Starting in 2015, there have been two changes in the tax law regarding certain distributions from employer qualified retirement plans and from Individual Retirement Accounts (IRA). The first change is that an individual will be limited to one tax-free IRA rollover in any one year period. The old law was that an individual was limited Read More…
This information qualifies as good-to-know, and not necessarily income tax related. New Jersey’s Clean Energy Program offers rebates of the purchase price for Energy Efficient Clothes Washers, Clothes Dryers, and Refrigerators. In order to qualify, specific makes and models must match the list maintained by the Bureau of Public Utilities. Rebates for appliances range from Read More…
Funds deposited into qualified retirement plans, such as 401(k) plans and pension plans, and into traditional IRA’s are intended for retirement purposes. As a result, the IRS generally imposes a 10% excise tax penalty (in addition to paying regular tax on the amount of the distribution) from distributions from either type of plan prior to Read More…
Previously we detailed provisions of the Affordable Care Act that came into effect for 2014 for individuals, families, and small businesses. We’d now like to detail provisions of the Affordable Care Act that will come into effect for 2015 and 2016 for “large” businesses. Starting in January 2015, “applicable large employers” (ALE) must report their Read More…
There are certain provisions of the Affordable Care Act (universal health care) that came into effect for 2014. These provisions affect individuals, families, and small businesses. Starting in 2014, each individual must have either minimum essential health insurance coverage (in each month of the year), have a coverage exemption, or make a “shared responsibility” payment Read More…
On January 1, 2013, the U.S. Congress and President Obama agreed to retroactively extend certain tax breaks that had expired on December 31, 2011 for 2 years. These extensions gave both individuals and businesses these tax breaks on their 2012 and 2013 tax returns. However, due to recent Congressional inactivity, these tax breaks have not Read More…
Many individual taxpayers overlook the benefit of deducting “non-cash” charitable contributions. These are donations of property, rather than donations of money (cash, check, or credit card). You are entitled to deduct the current fair market value of the property as a charitable contribution. However, the problem is that for the most part, the charitable organization Read More…
If a business entity wants to become a tax-exempt organization, it is not enough to incorporate the organization in a state as a non-profit organization. In the past, if you wanted to apply to the Internal Revenue Service to become a Section 501(c)(3) charitable organization (which is required for individuals to be able to deduct Read More…
Most business people who incur expenses relating to “entertaining” clients are familiar with the phrase “T&E” (travel and entertainment). However, for income tax purposes, the proper phrase should be “M&E” (meals and entertainment). That is because while business travel is generally fully deductible to the business or to the individual incurring the expense, meals and Read More…
With the advent of the Affordable Care Act, many small business owners and their employees who don’t have conventional health care coverage through their spouse’s employer are looking for affordable health care plans. To save premium dollars, many of these business owners opt for high deductible health plans. The IRS provides tax benefits for such Read More…
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