In late August, the European Commission ruled that Ireland must collect $14.5 billion in back taxes from Apple. The antitrust regulator for the European Union claimed that Ireland had given Apple an extremely favorable tax arrangement for over ten years allowing the tech giant to pay a tax of less than 1 percent. The EU further claimed that Apple had two companies in Ireland with a head office that existed only on paper, but received all of Apple’s European profits. The ruling fuels the debate about multinational corporate existence and tax responsibility worldwide.
The “What Ifs” for Struggling Taxpayers
Many of life’s events such as losing a job, foreclosure of a home or even forgiveness of a debt impact the payment of taxes. The tax law offers hope in these situations. As an example, if a taxpayer’s income decreases, he or she may be eligible for certain tax credits, such as the Earned Income Tax Credit. In this blog, We will present a list of quick answers to life event situations that have a potential impact on an individual’s tax burden. For more information see our blogs: Part 1 – What If: Job Related Life Events and Struggling Taxpayers; and Part 2 – What If: Debt Related Life Events and Struggling Taxpayers.
What Is Foreign Earned Income? Am I Eligible to Claim Either the Exclusion Or Deduction?
Individuals that are U.S. citizens or resident aliens of the United States living abroad are taxed on their income by more than one governmental entity. However, these taxpayers may qualify to exclude from their income an amount of their foreign earnings (adjusted annually for inflation) under I.R.C. § 911. They may also be eligible for either a foreign housing exclusion or the foreign housing deduction (this will be discussed in a future blog). To determine eligibility to claim either the foreign earned income exclusion, the foreign earned housing deduction or foreign earned housing exclusion, please consider the following analysis. Remember, that an experienced tax professional can offer assistance in making this analysis.
IRS Launches New Campaign to Increase Awareness Of Data Theft Risks
Recently the IRS together with state tax agencies and the nation’s tax preparers warned that criminals are focusing their cyber theft crimes on tax professionals. Anyone that is a potential target of these cybercriminals should respond appropriately to protect clients from identity theft.
With this issuance of caution, the IRS provided new information containing safeguards to help tax professionals protect clients’ data. Known as the Protect Your Clients; Protect Yourself campaign, it’s an expansion of the Security Summit’s 2015 Taxes. Security. Together program aimed at increasing public awareness for using security software, creating stronger passwords and avoiding phishing emails.
A Discussion Of New York State Income Tax Credits
Individuals and businesses in the State of New York are both subject to income tax. New York enacted a sweeping tax-reduction bill in 2011, creating the lowest mid-bracket tax rates in the state in 58 years. These tax breaks affected over four million taxpayers. Despite this legislation and other New York tax breaks, New York still has one of the highest state income tax rates in the nation.
New York Personal Income Tax
A Discussion Of New York State Income Tax Deductions
Income tax deductions are expenses that may be deducted from pre-tax gross income. Of course, deductions reduce New York income tax and maximize a refund. One of the experienced tax professionals at the Thorgood Law Firm can assist any New Yorker in determining the deductions for which they qualify under New York law.
New York has a standard state income tax deduction. For 2015, they are as follows:
| Filing Status | Amount of Standard Deduction |
| Single (and can be claimed as a dependent on another taxpayer’s federal return) | $3,100 |
A Discussion Of New York State Personal Income Tax & Corporate Income Tax
Individuals and businesses in the State of New York are both subject to income tax. New York enacted a sweeping tax-reduction bill in 2011, creating the lowest mid-bracket tax rates in the state in 58 years. These tax breaks affected over four million taxpayers. Despite this legislation and other New York tax breaks, New York still has one of the highest state income tax rates in the nation.
New York Personal Income Tax
The Most Overlooked Tax Deductions, Part 9
This is the ninth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the second half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!
HEALTH, CHILD CARE, AND CHARITY DEDUCTIONS
Deduction of Medicare Premiums for the Self-Employed
Self-employed individuals who continue to operate their own businesses after qualifying for Medicare can deduct their Medicare Part B and Medicare Part D premiums, plus the cost of supplemental Medicare policies or the cost of a Medicare Advantage plan, regardless of whether or not he or she itemizes.
State Income Taxes & NBA Free Agency
After the Cleveland Cavaliers won their first NBA championship back in June, interest in the NBA hardly waned. Soon after the LeBron James and company hoisted the championship trophy in Oakland, the NBA free agency began and a multitude of players changed teams including Kevin Durant, Dwayne Wade, Joakim Noah and Brandon Jennings (the latter two to our hometown Knicks). For NBA players it seemingly is just another contract and another (out-of-this-world) payday. Well, it is of course but there’s more to it than this.
Passive Activities – What is A Rental Activity?
There are two kinds of passive activities: trade or business activities in which the taxpayer does not materially participate during the year; and rental activities, even if the taxpayer does not materially participate in them, unless the taxpayer is a real estate professional. Many taxpayers have heard the term “passive activity” in relation to a rental activity and wondered exactly what it means.
An activity is a rental activity if real or personal tangible property is used or held for use by a taxpayer and gross income or expected gross income from the activity represents amounts paid or to be paid primarily for the property’s use, whether pursuant to a lease, service contract, or other agreement.