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2013 Changes in Health Care Law and Taxes

Here is an overview of changes taking place in healthcare this year and how it may affect corporate or individual tax returns.

Medicare surtaxes
High- income taxpayers may be affected by two new Medicare surtaxes. 

Estate Tax Rules

Estate and gift tax rules were set to expire in 2013 causing some individuals to go into a state of panic late last year. No one knew how their plans might be affected by the uncertain actions of Congress.

Disability Insurance

When you mention insurance to people, the first thing that usually comes to mind is auto, health, home and life insurance. The type of insurance that many people don’t think about is disability insurance. You never know when your income will be deprived due to an accident or illness. Statistics show that your chances of being disabled for three months or longer during your working years are 3.5 times greater than your chances of dying during the same period.

Five Financial Tips For Singles

Here are five suggestions for singles on Finances:

Nondeductible IRAs

You can’t deduct contributions to an IRA if your adjusted income exceeds certain levels in 2013 ($69,000 for singles and heads of household; $115,000 for married people filing jointly) and you are in a company retirement plan. Contributions can still be made up to the usual annual limits, but they are not deductible. 

Will The IRS Audit You?

Approximately 1.11% of 2010 individual tax returns were audited in 2011. This was the same for the previous year. The rate has stayed around the 1% mark for many years, but what are your chances of being audited?

The Marriage Penalty

If you are planning a wedding, you probably do not want to hear that there could be a penalty for being married. However, the amount of taxes that you pay after you marry are affected by the various provisions in the federal income tax code. This is called the “Marriage Penalty.”

In some cases of married couples, the individuals pay more taxes as a couple than as individuals. The starting dollar amount for each federal income tax bracket is the factor affecting this tax scenario or reality.

Consider S Corporation Election

Consider the tax advantages that S corporations could bring to your small business.

S corporation’s are defined as a regular corporations that rather than being taxed at the corporate level, have opted to have all income or loss passed down to the personal tax returns of its shareholders. S corporations have the tax characteristics of a partnership, but also provide the legal liability protection of a corporation. 

Three Common Mistakes To Avoid When Starting A Business

One third of small businesses fail within the first two years, according to the Small Business Administration, and within the first five years more than half of businesses fail. It pays to look at your business, the marketplace, and more than anything, yourself from an honest perspective. Avoiding these mistakes will increase the survival rate of your business.

Hire Your Kids For The Summer

Do you own or manage a small business? Have you thought of hiring your child(ren) for the summer? We are not talking about breaking child labor laws here but if you do it right, everyone wins.

Kids can gain valuable real-life experience in the workplace while earning a little extra money over the summer. Your business will have extra help or someone to fill-in while other employees take vacations. And, there might be some tax advantages if it is a family business.

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