This year, unreimbursed medical expenses are deductible to the extent they exceed 7.5% of your adjusted gross income (AGI), but in 2013, for individuals under age 65, the “floor” will be raised to 10% of AGI. If you can accelerate your “discretionary” medical expenses you were planning on incurring anyway next year it would be to your advantage to do so. Examples include prescription glasses, and elective procedures not covered by insurance such as orthodontic work. Also, consider using a credit card to prepay medical expenses. As long as it is billed in 2012, a medical expense can be deducted in 2012 regardless of when the credit card company is paid.
Opportunity for Noncompliant U.S. Citizens Overseas to Avoid Penalties
Are you a U.S. citizen living overseas with a foreign bank account? If your accounts hold more than $10,000 in the aggregate anytime during the year, you are required to file an FBAR (Report of Foreign Bank Accounts) by June 30th of the following year. It doesn’t matter whether foreign accounts generate income or not; just owning them, or having signature authority, requires you to file. Failure to file can result in severe civil penalties and potential prosecution followed by a term in federal prison. [Read more…] about Opportunity for Noncompliant U.S. Citizens Overseas to Avoid Penalties
Compliance Date for ICD-10 Codes Delayed a Year
The U.S. Department of Health and Human Services has announced that the compliance date of International Classification of Diseases, 10th revision, Clinical Modification (ICD-10-CM) has been delayed for a year. ICD-10-CM is a revised system to classify and code all diagnoses, symptoms and procedures recorded in conjunction with hospital care in the US. It contains 68,000 diagnostic codes, a significant increase to the 13,000 found in the current ICD-9-CM. The United States was set to begin using ICD-10 on October 1, 2013, prior to the announcement. The new deadline is October 1, 2014.
NJ Court Rules: Non-Immigrant Workers Ineligible for Unemployment Benefits
Under N.J.S.A. 43:21-4(c), to be eligible for unemployment benefits one must be “available for work”. An interesting question arose in Mukatoff v Board of Review with regard to non-immigrant workers.
In order to work as a non-immigrant one must obtain a written work authorization from the Department of Homeland Security (DHS). To obtain this authorization one must present appropriate documentation by the prospective employer. Once authorized by the DHS, he or she may only work for that identified employer. This poses a question. If that non-immigrant is subsequently laid off, does the lack of authorization to work for another employer exclude one from being considered “available for work” and therefore disqualify them from receiving unemployment benefits? [Read more…] about NJ Court Rules: Non-Immigrant Workers Ineligible for Unemployment Benefits
NJ DOL Employer Contribution Deadline -Aug 22nd!
Beginning 2012, employers no longer receive an annual paper Notice of Employer Contribution Rates. Instead, the notice is now accessible through the Tax Web Enabled System (TWES). As a result of this change, it’s urgent that you check your TWES account as soon as possible. The new rates were posted as early as July 23, and there’s a 30 day deadline (from the date of “mailing”) to make a voluntary contribution. In many circumstances a voluntary contribution represents an excellent opportunity to reduce labor costs. For more information regarding TWES check out our blog at: http://ua-cpas.com/blog/2012/01/nj-unemployment-rate-notice/ [Read more…] about NJ DOL Employer Contribution Deadline -Aug 22nd!
Property Settlement Agreement Missing “Little” Detail makes for Big Consequences
Overlooking a minute detail in the Property Settlement Agreement (PSA) is by no means as minor as it may seem. It often results in much grief, wasted time, and squandered money – for both litigants, as well as taxpayers funding the judicial system. In Dawn Zera v. Kevin Krushinski, an incomplete PSA resulted in just that.
Dawn and Kevin were divorced in Jan. 2006. The judgment of divorce (JOD) failed to designate who could claim the children as dependents on his or her tax return. While the JOD ended the marriage, an ensuing nightmare was just beginning. More than six long, costly years of litigation later, on May 22, 2012, the NJ Supreme Court ruled that the parents alternate odd and even years.
The Moral: Divorcing spouses must scrutinize the PSA, making sure the lawyers covered everything. It is wise to have a tax accountant review the PSA for all tax issues. The investment of time and effort may spare you loads of grief.