Most Confusing Parts Of The Income Tax Code, Part 2: Alternative Minimum Tax

March 3, 2017 Shamsey Oloko Leave a comment Alternative Minimum Tax (AMT)

Many provisions of the Internal Revenue Code are complicated. Proper interpretation of the rules and regulations contained in these provisions requires the assistance of an experienced and knowledgeable tax professional. The second part of our series about the most confusing provisions of the Internal Revenue Code addresses everyone’s favorite, the alternative minimum tax.

Why Is It Confusing?

The AMT doesn’t seem to achieve its purpose
Taxpayers have to compute two taxes
The computation of the AMT itself is enormously long and complicated

This is a preview of Most Confusing Parts Of The Income Tax Code, Part 2: Alternative Minimum Tax. Read the full post (681 words, 1 image, estimated 2:43 mins reading time)

Deductions And Long-Term Care Insurance

May 27, 2016 Shamsey Oloko Leave a comment Deductions, Health Insurance Portability and Accountability Act of 1996 (HIPAA), Medical Expenses, Self-Employment Tax

A long-term care insurance premium, or a part thereof, may be deductible from federal income taxes as a medical expense. Acknowledging that it can’t assume the primary role in paying for Americans’ long-term health care, the federal government offers tax incentives to encourage middle-aged and older taxpayers to assume responsibility for their future health care needs. The Health Insurance Portability and Accountability Act of 1996 (HIPAA) included provisions for favorable tax treatment of Long-Term Care insurance (LTCi) contracts that meet statutory qualifications.

This is a preview of Deductions And Long-Term Care Insurance. Read the full post (345 words, 1 image, estimated 1:23 mins reading time)

The Alternative Minimum Tax, Explained

March 17, 2016 Shamsey Oloko Leave a comment Alternative Minimum Tax (AMT), Business Expenses, Capital Gains, Capital Losses, Charitable Contributions, Child and Dependent Care Credit, Child Tax Credit, Deductions, Expenses Deductions, Filing Status, Income Tax, Representation, State & Local Taxes, State Sales Tax, Taxable Income

Under the Internal Revenue Code and the vast body of rules and regulations related thereto, certain tax benefits can significantly reduce the amount of taxes that a taxpayer may owe. The alternative minimum tax (AMT) applies to those taxpayers with high levels of income by limiting these benefits and ensuring that these taxpayers pay at least a minimum amount of tax. If the AMT applies to you, you may lose many credits or deductions you would normally receive if you didn’t have to pay the AMT.

This is a preview of The Alternative Minimum Tax, Explained. Read the full post (764 words, 1 image, estimated 3:03 mins reading time)