I'm sitting here early Tuesday morning in my bathrobe with poached eggs, English muffins with cherry-apple butter, and coffee with the fireplace burning brightly -- feeling like I made a great decision to stay home today and wait out Hurricane Sandy's foul weather! Despite dire warnings from PEPCO, I haven't lost electrical power here in Silver Spring, Maryland.
On the other hand, we just bought a waterside beach house in Delaware a few weeks ago. I hope its still there. What a time to decide to buy a beach house :(
How did YOU deal with Hurricane Sandy?
JC Leahy
October 30, 2012
Next-Day Update: Hurricane Sandy is over!!! My house was apparently in a lucky place. No electricity lost and no trees in the yard down, even though Route 29 had to be closed for some reason ( I wonder why??) and some people I know lost power. I just hope my Delaware beach house is undamaged -- it's at the waterside, on one of those canals. I hope it's still there!!! :) JL
Tuesday, October 30, 2012
Saturday, October 6, 2012
Obama Quote of the Decade - With Re-Election Poster
The Quote of the Decade:
"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
~ Senator Barack H. Obama, March 2006 - Pass it on until election day!!
This Re-Election poster would make a great desktop background on your PC at home and at work!
"The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government's reckless fiscal policies. Increasing America 's debt weakens us domestically and internationally. Leadership means that, "the buck stops here.' Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better."
~ Senator Barack H. Obama, March 2006 - Pass it on until election day!!
This Re-Election poster would make a great desktop background on your PC at home and at work!
Sunday, August 26, 2012
A Must-Have Election 2012 Souvenir Tee Shirt
I saw these 2012 Election 2012 Tee Shirts and bought a couple. It will make a great statement now and a fantastic souvenir later.
The tee shirt says, "If you've got a business, you didn't built it yourself. -- We've got to get them out in 2012!" If you want some of these for yourself and family, here's the link
The tee shirt says, "If you've got a business, you didn't built it yourself. -- We've got to get them out in 2012!" If you want some of these for yourself and family, here's the link
Election Humor and Food for Thought!! :)
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| Roadside billboard, I-35 South |
Tuesday, April 3, 2012
IS IT TOO LATE TO MAKE MY 2011 IRA CONTRIBUTION? AND HOW MUCH CAN I CONTRIBUTE?
By JC Leahy, MA Accounting
Twitter@taxhelpwhenneed
This article is a response to a question from Brian in Alexandria, Virginia
HAS THE DEADLINE PASSED TO MAKE MY INDIVIDUAL IRA SAVINGS CONTRIBUTION FOR 2011??
The really great news is that you have until the April 16, 2012 tax filing deadline to open your Traditional IRA savings account and make your 2011 IRA contribution -- if you are eligible.
AM I ELIGIBLE TO CONTRIBUTE SAVINGS TO A TRADITIONAL IRA?
If you (1) have taxable earned income and (2) you are less than 70.5 years old, then you can establish a traditional IRA and contribute money to it. It's that simple. Earned income includes salary, wages, commissions, self-employment income, alimony, and combat pay. It does not include any pensions (including Social Security), interest, dividends, or annuities. In the year you reach the age of 70.5, you can no longer establish or contribute to a traditional IRA.
HOW MUCH CAN I CONTRIBUTE TO MY IRA?
For 2011 (and 2012 also) you can contribute $5,000 per year or the amount of your taxable earned income, whichever is less, to a traditional IRA. This is true whether you are covered by a retirement plan or not!! If you have reached the age of 50 during the year, you may contribute an additional $1,000 catch-up contribution. This makes a total limit of $6,000.
Here's the exception. It's a good one: If one spouse doesn't work or earns less than $5,000, he/she may establish and contribute to an IRA based on the earnings of the other spouse. Between them, there is a limit of $10,000, which can be allocated in any way they wish between their two IRA accounts -- provided that neither one's account receives more than $5,000. For example, if the husband makes $100,000 and the wife makes zero of earned income, the wife may contribute up to $5,000 into her traditional IRA and the husband, likewise, may put up to $5,000 into his IRA. This also applies to the $1,000 catch up contribution.
One other fine point: If you have a Traditional IRA and also a Roth IRA, the $5,000/$6,000 limit includes both. In other words, you can only contribute $5,000/$6,000 TOTAL between the two.
HOW MUCH OF MY TRADITIONAL IRA CONTRIBUTION CAN I ACTUALLY DEDUCT?
Don’t be confused on this point: If you are not covered by a retirement plan at work at any time during the year, you can deduct every penny of your traditional IRA contribution. Period. .
IRA Deduction Phase Out: It's slightly more complicated if you were covered by a retirement plan at work. In that case, if your "Modified Adjusted Gross Income" (MAGI) is less than certain thresholds, you still get to deduct your entire Traditional IRA contribution. But you can still make your $5,000/$6,000 contribution to the IRA account -- you just won't be able to deduct it. Here are the Traditional IRA deduction phase-out parameters:
For 2012, here are the Traditional IRA Contribution Deduction Limits:
One other important tax-law quirk: If your filing status is Married Filing Separately, you are screwed! Your IRA deduction phase out starts at $1 of Modified Adjusted Gross Income and that deduction drops to zero when your MAGI reaches $10,000!!
In situations when you can't deduct your Traditional IRA contribution, why would you want to make the contribution at all? There are two reasons. First, earnings accumulate and compound every year without being diminished by annual income taxes. You only pay the tax on earnings when you withdraw them in your old age -- and you will probably be in a lower tax bracket then. Second, if you have a nondeductible Traditional IRA contribution, you get what is called a "basis" in your IRA account. This just means that when you eventually withdraw from your IRA, the "basis" portion will not be taxable.
If you need assistance with your income tax filing this Tax Season, you might want to contact:
JC Leahy, MA Accounting
TaxHelpWhenYouNeedIt.com
Silver Spring, Maryland
E-mail: jcleahy@TaxHelpWhenYouNeedIt.com
Tel. (301)537-5365
Twitter@taxhelpwhenneed
This article is a response to a question from Brian in Alexandria, Virginia
The really great news is that you have until the April 16, 2012 tax filing deadline to open your Traditional IRA savings account and make your 2011 IRA contribution -- if you are eligible.
AM I ELIGIBLE TO CONTRIBUTE SAVINGS TO A TRADITIONAL IRA?
If you (1) have taxable earned income and (2) you are less than 70.5 years old, then you can establish a traditional IRA and contribute money to it. It's that simple. Earned income includes salary, wages, commissions, self-employment income, alimony, and combat pay. It does not include any pensions (including Social Security), interest, dividends, or annuities. In the year you reach the age of 70.5, you can no longer establish or contribute to a traditional IRA.
HOW MUCH CAN I CONTRIBUTE TO MY IRA?
For 2011 (and 2012 also) you can contribute $5,000 per year or the amount of your taxable earned income, whichever is less, to a traditional IRA. This is true whether you are covered by a retirement plan or not!! If you have reached the age of 50 during the year, you may contribute an additional $1,000 catch-up contribution. This makes a total limit of $6,000.
Here's the exception. It's a good one: If one spouse doesn't work or earns less than $5,000, he/she may establish and contribute to an IRA based on the earnings of the other spouse. Between them, there is a limit of $10,000, which can be allocated in any way they wish between their two IRA accounts -- provided that neither one's account receives more than $5,000. For example, if the husband makes $100,000 and the wife makes zero of earned income, the wife may contribute up to $5,000 into her traditional IRA and the husband, likewise, may put up to $5,000 into his IRA. This also applies to the $1,000 catch up contribution.
One other fine point: If you have a Traditional IRA and also a Roth IRA, the $5,000/$6,000 limit includes both. In other words, you can only contribute $5,000/$6,000 TOTAL between the two.
HOW MUCH OF MY TRADITIONAL IRA CONTRIBUTION CAN I ACTUALLY DEDUCT?
Don’t be confused on this point: If you are not covered by a retirement plan at work at any time during the year, you can deduct every penny of your traditional IRA contribution. Period. .
IRA Deduction Phase Out: It's slightly more complicated if you were covered by a retirement plan at work. In that case, if your "Modified Adjusted Gross Income" (MAGI) is less than certain thresholds, you still get to deduct your entire Traditional IRA contribution. But you can still make your $5,000/$6,000 contribution to the IRA account -- you just won't be able to deduct it. Here are the Traditional IRA deduction phase-out parameters:
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For 2012, here are the Traditional IRA Contribution Deduction Limits:
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One other important tax-law quirk: If your filing status is Married Filing Separately, you are screwed! Your IRA deduction phase out starts at $1 of Modified Adjusted Gross Income and that deduction drops to zero when your MAGI reaches $10,000!!
In situations when you can't deduct your Traditional IRA contribution, why would you want to make the contribution at all? There are two reasons. First, earnings accumulate and compound every year without being diminished by annual income taxes. You only pay the tax on earnings when you withdraw them in your old age -- and you will probably be in a lower tax bracket then. Second, if you have a nondeductible Traditional IRA contribution, you get what is called a "basis" in your IRA account. This just means that when you eventually withdraw from your IRA, the "basis" portion will not be taxable.
If you need assistance with your income tax filing this Tax Season, you might want to contact:
JC Leahy, MA Accounting
TaxHelpWhenYouNeedIt.com
Silver Spring, Maryland
E-mail: jcleahy@TaxHelpWhenYouNeedIt.com
Tel. (301)537-5365
Thursday, March 8, 2012
Abandoned Spouse Rule: Filing Your Federal Income Tax Return as Head of Household
Although I’m still married, can I file my Form 1040 Federal income tax return as Head of Household rather than Married Jointly or Married Separately? Robert's income still comes in to help provide for us, even though we've been separated for over a year and the kids live exclusively with me. We have not drawn up any formal separation papers, but that didn't seem necessary for the status. Me and my two daughters are going to be in college next year (me and Anna are currently) We filled out the FAFSA stating that Robert and I are separated and I believe that if I file the taxes as "married filing jointly" again this year it may affect the help we get with tuition (which we definitely need!).
Answer from JC Leahy:
Yes, Virginia, you can file your Federal income tax return with the filing status Head of Household if you are considered what they call an "abandoned spouse". To qualify as an "abandoned spouse" you need to meet these requirements:
1. You must file a separate return
2. You must maintain a home where the child for whom you may CLAIM AS DEPENDENCY DEDUCTION lives for more than half of the year
3. You must pay more than half the cost of maintaining that home, and
4. During the lat 6 months of the year, your spouse must not live in the same house as you.
To claim the dependency, in turn, you must pay MORE THAN HALF THE COST of maintaining the child OR have an agreement approved by a divorce court that says you get the dependency exemption.
Was that helpful?
Sunday, March 4, 2012
What Education Expenses Qualify for Education FederalTax Credits?
By JC Leahy, MA, Accounting
Twitter@TaxHelpWhenNeed
There are 2 educational Federal tax credits currently available: They are the American Opportunities Credit and the Lifetime Learning Credit. The Hope Credit, which was established along with the Lifetime Learning Credit in 1997, has morphed into the American Opportunities Credit for tax years from 2009 through 2012. So, currently there are two educational credits.
Both educational credits are based on what they call "qualified educational expenses." The tricky thing is that different educational expenses "qualify" depending on which credit you choose.
The American Opportunity Credit is a maximum of $2,500 per student. Qualified expenses only include the first four years of post-high school study in a program of study leading to a college degree -- NOT graduate study or any other study beyond 4 years of college study. Tuition is a qualified education expense, of course. Additionally, books, supplies and equipment are qualified expenses if the student needs them for his particular course of study. Room, board, insurance, medical fees, transportation, and non-academic fees are not qualified expenses for the American Opportunity Credit.
The Lifetime Learning Credit is up to $2,000 per return. Graduate and postgraduate studies DO qualify, as well as vocational study expenses Obviously, tuition is a qualified expense. Books, supplies and equipment are NOT qualified expenses unless the student had to purchase them directly from the college as a condition for enrollment or attendance. Room, board, insurance, medical fees, transportation, and non-academic fees are not qualified expenses for the Lifetime Learning Credit.
Twitter@TaxHelpWhenNeed
Both educational credits are based on what they call "qualified educational expenses." The tricky thing is that different educational expenses "qualify" depending on which credit you choose.
The American Opportunity Credit is a maximum of $2,500 per student. Qualified expenses only include the first four years of post-high school study in a program of study leading to a college degree -- NOT graduate study or any other study beyond 4 years of college study. Tuition is a qualified education expense, of course. Additionally, books, supplies and equipment are qualified expenses if the student needs them for his particular course of study. Room, board, insurance, medical fees, transportation, and non-academic fees are not qualified expenses for the American Opportunity Credit.
The Lifetime Learning Credit is up to $2,000 per return. Graduate and postgraduate studies DO qualify, as well as vocational study expenses Obviously, tuition is a qualified expense. Books, supplies and equipment are NOT qualified expenses unless the student had to purchase them directly from the college as a condition for enrollment or attendance. Room, board, insurance, medical fees, transportation, and non-academic fees are not qualified expenses for the Lifetime Learning Credit.
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