50% Limit on Meals

The 50% limit only only applies to meals associated with a business such as business travel or income producing property (rental). However, medical or charitable meals are 100% deductible if they otherwise qualify.

Medicare Part B

This is the part you pay for each month which is withheld from your social security payment. If your income is less than $85,000 and you file a single return, or if your income is less than $170,000 and you file a joint return, then the monthly premium is $99.90. If you make over those amounts, then your monthly premium increases from $139.90 to a maximum of $319.70 for 2012. It is like a little mini tax return.

Can you deduct the cost of an MBA degree?

Maybe. If you are already in business, and go back to school to get an MBA that is related to what you are already doing, then you should be able to deduct the costs. Also your company can't require you to get the MBA to keep your job. The IRS doesn't like this deduction one bit and will argue it qualifies you for a new business or profession. You will have to be able to refute that with the facts and circumstances of your situation. If you immediately leave your company upon graduation, and take a new job in a different industry, that will hurt your case. The MBA has to maintain or improve your skills used in your current job. An employee would take the deduction as a miscellaneous itemized deduction subject to the 2% of adjusted gross income threshold.

IRS Tax Notices

It is never pleasant to receive one of these in the mail. What should you do? The first thing you don't do is ignore it. It won't go away on its own, and it will likely escalate to even more unpleasantness if left unanswered. Don't panic either. Many times the notices are incorrect and have an easy fix with a simple explanation. The best approach is to notify your tax preparer and have them respond. Usually you have 30 days from the date of the notice before more penalties and interest are added and the process escalates. A call to the IRS can usually get you more time to respond if the answer is complex and requires a lot of work. Also you have to be patient with getting closure on the notice. It might take six months or longer to receive a resolution from the IRS after you have responded to them.