May 2012

Six Tax-Planning Moves for Midyear

Now that your 2011 tax return has been wrapped up, or you have at least obtained a filing extension, you can enjoy some "time off" from taxes … right? Wrong. Tax planning is a year-round proposition. The tax moves you make—or don't make—throughout the year can have a substantial impact on your tax bill. Here are six areas to consider at midpoint. Read more...

Start Planning for the New 2013 Medicare Tax on Investment Income

Effective for tax years beginning after December 31, 2012, higher-income taxpayers with investment income will be subject to a new 3.8% unearned income Medicare contributions tax (UIMC) tax on their net investment income. Medicare tax has traditionally been imposed only on wages and SE. The UIMC tax extends Medicare tax to investment income for the first time. Read more...

IRS Relaxes "Innocent Spouse" Rules

A new IRS Notice provides some more leeway for taxpayers seeking relief under the "innocent spouse" rules. This change of heart continues a recent trend. Background: Although filing a joint tax return may provide other tax benefits, each spouse is "jointly and severally liable" for any tax, interest and penalties attributable to the return. In other words, either spouse could be forced to shoulder the tax burden. This tax responsibility continues to apply if the couple subsequently gets a divorce. Read more...

Mining Three Sources of Retirement Income

Do you know how you will secure a comfortable lifestyle in retirement? Where is the income you need to sustain you through retirement going to come from? If you are like most people, there are three primary resources you will have to dig into. Read more...

Taking Tax Write-Offs for Good Deeds

Although you cannot deduct the value of the time and effort you expend on behalf of charity, you can still salvage some tax breaks. Specifically, the tax law allows you to write off certain out-of-pocket expenses you incurred while performing charitable duties. To secure the tax benefits, you must keep adequate rec­ords to back up your claims. The IRS may challenge your deductions—especially if the activity involves recreational pursuits. Read more...

More Tax News

The professionals in our Tax Team make regular posts to our Somerset Tax Strategies blog. Recent posts include Indiana Student Loan Interest Addback, Indiana Private School/Homeschool Deduction, Indiana Inheritance Tax Phased Out, Indiana Omnibus Tax Legislation, Proposed 'Stop the Student Loan Interest Rate Hike Bill of 2012' and Indiana Changes Filing Requirements for Fiduciary Income Tax Return. Read more...

Somerset CPAs News

Somerset Achieves 7th Place in 2012 Best Places to Work in Indiana Ranking. The 2012 'Best Places to Work in Indiana' rankings were announced on May 3, 2012, by the Indiana Chamber of Commerce. There were 70 companies from throughout the state that made the 2012 Best Places to Work in Indiana list. The top companies in the state are determined through employer reports and comprehensive employee surveys. Somerset is proud to be ranked 7th place in the small to medium-sized companies category of between 15 and 249 U.S. employees, and we thank our associates for the honor. More information about the award...

Building Our Team. We are seeking to fill several positions within our company and for client companies. For details, please visit our Careers page or contact Mel Kleinert.

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