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Is Long- Term Care insurance a Tax Deductible Medical Expense?

Nursing-home care can be very expensive. As a result, insurance for such care is growing in popularity. Fortunately, there is some tax relief for these expenses. Both the cost of qualified long-term care and insurance coverage for such care qualify as deductible medical expenses.

“Qualified long-term care” services are necessary diagnostic, preventive, therapeutic, curing, treating, mitigating, and rehabilitative services, and maintenance or personal-care services required by a chronically ill individual. The services must be provided under a plan of care presented by a licensed health care practitioner. (more…)

Corporations want US tax reform
August 24, 2011   |   , , ,

An interesting article about corporations wanting a the US tax code to be reformed and loopholes should be closed.  the article also talks about economic uncertainty and future investments.

http://www.reuters.com/article/2011/08/18/us-ge-immelt-idUSTRE77H7IG20110818

Obama wants to add new round of economic stimulus
August 24, 2011   |   , , ,

Obama wants to propose new job stimulus bill that will include a ta x cut for companies to hire new jobs.  New spending for construction and new roads.  Also mortgage relief for struggling homeowners.  The question is do we need a new round of economic incentives?

See article concerning Obama.

http://www.washingtonpost.com/politics/obama-to-issue-new-proposals-on-job-creation-debt-reduction/2011/08/17/gIQALaG9KJ_story.html?hpid=z1

What are Happening to the New Jobs?
August 23, 2011   |   , , ,

Where are the new JOBs?

Is this an economic recovery without new jobs?

See the Wall Street Journal article

http://professional.wsj.com/article/SB10001424052702303544604576433541086114816.html?mg=reno-secaucus-wsj

The IRS is watching the US Open
June 19, 2011   |   , ,

According to the attached link the IRS is closely watching golf’s US Open.  They watching the foreign golfers and trying to determine the golfer’s endorsement income that is taxable in the United States.  These rules will apply to other professional athletes.

See the article regarding IRS action against professional golfers.

http://www.bloomberg.com/news/2011-06-16/golfer-goosen-s-tax-court-case-tests-principle-that-image-is-everything.html

Look at What the State of Illinois wants to do to You
March 7, 2011   |   , ,

The Illinois State Assembly is at it again.  They want to raise your taxes by taxing retirement benefits.  See the link below as State Senate Majority Leader John Cullerton takes about raising taxes.

http://newsblogs.chicagotribune.com/clout_st/2011/03/illinois-senate-president-wants-to-look-at-taxing-retirement-income.html

House is Expected to Pass 1099 Repeal

The attached article notes that the House is expected to pass the repeal of the 1099 reporting rules that were part of the Health Care Reform Act.  Once passed the House and Senate most reach an agreement via Joint Conference.

http://www.congress.org/news/2011/03/01/house_senate_disagree_on_1099s#src=db

Are You getting Paid by Your Customers?
February 24, 2011   |   , , ,

An interesting article about how your customers are taking longer to pay your small business are how you are being required to pay your vendors quicker.  Everybody needs to watch their cash flow and prepare cash flow projections.

http://www.businessweek.com/smallbiz/content/feb2011/sb20110222_359563.htm

You may owe more Tax to Illinois than You think
February 15, 2011   |   , , ,

You may owe more tax to the State of Illinois than you think.  Your 2010 individual income tax return has a new line, namely line 22 that require you to report and pay use tax. 

What is use tax?  If the seller of a product does not collect sales tax then you as the purchaser owe use tax to the State of Illinois.  The common purchases you make without sales tax being collected are made over the internet, mail order catalog or when traveling outside of Illinois.

Instructions for the individual income tax return list these examples of when you may owe use tax:

(more…)

New Tax breaks for 2011
February 13, 2011   |   , , ,

Small Business Health Care Credit for Providing Health Insurance to your Employees.

The IRS issued a second wave of detailed guidance on the small employer health insurance credit created by last year’s health reform legislation. For tax years beginning after Dec. 31, 2009, an eligible small employer (ESE) may claim a tax credit for nonelective contributions to purchase health insurance for its employees. An ESE is an employer with no more than 25 full-time equivalent employees (FTEs) employed during its tax year, and whose employees have annual full-time equivalent wages that average no more than $50,000. However, the full credit is available only to an employer with 10 or fewer FTEs and whose employees have average annual full-time equivalent wages from the employer of not more than $25,000. And, in general, the ESE must pay not less than 50% of the premium cost of the employee health plan. The new guidance examines which employers qualify for the credit and which employees may be counted for credit purposes. It includes new rules for satisfying the complex uniform contribution requirement with special transition rules for 2010. The IRS also issued the final version of Form 8941 (Credit for Small Employer Health Insurance Premiums), which is used to claim the credit.

You may Earn Up-to-$1,000 credit for Hiring new Employees in 2011.

Employers may claim a “retention credit” for retaining qualifying new employees (certain formerly unemployed workers meeting specific requirements). The amount of the credit is the lesser of $1,000 or 6.2% of wages paid to the retained qualified employee during a 52 consecutive week period. The qualified employee’s wages for such employment during the last 26 weeks must equal at least 80% of wages for the first 26 weeks. The credit may be claimed for a retained worker for the first tax year ending after Mar. 18, 2010, for which the retained worker satisfies the 52 consecutive week requirement. However, the credit applies only for qualifying employees hired after Feb. 3, 2010, and before Jan. 1, 2011.

Standard Mileage Rates for 2011.

The optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is 51¢ per each business mile traveled after 2010. That’s 1¢ more than the 50¢ allowance for business mileage during 2010. Further, the 2011 rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction is 19¢ per mile, 2.5¢ more per mile than the 16.5¢ for 2010.

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