Income Tax Planning

Bush tax cuts: What happens when they expire?

By FJY Financial | Published: January 23, 2012

January 23, 2012 | 2011 has been a year of legislative stalemate, uncertainty, and overwhelming concern about the budget deficit. One thing is certain; however: without major, new legislation, the so-called Bush-era tax cuts are set to expire at the end of 2012. But what, exactly, are the Bush tax cuts and what happens when they expire at the end of 2012? Here's a primer.

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation. Three big items, one big Act of Congress.

By FJY Financial | Published: January 24, 2011

January 24, 2011 | For the purposes of this article, we’re going to focus on just the Tax Relief portion and what it might mean to you. To put it in simples terms… if you liked Bush’s tax cuts in 2001 and 2003, then you’re a fan of this Act! In many ways, this act is simply an extension of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) and the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). What many know as “The Bush Tax Cuts”. You can’t take that verbatim, but it is very close.

Maximizing Returns on Tax Payments

By FJY Financial | Published: December 12, 2008

December 12, 2008 | For those making estimated tax payments (and for those who should), the dates of April 15th, June15th, September 15th, and January 15th usually don't ring in the joyous changing of the seasons, but instead the due dates for payment of estimated taxes. Keeping in mind the following rule throughout the year will ensure that you pay enough, but not too much. Paying too much, or leaving too much on account from the prior year, will cost you the forgone rate of return you could have earned. Not paying enough will accrue a penalty of 7%. Year after year, the savings, or conversely, the costs, compound quickly.

Litigation Threatens Tax Incentives

By FJY Financial | Published: December 12, 2008

December 12, 2008 | Litigation over the constitutionality of state tax benefits that began with the municipal bond sector has spread to Section 529 college savings plans. A class action lawsuit filed in Illinois on May 15, 2007 threatens the tax incentives used to induce residents to invest in a state's own Section 529 college savings plan versus out-of-state 529 plans. The case, Maryam Ahmad v. Illinois Department of Revenue, challenges the constitutionality of the Illinois law that provides a deduction from adjusted gross income of up to $10,000 for residents who invest in the state's 529 college savings plan, but none for residents who invest in the college savings plans of other states.