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
On Friday, a bipartisan House-Senate committee blessed a new payroll tax cut extension that was negotiated without any of the bitter partisan posturing everybody expected. The cut will reduce Social Security taxes from 6.2% of income to 4.2% for workers through December 31, and put up to $130 billion back into the pockets of lower- and middle-income workers.
The same bill extends unemployment benefits from 59 weeks to anywhere from 89 to 99 weeks, depending on the unemployment level in eachRead 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