Tax and Tax Information

 

FREE

FREE
 

 
                    More Knowledge

Less
Taxes
 

Services Offered
   Tax Preparation
   Mortgage Loan Letters
   Accounting
   Bookkeeping - Record Keeping
   Representation before IRS
   Electronic Filing
   Incorporating Services
   NonProfit Services

Need Cash Quick?
   Western Union Cash 
   Next Day - 37,127 Locations

   Refund Anticipation Loan
   Earned Income Credit


IRS want you to Retire Financially Free
    Traditional IRA
    Roth IRA
    Self Directed IRA
    Roth 401K  
   
Estate Planning
    Inheriting an IRA 

  Sold some Real Estate?
    Sale of Residence
    Rental Property
    1031 Exchange  
    Real Estate IRA
    Refinance your Home

  

Got a letter from IRS?
    Back Taxes
    Deliequent Taxes
    Offers-in-Compromise
    Liens on Your Accounts
    Payroll Garishments
    When you cannot pay IRS



Tax Deductions
     Day Care 
     Moving
     Medical & Dental
     Education
     Educator Expense
     Divorce & Alimony
     Donating Car to Charity

Tax consequenses of different Business Entities
  Sole Proprietorship
  Partnership
  S Corporation
  C Corportation
  What is a LLC ?
  What is Incorporation

Personal Finance
   Retire Buying Tax Liens
   Borrowing from your 401k
   Your Credit Report
   Credit Repair
   Your Social Security
   Social Secuity Disability
   Indentity Thief
   Reverse Mortgages
   Bankruptcy

Tax Preparation Specilities
 Truckers - Long Haul/Local


 

Where is my Refund?
   Electronic Filing

IRS want to give you
    Earned Income Credit
    Adoption Credit

Business Expenses
    Mileage
    Office in Home
    Business Deductions

Tax and Tax Information - Income Tax

For More and Complete Details
CPA Home
Earned Income Tax Credit
Tax Cash From Western Union
Homeowner Tax Credit
Alimony Deductions
Day Care Deductions
Moving Deductions
Contribution Deductions
Job Hunting Deduction
Education Deductions
Adoption Deductions
Medical Deductions
Mileage Deductions
Car Donation Deductions
Bad Debt Right Off
Hybrid Cars Deductions
Educator Deductions
Adoption Deductions
CPA Moms Master Index
Overview - Type of Business Entities
Sole Proprietors
Partnerships
S Corporations
How to Incorporate
Incorporating in California
Incorporating in Delaware
Incorporating in Nevada
C Corporations
LLC's - What is it?
Business Mileage Expenses
Office in Home
Business Deductions
Bankruptcy
Claiming Social Security Disability
Divorce & Taxes
Offer in Compromise
Installment Payment for Taxes
Credit Reports
Social Security
Deliquent Tax Returns
Back Taxes
Garnishment
Retirement Planning
Self Directed IRAs
Roth IRA
Traditional IRA
Iniherited IRA
Reverse Mortgage
Roth 401k
Borrowing from your IRA
Estate Planning
Social Security Benefits
Retirement Planning
Day Trading
Tax Preparation
Electronic Filing
Incorporating Services
Representation before IRS
Non Profit Services
Accounting
Bookkeeping
Sale of Residence
Sale of Rental Property
1031 Exchange
Real Estate IRA
Refinance your Home
Accounting
Additional Resources

Tax and Tax Information * Income Tax

Lump-Sum Social Security Benefits--Tax Election   
Alan D Campbell

Sometimes a taxpayer will receive Social Security benefits in one lump sum. A taxpayer might have to pay income taxes on up to 85 percent of these benefits. However, a taxpayer may make an election under Section 86(e) of the Internal Revenue Code to minimize the income tax on the receipt of the lump-sum Social Security benefits.


Why would a taxpayer receive lump-sum Social Security benefits? A taxpayer could have been receiving Supplemental Security Income (SSI), which is tax free. Then, the Social Security Administration determines that the taxpayer should have been receiving Social Security disability benefits for the last several years instead of SSI. Another reason that a taxpayer could receive Social Security benefits in one lump sum is that the Social Security Administration may have initially denied the individual's application for Social Security disability benefits, but the individual wins those benefits on appeal.

Article to continue below----------------------------------------------

Let Bush Tax Cuts End, Economists Say (Fox News)
NABE economist said Congress should let the Bush tax cuts expire.

----------------------------------------------------------------------------


Social Security benefits are not taxable for taxpayers with relatively low amounts of adjusted gross income. At moderate levels of adjusted gross income, 50 percent of the Social Security benefits are taxable. At high levels of adjusted gross income, 85 percent of Social Security benefits are taxable.


This graduated system for including Social Security benefits in gross income and the progressive nature of income tax rates can have a very bad effect on individuals who receive lump-sum Social Security benefits. Such individuals might have to pay a much larger amount of income taxes than they would have if they had received the Social Security benefits when they should have received them. If the taxpayer does not take action to make an election allowed by Section 86(e) of the Internal Revenue Code, that is what will happen.

Article to continue below----------------------------------------------

Let Bush Tax Cuts End, Economists Say (Fox News)
NABE economist said Congress should let the Bush tax cuts expire.

---------------------------------------------------------------------------


Sometimes the taxpayer does not receive any cash for the lump-sum payment. For example, if the taxpayer had been receiving SSI and the Social Security Administration determines that the taxpayer should have been receiving Social Security disability benefits, the Social Security Administration will reduce the disability benefits by the amount of the SSI paid to the taxpayer. The taxpayer will receive a Form 1099-SSA showing the amount of the lump-sum Social Security disability benefits and yet the taxpayer received little, if any, cash.


Section 86(e) of the Internal Revenue Code allows a taxpayer who receives lump-sum Social Security benefits to elect to include in gross income only the sum of the Social Security benefits that the taxpayer would have included in gross income in prior years if the taxpayer had received the benefits in the years to which the lump-sum payment is attributable. A taxpayer may also make the election if the taxpayer received Railroad Retirement benefits in one lump sum.


Section 86(e)(2)(B) states that the taxpayer should make the election in the manner prescribed by the Secretary of the Treasury in regulations. However, the Secretary of the Treasury has not issued any regulations under Section 86. Once a taxpayer makes the election, the taxpayer may not revoke it with the consent of the IRS.


Because no regulations exist that prescribe the manner of the election, a taxpayer should make the election according to the guidance the IRS provides in IRS Publication 915, "Social Security and Equivalent Railroad Retirement Benefits." IRS Publication 915 has helpful worksheets and other information about making this election. Taxpayers who received Social Security benefits or Railroad Retirement benefits in one lump sum should consult IRS Publication 915 and determine whether the election will reduce their taxes.





Alan D. Campbell is a CPA in Arkansas and Florida and is self-employed primarily as an author of tax publications. He is the co-author of the book Tax Strategies for the Self-Employed. For more tax savings strategies, please see his Tax Savings Strategies blog http://taxsavingsstrategies.blogspot.com

What Other Authors say about Taxes

Social Security and Our Current Tax System by Tony Robinson

Every week that you work, there are taxes deducted from your gross payroll that are distributed to the Social Security Administration, along with other programs administered by the government. Of all the...

Checking The Status Of Your Federal Tax Refund by Carl LaFresnaye

You've completed your taxes and were delighted to discover you will get a tax refund! Regardless of whether it is large or small, you want it – and you want it now! You can start planning how you will...

Use Tax Credits To Help Finance Your College Education by P. Nash

Students are always on the lookout for ways to help pay or offset the cost of their tuition. There are various government grants and scholarships available to you if you qualify. But what if you don't...

Top 7 Ways to Reduce Income Taxes by Kristine McKinley

Are you paying too much in income taxes? Are you getting all the credits and deductions you are entitled to? Here are 7 tips to help you minimize taxes and keep more in your pocket:1. Participate in company...

Preparing Ahead For A Pleasant Tax Day by Carl LaFresnaye

How did you spend your last tax day? In line at a post office at almost midnight, dropping off your taxes? Dreading going on an extension again – knowing if you owe and don't pay it on time, there will...

Understanding Basic Tax Terms by Ryan Fyfe

If your like many, you don't always understand what people are talking about when it comes to Taxes. It's important to know the main tax terminology, especially when tax season comes around. Knowing the...

Finding Out How Much Money Do You Have To Make To File Taxes? by Carl LaFresnaye

There are many people who wonder if they really have to file taxes since they do not make very much money. Since taxes are so dreaded by most people, answering the question of how much money a person...


Who are the CPA Moms?      Your Tax Professional Forever!!!!

“CPA Moms - Tax Moms - EA Moms" are trade names given to Accounting and Tax Professionals who chose to work in an “relaxed” environment. Some "Moms" work from home, other work from personal offices. Not all are Moms, there are some Dads. We call them Mr. Tax Moms. CPA Dads or Enrolled Agents Dads.
Each Mom is independent. Once a client starts working with a Mom, the client will keep the same “Mom” year after year regardless of where the client moves or relocates. Being in a “relaxed” environment has many advantages. Lower overhead, faster response time, more availability, etc.
To be a member a CPA Mom, Tax Moms, or an Erolled Moms the Tax Professional must ALWAYS be in good standing with their state licensing agency, experienced, and must demonstrate a high level of ethics, professionalism and proficiency.
Tax Net Inc, the parent company for all CPA Moms, Tax Moms and Enrolled Moms, developed the marketing and on-line systems to help qualified Tax Professionals who "choose" work from their “relaxed” environment and offer better service at a lower price to the consumer.
Since the “Moms” do taxes and accounting of all complexities, there is always a Mom available for every level of work. Since each Mom has a private 800 number, you are just a phone call away, regardless of where you live.
For reliability and dependability of Tax Net, Inc, the parent company of the “Moms” organization click on the Better Business Bureau (BBB) icon.

To Join CPA Moms

Click for accredited member's reliablility report.

Privacy Policy    About Us    Disclaimer    Copywrited 2005  - 2010 & Developed by  Tax Net Inc  Contact Us

Contact Us    About Us    Copywrited 2009  - 2010 & Developed by  Just Wait Foundation
Index of Articles about Taxes

What Other Authors say about Taxes

Social Security and Our Current Tax System by Tony Robinson

Every week that you work, there are taxes deducted from your gross payroll that are distributed to the Social Security Administration, along with other programs administered by the government. Of all the...

Checking The Status Of Your Federal Tax Refund by Carl LaFresnaye

You've completed your taxes and were delighted to discover you will get a tax refund! Regardless of whether it is large or small, you want it – and you want it now! You can start planning how you will...

Use Tax Credits To Help Finance Your College Education by P. Nash

Students are always on the lookout for ways to help pay or offset the cost of their tuition. There are various government grants and scholarships available to you if you qualify. But what if you don't...

Top 7 Ways to Reduce Income Taxes by Kristine McKinley

Are you paying too much in income taxes? Are you getting all the credits and deductions you are entitled to? Here are 7 tips to help you minimize taxes and keep more in your pocket:1. Participate in company...

Preparing Ahead For A Pleasant Tax Day by Carl LaFresnaye

How did you spend your last tax day? In line at a post office at almost midnight, dropping off your taxes? Dreading going on an extension again – knowing if you owe and don't pay it on time, there will...

Understanding Basic Tax Terms by Ryan Fyfe

If your like many, you don't always understand what people are talking about when it comes to Taxes. It's important to know the main tax terminology, especially when tax season comes around. Knowing the...

Finding Out How Much Money Do You Have To Make To File Taxes? by Carl LaFresnaye

There are many people who wonder if they really have to file taxes since they do not make very much money. Since taxes are so dreaded by most people, answering the question of how much money a person...