In our last week of the Events In Life That Have A Significant Tax Impact Series, we are going to discuss the tax effects of a separation or divorce on your tax liability or refund. It is important to know how a name change, alimony and child support can all affect your tax return, in order to prepare yourself for life as a separated or divorced taxpayer. [Read More...]

UPDATE: The following counties in Mississippi are now considered disaster areas and may qualify for tax relief from the IRS: Adams, Amite, Clarke, Forrest, George, Hancock, Harrison, Hinds, Jackson, Lincoln, Marion, Pearl River, Pike, Stone, Walthall, Warren and Wilkinson.
Last week, we discussed how victims of Hurricane Isaac in Louisiana may qualify for tax relief from the IRS. The IRS has added areas of Mississippi to the list of qualified taxpayers, who are eligible to receive tax relief.
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          As November approaches, it is officially election season. The 2012 presidential race is in full swing, and dozens of local and state positions are up for grabs. Whether you are donating to your town mayor or the future President of the United States, the rules on the tax deductibility of your political campaign contribution are the same.  Any donation to a political party, campaign, or action committee is not tax deductible. According to the Internal Revenue Service, “You cannot deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. Advertisements in convention bulletins and admissions to dinners or programs that benefit a political party or political candidate are not deductible.” The same goes for state taxes, according to the state Department of Revenue. Other non-deductible contributions are those to individual people, labor unions, business associations, for-profit schools, for-profit hospitals, foreign governments, and fees paid to associations or state or municipal governments. Limits On Contributions To Political Campaigns If you are contributing to a political campaign, you should be aware of the laws and legal limits on how much and what you can give. Below is a list of individual contribution limits for 2011-2012.The following limits apply to contributions from individuals to candidates for all Federal offices. ·         $2,500 per Election to a Federal candidate - Each primary, runoff, and general election counts as a separate election. ·         $30,800 per calendar year to a national party committee -applies separately to a party's national committee, and House and Senate campaign committee. ·         $10,000 per calendar year to state, district & local party committees ·         $5,000 per calendar year to state, district & local party committee ·         Aggregate Total --$117,000 per two-year election cycle as follows: o   $46,200 per two-year cycle to candidates o   $70,800 per two-year cycle to all national party committees and PACs NOTE: Married couples are considered to be separate individuals with separate contribution limits. Charitable Organizations And Their Affiliation With Political Campaigns If you regularly contribute to or volunteer with a qualified charity (501(c)(3) organization), remember that there are rules for those groups, too. A charitable organization may not: ·         endorse candidates ·         distribute statements for or against candidates ·         raise funds for or donate to candidates ·         become involved in any activity that would be either in support of or opposed to any candidate  

Victims of Hurricane Isaac may qualify for tax relief from the IRS. After FEMA (Federal Emergency Management Agency) issued disaster declarations for individual assistance, the IRS announced September 7, 2012 that affected taxpayers in Louisiana will receive tax relief, and based on additional damage assessments by FEMA other locations may be added in coming days. [Read More...]