June 23, 2011 - IRS Increases the Business Mileage Rate
Based upon recent gasoline price increases, the IRS has announced new business mileage rates for the second half of the 2011 tax year.
- According to IRS Commissioner, Doug Shulman: "This year's increased gas prices are having a major impact on individual Americans. The IRS is adjusting the standard mileage rates to better reflect the recent increase in gas prices. We are taking this step so the reimbursement rate will be fair to taxpayers."
- The price for gasoline is just one of the many factors taken into consideration for the increase. Other factors such as depreciation of vehicles, insurance, and other fixed and variable cost associated with business traveling taxpayers were also considered.
- Also affected by the new mileage rates, are the Medical and Moving mileage deductions. These rates have increased by 4.5 cents to 23.5 cents a mile, up from 19 cents for the first six months of 2011.
- Note: The rate for miles driven for the purpose of a chariatble contribution, remains unchanged at 14 cents a mile.
- Learn more about the "IRS Mileage Rate Increase" by visiting the following IRS site: www.irs.gov/newsroom/article/0,,id=240903,00.html
July 6, 2011 - Send Your Kid to Summer Day Camp, Get a Tax Credit!
Summertime can be a challenge for working parents, and costly. Now there is an additional tax benefit to sending your child to a summer day camp. The IRS has recently announced that those added expenses for sending your child to summer day camps may help you qualify for a tax credit. This can be very helpful for parents seeking arrangements for their under 13 children during the break between school. Basically, The Child and Dependent Care Credit are not just for the school year. It's available for expenses incurred during the summer as well! Here are five facts the IRS wants you to know about the tax credit available for summertime child care expenses:
- The cost of day camp may count as an expense towards the child and dependent care credit.
- Expenses for overnight camps do not qualify.
- Whether your childcare provider is a sitter at your home or a daycare facility outside the home, you'll get some tax benefit if you qualify for the credit.
- The credit can be up to 35 percent of your qualifying expenses, depending on your income.
- You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.
- For more information check out IRS Publication 503, Child and Dependent Care Expenses, you can call the IRS at: 1-800-829-3676.