Hardship distributions from retirement plans not taxable

If your money is locked away in an ever-decreasing 401(k) or IRA account and you need it to stay afloat, relief may be on the way. Heavy penalties, including regular income tax as well as a 10% additional penalty usually

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Posted in Retirement

Kiddie Tax

If your child has unearned income (interest, trust payments, or just about anything other than earnings at a job), your child will have to pay the so-called “kiddie tax” at your highest marginal tax rate. The threshold amount for the

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Posted in Tax Guidance & Preparation

Paying the babysitter

If you have a nanny or a cleaning service, the annual threshold amount for having to report and pay employment taxes is $1,600 for 2008 and $1,700 for 2009. If your yearly payments to any one domestic employee exceed these

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Posted in Employment Tax

Exclusion of gain on your home

If only you could sell, you would be able to exclude from your income up to $250,000 if you are single or $500,000 if you are married of the capital gains on the sale of your home. You must use

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Posted in Capital Gain

Phase out of itemized deductions + personal exemptions

If you bump up against certain income thresholds, your itemized deductions and personal exemptions start disappearing. The reduction does not apply to deductions for medical expenses, investment interest, nonbusiness casualty and theft losses, and gambling losses. Luckily, these thresholds are

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Posted in Tax Guidance & Preparation

Mortgage forgiveness not taxable

Congress has extended the tax exclusion for forgiven mortgage debt through 2012. There is a $2 million limit ($1 million for married individuals filing separately) on this tax exclusion, and the loan must have been used to buy or improve

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Posted in Debt, Foreclosure, Mortgage

Undocumented Aliens must obtain a Tax Payer Identification # and pay taxes

IF you are an undocumented alien in the United States and you have not registered with the IRS for a tax payer identification number and filed personal income taxes you are in violation of the law and risk deportation. You

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Posted in ITIN

Unlawful internet gambling enforcement act – final rule

The Act prohibits any person engaged in the business of betting or wagering (as defined in the Act) from knowingly accepting payments in connection with the participation of another person in unlawful Internet gambling. Such transactions are termed “restricted transactions.” The Act

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Posted in Gamble

Are you a first time home buyer … or not

A first-time homebuyer is an individual who has not had an ownership interest in a principal residence for three years prior to the purchase of the principal residence to which the $7,500.00 2008 tax credit would apply. Should first time

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Posted in 1031 Exchange

The Amero

The Amero is not (as of yet anyhow) a valid currency to pay your US tax obligations with. IT is at this point a "currency" that is believed by many to one day replace the greenback - US Dollar -

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Posted in Cash
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