Income Tax Changes Affecting Personal Income Taxes Payroll tax holiday in place. Employees will pay only 4.2% (instead of the usual 6.2%) OASDI (Social Security) tax on compensation received during 2011 up to $106,800 (the wage base for 2011). Similarly, for tax years beginning in 2011, self-employed persons will pay only 10.4% Social Security self-employment… Read More
We generally recommend keeping your records regarding annual income and expense items that are relevant to your tax return for seven years. The general rule for the “statute of limitations on assessment” is three years. However, to be safe, seven years is a good rule of thumb. One big exception – you should keep a… Read More
Many clients often ask “what information do I need if I want to deduct the business use of my auto?” In order to deduct your auto, it must be used for business; other than commuting. First and foremost, the IRS rules require the taxpayer to maintain a detailed travel log; indicating where he/she went, who… Read More