Each year millions of Canadians scramble to get their tax papers in order. Each year, many of these same Canadians are scrambling to find out what new tax rules have been introduced as well as what old tax rules have been changed. Many of these changes stem from the federal budget being brought down at the beginning of 2009. These major tax changes can easily affect how much personal tax you will pay and for most people, it pays to know the...more
It's tax season again and what a confusing time for Canadians who have not been keeping up with all the new tax rules and changes. Filing annual personal income taxes is trying enough, but combine that with the software choices and changes, well, it does not necessarily make for a pleasant experience. Among the many things there are to know when it comes time to file, there are also a few things Canadians need to not know. With so many...more
IRA contributions usually affect your current taxes in positive ways. It's basically a way to save money for your retirement on a tax-free basis now (in other words, you don't pay tax on the income you plop into an IRA until you take it out), so that you'll have something to live on after you retire and no longer have an earned income. In addition to the traditional IRA, there are other IRA structures, too, such as the Roth IRA. For the purposes of this article, though, we're going talk about traditional IRAs. How do IRAs affect your taxes? Traditional IRAs are the IRAs most of us think about what we think of retirement, IRA contributions, and taxes. An IRA, also known as an individual retirement account, is a way for you to save money on a tax-deferred basis for retirement. Traditional IRAs do have some restrictions (as to Roth IRAs). Nonetheless, there are great way to sock away money for retirement and in general, they'll save you money over the long term as well, since you won't pay tax on any IRA disbursements until you actually take the money out. When you contribute to an IRA Your contributions to a traditional IRA generally lower your tax bill,...more
Meade Accounting and Taxation Expedites Tax Preparation in Richmond HillDoing tax preparation can be complex, cumbersome and time consuming and Meade Accounting and Taxation [Meade Tax Help] removes those concerns by expediting tax preparation in Richmond Hill and other areas. Their tax preparation services enable clients to comply with tax laws...more
In Part I, we discussed the different tax brackets for the Regular Tax and for the Alternative Minimum Tax, as well as the AMT exemption. For 2009 for married couples filing jointly (MFJ) the AMT exemption was $70,950. In this article we will discuss the phase-out, or loss, of the exemption as taxable income exceeds a certain threshold level. For MFJ, this taxable income threshold is $150,000. The Form 6251 also has the thresholds for the other filing statuses, found at the IRS website.The AMT exemption phase-outAs taxable income increases above $150,000, the AMT exemption amount decreases. A taxpayer loses $1 of exemption for every $4 increase in taxable income. Thus, for example, if taxable income before exemption is $250,000 ($100,000 over the threshold), $25,000 of the AMT exemption is lost. All other things being equal, in this example AMT taxable income would be $275,000 even though Regular Tax taxable income would be $250,000 making it likely you would find yourself stuck in the AMT.Note that this phase-out formula means your AMT taxable income increases at a more rapid rate - 25% faster - than any increase in your Regular Tax taxable income. This acceleration is a...more
If you're like me then you spent far too much time ignoring your family last night in favor of the 2010 NFL draft on ESPN during primetime television. In years past the draft has held its most popular segment the first and second rounds on...more
Few of us love paying taxes, and small time investors are not exceptional. Although we might from time to time be proud of our patriotic duty of paying taxes, we are mainly angry because of the way that we feel that the government is misusing the...more
Reducing Your TaxesThis is only a brief overview but hopefully it has started you thinking. For some, the saving might be small or, at worst, you will discover that you are now certain that you are not paying too much tax. For others, a review could...more
The organized distribution of taxes is a tradition and a concept that dates back to ancient times and has had a large impact on the creation of our democratic government in the United States. So, you would think that we should be pretty familiar with...more
Since 1913, the United States give Congress the authority to collect a federal income tax from people who work in the United States. This requires them to give part of their paychecks each year to the federal government. The yearly filed return is to...more