Greetings:
Now that autumn is upon us and the end of 2011 is fast approaching, it is a good time to develop tax strategies that may help you reduce your taxes.
There are a few changes that may impact your tax return:
• Effective 07/01/11, the standard mileage rate for business increased to 55.5 cents. Keep in mind you will have to keep track of January thru June and July thru December separately.
• Individuals can deduct either state and local income taxes or sales tax paid during the year as an itemized deduction. Motor vehicle sales tax may be added to this deduction.
• Energy Efficient Home Improvements: Homeowners may qualify for energy credits up to 10% of the cost on eligible purchases. This credit has a lifetime limit of $500 and expires at the end of 2011.
• Roth IRA Conversions: As tax rates rise, you will be glad you converted your traditional IRA to a Roth. You may convert all or part of your IRA. Please call us before the end of the year to see if this would be a good option for you.
• As a reminder, Illinois raised the income tax rate from 3% to 5% beginning in 2011.
• Required Minimum Distributions (RMDs): If you are over 70 ½, please check your required withdrawals from qualified retirement plans.
• Higher education credits still are still in effect. We will need each student's tuition statement.
• The phase out of itemized deductions for higher income earners was eliminated in 2010. The phase out was scheduled to return in 2011, but Congress extended the repeal for two years.
For businesses, the tax on wages subject to Federal Unemployment Tax is reduced for wages paid after June 30, 2011 from .8% to .6%.
• Review estimated tax payments and withholding to ensure they are sufficient to avoid underpayment penalties. Now is a good time to schedule a year-end review.
• We are now offering Quickbooks Introductory classes to business owners or those changing careers. Our three-hour introductory course is being offered for $100 and will provide lessons in the basic fundamentals of Quickbooks software. For more information and class dates, please call (866) 361-2800 or check our website at
www.daemicke.com
Now that autumn is upon us and the end of 2011 is fast approaching, it is a good time to develop tax strategies that may help you reduce your taxes.
There are a few changes that may impact your tax return:
• Effective 07/01/11, the standard mileage rate for business increased to 55.5 cents. Keep in mind you will have to keep track of January thru June and July thru December separately.
• Individuals can deduct either state and local income taxes or sales tax paid during the year as an itemized deduction. Motor vehicle sales tax may be added to this deduction.
• Energy Efficient Home Improvements: Homeowners may qualify for energy credits up to 10% of the cost on eligible purchases. This credit has a lifetime limit of $500 and expires at the end of 2011.
• Roth IRA Conversions: As tax rates rise, you will be glad you converted your traditional IRA to a Roth. You may convert all or part of your IRA. Please call us before the end of the year to see if this would be a good option for you.
• As a reminder, Illinois raised the income tax rate from 3% to 5% beginning in 2011.
• Required Minimum Distributions (RMDs): If you are over 70 ½, please check your required withdrawals from qualified retirement plans.
• Higher education credits still are still in effect. We will need each student's tuition statement.
• The phase out of itemized deductions for higher income earners was eliminated in 2010. The phase out was scheduled to return in 2011, but Congress extended the repeal for two years.
For businesses, the tax on wages subject to Federal Unemployment Tax is reduced for wages paid after June 30, 2011 from .8% to .6%.
• Review estimated tax payments and withholding to ensure they are sufficient to avoid underpayment penalties. Now is a good time to schedule a year-end review.
• We are now offering Quickbooks Introductory classes to business owners or those changing careers. Our three-hour introductory course is being offered for $100 and will provide lessons in the basic fundamentals of Quickbooks software. For more information and class dates, please call (866) 361-2800 or check our website at
www.daemicke.com
Sincerely,
Bob Daemicke, EA Rita J. Daemicke, EA Dan Daemicke, EA Jim Daemicke, CPA
© 2011 Daemicke Financial Group
