If you have a general interest question about accounting or tax matters, please contact us from here. We will answer the most common questions on this page.
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Q.1. What is the status of the federal Estate Tax? A.1. Deaths occurring in 2010 are not currently subject to a federal estate tax. Barring a change in present law, deaths in 2011 and thereafter will be subject to the federal estate tax on estates in excess of $675,000. Taxable gifts made during one’s life may reduce the threshholds mentioned in this summary answer. Please contact us for the latest information on the Federal estate tax.
Q.3. What is the “Kiddie Tax”? A.3. In an effort to prevent parents from shifting assets and income to their children in an attempt to have the income taxed at the children’s lower tax rate, Congress requires certain children to be taxed at their parents’ marginal tax rate for all investment income in excess of $1,700-$1,800. Since 2008, this includes children age 19 or under (age 24 or under for full time students). You can learn more about the “Kiddie Tax” at this link. Wisconsin does not impose a “Kiddie Tax.”
Q.4. What is the difference between a “tax return” and a “tax refund”?
A.4. A “tax return” is the physical document (either paper filed or electronically filed) reporting your income and tax liability information to the appropriate government agency. A “tax refund” is the money you receive back from the government when you pay more to the government during the year than what your actual tax bill totals.
Q.5. Where’s my tax refund money?
A.5. Each tax agency has its own procedure for taxpayers to check on the status of their expected refunds. For the I.R.S. and Wisconsin Department of Revenue, the appropriate on-line information is available through our Helpful Links and Forms page. Wisconsin pays 9% interest on tax refunds not mailed out within four months of receiving a tax return claiming a refund; this interest is subject to income taxes!
Q.6. Can I deduct Long Term Care (LTC) insurance premiums?
Q.7. What are the standard mileage rates?
Q.8. Is any information available regarding the tax evasion investigation of Al Capone?
Q.9. What can you tell me about the new Health Care law passed in March, 2010?
A.9. The AICPA’s Journal of Accountancy magazine has an excellent summary available here.