Taxes March 4, 2005

Charitable Giving Statistics

Americans give billions of dollars per year to charities.  In fact, charitable deductions in 2002 totaled over $136 billion.  According to the IRS Statistics of Income Bulletin (winter 2003-04), these charitable contribution statistics give the average breakdown of claimed deductions for charitable contributions on 2002 tax returns: Taxpayers with Adjusted Gross Income between $15,000 to […]

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Taxes February 22, 2005

The Kiddie Tax

Under current tax law, children under the age of 14 are taxed on “unearned income” (which includes dividends, interest, and gains from the sale of property) over a threshold amount of $1,600.  The tax rate is computed at their parent’s top marginal tax rate.  This tax is intended to discourage and prevent abuse of income-shifting […]

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Taxes February 16, 2005

Dealing with medical expenses

Escalating medical costs leave even insured families left to cover increasing out-of-pocket costs.  While there are a number of strategies for small businesses and self-employed individuals to deduct the cost of health insurance coverage, the tax code also provides some relief allowing taxpayers to deduct medical costs. Anyone who has prepared their own tax return […]

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Taxes February 14, 2005

Avoiding Tax Penalties

Did you know there are more than 140 civil penalties in the Internal Revenue Code?  Many of these are designed to be stiff deterents to prevent certain acts or omissions.  Here are a few of the most common penalties: FAILURE TO FILE A RETURN. There is a 5% penalty for unpaid taxes per month (or […]

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Taxes January 20, 2005

IRS warns of Tax Preparer Fraud

Heading into tax season, the Internal Revenue Service has published a warning regarding tax preparer fraud.  The Service cautions taxpayers to be wary of claims by preparers that offer larger refunds than other preparers, and reminds that tax evasion is a felony, punishable by five years imprisonment and a $250,000 fine. Some suggestions: Avoid preparers […]

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