Tag Archive for Exemptions

Nine Tax Code “Head Scratchers”

John Stancil

Having survived tax season for one more year, I was struck by how complex our tax code really is. I’ve been preparing taxes for over 40 years, yet I ran into several provisions that I had not previously encountered. I am fully aware that there is much wrong with the code, that there are some major overhauls needed. In the midst of all this complexity, it struck me that there are provisions in the code which are not big deals, but are head scratchers. Why are these things in the code? Eliminating them can go a long way toward helping the middle-class taxpayer.

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Written by | Posted in IRS

3 Important Tax Facts For Medical Device Companies

Monika Miles

If you’ve been following these series about multi-state tax facts, you know we’ve already covered software and SaaS companies. What about medical device companies?

Because the term “medical device” covers a wide range of instruments, machines, accessories or other tools that can be used both externally (such as tongue depressors) or internally (like pacemakers), there are a lot of multi-state tax questions that arise in this industry.

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Written by | Posted in State Tax

Tax Changes For 2016

Harold Goedde

Standard Deduction

The amount for single and marred filing separate is $6,300 ($7,850 if 65 and over or blind), surviving spouse and married filing joint $12,600 plus $1,500 for each spouse 65 and over, or blind, heads of household $9,300 plus $1,250 if 65 and over or blind. For taxpayers claimed as a dependent on another return, it is the greater of (a) $1,050 or (b) $350 plus earned income. The amount can’t exceed the basic standard deduction.

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Written by | Posted in 2016 Tax Changes • 2016 Tax update

Claiming Your Exemptions For A Qualified Child: Exceptions To The Residency Test

To claim a child as a dependent, the residency test is one critical test that must be satisfied. The general rule is that the child must have lived with you, sharing the same principal place of abode or home, for more than half of the year. There are, however, some very important exceptions to the general rule, and these apply in the following situations:

Temporary absences

If you, or your child, have to be temporarily absent from the home due to special circumstances such as illness, education, business, vacation, or military service, this is treated as a period of temporary absence. Under this exception, your dependent is considered to have lived with you during the periods of time when either you or your dependent had to be absent from the home, so you will be able to claim the child. Read More

Written by | Posted in Individual • Tax Deductions