How Does The Net Investment Income Tax Affect Taxpayers ?

The Lesser of the Net Investment Income Or the Amount of your Gross Adjusted Income Exceeds the thresholds set by your Filing Status, that is used to determine the Excess Income. 3.8% of the Excess Income is the Net Investment Tax.

A)          Filing Status                                      Threshold Amount
        1.     Single of HOH                                          $200,000
        2.     MFJ                                                           $250,000
        3.     Qualifying Widower with Child             $250,000
        4.     MFS                                                           $125,000

B)   Net Investment Income Includes - Interest, Dividends, Capital Gains,  Rental & Royalty Income, Non-Qualified Annuities

C)   Excludes Income From- Wages, Self Employment, Unemployed Compensation,  Social Security Benefits, and Alimony.

D)   Fill out Form 8960 to see if the Net Investment Income Tax is applicable.

For Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 

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What Is The Best Defence Against IRS Scams & ID Thefts ?

List some Simple Procedures Tax Payers can Implement to Prevent IRS Scams & ID Theft ?

1. Don't Reply Emails that request any Financial Data or Offer a Reward - IRS Never Sends emails.
2. Destroy Credit / Debit Card Offer letters that are Unused.
3. Destroy any Insurance or Financial Document  with *****4 Digit number on it.
4. Don't be Intimidated by Phone callers who Threaten with IRS/Legal/ Police Action.
5.  Note IRS Only Uses US Postal Service to communicate with Tax Payers.

For Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 

Facebook : www.facebook.com/yma.taxpro

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" What Are The Tax Effects Of Divorce or Separation ? "

Some of the major effects of a Divorce or Separation are discussed below:
1. Child Support:  Not Deductible to the Payer and Non-Taxable to the Recipient.
2. Alimony Paid:  If the Alimony payments are made under a Divorce or Separation Decree or Separation Agreement, they can be deducted as Alimony for Federal Tax Purposes.
3. Alimony Received:  Spousal Alimony is taxable in the Year received. So  Plan for additional Taxes or make additional Estimated Tax Payments to avoid the Tax Surprise.
4.  Spousal IRA: If there is a Final decree of Divorce or Separate Maintenance by the Year end, you can't deduct the Contribution made to the Former Spousal's Traditional IRA. However, you can deduct Contribution to Your own IRA.
5. Name Changes - If you change your name after your Divorce, notify Social Security Administration about the change. Fill out Form SS-5. Your name on the Tax Return must match the SSA records.  A name mismatch can delay tax refund.

For Q & A Contact :  Kash, (925) 963 4891 @ Yajnik & Mehta Associates  (YMA) 

Facebook : www.facebook.com/yma.taxpro

Twitter :     http://twitter.com/kash_yajnik

Linked In:  http://linkedin.com