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Wealth Health Managing Director Rich Coppa on the changes to the tax code this year that taxpayers need to watch for.
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We'll -- -- -- -- priced -- the IRS doing everything it can't to increase its revenues this year and that means taking more money out of your -- pocket.
Here with tax changes to watch for -- cop managing director of wealth -- financial planning and wealth management great to see you again rich.
I let's I didn't show not fit all the examples you've -- one thing they're doing that I never even knew about they're they're targeting eBay sellers now.
Why in this happened before and what's it gonna mean for people who do that.
Well what it means it means for for merchants that have more than 20000 dollars of sales or more than 200 transactions and a year what they're doing this issue and a new 1099 K.
And what it's really I think the the new issuance is because in the past you haven't seen as much activity as he did now with the Internet and more.
And more home businesses and I think it's a way of making sure that there's a matching of the income that's.
-- need.
Through how eBay MasterCard if you have a big business on eBay watch out -- count on for -- they are and if there's a new line on schedule -- where you report that 1099 K information and it's important also -- that.
You know you really gotta put in your refunds and you know in terms of -- This depressing -- really on.
If you're Smart and he did all the right things annual -- traditional IRA to a rock you're trying to save yourself taxes down around right what's important about that this is a big one because in 2010 remember you were able to -- -- -- -- -- over two -- -- if you if you -- -- so -- -- converted -- -- -- your traditional -- -- -- -- in 2010.
One half that income.
Is included in your return this year and one half in 2012 your painful -- you can actually answer it this is these visitors a year -- that's right and remember to if you chose to do it for 2011.
You didn't have that option to do it over two years so in 2011 if you -- -- 2010 you have one half.
In the income for 2011 and if you did 2011 -- have the full amount in 2011 to going to be careful.
-- -- so we're digging into the details here with rich -- about taxes this year what you need to know.
Another new form I think it's 8638 and early -- minutes to report any assets maintained in foreign accounts.
Right to 8930 it's it's a new foreign -- that our export its mere inches for okay okay okay its foreign bank account reporting and -- this is for is really for.
Folks -- -- foreign accounts that are in excess of your single -- 50000 dollars at the end of the year.
Joint follow a 100000 and with the -- is doing is they want to get.
Information on these foreign bank -- very important because this is new and people might be confused in the past or something called FR which is foreign bank account reporting.
Which just really deported if you had any authority over foreign accounts.
Now though this is a form that's required with your tax return -- -- -- reporting was not it was more about criminal activity misconduct.
And that sort of thing.
The new new regulations here you have to pay attention to -- gonna come -- now let's talk about.
HS say it's.
Big change in the ways at this affects lots and lots of people absolutely.
Agencies and the -- so they're little bit of difference in who -- savings account that's what we're talk right now and medical savings accounts and you know both always had penalties if you took distributions prior to -- 65 for non medical purposes or non qualified medical expenses should say.
And this year both now -- penalties have increased to 20% so.
Be careful what you're taking distributions make sure you know whether or not the just species takings were qualified medical -- you have to look that up and see what qualifies changes were made in the past no longer some of these over the counter.
You know Amedisys lots of things on king is this money that's right now absolutely so this is important otherwise -- gonna get whacked with 20% that's a big.
That's a big tax penalty.
Are hidden down here in the -- is something that might be actually that if -- -- ladies say there's a way you can reduce overall income tax -- about the liability house so.
Well with regard to self.
Employment you know folks that or their self employed if you're an escort shareholder and you have medical insurance premiums.
You can take a deduction on your return for your income tax liability.
For premiums for health insurance for your taxpayer's spouse dependents.
So that's good because health insurance as we all know it's very sad is that what you can't do though and this is a difference for this year relative to last -- that you can't take.
That deduction when calculating your self employment tax so differences here between self employment income tax and self employment tax meaning -- security Medicare.
-- -- that's critical you know we've been talking about this income tax delay.
And my view on that says.
-- the IRS holding my money -- apparently.
They -- holding it eight to ten days it would take -- long term rounded.
Money to eat your refund right and now it can be almost up to a month.
It's a might feeling on that says hey it's the age of the Internet -- all on -- you're probably filing electronically.
Right why is it taking longer.
You know I think that's a good question what -- what I've seen I was on -- website this morning as well it seems that they've had a glitch in the system they've been trying to increase the ability to identify fraudulent activity and things like that.
So they promise what I wouldn't say promise but they.
They assure you that 90% of refunds come within 21 days there have been delays.
There are apps now that you can go you know hire us to go Smart app for your phone check where your status is of your return in track your refund and -- What I would say don't use it really important is that in the you don't really want to get a read a refund.
And so what's so important people forget.
Isn't a flurry alone you're giving the government if you don't -- let's say it.
The average -- about her 3400 dollars -- money you're giving the government you're not charging them interest for -- they get to use every year you don't what.
Is this sense in that my -- there is no sense that's -- check it out throughout the year changer withholding change or exemptions to your estimates.
Don't get a refund is the message from our right so rich -- -- with some great advice on taxes great job rich thank you lots -- details really appreciate.
