right now, and for the first time since I can remember many of tax code amounts are holding steady from 2009 to 2010.
The FICA max remains steady at 106,800. [Link]
401K maximum contribution amount remains at 16,500 and the catch-up max remains at 5,500 [Link]
IRA Contribution limits remain at 5,000 and 1,000 for catch-up participants. [Link]
The FICA max remains steady at 106,800. [Link]
401K maximum contribution amount remains at 16,500 and the catch-up max remains at 5,500 [Link]
IRA Contribution limits remain at 5,000 and 1,000 for catch-up participants. [Link]
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If you are over 70 1/2 then you are required to take distributions from your traditional IRA. In 2009 the IRS waived this requirement due to the economic hardships that many are facing. If you have already taken your RMD and you didn't want to, you can roll it over to a new IRA account so that it doesn't face taxation.
"Individuals generally have until the later of Nov. 30, 2009, or 60 days after the date the distribution was received, to roll over the distribution. "
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"Individuals generally have until the later of Nov. 30, 2009, or 60 days after the date the distribution was received, to roll over the distribution. "
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Some basic rules for housing allowances for ministers:
- The housing allowance must be officially designated before the compensation is received and the declaration should come from the payer, not the recipient.
- The housing allowance is not including in gross wages on the W-2 or 1099, but it should be noted in box 12 of the W-2 or an additional statement accompanying the 1099. The reason is because this income is subject to self-employment tax.
- Housing allowances are not subject to income tax, but they are subject to self-employment tax.
- Note that if you are exempt from social security taxes, then housing allowances are free from any taxation.
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Educational expenses are usually deductible, but how you should deduct them is another matter that is more difficult.
If the education maintains or improves your skills in your current job or it is required by your employer to keep your salary, status, or job, then you can deduct them as a business expense (Either on your corporate return, Sch. C, or Sch. A as a misc. itemized deduction).
If the education is to meet the minimum educational requirements to qualify for a trade or business, or if it is part of a program of study to qualify for a new trade or business, then it can't be deducted as a business expense. Instead it should be deducted with the tuition and fees deduction or the various tuition credits. Note that only tuition and fees qualify for these deductions though.
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If the education maintains or improves your skills in your current job or it is required by your employer to keep your salary, status, or job, then you can deduct them as a business expense (Either on your corporate return, Sch. C, or Sch. A as a misc. itemized deduction).
If the education is to meet the minimum educational requirements to qualify for a trade or business, or if it is part of a program of study to qualify for a new trade or business, then it can't be deducted as a business expense. Instead it should be deducted with the tuition and fees deduction or the various tuition credits. Note that only tuition and fees qualify for these deductions though.
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