March 16, 2012
Marcum Tax & Business Services Team Members Featured in Newsday Article "Accountants Answer Tax-Related Questions"
by Lynn Brenner
Excerpt:Tax season is here again -- and if you have questions about how to complete your return, you're certainly not alone.
On March 6, 11 certified public accountants from the Nassau and Suffolk chapters of the New York State Society of Certified Public Accountants answered 85 questions during Newsday's three-hour live Tax Help webchat.
- Q: Can I deduct health expenses not covered by my insurer?
- Yes. But you only get a benefit from itemized medical expenses to the extent that they exceed 7.5 percent of your income.
- Donald Crotty, CPA, Marcum LLP
- Q: I cashed a small IRA to pay for COBRA for 10 months while I was unemployed. I'm under 591/2. How do I avoid an early-withdrawal penalty?
- There's no penalty if you were unemployed for 12 consecutive weeks and tapped the IRA to pay for health insurance. Report the IRA withdrawal on Form 5329, which includes a line to claim the exception.
- Diane Giordano, CPA, Tax Partner, Marcum LLLP
- Q: My wife and I both work. Can we write off day-care costs?
- Depending on your income, you may be eligible for a child and dependent-care credit. The maximum credit is $3,000 for the cost of caring for one dependent, or $6,000 for two or more dependents. For more information see IRS publication 503 and Form 2441.
- Jill Scher, CPA, Marcum LLP