Tax Strategy

Is a tax refund coming your way? If you have already received your refund for the 2013 tax year or are about to receive it, you might want to think about the destiny of that money. Here are some possibilities. Start (or add to) an emergency fund. Many people don’t have a dedicated rainy day…

An opportunity for you to give & save. As 2013 ends, you may be considering making one or more charitable contributions. In most instances, they are tax-deductible with benefits for the donor as well as the recipient. As you make any charitable gift, keep three things in mind. One, the organization must be a qualified…

At the end of every year, certain federal temporary tax breaks face a sunset. Some are renewed, some expire. As 2014 will soon start, here is a list of some of notable tax provisions that may go away next year – offering some opportunities that you may want to take advantage of this year. Qualified…

“How can I avoid the federal gift tax?” If this question is on your mind, you aren’t alone. The good news is that few taxpayers or estates will ever have to pay it. Misconceptions surround this tax. The IRS sets annual and lifetime gift tax exclusion amounts, and this is where the confusion develops. Here’s…

The IRS extends a major tax break. Thanks to the American Taxpayer Relief Act of 2012, charitable IRA gifts are once again allowed in 2013. An IRA owner aged 70½ or older may gift up to $100,000 this year to either a 170(b)(1)(A) public foundation or a 501(c)(3) charity. Congress may elect to extend this…

Are you worried about being audited? The fear may be overblown – according to Internal Revenue Service data, only 1% of taxpayers had their federal returns examined in 2012. Last year, 12.1% of millionaires had their returns scrutinized, down from 12.5% in 2011. The agency reviewed only 0.6% of returns sent in by taxpayers making…

Did you make more than $1 million in 2012? Prepare for an IRS audit. While the IRS said it examined just under 1% of all tax returns filed and about 1% of all individual income tax returns during 2012, the IRS examined 12.1% of the 337,477 tax returns reporting income of $1 million or more!…

As April 15 gets closer, many Americans still haven’t filed their taxes. You may be one of them. As life requires us to do so much in so little time, it is understandable. If you are getting around to your taxes now, here are some things you may want to think about. Consider turning to…