Monday March 10, 2014
The IRS will grant a person an additional six months to file their tax return. To request this extra time, file an extension with the IRS on or before the deadline.
Filing an extension provides several benefits. Besides extra time to file the tax return, an extension also provides extra time to fund a self-employed retirement plan and to recharacterize IRA contributions.
For individual taxpayers, an extension is requested using Form 4868. The IRS will extend the filing deadline from April 15th, 2014, to October 15, 2014.
For corporate taxpayers, an extension is requested using Form 7004, and the IRS will extend the filing deadline from March 17th, 2014, to September 15th, 2014.
Friday March 7, 2014
If you, or someone you know, still needs to file a tax return for the year 2010, listen up. There is an important deadline approaching. Read More...
Thursday March 6, 2014
Health savings accounts (HSA) provide an opportunity for people to save up for medical expenses using pre-tax dollars.
"A health savings account is an account that is specifically designed to be used with a high deductible insurance policy," notes Miriam Caldwell.
Contributions to a health savings account are tax-deductible. And as long as the funds are used to pay for medical expenses, distributions from a health savings account is tax-free. There are no restrictions on when the money must be spend, so the savings can accumulate from year to year until needed for a major medical expense.
This combination of tax-deductible savings plus tax-free distributions is a powerful money-saving combination, as Dana Anspach explains.
To be eligible for the deduction, individuals need to be covered by an HSA-compatible high deductible health insurance plan.
Digging deeper, Trisha Torrey explains how health savings accounts work, and Bobbie Sage answers the top 10 frequently asked questions about HSAs.
Wednesday March 5, 2014
Did you relocate for work last year? If so, you might be able to deduct the cost of moving.
Moving expenses are deducted if a person started a new job and the new job is located at least 50 miles farther from your old home than the distance between your old home and your old job. This deduction is available for employees and self-employed people who relocated for work, and for Americans working abroad who retire and move back to the United States.