New Tax Rules for 2011: Retirement Plan Changes

The new tax rules enacted over the past few years have affected many areas of the tax code.  For your information, we have summarized below the changes related to retirement plans.  Be sure to talk to your accountant about the changes as part of your annual tax planning conversations. 1....

Tax Relief Act of 2010: Tax Breaks for Individuals Retroactively Reinstated and Extended

Many tax breaks for individuals that expired at the end of 2009 will be retroactively reinstated and extended through 2011, including: the $250 above-the-line deduction for certain expenses of elementary and secondary school teachers; the election to take an itemized deduction for State and local general sales taxes in lieu of the itemized deduction permitted...

Tax Relief Act of 2010: Temporary Employee Payroll Cut for 2011

The Tax Relief Act  created  a payroll cut for 2011. Under current law employees pay a 6.2% Social Security tax on all wages earned up to $106,800 (in 2011) and self-employed individuals pay a 12.4% Social Security self-employment taxes of on all their self-employment income up to the same threshold. The bill provides a payroll/self-employment...