Make Disability Insurance Less Taxing

Disability insurance can be a valuable part of your risk management plan. If you cannot work because of an illness or injury, you might lose income. Disability insurance benefits can make up the difference.  More 

Dealing With Required Distributions

Many people save for retirement in a traditional IRA in which income taxes are deferred. At some point, however, you must take money out of traditional IRAs and pay income tax. That’s true regardless of whether you need the cash flow.  More

Weighing the Benefits of Medicare Advantage

At age 65, workers and their spouses generally become eligible for Medicare, the federal health insurance program for seniors. You may find that Medicare offers better coverage at a lower cost than the coverage you had previously. However, the standard (original) Medicare program has several shortcomings.  More

TAX CALENDAR

JANUARY 2012

January 17

Individuals. Make a payment of your estimated tax for 2011 if you did not pay your income tax for the year through withholding (or did not pay enough in tax that way). Use Form 1040-ES. This is the final installment date for 2011 estimated tax. However, you don’t have to make this payment if you file your 2011 return and pay any tax due by January 31, 2012.

Employers. For Social Security, Medicare, withheld income tax, and nonpayroll withholding, deposit the tax for payments in December if the monthly rule applies.

January 31

All businesses. Give annual information statements (Forms 1099) to recipients of certain payments you made during 2011. Payments that are covered include (1) compensation for workers who are not considered employees, (2) dividends and other corporate distributions, (3) interest, (4) amounts paid in real estate transactions, (5) rents, (6) royalties, (7) amounts paid in broker and barter exchange transactions, (8) payments to attorneys, (9) profit-sharing distributions, (10) retirement plan distributions, (11) original issue discounts, (12) prizes and awards, (13) medical and health care payments, (14) debt cancellations (treated as payment to debtor), (15) payments of Indian gaming profits to tribal members, and (16) cash payments over $10,000. There are different forms for different types of payments.  More