Looking for something specific? Enter one or more keywords and search our entire site.	900 N. Kings Highway, Cherry Hill, New Jersey 08034 856.667.4100 · 215.563.0276 · Fax: 856.667.3652 Weekly Tax Tips 2005 Tax Tips Archive December 26th - Business Gifts: Know the tax rules The end of the year is a traditional time for business gift giving. Companies like to say thank you to customers, suppliers, and employees, and show their appreciation for the business relationship. Each business makes its own decision on who should receive a gift and how much to spend. But the IRS has a separate set of rules on how you must treat gifts for tax purposes. December 19th - These last-minute ideas could trim your 2005 taxes It’s late in the year but there’s still time to trim your 2005 taxes. Consider these ideas. December 12th - There’s still time to make a tax-free gift Did you know that you still have a few weeks to use your annual gift tax exclusion for 2005? This year, you can give up to $11,000 each to as many people as you want without adding to your gift tax liability. You can use this tax break in many ways: for example, in your estate planning, as part of an income-shifting strategy, or to fund a child’s education. December 5th - Changes are coming for hybrid tax breaks Changes are ahead if you’re thinking of buying a hybrid vehicle. At the end of this year, the current tax deduction will be replaced by a potentially more valuable tax credit. And the IRS recently added two more models to the list of qualifying vehicles. November 28th - Special rules let you tap into your retirement savings IRAs and 401(k) plans offer tax-favored ways to set aside money for your retirement. But what if you need to tap into your savings before you reach retirement? At a minimum, there’s usually a 10% penalty if you withdraw funds before you reach age 59½. November 21st - Take the mystery out of mileage reimbursement Each year the IRS publishes a standard mileage reimbursement rate. This is the amount you can claim for each mile you drive for business purposes. There’s another reimbursement rate if you use your car for charitable activities. A third rate may apply when you drive to doctor and hospital appointments, move to a new home, or search for a new job. November 14th - It’s time to review your investments As year-end approaches, you should review your investment portfolio. Look for notable winners or losers, rebalance your portfolio between stocks, bonds, and other investments, and decide what to keep and what to sell. November 7th - Did you receive your 2004 tax refund? You work hard to squeeze out every last deduction and credit, hoping for a bigger tax refund. You file your return. Then you move to a new address and forget all about that refund. Hard to believe? Yet it happened to over 84,000 taxpayers this year! October 31st - Changing jobs? Decide how to handle your 401(k) funds These days, you’re likely to have your retirement savings in a 401(k) plan instead of the traditional company pension plan. 401(k) plans offer tax-advantages and flexibility. But if you change jobs, you’ll have to decide what to do with the savings in your plan. October 24th - Avoid the rollover trap Have you decided to roll over your balance in one IRA into another IRA? Or perhaps you’ve changed jobs and need to move the balance in your 401(k) plan into an IRA. The rules allow you to make these kinds of rollovers without paying taxes. But if you do it the wrong way, you could end up scrambling for cash. October 17th - Organize your 2005 tax records Do you usually spend March and April scrambling to find last year’s tax records? Why not spend a little time this fall to organize your 2005 records? Next year you’ll be able to give your tax preparer a pleasant surprise, and perhaps you'll even earn yourself a faster refund. October 10th - Hurricane Katrina tax relief is signed by President Bush Congress quickly passed a tax bill to bring relief to victims of Hurricane Katrina, and President Bush signed the bill into law on September 23, 2005. Most of the law’s provisions benefit victims of the disaster, but some tax breaks apply to all taxpayers. Here’s an overview. October 3rd - It's time to review your 2005 tax situation The beginning of fall is a great time to get a head start on your 2005 taxes. It’s too early to prepare your return, but you can review earnings and deductions and organize your records. With three months left in the year, there’s still time to make adjustments for maximum tax savings. September 26th - Prepare for college with a Section 529 plan There are many tax breaks to help you save for college expenses, including tax credits, deductions, and tax-favored savings accounts. But some of the most generous and flexible are the "Section 529" plans. These plans come in two varieties. One type lets you prepay future tuition expenses, while the other is a savings account for higher education expenses. September 19th - Note the new standard mileage rates for the remainder of 2005 On September 9, the IRS announced an increase in the optional standard mileage rates for the last four months of 2005. These rates can be used in lieu of keeping track of actual vehicle expenses when conducting business, working for charity, moving to a new home, or traveling for medical care. September 12th - Tax savings in the new energy bill Are you a homeowner or a future car buyer? If so, you could qualify for some new tax breaks from an unlikely source – the energy bill signed by the President on August 8, 2005. Several new tax credits take effect in 2006, intended to promote energy savings. September 5th - There's still time to change last year’s IRA contribution Are you having second thoughts about last year’s IRA contribution? Perhaps you wish you’d made your contribution to a Roth IRA instead of a traditional IRA, or vice versa. Well, there’s still time to make a change even if you’ve already filed your tax return for last year. August 29th - Tax tips for a new graduate You’ve just graduated from high school or college and you’re about to start your first full-time job. Here are a few tax reminders as you set out. August 22nd - Cut current taxes with an exchange Imagine this scenario. You own several rental houses that have appreciated in value over the years. Now you’d like to invest in some land in a rapidly developing part of town. But to buy the land, you’ll need to sell the houses. And if you do that, you’ll face big capital gains taxes. August 15th - There are tax breaks for the disabled The tax code tries to be helpful to the disabled. It excludes some income from tax, it allows special deductions, and it gives tax credits. It also offers tax credits to businesses for employing the disabled and improving disabled access. Here’s a quick review of some of the special tax breaks. August 8th - Work a summer job — start an IRA If your children have summer jobs this year, you can help kick-start their lifetime savings. How? By encouraging them to open IRAs. August 1st - When you marry, don't overlook the paperwork After a summer wedding and a dream honeymoon, it’s back to the real world. Along with thank you notes for the wedding gifts, there’s some other paperwork you should deal with. It’s smart to get your tax affairs in order before tax season is upon you. July 25th - How to correct a mistake on your return What should you do if you find that you made a mistake on your tax return? Perhaps you find that you missed a big deduction. Perhaps you receive a late notice of income you earned. Or perhaps you should have itemized instead of taking the standard deduction. The answer is not to panic. Chances are you still have plenty of time to amend your return. July 18th - Now you have longer to use it before you lose it Do you participate in a Flexible Spending Arrangement (FSA) at work? If so, you know all about “use it or lose it.” That’s the year-end scramble to spend the pretax dollars left in your account. But now there may be partial relief. Recent regulations may give you 2½ months longer to spend your money. July 11th - Use the summer months to update your estate plan The summer months are a time for family get-togethers — weddings, graduations, family reunions. These events remind us of the changes in our lives due to marriages, births, deaths, and divorces. That’s why summer is a great time to review your estate plan and bring it up to date. July 4th - Give your child a job for the summer If you run a family business, why not give your child a job for the summer? If you do it right, your child can earn some extra cash and gain good experience, and your business will receive a tax deduction. June 27th - Save on your taxes while you save at the pump High gasoline prices have everyone scrambling to cut costs. Did you know there’s a way to cut your monthly gas bills and get a $2,000 tax break too? June 20th - First-time homebuyer? You’d be surprised who qualifies for this tax break The tax code offers a couple of tax breaks for first-time homebuyers. You might think you qualify only if you’ve never bought a home before. Not true! You’d be surprised who counts as a first-time homebuyer. June 13th - Is the alternative minimum tax in your future? Were you among the several million taxpayers who had to pay the alternative minimum tax (AMT) last year? Even if you escaped in 2004, keep reading! Unless the law changes, you could be among the millions more who’ll have to pay AMT in the years ahead. June 6th - Get medical insurance and tax savings too A relatively new idea in health insurance offers tax breaks for participants and lower costs for sponsors. It’s called a Health Savings Account (HSA). With an HSA you get insurance against major illness plus the chance to pay for your smaller medical expenses with pre-tax dollars. May 30th - Maximize your 2005 retirement savings Are you on track to contribute the maximum you can to retirement plans this year? The recent talk about social security reform has highlighted the need for personal savings in addition to the government programs. Here are a few tips and reminders: May 23rd - Could the state sales tax boost your itemized deductions? If you itemize deductions, you should check whether you’d be better off deducting state sales tax instead of state income tax this year. Congress gave taxpayers the option of deducting one or the other for 2004 and 2005. But that option expires at the end of this year. May 16th - How mortgage “points” affect your taxes We’re entering peak home-buying season. Chances are that if you buy a new home, you’ll pay “points” on your mortgage. But do you know how points are deducted for tax purposes? May 9th - Your car or truck could provide tax savings Did you know your personal vehicle can be a source of tax savings? Even if you don’t use it in business, you may be able to claim a number of tax deductions. For example: May 2nd - Work-related education expenses can be deductible Imagine these scenarios. You decide to take evening classes on a topic related to your work. Perhaps you want to improve your skills or just stay current with new developments in the field. Or you attend a seminar as part of the continuing education requirement for your professional license. If your employer won’t pick up the tab, can you claim a tax deduction for the education costs? April 25th - You might owe taxes on your social security benefits There’s been a lot of talk about social security payments lately. You might be wondering how big your social security check will be and whether you’ll owe taxes on it. April 18th - Should you be making estimated tax payments? During the tax year you must pre-pay a substantial amount of the taxes you’ll owe for that year, or you risk being hit with an underpayment penalty. If you’re an employee, that’s usually not a problem. Your employer will withhold taxes from each paycheck. April 11th - Deducting medical expenses? Don’t overlook health insurance premiums It’s not always easy to claim a deduction for medical expenses. First, you have to itemize deductions; then you can deduct only those medical expenses in excess of 7.5% of your adjusted gross income. April 4th - If you can't file by April 15, apply for an extension Are you running out of time to file your 2004 tax return? Don’t panic! There’s still time to get an automatic four-month extension of the deadline. And if that’s not enough, you can request an additional two months beyond that. March 28th - Look into the benefits of a solo 401(k) Have you heard about solo 401(k) plans? The traditional type of 401(k) retirement plan is now available for self-employed individuals. And it lets you save more than other types of plans. March 21st - There are tax breaks for seniors When it comes to taxes, growing older has its advantages. Here are some of the tax breaks available as you reach a certain age. March 14th - Be aware of these business tax credits Business tax credits are valuable because they provide a dollar-for-dollar offset to the taxes you owe. Some business tax credits are specific to certain industries, but others are more generally applicable. March 7th - There’s still time to cut your 2004 tax bill Are you still dealing with your 2004 tax return? Do you owe a bigger tax bill than you expected? Are you missing a tax break because your adjusted gross income is too high? Would you like a bigger refund? Don’t despair. You might still have time to make some changes. For example: February 28th - Teachers qualify for special tax savings If you’re a teacher, you probably dig into your own pocket from time to time to buy badly needed classroom supplies. Late last year, Congress extended a tax break that allows you to deduct some or all of this type of expense. The deduction had expired at the end of 2003, but it’s now reinstated for 2004 and extended through 2005. February 21st - Simplify your life by organizing your tax records Did you spend hours pulling together your tax records in preparation for filing your 2004 tax return? It doesn’t have to be that way. Avoid the problem next year by taking a few simple steps now. February 14th - Don’t overlook these deductions even if you don’t itemize If you’ve given up itemizing deductions, you’re not alone. These days over half of all taxpayers find they’re better off using the standard deduction. But even if you take the standard deduction, you can also deduct some individual expenses. Consider the following. February 7th - Time to check your withholding The start of the new tax year is a good time to check your income tax withholding. It’s true that there were no major changes in tax rates or deductions for this year. However, there are still several reasons why you might want to adjust your withholding. January 31st - Did you forget your refund check? Have you moved within the last year? If so, the IRS might be holding a refund check for you. Currently the IRS has over 87,000 refund checks that are undeliverable. January 24th - The IRS publishes new mileage rates for 2005 The IRS has announced new standard mileage rates for 2005. January 17th - Tsunami relief donations give taxpayers an early deduction If you’re thinking of making a donation to a charity to help in the tsunami relief efforts in Asia, you should consider doing so by January 31, 2005. January 10th - A New Year Tax Checklist The first few months of a new year are a busy time for tax filings. Here’s a partial list of key dates for individuals and businesses in the first half of 2005. January 3rd - A new Roth IRA rule benefits seniors A change in the Roth IRA rules takes effect on January 1, 2005. This new rule, which applies specifically to people over the age of 70½, will make it easier for seniors to convert their traditional IRAs to a Roth IRA. [Business Information] [Home] "Tax Tips" are published weekly to provide useful tax information. Return to this site every week for helpful tax-cutting suggestions, tax reminders, and current tax information. The information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax-cutting information from time to time, please contact our office. We're here to help.
	This site designed and maintained by the Information Technology experts at Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co. We appreciate comments concerning our website. Contact our webmaster . Copyright © 1997 - 2004 Alloy, Silverstein, Shapiro, Adams, Mulford, Cicalese, Wilson & Co. All rights reserved.