Article Highlights Interest earned from states’ and local governments’ general purpose obligations that are generally tax-exempt for federal purposes. Earning tax-exempt interest may not put the most after-tax dollars into your pocket. Tax-exempt interest is not subject to the new 3. 8% surtax on net investment income. Tax-exempt interest is still treated as income for […]
Understanding Tax Terminology
Article Highlights Filing status can be single, married filing jointly, married filing separately, head of household, or surviving spouse with dependent child. Adjusted gross income (AGI) is the sum of a taxpayer’s income minus specific subtractions called adjustments. Modified AGI is the regular AGI with certain adjustments and exclusions added back. Taxable income is AGI […]
Make the Most of Your Deductions
Article Highlights Bunching allows you to maximize your itemized deductions in one year and take the standard deduction in the next. The medical expense threshold for deductibility has been increased to 10% of AGI for individuals under the age 65. You have the option of deducting the larger of: (1) State and local income tax […]
Don’t Overlook the Portability of a Deceased Spouse’s Unused Estate Tax Exemption
Article Highlights Estates may elect to transfer the unused estate tax exclusion to the surviving spouse. Election must be made on an estate tax return for the decedent. The estate tax return must be timely filed. Estates of decedents who die after December 31, 2010 may elect to transfer any unused exclusion to the surviving […]
Selling Your Home
Article Highlights Individuals can exclude up to $250,000 ($500,000 for a married couple filing jointly) of gain from the sale of their primary residence. Generally, to qualify for the exclusion, the home must have been owned and used as a primary residence for two of the prior five years. Reduced exclusions apply in certain circumstances […]
Don’t Get Scammed, They Are Very Clever
Article Highlights Scammers disguise e-mails to look legitimate. Legitimate businesses and the IRS never request sensitive personal and financial information by e-mail. Don’t become a victim. Stop – Think – Delete While you are thinking about the start of the football season, your children’s soccer games, and the no-too-distant holiday season, the scammers are out […]