Did you know you could be responsible for your parents’ unpaid bills? Ever heard of Filial Responsibility Laws? Well, these are laws obligating you to provide financial support for your indigent parents. Yes, obligated under law. According to the National Center for Policy Analysis, 21 states across the country (including states like Connecticut, New Jersey and Massachusetts) allow for a civil action to obtain financial support for indigent parents. At least 12 states may impose criminal penalties on children who refuse to support their parents. Though rarely enforced, these laws may be dusted off by states looking to save money on Medicaid bills.
Your Business Loses Money; Tax Benefits or Concerns?
I’m often asked by nervous new business owners if they can recover a tax refund for a business loss. Receiving a tax benefit from a business loss depends on the type of entity formed and whether the investment in the business is “at risk” in whole or in part. It also depends on the presence of other income.
Owners of a corporation are not taxed directly on business profits and losses because the corporation’s taxes are taxed separately. For other types of enterprises, business income and loss passes through to the owner’s personal tax return. These business types are:
Seven Things You Can STILL Do, Before Year-End, To Reduce Your 2016 Taxes.
2017 is almost here. It’s never too early to plan ahead when it comes to reducing your taxes. An experienced and knowledgeable tax professional can help any individual or business make the right year-end savings moves with important advice and assistance. Since tax planning is mostly about timing, here are a few, last minute things you can do before the end of the year to reduce your 2016 tax bill.
*Defer income to 2017
The Most Overlooked Tax Deductions, Part 8
This is the eighth part of our series of blogs on the most overlooked tax deductions. In this blog, we will attempt to summarize the first half or group of prior articles in the series. For a more a detailed overview, see the blogs themselves!
JOB & MOVING DEDUCTIONS
Job Search Expenses
As long as the position of employment sought is in the same line of work as a current or most recent job, job search expenses may be deducted as miscellaneous expenses if itemized.
Moving Expenses for a First Job
Tax Benefits For Education Part 5
This is the fifth part of our multi-part series of blogs on tax benefits for education. Any present or former student should utilize the knowledge, experience and expertise of the tax professionals at the Thorgood Law Firm to ensure that they take advantage of all the credits and deductions that the law allows for students of higher education.
Savings Plans
Qualified Tuition Programs (529 plans)
A Qualified Tuition Plan (QTP), also called a 529 Plan, is a program established to allow prospective students to either prepay or contribute to an account established for paying a student’s qualified education expenses at a post secondary institution. States and eligible educational institutions are entities that may establish and maintain programs that allow a student taxpayer to prepay these qualified education expenses.
Finally! Congress Enacts Tax Extends Part 5
The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike past extension legislation, Congress extended many provisions permanently. In more traditional fashion, some of the others were extended for five years, and many for two years. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.
Here are some provisions for individual taxpayers that were extended by Congress for two years:
Finally! Congress Enacts Tax Extends Part 3
The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike past extension legislation, Congress extended many provisions permanently. In more traditional fashion, some of the others were extended for five years, and many for two years. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.
Congress made permanent various provisions with incentives for businesses. Some are as follows:
Finally! Congress Enacts Tax Extends Part 2
The Consolidated Appropriations Act of 2016, enacted Dec. 18, 2015, extends a long list of expired tax provisions into the future. Unlike past extension legislation, Congress extended many provisions permanently. In more traditional fashion, some of the others were extended for five years, and many for two years. The Joint Committee on Taxation estimates that the total cost of the tax provisions in the bill will be $622 billion over 10 years.
These tax breaks include but are not limited to savings for teachers, parking and transit benefits, and certain charitable contributions which will be discussed in this blog. Without Congress extending these various provisions, millions of Americans were in danger of losing these beneficial tax breaks by 2017.
Tax Benefits For Disabled Taxpayers
The tax professionals at the Thorgood Law Firm can help any taxpayer pinpoint all of the tax benefits that are applicable to his or her situation or status. The following are some of the tax benefits that may assist disabled taxpayers.
- Credit for the Elderly or Disabled: This credit is generally available to certain taxpayers who are sixty-five (65) and older as well as to certain disabled taxpayers who are younger than sixty-five (65) but are on permanent and total disability.
Top Tax Deductions for Seniors and Retirees
Here are some of the most important tax deductions for seniors and retirees.
- Higher standard deduction.
Any taxpayer that is 65 and older by December 31 of the tax year is entitled to a higher standard deduction. Taxpayers may take the higher standard deduction if a spouse is age 65 or older and together they file a joint return. Also, the higher standard deduction may be taken if the taxpayer files a separate return and can claim an exemption for a spouse because the spouse had no gross income and can’t be claimed as a dependent by another taxpayer.