Taxes

What Is IRMAA?

Seniors Avoid the Cliff! By Robert S. Morris Our practice of Elder Law includes all legal issues common to older people. One issue of concern to everyone on Medicare or Social Security is the issue of hidden taxes. What is the Income Related Monthly Adjustment Amount (IRMAA)? We are all aware of income taxes and payroll taxes but there are other taxes hiding out there. One of those is IRMAA, which stands for...

Non-Grantor Trust and State Income Tax Issues

Trusts and Taxes Case is Good News for the People If you have, or intend to have, any relationship with a trust in any capacity, then you need to know about the US Supreme Court’s opinion in Kaestner.  https://www.supremecourt.gov/opinions/18pdf/18-457_2034.pdf The issue is taxation.  Some background is necessary to set the stage.   Trusts and Undistributed Income Many trusts hold assets that generate income.  If any of that income remains in the trust at the...

Problem Solved – 85th Legislature Hits the Bullseye

It turns out that the Texas 85th Legislature was pretty creative with probate problem-solving. This should delight administrators and executors throughout our land. The first problem concerned that pesky law requiring a will to be probated within 4 years from the date of death. Some judges interpreted that to mean that the will had to be actually admitted to probate within the 4 year period – a process which required...

Death and Taxes

Bob dies, leaving a will that names his old friend TRS as his independent executor. Deeply honored, TRS files the will for probate and is appointed as an independent executor of Bob’s probate estate. TRS proceeds to gather estate assets and pay estate debts and is generally having a pretty good time. He starts thinking that this independent executor job is a piece of cake. And then someone asks him if...

Health Care Tax Credit for Small Businesses

The Affordable Care Act gives certain small businesses a tax credit if they provide health insurance to their employees.  Sounds too good to be true?  That's because few businesses will qualify. For tax years 2010-2013, the maximum credit is 35% for small business employers.  In general, on January 1, 2014, the rate will increase to 50%. If  a small business pays $50,000 a year toward workers’ health care premiums and  otherwise qualifies for...
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