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Many tax advisers tout after-year-end IRA contributions as good ways to reduce your 2012 income tax responsibility. However, there is another after-year-end contribution that you can use to reduce your 2012 tax bill - - your health savings account. HSAs have three great tax benefits – contributions are pre-tax, interest is tax-free and authorized use for medical reasons is tax-free. Now they have a fourth tax benefit if you use them to contribute after the end of the year to reduce your tax … [Read more...]

For those who have procrastinated, the deadline to file 2012 tax returns is looming very close. If you have completed your 2012 tax returns and you owe money to the IRS, you may be able to lower your tax liability by taking advantage of a retroactive IRA contribution. This allows taxpayers to make a contribution to their Individual Retirement Account after December 31 but still include this on their 2012 federal tax return. However, is this amazing piece of tax advice really as good as it … [Read more...]

Every taxpayer wishes they could find at least one more tax deduction that would get them a larger tax refund. We all know that there are some odd tax deductions available; however, most of us never fit into the narrow qualifications for those specific tax deductions. Others seem to create their own crazy tax deductions that make you wonder if someone at the IRS is really paying attention. For example, one taxpayer deducted $10,000 for central air conditioning because he claimed a medical … [Read more...]

If you are waiting on your tax refunds, you probably have several ideas of how you want to spend your money. The problem is that most individuals that receive tax refunds consider them as ‘found” money or like a windfall (i.e. lottery money, rebate, etc.). The problem with found money is that individuals do not give the same consideration to spending it as they do the money they work hard to earn. In other words, it is easier to blow tax refund money than money you work to earn. To learn … [Read more...]

Cook County’s new gun tax went into effect this week after a Circuit Court judge denied a motion for a temporary order preventing the tax from taking effect as scheduled. Those wanting to buy a gun in Cook County will pay an additional $25 on top of the sales price. The new tax is expected to generate roughly $600,000 this year. The money will be used to treat indigent gunshot victims at Stroger Hospital. For more read, “Cook County gun tax takes effect.” … [Read more...]

Casey Anthony filed for Chapter 7 Bankruptcy relief because of the massive debt she incurred during her defense against the murder charges for her daughter. The bankruptcy trustee in her Chapter 7 case declared that her life story is an asset of the bankruptcy estate and should be sold to pay her creditors. Anthony’s attorney has filed a lawsuit in bankruptcy court to stop the sale citing that it is an “unprecedented invasion” of privacy. For more read, “Casey Anthony asks bankruptcy court … [Read more...]

William M. Daley argued that Illinois should adopt a tax cut for the middle-class citizens that would tax higher income taxpayers. However, this “progressive tax” may be deceptive and actually end up costing middle-class taxpayers more money in the long term. If Illinois does reform its tax code, should it include a progressive tax or will this only be another failed attempt to offer relief to an already over-taxed middle class. For more detail about this tax issues read, “Modernizing … [Read more...]

Wesley Snipes has been freed from prison after serving a little over two years. Snipes was found guilty in 2008 on three misdemeanor counts of failing to file tax returns. From 1999 through 2001, Snipes did not pay over $7 million in personal income taxes. During his defense, Snipes claimed that he was following the advice of two advisers who were also convicted on charges of tax fraud and conspiracy. Snipes appealed his sentence by lost his appeals. To read more and see what Snipes … [Read more...]

If you are one of many taxpayers who have waited until the last minute to prepare your tax returns, you may be in luck. If you can utilize one of these last-minute deductions, you can lower your personal tax liability for 2012. The first is to deduct sales taxes for major purchases during 2012. For taxpayers who live in a state that has no personal income taxes or very low personal income taxes, they have the option of deducting local and state sales tax on their federal tax returns. You … [Read more...]