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Alternative Minimum Tax – What you should know!
Seems like an obscure thing, the Alternative Minimum Tax (AMT) – it only affects the very rich, never really something with which the average taxpayer should be concerned...or is it?
Well, at the very least, it just might be something the average taxpayer should understand...because instead of reaping the benefits of the new tax cuts, approximately 3 million people will owe taxes this year as a result of the Alternative Minimum Tax.
In fact, the Urban-Brookings Tax Policy Center projects that by the end of this decade, 33 million taxpayers – one out of every 3 that file – will owe Alternative Minimum Tax!
 The Alternative Minimum Tax, or AMT, was designed to prevent super-rich individuals from claiming certain deductions, or "preferences", when they are figuring out how much of their income is taxable. Included in those "preferences" are state and local taxes, real estate taxes and personal exemptions that help to reduce tax bills. While that seems only fair, the AMT (which
became part of the tax code in 1970) has not been modified to account for the fact that our incomes have grown (substantially) since 1970. And, given that the new tax cuts lower the amount that a taxpayer owes under normal tax rules, understanding and planning for possibly owing the AMT now or in the future is more prudent than ever.
The best advice with regard to the AMT is to talk with your tax professionals at Kemper CPA Group LLP – our professionals can determine if the AMT will apply to your individual tax situation, and can help you with tax planning that best fits your unique needs. We can help –
contact us today!
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What are the Most Overlooked Tax Deductions?
The following deductions and credits could help you keep more of your hard-earned income once April 15 arrives, but they are also the most often overlooked on individual returns. If you are not aware of these deductions, read on and then ask your Kemper CPA Group LLP professional if you qualify!
Tuition Credits and Deductions:
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The Hope Scholarship Credit is for those taxpayers who have dependents who are (or who are themselves) freshmen or sophomores in college. |
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The Lifetime Learning Credit allows you to possibly receive a credit for a maximum of 20% of the first $10,000 in tuition you pay, to a maximum credit of $2,000. |
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| For these tuition credits and deductions, limitations and income restrictions apply. If you are married and filing jointly, your adjusted gross income
must be below $100,000 to qualify (below $50,000 if you’re single). |
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Moving Expenses – Did you move in 2003 in order to follow your employer to a new city or to start a new job? If you did not receive any reimbursement for your move from your employer, you could qualify for a deduction of your moving expenses on your federal return. |
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Dependent and Child Care Costs – If you have paid for a day care center or an individual to care for a child or elderly parent, and you were reimbursed through your employer's dependent care benefit, you might be entitled to a credit on your federal return if your expenses exceeded the amount for which you were
reimbursed. |
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Student Loan Interest – If you are married filing jointly, and your adjusted gross income is below $130,000, ($65,000 if you are single), you might be able to deduct a maximum of $2,500 in interest for as many years as it takes you to repay a student loan. The deduction is reduced if your adjusted gross income is
above $100,000 (or $50,000 if you are single). |
The deductions listed above might be overlooked because of changes to the tax laws of which most taxpayers are unaware. Your local Kemper CPA Group LLP professional knows all about the new tax laws and how they might benefit you! Contact
us today for an appointment and our friendly staff
will help you determine if you qualify!
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Remember that Child Tax Credit you received in 2003?
Well, you might not remember exactly how much you received last year. After all, that was several months ago and it is difficult to remember the precise amount. However, you will need to know this amount when your tax return for 2003 is filed this year. What to do?
Never fear – the IRS is providing a link on its website that will allow you to see exactly how much your "check in the mail" was all those months ago! You will, however, need to gather some information before you access the site, including your social security number, (or your IRS tax identification number), your filing
status, and the total number of exemptions as shown on your return.
Once you have all of your information together, click here to access the site (notice there are specific requirements for browser software to allow this site to work properly on your computer).
If you are uncertain of your filing status or number of exemptions, your friendly Kemper CPA Group LLP professionals can assist you – contact us with any questions you might have about your return!
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Before You Buy That Stock, Ask These Questions!
 You know you should "do your research" before buying a stock. But what does that involve? Here are some of the questions you'll want answered before you decide whether or not to purchase shares.
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What product or service does the company make or provide?
While this may seem obvious with well-known companies, it may not be so clear with lesser-known companies. You'll want to have at least a basic understanding of the company's industry before investing.
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How large is the company?
In general, the stocks of small companies are more risky than the stocks of large companies. So, you shouldn't buy stock in an emerging company unless you're prepared for the possibility of significant fluctuations in share price.
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Is the company profitable?
A company's earnings affect its stock price. Look at past earnings and predictions for future earnings growth before making a decision to invest.
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Which way is the cash flowing?
A strong positive cash flow is a sign of financial stability. A cash flow statement should be included in the published financial statements of the company you are investigating.
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What's the company's debt ratio?
Paying back loans drains cash and impacts the bottom line. While most companies depend on borrowing to help finance their operations, too much debt may be a sign of future problems.
For additional information regarding managing your finances and investments, click here to view the March/April 2004 issue of Kemper Capital Management's online newsletter "Loose Change"! If after reading the newsletter you
have any questions, contact the friendly professionals at Kemper Capital Management today to schedule an appointment to discuss your investing needs!
Investment advisory services offered by KCPAG Financial Advisors LLC, a registered investment advisor. Securities offered through CapPro Brokerage Services, Inc., member NASD & SIPC. Insurance services offered through KCPAG Insurance Services LLC.
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Do you have a Technology Partner?
During the past thirty years, technology has evolved from basic business skills into an unlimited resource to be utilized by every segment of your business. Kemper CPA Group LLP has been an industry leader in providing this revolutionary technology to its clients.
Kemper Technology Consulting brings a strong technology and accounting background to your company's business, giving you a total package for business success! Let our experienced team provide you with a solution to your business challenges that increases efficiency, productivity and profitability.
With offices in Illinois, Indiana and Kentucky, our certified consultants have helped our clients find solutions to their operational challenges by:
- Filling in for staff members on an ongoing basis during planned or emergency absences.
- Implementing complete end-to-end business information systems such as customer relationship management, human resource management and accounting systems.
- Implementing VPNs (Virtual Private Networks) to connect satellite offices to the home office, providing you with savings on software costs and increased employee communication.
- Providing outsourced administration and management of Novell or Microsoft networks on a long-term basis, allowing the client to focus on more pressing issues.
- Assisting with technology planning and budgeting.
- Developing web strategy and providing Internet business services.
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At Kemper Technology Consulting, we are dedicated to bringing our clients superior technology consulting. We know that our business can only be as strong as our clients, and we offer your business all the tools it needs for future growth by becoming your Technology
Partner! |
To learn more about Kemper Technology Consulting, contact your local Kemper Technology Consulting office! Our friendly, professional staff can help you with all aspects of your computing needs!
Kemper Technology Consulting
www.kempertc.com
Evansville, IN Indianapolis, IN Robinson, IL Paducah, KY |
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