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More Time … More Pain!
[By Staff Reporters]
You get three extra days to file your taxes this year. They’ll be due this Monday, April 18th.
But, it’s not because of a previously announced processing delay that will prevent people who itemize their taxes from filing before mid- to late February, the IRS said Tuesday.
Instead, the bonus days come thanks to Emancipation Day, a little-known Washington, D.C., holiday that celebrates the freeing of slaves in the district.
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[Tax Money Pie]
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What it Is?
In the United States; according to Wikipedia, Tax Day is a colloquial term for the day on which individual income tax returns are due to the federal government.[1] The term may also refer to the same day for states, even where the tax return due date is a different day.
Since 1955, for those living in the United States, Tax Day has typically fallen on April 15.[1] For those filing a U.S. tax return but living outside the United States and Puerto Rico, Tax Day has typically fallen on June 15, due to the two-month automatic extension granted to filers by IRS Publication 54.[2]
Due to Emancipation Day in Washington, D.C. (which is observed on the weekday closest to April 16), when April 15 falls on a Friday, tax returns are due the following Monday; when April 15 falls on a Saturday or Sunday, tax returns are due the following Tuesday.
- In 2014, Tax Day was Tuesday, April 15
- In 2015, Tax Day was Wednesday, April 15
- In 2016, Tax Day will be Monday, April 18
- In 2017, Tax Day will be Tuesday, April 18
Assessment
Similarly, April 15th is the deadline for filing Income Tax Returns (ITR) in the Philippines.
“Tax Freedom” Day with Personal Calculator
Conclusion
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OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:
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- HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
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- ADVISORS: www.CertifiedMedicalPlanner.org
- FINANCE: Financial Planning for Physicians and Advisors
- INSURANCE: Risk Management and Insurance Strategies for Physicians and Advisors
- Dictionary of Health Economics and Finance
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- Dictionary of Health Insurance and Managed Care
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Filed under: Taxation | Tagged: Emancipation Day, Tax Day, tax freedom day |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Tax planning
The objective of tax planning is to arrive at the lowest overall tax cost on the activities performed. In as much as physicians constitute 14% of the so-called and often maligned “one-percenters” [$388,905 earned-not passive income/year]; this chapter will address some methods and strategies to reduce federal and state income taxes. It is applicable to all physicians and medical professionals; as independent practitioners or employees.
So, how much in income taxes do the wealthy pay?
The top 10 percent of taxpayers paid over 70 percent of the total amount collected in federal income taxes in 2010, the latest year figures are available, according to the Tax Foundation, a think tank that advocates for lower taxes. That’s up from 55 percent in 1986. The remaining 90 percent bore just under 30 percent of the tax burden. And, 47 percent of all Americans pay hardly anything at all.
Realize, that’s just federal income tax and doesn’t include payroll tax for Social Security and Medicare (which the vast majority of people pay), plus state taxes and all of the other taxes we face. When you add them all together; using figures from the Tax Policy Center and the Institute on Taxation and Economic Policy. Earners in the top 1 percent pay about 43 percent of their incomes in tax. People in the middle quintile pay 25 percent while the poorest fifth pays 13 percent.
Finally, before you assume these one- and 10-percenters are living on luxury yachts and in million-dollar mansions, consider how little money it takes to be a top wage earner. According to 2011 IRS data, the top 1 percent have adjusted gross incomes of $388,905 per year or more. To be in the top 10 percent, you need an adjusted gross income of just $120,136 or more. These are good incomes to be sure, but definitely not enough to be out work, or the medical office, for more than a few weeks each year.
Now consider the following more specifically:
• 42 percent of all federal tax revenue came from individual income taxes in 2010 and it has been the largest single source of revenue since 1950.
• Individuals paid more than $2.2 trillion in 2010.
• Bush-era tax cuts have finally expired, giving us the 20th century tax rates with the top income tax rate of 39.6%, we have not seen rates this high in almost 15 years.
• 39.6% tax rate kicks in at $400,000 for individual taxpayers and $450,000 for married couples filing jointly.
• Taxpayers who make over $200,000 ($250,000 for married taxpayers) will be subject to the Medicare surtax. If that’s you, Medicare surtax will be tacked on to your wages, compensation, or self-employment income over that amount. The amount of the surcharge is .9%.
• Net Investment Income Tax (NIIT) new as of 2013; if you have both net investment income and modified adjusted gross income (MAGI) of at least $200,000 for an individual taxpayer and $250,000 for taxpayers filing as married an additional 3.8 percent of the net investment income is an added tax.
Perry D’Alessio CPA
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