Extension of the 65% COBRA Premium Subsidy through February 2010
The Department of Defense (DOD) Appropriations Act of 2010 (the Act), signed into law by the President on December 19, 2009, grants an important lease on life to the 65% COBRA premium subsidy that was enacted by the American Recovery and Reinvestment Act (ARRA). This subsidy was created in 2009 as a response to a major recession that added millions to the unemployment rolls and would have left many without health insurance coverage because they couldn't afford to pay COBRA premiums on their own. The Act adds another six months to the maximum period that the COBRA subsidy can run (i.e., to a total of 15 months). The Act also extends the up-to-15 month COBRA premium subsidies to workers (and their eligible family members) that lose their jobs during the first two months of 2010. Under prior law, the subsidy wasn't available for those who lost their jobs after 2009.
Business standard mileage and other rates decrease for 2010
IRS has announced that the optional mileage allowance for owned or leased autos (including vans, pickups or panel trucks) is 50¢ per mile for business travel after 2009. That's 5¢ down from the 55¢ allowance for business mileage during 2009. Further, the rate for using a car to get medical care or in connection with a move that qualifies for the moving expense deduction is 16.5¢ per mile, down 7.5¢ from the 24¢ per mile allowance for 2009.
Year End Tax Planning Checklist For 2009
Year-end tax planning could be especially productive this year because timely action can nail down a host of tax breaks that won't be around next year unless Congress acts to extend them.
Preparing For the 2010 Traditional IRA to Roth IRA Conversion Opportunity
As the end of 2009 approaches, a significant opportunity awaits many individuals. Beginning in 2010, taxpayers will be able to convert their traditional IRA (and funds that have been rolled over from a qualified plan) to a Roth IRA, regardless of their income level or filing status. What's more, the tax on the taxable income generated from a 2010 conversion maybe deferred until 2011 and 2012. This new conversion option presents both tax planning opportunities and challenges for 2009, 2010, and 2011.
Foreign Bank and Financial Accounts Amnesty Disclosure Program to End September 23, 2009
The Internal Revenue Service has increased its scrutiny of offshore accounts and foreign income, and has been successful in breaking some longstanding foreign bank secrecy laws to gain access to the identities of U.S. taxpayers who have foreign financial accounts.
New Longer Net Operating Loss Carryback Period
The American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial changes for businesses. A key provision in the new law which is designed to help struggling eligible small businesses cope with the economic downturn is a temporary elective extension of the carryback period for certain net operating losses (NOLs) from 2 years to up to 5 years. The longer NOL carryback period gives small businesses that experienced losses the ability to get immediate refunds of income taxes paid in earlier years. The refunds can be used to fund capital investment or other expenses.
How Individuals are affected by the American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial tax changes for individuals. However, most of them are temporary in nature, that is, unless extended by future legislation; they apply for 2009 only or in some cases for 2009 and 2010. Here's a review of the more widely applicable provisions that could have an impact on you and your family.
How Businesses are affected by the American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009 (commonly referred to as the Recovery Act), which was signed into law on Feb. 17, 2009, makes a number of beneficial changes for business. Here's a review of the more widely applicable provisions that could have an impact on you and your business:
Subsidized Health Insurance Premiums Under COBRA
The American Recovery and Retirement Tax Act of 2009 (the “Act”) was passed and signed into law this month. Included in the Act is a provision that will affect most businesses with employees. The Federal Government will subsidize health insurance premiums under COBRA for employees who were involuntarily terminated from employment between September 1, 2008 and December 31, 2009. Involuntary termination does not include those employees that were terminated for gross misconduct.
Required Minimum Distributions News
Late in 2008, Congress passed a law that helps individuals who are taking or about to take required payouts from employer-sponsored tax-qualified retirement plans or IRAs.