TaxCure Blog

In December 2012, the United States Supreme Court agreed to hear Windsor v. the United States, a case challenging the constitutionality of the Defense of Marriage Act (DOMA), which was passed in 1996.

With the negotiations over the fiscal cliff underway, the debate over what constitutes “rich” is part of the picture. The line that President Obama and his allies in policy have drawn is an income level of $250,000.

Starting in 2013, that tax situation is going to get a little more interesting. While some items, like the Bush-era tax cuts, are on the table and may be changed, the 3.8% Medicare surtax on investment income is coming for sure, since it is part of the health care bill passed in 2010 (Patient Protection & Affordable Care Act).

When you’re self-employed, taxes are a different ballgame than for those employed by others. Not only do you have to make sure that you pay your taxes regularly – they aren’t automatically held from your paycheck – but you also have to pay the self-employment tax.

Every year, millions – perhaps billions – of dollars in tax revenue go uncollected because of questionable practices that allow for tax evasion. However, the IRS has been hoping to reduce that amount, and encourage whistleblowers to come forward and share what they know.

One of the most confusing aspects of our tax code is the alternative minimum tax, or AMT. The AMT is actually a tax system that runs parallel to the current code. The point of the AMT is to make sure that certain taxpayers actually pay a minimum amount of tax. (Although, like the “regular” tax code, there are ways to avoid even paying the AMT.)

When you run into tough times and have liabilities canceled or forgiven, you are often so relieved for the problem to be over that you don’t think about the tax consequences. In fact, you might be forgiven for thinking that there aren’t any tax consequences. After all, you don’t have any money. That’s why your loan was canceled.

As the United States Olympic team heads back from a very successful showing in the 2012 London Olympics the IRS is eagerly awaiting their return. U.S athletes are responsible for paying income tax on any winnings that they had overseas and some tax law precedence also says that they must pay taxes on the actual value of the medals they received.

You never know when a natural disaster will strike, or when an unexpected catastrophe will occur. Businesses and individuals need to be aware of the impact that such events can have on their tax records.

When you are a citizen of the United States, Uncle Sam expects you to pay taxes – no matter where you live. It is also true of dual citizens. If you have dual citizenship, even if you aren’t a US resident, you are still supposed to file a tax return and pay taxes in the United States. The United States is one of the few countries to tax their citizens living abroad. It has lead to some giving up their US citizenship.