2011 Taxes to 2024 Taxes

Tag: Tax bracket

Ways To Take Advantage of Tax Rules
Its almost tax time again this year, a frightening period for many people. How can you make the most out of your tax return this year?
Here are some techniques that may save you some anguish and money when dealing with 2012 tax rates.
1. Be willing to part with some of your possessions. Tax expert Joseph Thorndike says gift and estates taxes are the lowest they have been in a long time. This is the perfect time to set up a trust for any relatives, or to hand over the reins on a family business.
2. If you are making money from a hobby, turn it into a business. If you make over 20k with more than 200 financial transactions, you will get a 1099-k. If you count is a business, you are allowed superior deductions.
3. Pay your deductions early. There’s a chance that the limits on itemized deductions are going to be lowered in the next few years. If you can pay real estate taxes ahead of time you could end up saving some substantial money.
4. Use the benefits of the zero percent capital gains tax. It can be used up until 2012 if you are in a lower income tax bracket. If you declare your investment gains now, rather than later, you will be paying less.
5. If you are selling anything major like a business or real estate, or other major asset, see if the buyer can pay in full. This way you will end up paying less on capital gains tax. If you have to, try and negotiate a lower rate with your buyer, or to pay the cost of refinancing. It will shrink your short term profit, but you will be be making more overall.
Related articles
- Make the Best of Your Small Business Tax Deductions (2011taxes.org)
- Top Ten Most Overlooked Tax Deductions (2009taxes.org)
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January 9, 2012
Wiser Roth Investing For Those Looking for Great IRA Rates
An Individual Retirement Account or IRA is a type of investment savings plan which allows employed individuals to make contributions provided that they are earning a taxable income during the year. There is more than one type of IRA plans available, and the most common of these is the Roth IRA. This type of IRA plan is in fact the most preferred by most of the investors, especially those who expect to belong to a higher tax bracket upon their retirement. The Roth IRA is more advantageous when it comes to paying the taxes, because the contributions made to a Roth IRA are taxed right away, therefore all qualified distributions are totally tax-free.
Once a Person opens a Roth IRA, he must decide what types of investments he would like to include with his Roth IRA. A Roth IRA may be invested in a variety of investment types and financial institution. An individual may choose to invest his Roth IRA with local or national banks that offer certificates of deposit (CDs), mutual fund companies, brokerage firms, real estate, and those providers that accept precious metals as investments. Thus, investors of Roth IRA may be able to create diversification of their funds easily. The Roth IRA investors must choose the the financial institutions where they would put their investments into, and select the one that offers the best IRA rates for better investment returns.
The Roth investor must have already determined what type of investment he would like his Roth account to hold. Choosing those with which he is already familiar is the wisest thing to do. Of course, the investors must invest into something which he has knowledge about, even just the very basics. As an investor, he must spend his time and effort to do some research on certain financial institutions, so as to compare their rates and choose the one that give the best Roth IRA rates. Having some knowledge about the financial performances of such financial institutions for the past few years, and knowing what kind of risks such companies have is the next important step that must be done.
Related articles
- Steps on How to Open a Roth IRA Account (2009taxes.org)
- Where are the Most Trusted Roth IRA Providers Online? (2011taxes.org)
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June 16, 2011
Start Saving Young For Your Roth IRA
When you begin to save for retirement will have an effect on which retirement plan you choose. Some retirement plans allow for you to put into the fund as much money as you want and this would be best for someone beginning to save later in life. While other funds have limits on how much money you can put into the fund each year and this kind of fund would be best for individuals beginning to save at a younger age.
If you are beginning to save at a younger age then a Individual Retirement Account known as a Roth IRA could work for you. The reason saving at a younger age is mentioned is because there are specific contribution guidelines that must be followed in order to have a Roth IRA, thus if you are trying to put away a lot of money then a Roth will not work. Listed below in this article are a few pros and cons to owning a Roth IRA.
To calculate your Roth IRA value a Roth IRA calculator can be found on the Internet if you are interested in knowing. A Roth IRA is a non tax deferred retirement plan, unlike the Traditional IRA which allows you to not pay taxes on the money in the account until later when it is taken out. The one disadvantage to the money being not tax deferred is also that by contributing to a Roth your adjusted gross income is not reduced. If you are close to a lower tax bracket then having your AGI reduced is a good thing because then you qualify for tax breaks and deductions.
A Roth IRA allows for the normal man to put back money for retirement and if he starts early enough there should be no worries. For someone starting to save later on in life a Roth may not be the best plan due to its rules regarding the contribution limits. Either way if you happen to be within the income limits you can contribute to a Roth and save some amount of money for your retirement.
Related articles
- Traditional IRA or A Roth IRA You Decide (2011tax.org)
- IRA: Traditional IRA and Roth IRA (2010tax.org)
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May 2, 2011
Did You Know About These Tax Changes?
By the start of 2010, President Obama proposed a number of tax changes for 2011. It was until the end of that year that eleventh hour tax changes were approved and signed into the law. While many of us are well aware of the latest celebrity break ups and hook-ups, only a few seem to know about these tax changes.
It pays to known about tax rates and any changes made regarding these taxes. It gives you a better idea of what you are going pay and how much you can save. Believe it or not, knowing about the tax rates and changes can greatly help in efficient financial planning.
In the 2011 bill, a few changes are made, a few things remain unchanged and a few temporary ones will expire in 2012. For better or for worse, these changes will affect individuals and businesses in one way or another. Let’s take a look at what these changes are.
- The lowest bracket remains 10%, this is a temporary extension till 2012. Otherwise it would have gone up to 15%. 25%, 28%, 33% and 35 % tax bracket for individuals is also temporarily extended. The current law related to these tax brackets was going to expire in 2011. If it wasn’t extended the current brackets would have gone up to 28%, 31%, 36% and 39% respectively.
- Standard deduction rates remain largely the same. For a single taxpayer, the amount of deductions is $ 5,800. For married couple filing jointly, it is $11,600. Senior citizens will get an additional standard deduction of $ 1,150.
- The personal exemption amount for last year was $3,650 and this year it is raised to $3,700.
- Extensions are also made on deduction of state and local sales tax and deduction of private mortgage insurance premiums. Through 2011, state and local sales tax can be deducted instead of state and local income tax. Mortgage insurance premiums will also continue to be deducted by homeowners.
- The Alternate Minimum Tax exemption for 2011 is $48,450 for single tax payers and $74,450 for those filling jointly. Married couple filing separately will have to pay $37,225.
- 2011 tax changes also include a temporary repeal on Personal Exemption phase-out. This will be a good news for high-income tax payers. Personal exemptions of high-income tax payer will be reduced to adjusted gross income increases.
- Pease limitations are also temporarily repealed. According to Pease provisions, itemized deduction is reduced by 3% at the top of the brackets for high-income tax payers.
- Capital gains and dividends will also remain low through out the year.
- Under the temporary tax cut on Employee payroll tax, the percentage is reduced to 4.2% from 6.2 in 2010. The rate for self employed individuals is reduced from 12.4% to 10.4%.
- For teachers a $250 deduction is also introduced as a deduction for states sales taxes in lieu of state income tax deductions.
This is a guest post from Albert Harris, contributing writer at CreditDonkey.com. Avoid other costly mistakes in 2011 by reading our credit card tips.
Related articles
- TurboTax Presents Overlooked Tax Deductions (2010tax.org)
- Parents Can Claim Benefits On Their 2010 Tax Return (goarticles.com)
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February 13, 2011