Archive for November, 2012

IRS Increases Mileage Rates for 2013

Friday, November 30th, 2012

The Internal Revenue Service today issued the 2013 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.
Beginning on Jan. 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
• 56.5 cents per mile for business miles driven
• 24 cents per mile driven for medical or moving purposes
• 14 cents per mile driven in service of charitable organizations

Read More » [IRS]

New Income Tax Surcharge to hit in 2013

Thursday, November 15th, 2012

A new tax 3.8% income tax surcharge will become effective on taxable years beginning on and after January 1, 2013. These new surcharges have been put into place to help finance the recent healthcare reform.

This surtax will apply an annual 3.8 percent tax to the net investment income of individual taxpayers, including distributions of net investment income from trusts and estates. The surtax will generally be paid by taxpayers on net investment income when the taxpayer’s modified adjusted gross income exceeds the established thresholds, which are $125,000 for married person filing separate, $200,000 for an individual or $250,000 for a married couple filing jointly.

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Maryland Homestead Tax Credit

Thursday, November 15th, 2012

By the end of 2012, all Maryland homeowners must reapply for the Homestead Tax Credit, which helps offset large assessment increases for property tax purposes in a given year. The law requires the state government to limit increases in the taxable assessment of a property to a maximum of 10% per year for properties to which the Homestead Tax Credit applies, and certain counties and municipalities have a lower percentage for their portion of the property tax assessment. The tax credit works by providing a reduction in the actual taxes paid, rather than reducing the assessment value of the property. The result is that homeowners do not pay property tax on assessments that exceed the percentage thresholds in the current year for example Stock Locksmith.

Read More» Downloadable Version ( PDF )

Employers hit by rising health costs look to high-deductible plans

Friday, November 9th, 2012

There’s a good chance during open enrollment this fall that you will be offered a high-deductible insurance plan with a savings account — if you haven’t already been nudged into one.
Increasingly, employers are offering this as a way to rein in their health insurance costs. The high deductible means lower premiums, benefits experts say. And employees — confronted with the prospect of potentially paying thousands of dollars before insurance kicks in — are less likely to run to the emergency room for minor problems, which also keeps costs down.

Read More » [baltimoresun.com]

14 tax issues to watch after the election

Friday, November 9th, 2012

These personal tax matters could see changes in 2013, depending on who wins the White House.
Whatever happens in the election on Nov. 6, the next Congress and president will face a heaping helping of unfinished tax business. Here’s the second part of our two-part story on the most important unresolved personal tax issues — along with some fearless predictions.

Read More » [marketwatch.com]