The Protecting Americans from Tax Hikes Act of 2015 (hereinafter the “PATH Act”) significantly enhanced the Federal-Level R&D Tax Credit Program (hereinafter “RTC Program”) under I.R.C. § 41 on a myriad of levels for both eligible “Small Businesses” and eligible “Start-Up Companies”. More specifically, the enhanced RTC Program has been considerably restructured for these aforementioned eligible companies to now:
The House Republicans have proposed their updates to the US tax plan, titled A Better Way. Looking at the basics, it shares many similarities with that of Donald Trump’s plan. The plan takes much from the idea that the US tax system is too complex and broken. While having the backing of the Republican Party, House Democratic leader Nancy Pelosi and AFL-CIO have openly spoken against it.
California is currently squaring up against the tobacco industry. Last month, Governor Jerry Brown signed a bill that raised the legal smoking age from 18 to 21. His state government is also in the process of banning all smoking at parks and beaches, citing the related health and wildfire risks. But perhaps more importantly, the state has a qualified initiative that would potentially raise the tobacco tax in California by $2 a pack, a tax that would include vaping and e-cigarettes.
During February 2016 the beleaguered South African Minister of Finance, Minister Pravin Gordhan, made a serious attempt to balance government’s books.
Gordhan was called back after Minister Nene was removed from his position, by President Zuma early December 2015. The true reason for this politically motivated musical chairs, appointing three ministers in less than 4 days, remains a mystery. Point is Nene was removed and Gordhan had to step in and rescue the cash flow and ensure the country did not face junk status.
Lord, hou schulde God approve that you robbe Petur and gif is robbere to Poule in ye name of Crist?”
John Wycliffe, Selected English Works, c. 1380
In medieval England, the Christian Peter and Paul were two peas in a pod. They were both apostles and both martyred in Rome. They even shared the same feast day (June 29). So, the idea behind the phrase “robbing Peter to pay Paul” is that the victim and payee are similar in wisdom and stature (to borrow a phrase). The modern-day equivalent is taking a cash advance from one credit card to make the minimum payment on another one, assuming that they both have a similar interest rate. Read More
1. Earned income (EITC).
Taxpayers with no children it is $503, with one child $3,359, two qualifying children $5,548, three qualifying children $6,342 but are subject to AGI phaseouts. The recent tax law makes permanent the increase of $5,000 in the phaseout amount for joint filers scheduled to expire after 2017. The law also makes permanent the increased 45% credit percentage for taxpayers with three or more qualifying children. Under prior law, both increases had been available only through 2017. It also makes permanent the reduced earned income threshold of $3,000. The law makes the following provisions permanent:
(a) Taxpayer Identification Number (TIN) Required. The EITC is denied with respect to any taxable year for which the taxpayer has a TIN that has been issued after the due date for filing the return, including extensions. Read More
The basic amount for single taxpayers is $6,300, married filing joint and surviving spouse $12,600, married filing separate $6,300 (zero if one spouse itemizes because on separate returns both spouses must either itemize or use the standard deduction), and head of household $9,250. The additional standard deduction is $1,550 for singles and head of household, $1,250 for married filing joint and surviving spouse. The standard deduction for those claimed as a dependent on another return can’t exceed the lesser of (1) $6,300 or (2) the greater of $1,050 plus earned income. Read More
More than 50 tax provisions, including the tax rate schedules, and other tax changes are adjusted for inflation in 2016. Let’s take a look at the ones most likely to affect taxpayers like you.
The tax rate of 39.6 percent affects singles whose income exceeds $415,050 ($466,950 for married taxpayers filing a joint return), up from $413,200 and $464,850, respectively. The other marginal rates–10, 15, 25, 28, 33 and 35 percent–and related income tax thresholds–are found at IRS.gov.
The standard deduction remains at $6,300 for singles and married persons filing separate returns and $12,600 for married couples filing jointly. The standard deduction for heads of household rises to $9,300, up from $9,250. Read More
As the New Year rolls around, it’s always a sure bet that there will be changes to current tax law and 2016 is no different. From health savings accounts to retirement contributions and standard deductions, here’s a checklist of tax changes to help you plan the year ahead.
For 2016, more than 50 tax provisions are affected by inflation adjustments, including personal exemptions, AMT exemption amounts, and foreign earned income exclusion.For 2016, the tax rate structure, which ranges from 10 to 39.6 percent, remains the same as in 2015, but tax-bracket thresholds increase for each filing status. Standard deductions and the personal exemption have also been adjusted upward to reflect inflation. For details see the article, “Tax Brackets, Deductions, and Exemptions for 2016,” below. Read More
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