Latham: 518.785.0134 | Queensbury: 518.792.6595
I know it's only February but thinking about retirement limits and retirement goals should be going on at all times. Here are the limits as they relate to 2011:
One of the big shocks coming from the government lately was the reduction in the Social Security withholding tax. In the past 6.2% of your wages up to $106,800 were withheld for “your” social security account (basically the max they would withhold would be $6,621) but currently the rate has been reduced to 4.2% - which is a shock to a lot of people because of the problems you hear about social security having being in the RED all the time. It will produce revenue for the government though because now that amount that used to be withheld pretax will be taxable income to the employee - unless….. think about increasing your 401(k) contribution by the 2% - meaning net-net you will be taking home the same amount of money as in the past but you will be banking more for your retirement - basically let this reduction fund your retirement account. If you are over the wage threshold of $106,800 or you are already contributing the max to your retirement account this might not be that big of a deal to you but if you are not in either one of those boats think about it!!!
Here is a great article about the possible repealing of the crazy 1099 requirements that are headed our way in 2011 and 2012. For 2011 the big change is for landlords - if you own rental property and you have any service done on your rental property during 2011 - anything over $600 (aggregate) would have to be recorded on a 1099MISC. For 2012 - the BIG CHANGE is being required to provide a 1099 for either services or purchases - this could be a HUGE burden on small businesses and any business for that matter. Check out the article and give me a buzz/email if you have any questions…
I know they don't always stick to their word but it is at least nice to hear that they are talking about small businesses. Now if they will just amend some of the ridiculousness surrounding the new 1099 requirements starting this year and next.
With President Obama's signing of the Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010 on December 17th, one thing became clearer: most estates for those who died in 2010 would not be subject to the Federal Estate Tax. For example, the billion dollar estate of form Yankees owner George Steinbrenner will only be subject to New York State estate tax, which tops out at about 16% and not the Federal Estate Tax, which will help the Steinbrenner family to continue to pay the highest dollar for young baseball talent and free agents (some overpriced I may add).
I get this question all the time and the attached is a great article that provides dates as to if you file your return by a certain date when you can expect to get your refund. Notice the dates are about a week to two weeks earlier for direct deposit so keep that in mind when you are filing.
Thank you all for taking the time to join my blog. My goal is to keep hot tax topics in front of you either at the Federal or state level. I am involved in personal and corporate tax as well as head of our non-profit tax department here at Marvin and Company, so hopefully you will be able to find part or all of my blog useful. As with every other professional though I do have to issue a disclaimer. So much of tax is specific to its situation, so these blogs are to get you thinking about your own personal situation and then take your new found information to your accountant or your attorney to discuss action steps further. Please do not use this information as the end-of-all-ends because without knowing your every detail it would be almost impossible to give you advise over a blog.