Tax News
Saturday February 4th, 2012
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Frequent-Flier Tax Traps
Consumers who got a chunk of frequent-flier miles as a reward for signing up for a new Citibank credit card are upset that Citi has sent a list of recipients to the IRS. Does this mean such rewards are taxable?
Annuitizing Your 401(k)
Washington is making it easier for workers to purchase lifetime-income products in retirement-savings plans—and insurers are following suit.
Corporate Taxes Fall to 12.1%
Total corporate federal taxes paid fell to 12.1% of U.S. profits in the government's latest fiscal year, the lowest level since at least 1972 and well below usual rates of around 25%. Most of the credit--or blame--goes to a temporary break to spur investment.
IRS Spearheads Bid to Head Off ID Theft
The U.S. arrested 58 people over the past week in a national crackdown on identity theft led by the IRS and the Department of Justice, the tax agency said, as it steps up prevention efforts.
Maximum Money: Five Tools to Lower Your Tax Bill
Losses in the stock market and investments in infrastructure bonds can help reduce the taxes you have to pay this year.
Blessings of Gridlock: Few Changes in Taxes
Taxpayers will have to grapple with relatively few tax-law changes on their federal income-tax returns for 2011, but some of the new forms and changes there are can be tricky.
What You Can Learn From Mitt's Tax Return
Republican presidential candidate Mitt Romney's 2010 filing is a case study in tax planning. Here is a guided tour.
The Private Pension Plan
If you're self-employed and in the top echelon of earners, there's a big potential retirement-plan tax break available to you—and you don't even have to be Mitt Romney to get it.
AMT Complicates Tax-Payment Estimates
Calculating quarterly tax payments may prove more difficult than usual given the expiration of the 'patch' for the alternative minimum tax, though many expect Congress will revive it at some point this year.
Will the IRA Charity Rule Be Extended?
A provision allowing people age 70½ or older to transfer as much as $100,000 a year directly from an IRA to qualified charities, without triggering taxable income, is likely to be resurrected. But no one knows for sure.
The Disappearing IRA Charitable Donation
What should would-be IRA donors do this year, with the law still in limbo?
The Rally That Wouldn't Die
Treasury bonds have been on a 30-year tear. Whether or not the party can last is beside the point—there are far better places to put your money.
Not All ETFs Are Tax-Smart
Here's how exchange-traded funds can help investors hold off Uncle Sam—or can trip them up.
Tax-Law Changes for 2012
Most of the changes stem from annual inflation adjustments that affect income-tax brackets, the standard deduction and other provisions.
The Road Ahead for Taxes
With Washington unlikely to address major tax questions soon, taxpayers are facing a lot of guesswork. Here's what to do now.
IRS Targets High Earners
If your income is high, your chances of getting a visit from the Tax Man are on the rise—and there isn't much you can do.
U.S. Income 'Tax Gap' Widens
The IRS estimated that Americans underpaid their taxes by $385 billion for tax year 2006 in its latest report on the nation's "tax gap."
What Is the Payroll Tax Reduction?
The payroll tax, which has been extended for two months, differs from the federal income tax rate, which will remain unchanged for 2012.
Building Your Financial Dream Team
With stock markets volatile, tax rates uncertain and estate laws facing review next year, these are challenging times for financial advisers, accountants and lawyers. Are yours making the grade?
Campaign 2012's Harsh Backdrop
Most elections turn on the economy, but that figures to be especially true this time, meaning Obama would seem to face bleak prospects. But he holds some advantages.
Remember the Muni-Bond Crash?
It's been a full year since Wall Street analyst Meredith Whitney boldly warned of a collapse of the municipal-bond market "within the next 12 months."
How to Dodge Last-Minute Tax Traps
Racing to meet year-end deadlines for charitable and personal gifts and investment tax planning? Read this first.
IRA Heirs Do's and Don'ts
We answer readers' questions about the best ways to get the full value out of an inherited retirement account.
Make Your Nest Egg Last Longer
One adviser's plan for stretching your retirement savings and lowering your taxes involves an unconventional strategy: making simultaneous withdrawals from tax-deferred and taxable accounts—and possibly deferring Social Security payments.
Paying Taxes on IRAs
Ask Next: Karen Damato answers readers' questions on the tax implications of IRA distributions, Social Security survivor benefits and helping grandkids save
Tax Deductions for Car Usage
If you use your car for business purposes, you may be eligible for tax deductions. There two ways to crunch the numbers.
What's Next? The Outlook for 2012
Four financial advisers talk about market volatility and whether it will continue in 2012. They also tell which financial sectors have the most promise for investors and which have the most peril.
A Question of Trust
Trust preferred securities have sizable yields—but also some sizable risks.
Check If You're Missing a Tax Refund
The IRS is trying to return more than $153 million in tax-refund checks, which couldn't be delivered because of mailing-address errors.
States' Tax Benefits for 529 Plans Aren't Created Equal
Investors often look to their state's college-saving plans to get tax benefits for their contributions. But the tax savings are much richer in some states than in others.
What's Next for Offshore Accounts?
The IRS is ramping up efforts to flush out taxpayers hiding money abroad—even as new opportunities are emerging to move money offshore legally.
The Pitfalls of Inherited IRAs
It's much more complicated than you might expect. Here's how to handle it smoothly.
Tax Benefits of 529 Plans Vary Widely
The state-tax savings on 529 plans are much richer in some states than in others, as these figures for one hypothetical family show.
Be Tax-Smart in Year-End Donations
Mixing It Up: Mosaic Financial's Norman Boone offers charitable-giving advice and shares a model fund portfolio for investors seeking moderate risk.
Planning IRA Withdrawals
Adviser Alert: Plus, other news for brokers, wealth managers and their clients.
Tax-Wise Funds vs. ETFs
Do tax-managed mutual funds still make sense in the age of tax-efficient exchange-traded funds?
The Rules for Deducting Donations
Read the fine print, including the need to itemize deductions and get proper documentation and estimates.
Amazon Tells Lawmakers It Supports Sales Tax
An Amazon.com executive told a congressional hearing that the company supports federal legislation permitting states to collect sales tax from Internet retailers, as long as the rules are applied fairly.
Keep the Stock, Donate the Beans
Amid economic uncertainty, wealthy donors to charity are holding on to liquid assets and finding unusual alternatives to give, like 15,000 bushels of soybeans and a Boeing 747.
Donate to Charity From Your IRA
Provision allowing the transfer of as much as $100,000 directly from an IRA to a charity, tax-free, expires at year end.
Mitt Romney's Glass House
The Republican presidential contender took out after President Obama because he didn't help the deficit "supercommittee" succeed. But former Gov. Romney actually encouraged the representatives to fail.
There's Still Time to Cut Your 2011 Income Taxes
Here are a few things you can try between now and New Year's Eve that might ease this year's tax burden and set a course for dealing with whatever mischief Congress sends our way next year—and beyond.
The Tax Mess Deepens
Congress's failure to reach a debt agreement has left huge tax questions unanswered. Here's what to do before the end of the year.
Smaller Deal on Deficit Floated
Congress's deficit-cut talks broke into two tracks, with members of a special committee continuing to seek a $1.2 trillion deal while leaders discussed a backup plan in case they fail.
Milking Your Company Benefits
From flexible-spending plans to wellness-incentive programs, there's a lot out there to digest. We make sense of it.
Changes to Gift-Tax Rules?
Tax experts say rumors of changes to the gift-tax rules appear to be groundless. But what the congressional supercommittee will recommend is still anyone's guess.
Survivors' Biggest Mistakes
Widows and widowers often lose money needlessly. Here's what to watch out for.
Hidden Tax Deductions for Special Education
There are many tax breaks for education, but the most important one for special-needs students isn't technically an education break at all.
ETFs Mimic Stock Pickers' Strategies
Strategy-based exchange-traded funds are geared for investors who may like the theories of active managers but who want to avoid the whims of human decisions.
You Can Opt to Deduct Sales Taxes
People who itemize their deductions can choose to deduct state and local sales taxes paid rather than state and local income taxes.