In 2007, President George Bush signed into law the Public Student Loan Forgiveness Program. This program allows people working in certain industries to have their student loans forgiven, tax-free, after 10 years. Usually people believe this program only applies to governmental employees. However, the law allows for employees of a 501(c)(3) not-for-profit to also qualify for student loan forgiveness. This is a great way to attract employees who may otherwise require a larger salary and a great way to keep employees at your not-for-profit.
Every company has at least one owner. And, in many cases, there exists leadership down through the organizational chart. But not every business has strong governance.
I’m looking forward to tax day. No, I’m not in a time warp. I do know that April 15th is behind us, and most people I talk to are relieved that they don’t have to think about taxes for another year (or in the case of those who extended their returns, until that last piece of paperwork shows up). Often that sense of relief is due not just to the sense of getting through the process of the paperwork, but the whole thought process of dealing with the topic.
But right now, now that it’s all over, is the best time to think about taxes, while the effects of this last filing season are fresh in the mind. In sports, the coach looks at the team’s performance after each game and studies the strategies for weaknesses while the results are still fresh and the team has time to prepare for the next game. Here we are with almost eight months left in 2017 to improve our game.
Each year, millions of taxpayers claim an income tax refund. To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash. But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your money.
Fortunately, there is a way to begin collecting your 2017 refund now: You can review the amounts you’re having withheld and/or what estimated tax payments you’re making, and adjust them to keep more money in your pocket during the year.
Income and losses from investment real estate or rental property are passive by definition — unless you’re a real estate professional. Why does this matter? Passive income may be subject to the 3.8% net investment income tax (NIIT), and passive losses generally are deductible only against passive income, with the excess being carried forward.
It’s a smaller business world after all. With the ease and popularity of e-commerce, as well as the incredible efficiency of many supply chains, companies of all sorts are finding it easier than ever to widen their markets. Doing so has become so much more feasible that many businesses quickly find themselves crossing state lines.
If you have a child in college, you may be eligible to claim the American Opportunity credit on your 2016 income tax return. If, however, your income is too high, you won’t qualify for the credit — but your child might. There’s one potential downside: If your dependent child claims the credit, you must forgo your dependency exemption for him or her. And the child can’t take the exemption.
They call us the Sandwich Generation, the middle layer between grown or growing children who depend on us and parents who also depend on us. Being in this position can sap a family’s resources physically, emotionally, and, of course, financially.
Fortunately, if you are providing for an elderly parent or other family member, there are some potential tax breaks available to help ease the burden. First of all, there is the dependency exemption, allowing a deduction of up to $4,050 per dependent. For a family in the 25% tax bracket, that translates to a savings of just over $1,000.