Posted on May 8, 2013
* May 15 is the deadline for calendar-year nonprofit organizations to file 2012 information returns.
* Taking an early withdrawal from your retirement account can cost you an extra 10% penalty tax. Get the facts first.
* Withdrawals from a qualified retirement plan for certain medical expenses are not subject to the 10% penalty tax.
* If your capital losses exceed your capital gains, you can deduct up to $3,000 each year against your other income.
* This year medical expenses must exceed 10% of your adjusted gross income to be deductible. The rate is still 7.5% for those 65 and older.
* Relief from past payroll taxes is available to certain employers who reclassify workers as employees instead of independent contractors.
* The top tax scam on the IRS’s “dirty dozen” list is bogus e-mails sent by thieves trying to steal taxpayers’ financial information.
* If you discover a mistake after filing your tax return, you can fix it by filing an amended return on IRS Form 1040X.
* The IRS can use part or all of your tax refund to pay other federal or state debts that you owe.
* If you owe overdue child support, state income tax, or student loans, the IRS may apply part or all of your tax refund to pay the debt.
* If you have foreign bank, savings, or investment accounts, you may be required to file an “FBAR” report by June 28, 2013.
* Credit cards should be considered a convenient way to pay, not a source of credit. Any balance due should be paid in full each month.
* The Social Security Act became law in 1935, setting the official retirement age at 65. Today 13% of the U.S. population is 65 or older.