Ouch! The Estimate Tax Penalty Is at a 16-Year High
The United States has a “pay as you go” tax system in which payments for income tax (and, where applicable, Social Security and Medicare taxes) must be made to the IRS throughout the year as income is earned, whether through withholding, by making estimated tax payments, or both. You suffer an estimated tax penalty if […]
Working Overtime? Take advantage of Tax-Free Super Money
Tax law often discriminates against company owners, granting them no or fewer fringe benefits. But you, the owner, are not discriminated against when it comes to supper money. It works like this: The supper money fringe benefit is for defined employees. The IRS supper money rule states that the term “employee” for this purpose means […]
The IRS Dirty Dozen List: More Than Just a Gimmick
Have you heard about the enormous tax savings you can reap by investing in a Maltese individual retirement arrangement or utilizing Puerto Rican captive insurance for your business? Before you invest your hard-earned money in these or other highly promoted tax schemes, you should check the IRS Dirty Dozen list. For over 20 years, the […]
Options for Overfunded 529 College Savings Accounts
You can accumulate federal income-tax-free earnings with a Section 529 college savings plan account. Then, you can take federal-income-tax-free withdrawals to cover qualified education expenses, usually for college. Great! But what if your designated account beneficiary decides not to attend college? What are your options, and what are the federal income tax consequences for those […]