Tax Tips: Health Insurance

Your client’s health insurance coverage probably came in handy several times over the past year. It all seemed so simple at the time—they paid a deductible, and their insurance usually kicked in the rest. But what do they do at tax time? Just what are they taxed on, and what can they deduct on their federal income tax return?

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Shifting Income & Tax

What is shifting income and tax liability?

Income shifting (also known as income splitting) may be defined as dividing income among taxpayers in a way that lowers the overall tax burden imposed on the income. Typically, income is shifted from higher bracket taxpayers to ones in lower tax brackets. Mathematically, you can describe the overall savings in tax as the present value of the difference between the tax that would be paid by the "donor" of the income over his or her lifetime, compared to the present value of the tax that will be paid by the recipient on the same income.

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Taxation and Health Insurance

What are the tax issues associated with health insurance?

Two aspects of your health insurance plan may affect your income tax calculations: the premiums and the benefits. There are many variables that impact the tax treatment of your health insurance premiums and benefits. And if you don't have qualifying health insurance, you may face a penalty tax beginning in 2014.

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The Trump Tax Proposal: What You Need to Know

This week, the White House unveiled its tax plan, proposing to cut taxes across the board, relieve millions of people from paying income taxes, and streamline filing—all while keeping the budget in balance (or at least not making the situation worse). But are the plan’s promises possible to fulfill, and does it stand a chance of passing?

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Estate, Gift, and Generation-Skipping Transfer (GST) Taxation and Life Insurance: Estate Planning

Estate, Gift, and Generation-Skipping Transfer (GST) Taxation and Life Insurance: Estate Planning

Don't let taxes steal your family's financial security

Life insurance can provide financial security for your family. However, if you don't plan appropriately, taxes can greatly reduce the life insurance benefits actually received by your family. Although life insurance proceeds are generally received by the beneficiaries free of income tax, you need to understand how life insurance policies and proceeds are taxed for estate, gift, and generation-skipping transfer tax (GSTT) purposes in order to realize maximum benefits from your insurance.

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Choosing an Income Tax Filing Status

Selecting a filing status is one of the first decisions you'll make when you fill out your federal income tax return, so it's important to know the rules. And because you may have more than one option, you need to know the advantages and disadvantages of each. Making the right decision about your filing status can save money and prevent problems with the IRS down the road.

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