Home Page Professional Services Investor or Trader Smart Investment Client Login Passport and Notary Contact Us Links

Checks and Balances 500 N. Michigan Ave. Suite 1514 Chicago, Illinois 60611 (312) 329-9244 (312) 329-2473

Smart Investment

Tax planning will maximize tax benefits and minimize tax liabilities...

New 1099 Headache:

The health care law expands 1099 coverage, requiring reporting and data collection for every payee and vendor. More...

Nonprofit Tax-Exempt Status:

On May 16, 2010, the IRS will begin revoking tax-exempt status from nonprofits that failed to file three consecutive annual returns (Form 990-N, 990-EZ, 990, or 990-PF). Read more about these upcoming changes.

In 7 months, Taxes are going up!

• The two "marriage penalty elimination" provisions will expire, so that:
  • The standard deduction for married couples will fall, no longer double what it is for single filers.
  • The ceiling of the 15% bracket for married couples will fall, no longer double what it is for single filers.
• The 10% tax bracket will expire, reverting to 15%.
• The child tax credit will fall from $1,000 to $500.
• The tax rate on long-term capital gains earned by middle and upper-income people would rise from 15% to 20%.
• The tax rate on qualified dividends earned by middle and upper-income people would rise from 15% to ordinary wage tax rates.
• The 25% tax rate would rise to 28%.
• The 28% rate would rise to 31%.
• The 33% rate would rise to 36%.
• The 35% rate would rise to 39.6%.
• The PEP and Pease provisions would be restored, rescinding from high-income people the some exemptions and deductions.
• The estate tax would be restored with an exemption level of $1 million and rates that top out at 55%.
• The plan outlined in the Obama administration's budget is to allow only one of those 12 provisions to revert exactly to what it was in early 2001:
• The top tax rate will revert from 35% to 39.6%.
• Five of those doesn major provisions will change, but they won't go back to exactly what they were in 2001:
• Estate tax law will revert to 2009 instead of 2001: exemption of $3.5 million and top rate of 45%.
• Rate on long-term capital gains will revert to 2001 law (rate of 20%) but only for couples with over $250 in AGI the year the gain is realized ($200K threshold for singles.)
• Dividends will be taxed just like long-term capital gains.
• The 33% tax rate will revert to 2001 law (rate of 36%) but the income threshold where that bracket starts will shift up to $250,000 in taxable income (couples) and $200,000 for singles.
• The PEP and PEase provisions would be restored, rescinding from high-income people the value of some exemptions and deductions, but the income threshold where they start to pay more will shift up to $250,000 in taxable income (couples) and $200,00 for singles.

Health Care Tax Rate Changes:

The Tax Foundation has relased a map illustrating the impact of a 5.4% surtax on top tax rates by state.