According to the IRS, to be deductible, an expenditure must be both "ordinary" and "necessary" in connection with your profession. The IRS defines "ordinary" as common and accepted in a particular profession and "necessary" as helpful and appropriate for a particular profession. Here’s a list of 16 professional expenditures commonly incurred by young health care… Continue reading Deducting Un-reimbursed Professional Expenses
Tag: IRS
IRS Increases Retirement Plan Limits for 2014
Contributing to a retirement plan is one of the best tax shelters available to you during your working years. Recently, the IRS announced that most of the retirement savings limits will NOT increase for 2014. RETIREMENT PLAN LIMITS FOR 2014: Savings Opportunity Maximum Contribution for 2014 401(k) or 403(b) Deferrals $17,500 in 2014 Roth and Traditional… Continue reading IRS Increases Retirement Plan Limits for 2014
Deducting Un-reimbursed Professional Expenses
According to the IRS, to be deductible, an expenditure must be both "ordinary" and "necessary" in connection with your profession. The IRS defines "ordinary" as common and accepted in a particular profession and "necessary" as helpful and appropriate for a particular profession. Here’s a list of 16 professional expenditures commonly incurred by young health care… Continue reading Deducting Un-reimbursed Professional Expenses
IRS Delays Tax Season
The IRS has announced it will delay the start of tax season due to the Federal government shut-down. The agency needs adequate time to program and test tax processing systems prior to the start of next tax season. The earliest individual tax returns will be accepted is now January 28, 2014. The filing deadline remains… Continue reading IRS Delays Tax Season
DOMA Decision and Federal Tax Impact on Same Sex Married Couples
by Richard S. Schwartz CPA. CVA NOTE: On August 29th,the IRS announced that all legal same-sex marriages will be recognized for federal tax purposes. In June 2013, the US Supreme Court overturned Section 3 of the Defense of Marriage Act (DOMA), which defined a marriage as a union between a man and a woman for… Continue reading DOMA Decision and Federal Tax Impact on Same Sex Married Couples
Keep Financial Records Safe in Case of a Disaster
From IRS News: Hurricanes, tornadoes, floods and other natural disasters are more common in the summer. We encourage you to take a few simple steps to protect your tax and financial records in case a disaster strikes. Here are five tips from the IRS to help you protect your important records: 1. Backup Records Electronically. Keep… Continue reading Keep Financial Records Safe in Case of a Disaster
Tips for Taxpayers Who Travel for Charity Work
From IRS Tax Tips Newsletter: Do you plan to travel while doing charity work this summer? Some travel expenses may help lower your taxes if you itemize deductions when you file next year. Here are five tax tips the IRS wants you to know about travel while serving a charity. 1. You must volunteer to work… Continue reading Tips for Taxpayers Who Travel for Charity Work
Summer Job Alert for your Working Kids: Claim Exempt
I graduated from Wharton in 1987. For those of you keeping score at home, that means I've been working at my practice for a score and a quarter plus one. Now that I've been practicing for twenty-six years, many of the clients I picked up earlier in my career have children in high school or… Continue reading Summer Job Alert for your Working Kids: Claim Exempt
SAVE MONEY WITH THE CHILD TAX CREDIT
From the IRS Tax Tips News: If you have a child under age 17, the Child Tax Credit may save you money at tax-time. Here are some facts the IRS wants you to know about the credit. Amount. The non-refundable Child Tax Credit may help reduce your federal income tax by up to $1,000 for… Continue reading SAVE MONEY WITH THE CHILD TAX CREDIT
First-Time Homebuyer Credit Look-up Tool
From The IRS Tax Tips Mailing: The IRS no longer mails reminder letters to taxpayers who have to repay the First-Time Homebuyer Credit. To help taxpayers who must repay the credit, the IRS website has a user-friendly look-up tool. Here are four reminders about repaying the credit and using the tool: 1. Who needs to repay… Continue reading First-Time Homebuyer Credit Look-up Tool
IRS SIMPLIFIES CALCULATING HOME OFFICE DEDUCTION
Check out Rev-Proc 2013-13 to learn about a simplified way that taxpayers can calculate the home office deduction starting in 2013. Here is the press release issued by the IRS: IRS Announces Simplified Option for Claiming Home Office Deduction Starting This Year; Eligible Home-Based Businesses May Deduct up to $1,500; Saves Taxpayers 1.6 Million Hours… Continue reading IRS SIMPLIFIES CALCULATING HOME OFFICE DEDUCTION
WHAT’S NEW WITH THE FICA REFUND?
In a shocking development, the IRS recently announced that they will be honoring the FICA tax refunds submitted by residency programs and individual doctors. The catch is that only FICA taxes paid prior to 4/1/05 qualify. For more information, go to our MDTAXES' April 2010 Newsletter, our January 2009 Newsletter, or our February 2001 Newsletter or… Continue reading WHAT’S NEW WITH THE FICA REFUND?
COST OF MEDICAL DEVICES TO INCREASE JAN.1 – PT.1
Owners of medical and dental practices beware! Due to a provision included in the Affordable Care Act, the cost of medical devices is set to increase by 2.3% on January 1, 2013. Called an Excise Tax, manufacturers are required to collect a COST OF tax equal to 2.3% of the sales price of each piece… Continue reading COST OF MEDICAL DEVICES TO INCREASE JAN.1 – PT.1
HOW LONG DO YOU NEED TO KEEP YOUR TAX RECORDS?
At my firm, we get this question all the time: "How long do I need to keep my tax records?" Here is the IRS answer to this question: Well organized records make it easier to prepare a tax return and help provide answers if your return is selected for examination, or to prepare a response… Continue reading HOW LONG DO YOU NEED TO KEEP YOUR TAX RECORDS?
IRS: Job Search Expenses Can Be Tax Deductible
Many healthcare professionals work based on the Academic Calendar. That means that a lot of Doctors switch jobs over the summer. According to our friends at the IRS in their IRS Summertime Tax Tip 2012-06: Summertime is the season that often leads to major life decisions, such as buying a home, moving or a job… Continue reading IRS: Job Search Expenses Can Be Tax Deductible