It’s that time of year again. Back to school! Are you keeping track of your college textbook receipts? College students and their families could save up to $2,500 a year if they save receipts for necessary expenses for textbooks and other course materials.
Archive for the ‘Tax’ Category
1. Look at your year-to-date 2012 income and see if you have paid the proper estimates or withholdings.
The credit is available for expenses incurred in the summer and throughout the rest of the year. Here is what you need to know:
The Internal Revenue Service (IRS) is encouraging individuals to safeguard important tax documents to protect themselves from future hurricanes or other disasters.
There are a few simple things you can do. Make sure you:
Federal and State research tax credits are designed to encourage businesses to increase their Research and Development (“R&D”) activities each year to create new technologies and other innovations. These credits are not only for larger companies, but can also be used for smaller companies that engage in research to improve internal activities. Internal software development activities can qualify as research expenses if the software is innovative, if it has substantial resources devoted to the development, and if it is for internal use.
Bigger Social Security Checks- Social security checks will increase 3.6% in 2012.
Higher Social Security taxes- The Maximum amount of earnings subject to Social Security tax will increase to $110,100 in 2012, up from $106,800 in 2011. The temporary reduction in workers’ Social Security taxes has been extended through 2012 and will remain at 4.2% instead of 6.2%.
Under the Middle Class Tax Relief and Job Creation Act of 2012, workers will continue to receive larger paychecks for the rest of 2012, based on a lower social security tax withholding rate of 4.2 percent, which is two percentage points less than the 6.2 percent rate in effect prior to 2011.
The Internal Revenue Service (IRS) announced the availability of an expanded version of IRS2Go 2.0, available on both Apple and Android platforms. It is an expanded version of the smartphone application designed to provide taxpayers easier access to practical tools and information.
This new smartphone application offers taxpayers a number of tools. Taxpayers can:
The applicable amounts for many tax items increased on January 1 due to annual inflation. The personal exemption amount has increased to $3,800. Various credits and other items were also adjusted. Contribution limits and other amounts for pension plans and retirement accounts were also changed for 2012, and the Social Security wage base for 2012 is now $110,100.
The Temporary Payroll Tax Cut Continuation Act of 2011 will temporarily extend the two percentage point payroll tax cut for employees, continuing to reduce Social Security tax withholding from 6.2 percent to 4.2 percent of wages paid through February 29, 2012.