Brendan Willmann, Enrolled Agent
Health Savings Account Contribution Limits – 2013 and 2014
With the popularity of high deductible medical insurance plans on the rise, an increasing number of people are eligible to contribute to a Health Savings Account (HSA). Employee or individual contributions to a Health Savings Account are either tax-deductible when made from payroll or deductible on the first page of the 1040 tax return. As […]
Simplified Home Office Deduction Considerations
For 2013 the IRS has introduced a far simpler, alternative calculation method for taxpayers claiming the home office deduction. The new method simply multiplies the eligible square footage (up to a maximum of 300 square feet) by $5 to determine the allowable deduction. While simplification of the tax code is usually welcome news, there are […]
Educational Exclusion
In general, gifts to a non-spouse that exceed $14,000 (in 2013) require the filing of a gift tax return (Form 709). However, there are three exclusions: political organizations, educational exclusions and medical exclusions. Transfers that qualify for any one of these three exclusions are not subject to gift tax and do not require the filing of a […]
Roth IRA Income Phase-Out
The Roth IRA can be a very attractive savings option for a number of reasons. The primary benefit of the Roth IRA is the potential to avoid taxation on future qualified withdrawals, most notably in retirement. This is particularly advantageous for taxpayers who are otherwise ineligible to make tax-deductible contributions to a Traditional IRA. Unfortunately […]
2013 Tax Increases: Widespread and Still Unsettled
From the morning after the election until after midnight on New Years the “fiscal cliff,” a supposedly monstrous combination of burdensome tax increases and draconian spending cuts provided cable television with more than enough material for ‘round-the-clock sensationalism not seen since well, 2011, when Congress was first unable to reach an agreement on the issue. […]
Retirement Saver’s Credit for Retirees
The retirement saver’s credit may be a well-intentioned incentive to encourage millions to to put money aside for retirement. In practice however, I’ve only seen the credit claimed by semi-retired individuals who supplement their retirement income with part-time employment. (The credit would be popular with students but unfortunately full-time students are specifically excluded.) The credit is […]
Health Savings Account Contribution Limits – 2012 and 2013
With the popularity of high deductible medical insurance plans on the rise, an increasing number of people are eligible to contribute to a Health Savings Account (HSA). Employee or individual contributions to a Health Savings Account are either tax-deductible when made from payroll or deductible on the first page of the 1040 tax return. As […]
401(k) Contribution Limit for 2013
The 401(k) contribution limit will increase to $17,500 for 2013. No change has been made to the “catch-up provision” for plan participants age 50 and older. They will still be able to contribute an additional $5,500 for a total of $23,000. As with the IRA contribution limit, this is an aggregate participant contribution limit meaning […]
2013 IRA Contribution Limits
The maximum allowable contribution to Traditional and Roth IRAs will increase to $5,500 in 2013. $5,500 is the aggregate contribution limit meaning that an individual can contribute to both a Traditional and Roth IRA but the total contribution cannot exceed $5,500. A “catch-up provision” is available to those age 50 or older allowing for an […]
IRS raises standard mileage rate in 2013
The IRS has issued the 2013 standard mileage rates for 2013. Effective January 1, 2013, business miles driven are eligible for a deduction at a rate of 56.5 center per mile. This is an increase of a penny per mile from the 2012 rate. Note that mileage rates for medical and moving are lower than […]