Official 2012 Federal Income Tax Brackets

The final figures for the 2012 Income Tax Brackets have been confirmed by the IRS (pdf file). The current tax rate structure we use has been in place since 2003 and consists of 6 rates: 10%, 15%, 25%, 28%, 33% and 35%. These 6 tax rates will remain in effect through 2012, but we expect […]

Published or Updated: September 7, 2013

Official 2011 Income Tax Brackets

With 2011 about to come to a close, my mind always turns to taxes. For the 2011 tax year, tax returns will be due April 17, 2012 (April 15, 2012 falls on a Sunday and April 16, 2012 is Emancipation Day in the District of Columbia). So I thought it would be helpful to pull […]

Published or Updated: December 30, 2011

The Millionaire Tax To Nowhere

Millionaire Tax--Tax the Rich

There was a time when millionaires were revered in this country. Becoming a millionaire was a financial goal of many, and those who reached this elusive pinnacle were evidence that the American Dream was alive and well. Today, the “rich” are seen as the source of all our economic woes. President Obama has fanned the […]

Published or Updated: October 7, 2011

The ‘Buffett Tax’ May Just Wallop His Secretary

Buffett Tax

The online news machine is abuzz with President Obama’s new tax plan. Calling it the Buffett Tax after famed investor Warren Buffett, the president is proposing a plethera of new taxes. These new taxes include new taxes on millionaires and new taxes on the “rich,” meaning married couples who make more than $250,000. And to […]

Published or Updated: October 19, 2011

Is the IRS Friendlier Than It Used To Be?

Growing up, I had always been under the impression that the IRS was the most brutal of government agencies.  To receive an audit from them was nothing short of misery and once the IRS had you in their sights, there was no escaping the financial nightmare.  Now, having experienced the IRS a few times on […]

Published or Updated: June 28, 2011

The Adoption Tax Credit and Form 8839

IRS Form 8839

When my wife and I adopted our children (in the 1990s), there weren’t any adoption tax credits for us to take advantage of. Today, however, if you’ve adopted a child, you may be able to claim an income exclusion of $13,170 from your income and a tax credit for the same amount, depending on the […]

Published or Updated: March 12, 2012

What is Adjusted Gross Income (AGI)?

Money Tree

If you’ve read a bit about personal finance, chances are that you’ve heard the term Adjusted Gross Income (AGI). A fair bit of tax considerations are based on AGI, so it’s well worth familiarizing yourself with the term. Here’s a quick introduction to AGI and when you might need to consider yours. Calculating Adjusted Gross […]

Published or Updated: September 12, 2012

What is IRS Tax Form 4137?

IRS Form 4137

Although many outside of the service industry are unaware, employees are required to report cash and charge tips to the IRS. Employers then account for the tip in their tax accounting and withholding. Employees are required to issue a written report during any month in which they receive $20 or more in tips. If an […]

Published or Updated: March 15, 2013

What is IRS Tax Form 2106EZ?

Form 2106EZ

Have you ever found yourself shelling out a bit of cash because of your job for things that your employer doesn’t reimburse? Perhaps you had to travel for work, or use your cell phone for work for the convenience of your employer. You may be pleasantly surprised to find out that you can deduct some […]

Published or Updated: March 15, 2013