Posts Tagged "Tax credit"

Age matters in the world of taxes

Posted on Dec 23, 2014

Are you aware of the numerous age-related provisions in the IRS code? They are probably more plentiful and significant than you thought. Here are a few examples of the age-related tax rules that could affect you and your dependents. * At birth up to age 19 and even 24: dependency deduction. Parents can claim a dependency exemption for a child under 19 or for full-time students under the age of 24. * Under 13: child care credit. This provision gives parents a tax credit for dependent care expenses. * Under 17: child tax credit. If parental adjusted gross income is below a threshold level, parents can claim a child tax credit of $1,000. * At 50: retirement contributions. The government allows extra “catch up” contributions to retirement savings. This is a helpful provision to encourage savings. * Before age 59½: early withdrawal penalty. Withdrawals from IRAs and qualified retirement plans, with some exceptions, are assessed a 10% penalty tax. * At 65: increased standard deduction. Uncle Sam grants a higher standard deduction, but there’s no additional tax benefit if the taxpayer itemizes deductions. * At 70½: mandated IRA withdrawals. The IRS requires minimum distributions from a taxpayer’s IRA beginning at this age (doesn’t apply to Roth IRAs). This starts to limit tax-deferral benefits. Awareness of how the tax code affects you and your family at different ages is important. For tax planning assistance through the various phases of life, give our office a call. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+, LinkedIn, Facebook, and Twitter....

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Time is running out for 2013 tax cutting

Posted on Jan 7, 2014

There’s not much time left for you to make beneficial tax moves for 2013. Consider these possibilities. * Maximize retirement plan contributions. For 2013, you can put $17,500 in a 401(k) plan, $12,000 in a SIMPLE, or $5,500 in an IRA. If you’re 50 or older, you can set aside even more as “catch-up” contributions. * Decide whether to sell investments to offset gains or losses already taken this year. You can deduct $3,000 of net losses against ordinary income. * Estimate your tax liability for 2013, taking the new Medicare tax increases for higher-income taxpayers into account. If you’ll be underpaid, adjust your final quarterly tax payment or your December withholding. * December 31 is the deadline for taking a 2013 required minimum distribution from your traditional IRA if you’re 70½ or older. Miss this requirement and a 50% penalty could apply. * Purchase needed business equipment to use the first-year $500,000 expensing option for new and used equipment and 50% bonus depreciation for new equipment. * Make energy-saving home improvements that could qualify for a lifetime tax credit of up to $500. * Finalize annual gifts to use the 2013 exclusion from gift tax on gifts of up to $14,000 per recipient. Contact our office for details on these and other year-end tax moves. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter...

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Take a credit for saving

Posted on Dec 31, 2013

Depending on your income, you might qualify for a tax credit of up to $1,000 for contributing to an IRA or other retirement plan. Don’t overlook this “saver’s credit” as an opportunity to both cut your 2013 tax bill and increase your retirement nest egg. You have until April 15, 2014, to make a 2013 IRA contribution that could qualify for the credit. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter...

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Check the tax issues if you are caring for elderly parents

Posted on Dec 5, 2013

As the population in the U.S. continues to age, more and more people will find themselves caring for their parents. Here are some of the tax breaks that caregivers should consider. * If you provide more than half of your parent’s support, you may be able to claim your parent as a dependent on your tax return. To be eligible, your parent can’t earn more than $3,900 in 2013, excluding their nontaxable social security and disability income. * What if you and your siblings all pitch in to support a parent? Anyone who contributes at least 10% of the total support can be the one to claim the $3,900 exemption if all of you sign a multiple support agreement. * Even if a parent’s income exceeds $3,900 this year, you can still deduct the medical expenses paid on the parent’s behalf, as long as you provide more than half of his or her support. * If you hire someone to take care of your parent while you work, you might qualify for the dependent care tax credit. Your parent must be physically or mentally incapable of caring for himself. * Unmarried individuals who support a parent can file their tax returns as “head of household.” To qualify, your parent doesn’t need to live with you. Instead, as long as you pay more than half of the cost of maintaining your parent’s main home, including a rest home or nursing facility, you qualify for this preferential tax treatment. For more information about the tax issues affecting caregivers and their parents, please give us a call. Gilliland & Associates, PC is a full-service CPA firm specializing in tax planning for individuals and businesses in the Northern Virginia area. We are based in Falls Church, VA and also service clients in the McLean and Tysons Corner, VA. Gilliland & Associates specializes known for our superior knowledge and aggressive interpretation and application of tax laws, we help you keep more of your earnings by finding you the lowest possible tax on your business or personal tax return. You can connect with us on Google+ <https://plus.google.com/108764776146415485651/posts> , LinkedIn <http://www.linkedin.com/in/gillilandcpa> , Facebook <https://www.facebook.com/gillilandcpa> , and Twitter <https://twitter.com/dnggcpa>...

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Tweet shorts

Posted on Dec 6, 2012

All of the following are under 140 characters for tweets: *December 17 is the due date for calendar-year corporations to pay the last installment of 2012 estimated income tax. *December 31 is the deadline for paying expenses you want to deduct on your 2012 income tax return. *December 31 is the deadline for completing 2012 tax-free gifts of up to $13,000 per recipient. *Planning a wedding or divorce? Your marital status on December 31 determines your tax filing status for all of 2012. *Unless Congress passes an extension, the 2% cut in payroll taxes for employees ends after December 31. *The child tax credit, currently at $1,000 per child under age 17, is scheduled to be reduced to $500 next year. *Get the documentation you’ll need for all your 2012 charitable contributions, or you risk losing your deduction. *The IRS is relaxing the rules for victims of Hurricane Sandy, allowing them to access money in their retirement...

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