Just posted a tip on my website about section 105 medical reimbursement plans. A good way to take a medical deduction you may or may not get on your itemized deductions. Check it out on www.briantstonercpa.com under tax and financial tips.Nothing new that I can see on extending the Bush Tax Cuts. Three weeks to go before they expire. Will they be extended in exchange for an extension of unemployment compensation? Tune in to our next thrilling episode (or 2 or 3 or more) to find out!The 2% reduction in the social security payroll tax (as opposed to the $400 or $800 making work pay credit) makes this a middle class tax savings that Obama should be able to sell, but what does it do long term for social security stability. Still think in the future there will be some messing around with the age when you can get full benefits. The payroll tax savings will only be for one year. Is there more to come. We shall see.
Brian’s Tax Musings
As I thought, the extension of Bush’s tax cuts will go hand in hand with extending unemployment for 13 months. It is slowly winding its way through Congress, and many Democratic congressmen may not back the President.Tax rates, including 15% on long-term capital gains and dividends, stay the same, except for payroll and estate taxes.Social secuity taxes for employees (not employers) go down 2% (I assume also for half of SE tax), while estate exclusion will be 5,000,000 and top rate 35%. The child-care, earned income and education credits will get extended and the AMT gets indexed for inflation. This is good for 2011 and 2012, just in time for the Presidential Elections.I am curious to see how long it takes for this bill to be passed, reconciled and signed. We will see.
Brian’s Tax Musings 2
I almost forgot – if you bought new doors and/or windows you may be entitled to an energy credit of up to $1500. Exterior doors and windows, energy efficient hot water heaters, even insulation can qualify. Keep track of it this year so your tax preparer (hopefully that is me) can file the form to take the credit.