One of the biggest contributions a taxpayer can make is to donate a used automobile. But if not careful, the value of a donated vehicle could be a lot lower than you think.

THE RULE

When you donate a vehicle, the value of your donation is either the fair market value of your vehicle when you donate it OR the value received by the charitable organization for your donation. Unfortunately, you do not...

2016 Health Savings Account Limits

The savings limits for the ever-popular Health Savings Accounts (HSA) are now set for 2016. The new limits are outlined here with current year amounts noted for comparison purposes.

What is an HSA?

An HSA is a tax-advantaged savings account to pay for qualified health care costs for you, your spouse, and your dependents. When contributions are made through an employer, they are made on a pre-tax basis. There is no tax on

Per the IRS, in 2011 approximately 1 million tax returns represented $1 billion in unclaimed refunds. As unlikely as this sounds, losing a refund could happen to you or someone you know. Here are some common causes of missing out on your full refund.

Every estate plan should have these basic documents

Estate planning is not just a task for the wealthy. Even though federal tax implications kick in only if your estate exceeds $5,430,000, there are other issues that make estate planning important for most individuals.

What every spouse should know before signing a joint return

The advantage of filing a joint tax return is well known - you generally save money compared to filing separately. However, there is at least one potential disadvantage. Both spouses are jointly and severally liable for the entire income tax bill, including interest and penalties, even if one earned most or all the income.

20 million qualify for ACA penalty exemption

According to a Brookings Institution paper on the Affordable Care Act, an estimated 20 million taxpayers who had no health insurance in 2014 will...

Roth IRAs: A smart tax idea for children

Persuading your working children to make retirement contributions may not be easy, but investments in Roth IRAs may be the wisest possible use of their earnings. The nature of Roth IRAs, coupled with the effects of long-term compounding, can create exceptional returns on such early investments.

Create a road map to retirement

Preparing for your retirement is a journey. And like most journeys, success or failure often hinges on decisions made early in the trip. Consider some of these pointers as you develop your personal road map to retirement.

Understand the pros and cons of DRIPs

Appropriately enough, investors may notice a slow trickle in earnings from "dividend reinvestment plans" (DRIPs). But these investments may end up providing a steady stream of income over the long run.

The concept is relatively simple. More than 1,000 companies and closed-end mutual funds around the country offer DRIPs to their shareholders. These programs enable shareholders to purchase stock directly from the company by automatically reinvesting dividends in additional shares. Many DRIPs also allow you to voluntarily make cash payments directly into the plan to buy even more shares.

Your 401(k) and a job change

If you change jobs this year, don't forget about your 401(k) in your old employer's retirement plan. You may be tempted to...

IRS TAX AUDITS CUT BY BUDGET ISSUES

The IRS reports that its enforcement budget has been cut by $254 million, a 5% reduction from the previous year. As a result...

New myRA program now available

A new simplified Roth IRA is the newest retirement plan. The account is called a myRA (short for "my retirement account"). It's funded by...

For effective tax planning, do a midyear review

With summer vacations and warm weather just around the corner, tax planning may not be a priority on your agenda. The problem is that if you wait until December, you cut the time for planning strategies to take effect. But if you take the time to plan now, you still have eight months for your actions to make a difference on your 2015 tax return.

There are big moments in everyone’s life. A new birth is one of them. The irony is that most life events also have tax consequences attached to them. When a new member is added to your family or someone you know, here are some tips to consider.

In this issue:

• A First Job
  Your Introduction to Taxes  
• Five Interesting Consumer Inventions  
• Change a Little... Save a Lot  
• Financing for College? Be Creative.  

This month:

•  May 10th:
  Mother's Day
• Check May 25th:
  Memorial Day

The Foreign Bank and Financial Report (FBAR) is a reporting requirement that is getting lots of attention from the IRS. Here is what you need to know.

 Tips for the Month - April

1. Taking the standard tax deduction is convenient, but always compare it to itemized deductions and use the option with the best tax results.

2. The federal standard deduction for 2014 is $6,200 if single, $12,400 if married and joint filing, or $9,100 for head of household.

3. To substantiate a charitable contribution, you must get a written acknowledgement from the charity for all contributions of $250 or more.

Summertime is often a time for moving. The kids are out of school and new opportunities await. Don’t forget that your move might be tax deductible. Here are some hints to ensure you do not forget this valuable tax deduction.

To have moving expenses qualify as a tax deduction your move must be closely related to your new job.

Use your income tax refund wisely

To many people, an income tax refund might be one of the largest single cash receipts for the entire year. Avoid the temptation to spend your refund on consumption items.

There are several places you can invest the refund to enhance your long-term financial goals. You can pay off current debt, invest in the stock market, make home

improvements, or invest in a pension plan for retirement.

 Oops. An IRA Contribution Error 

In a recent review of IRS practices, The Treasury Inspector General of Tax Administration (TIGTA) released a new report on the problem of excess contributions into IRA accounts. The report recommends better taxpayer education and:

“Identifying a more complete and accurate universe of individuals who potentially made excess contributions from which to select potentially productive cases.”

“Potentially productive cases” means selection for an IRS audit. Given this renewed focus on the problem of contributing too much into IRAs, here is what you need to know...