D’Arcangelo Blog

New Rule for Medical Expense Deductions

With the ever-increasing cost of health insurance and medical care, you should be vigilant in looking for chances to claim any possible healthcare-related tax breaks. Unfortunately, changes taking effect this year make that harder than ever. Here’s the story, along with some potential solutions. Itemized Medical Deduction Threshold is Now Higher Before this year, you couldContinue reading →

Welcome to the New “Marriage Penalty”

When the Health Care Act of 2012 went into effect on January 1, 2013, it included an additional payroll tax equal to 0.9% of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly. This has created an obvious potential for a very inequitable penalty for the married couple. Using theContinue reading →

Fiscal Cliff Law Extends IRA Donation Tax Break

If you’ve reached 70 ½ and have more IRA money than you really need, the recently passed fiscal cliff legislation allows you to make cash donations to IRS-approved charities out of your IRA. These so-called qualified charitable distributions (QCDs) have been allowed in past years, but the privilege expired at the end of 2011. Thankfully,Continue reading →

Are You a Good Qualified Charitable Distribution Candidate?

If you can afford to donate IRA money, you can benefit tax-wise if you match one or more of the following profiles. 1. You don’t itemize deductions (under the normal rules only itemizers get any income tax benefit from charitable donations). 2. You itemize, but your charitable donation deductions for 2013 would be delayed byContinue reading →

Several Tax Breaks Made Permanent

One of the most confusing and frustrating aspects of the tax code is lawmakers’ practice of making tax breaks available for a year or two – and then deciding whether or not to extend them. Thankfully, the new law makes several provisions “permanent.” This doesn’t mean that Congress will never discontinue these tax breaks but we nowContinue reading →

Tax Changes for Individuals in the “Fiscal Cliff” Law

The American Taxpayer Relief Act of 2012, also known as the “fiscal cliff legislation,” was signed into law by President Barack Obama on January 2, 2013. Despite the name of the law, all workers will pay higher federal taxes this year due to the demise of the so-called “payroll tax holiday.” The good news: The newContinue reading →

Tax Provisions in the 2012 American Taxpayer Relief Act

The recently enacted 2012 American Taxpayer Relief Act is a sweeping tax package that includes, among many other items, permanent extension of the Bush-era tax cuts for most taxpayers, revised tax rates on ordinary and capital gain income for high-income individuals, modification of the estate tax, permanent relief from the AMT for individual taxpayers, limitsContinue reading →

“Fiscal Cliff” Throws Wrench Into Tax Planning

The debate in Washington, D.C. over how to resolve the nation’s debt, tax, and spending issues has been dominating headlines since the November 6 election – it’s also dramatically changing tax planning. Routine advice such as planning ahead on your tax strategy for the coming year has been turned on its head in some casesContinue reading →

Tax Time? Already?!

When do you start thinking about your taxes? April 10th? If that’s your answer stop reading and go back to carving your pumpkin with the kids or grandkids. I procured a humungous pumpkin this year and made a happy face on it. I always make a happy face on my pumpkin. Even if you sayContinue reading →