The recently passed American Taxpayer Relief Act of 2012 (ATRA) not only resolved the issue of income tax rates, but also addressed other issues including the extension of the Qualified Charitable Distribution (QCD). This option allowed taxpayers age 70 ½ and older to contribute up to $100,000 of IRA distributions directly from their IRA to charity. It has been available since 2006, but was set to expire on December 31, 2011. The $100,000 could include the taxpayer’s Required Minimum DistributionRead More
At the start of next year, America’s entire tax regime is set to change, as the Bush-era tax rates shift back to their previous (higher) levels, and preferential (lower) rates on capital gains and dividends phase out. The estate tax rates will go up and the exclusion amounts will go down. Congress may intercede between now and then, but in an election year, any meaningful compromise is far from certain.
This has created an unusual level of uncertainty among financialRead More
We’re not seeing a lot of patriotic arguments about paying taxes these days, so you might want to check out this short cartoon movie, which was funded by the government during World War II. It makes the argument, in an extremely subtle way, that paying high tax rates is actually good for the country: http://www.youtube.com/watch?v=gJ69X1qt4sQ&feature=related. Plus it features Donald Duck…
We’re hearing a lot about taxes in these more modern days, mostly about the need for Congress toRead More
Many Illinois taxpayers are unaware that a Use Tax exists in Illinois. Do you know about use Tax?
As online purchases grow from year to year, more and more Illinois residents will be impacted by this “Use Tax.” Although the Use Tax was created in 1955, well before the internet, it is just now becoming a larger issue.
What exactly is Use Tax?
Use Tax is a form of sales tax. Illinois, like most otherRead More
From Employer Retirement Plans
Employees who make (or who have made) after-tax contributions to your employer’s retirement plan, listen up. You can now take that money and convert it to a Roth IRA tax-free.
For 2009, to qualify for a Roth conversion, your adjusted gross income may not exceed $100,000, whether you are single or married. Good news though, the income limit on conversions disappears in 2010. Income limits on new contributions to Roth IRAs,Read More