- Invest to take advantage of lower long-term capital gain tax rates.
A top rate of 15% applies to qualified dividends and the sale of most appreciated assets held over one year, whereas Short-term capital gains do not benefit from any special tax rate. They are taxed at your ordinary income tax rate which may be as high at 39.6%.
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Have you received a call from the IRS? The new scam is for someone to call you and say they are from the IRS and that you owe back taxes. They want you to pay immediately by wire transfer, a prepaid debit card or a credit card or you will go to jail, be deported, or lose your driver’s or business license.
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Do you have a Health Flexible Spending Arrangement – this can be a HSA, FSA or Archer MSA. Effective January 1, 2011, the cost of over-the-counter medicines can’t be reimbursed from these accounts unless you have a prescription except for Insulin. Other health care expenses that are not affected are medical devices, eye glasses, contact lenses, co-pays and deductibles. FSA and HRA participants can continue using debit cards to buy prescribed over-the-counter medicines. Also, as of October 31, 2013, there is a new $500 carryover option for employer-sponsored healthcare flexible spending arrangements.