'THE ERNST & YOUNG TAX-SAVING STRATEGIES GUIDE 1993' OFFERS EXCELLENT PLANNING IDEAS
ATLANTA, Dec. 10 /PRNewswire/ -- To save money on taxes, people must be tax-smart throughout the year, not just in April. Ernst & Young, one of the nation's foremost tax authorities, annually prepares a book that can help taxpayers do this, "The Ernst & Young Tax-Saving Strategies Guide 1993." The guide is an essential year-end and year-round planner for individuals and businesses. "'The Ernst & Young Tax-Saving Strategies Guide 1993' offers year- end planning ideas to help taxpayers make decisions that can reduce their 1992 tax liability," said Andrew D. Painter, tax partner in Ernst & Young's Atlanta office. "It also offers year-round guidance that can help ensure the 1993 tax-bite will be as low as possible." This year's guide provides the following: -- a free update on late-breaking tax law changes, -- a new "Ask Ernst & Young" section in which the professionals at Ernst & Young answer commonly asked tax questions, -- a new list of 10 tax planning tips, -- last minute year-end planning options, -- year-round planning options, -- expanded coverage on retirement planning, IRAs, Keoghs and SEPs, -- additional information on employee business expense deductions, charitable contributions and estate planning, and -- a handy Tax Calendar that gives a quick overview of monthly tax obligations. The guide is filled with "TaxSavers" -- specific suggestions to cut your taxes. It gives tips keyed to "life cycle events" such as getting married, buying a home, changing jobs and funding children's educations; it also includes 1992 income tax rates, unified estate and gift tax rates and a special state tax table. Ernst & Young is one of the leading international professional services firms with more than 67,000 people worldwide, including 20,000 professionals in more than 100 U.S. cities. The firm's principal areas of practice are accounting, auditing, tax and management consulting. Ernst & Young tax professionals provide services to thousands of individuals and businesses, ranging from small companies to the largest of the Fortune 500.
A TAX PRIMER FROM "THE ERNST & YOUNG TAX-SAVING STRATEGIES GUIDE 1993"
INCOME TAX RATES FOR 1992 The tax laws have put in place three statutory tax rates: 15 percent, 28 percent, and 31 percent. CAPITAL GAINS TAX RATE FOR 1992 The 31 percent tax rate for individuals does not apply to your net capital gain. The maximum rate on net capital gain income is 28 percent. However, for taxpayers with a large amount of net capital gain, the benefit of the 28 percent capital gains tax rate may be partially offset by the limitations on personal exemptions and itemized deductions. Taxpayers in this situation could have an effective tax rate of more than 28 percent on their capital gains income. PHASEOUT OF EXEMPTIONS The deduction for your exemptions now starts being reduced if your adjusted gross income is more than the dollar amount for your filing status as shown in the table below: Joint Returns $157,900 Heads of Households $131,550 Single Individuals $105,250 Married Filing Separately $ 78,950 When your adjusted gross income exceeds the above amount by $125,000, the benefit of your exemptions is reduced to zero. LIMIT ON ITEMIZED DEDUCTIONS You may be subject to a limit on some of your itemized deductions. Taxpayers with an adjusted gross income (AGI) above $105,250 must exceed a floor before certain itemized deductions provide any tax benefits. The floor for all affected taxpayers (regardless of filing status) is equal to 3 percent of the amount by which an individual's AGI exceeds $105,250. Medical expenses, casualty and theft losses and investment interest expense are not subject to the floor (although they are subject to other limitations), and the floor cannot result in a reduction of more than 80 percent of a taxpayer's otherwise allowable deductions. SOCIAL SECURITY The amount of wages and self-employment income subject to the Social Security tax is increased to $55,000 in 1992. The amount of income subject to the Medicare tax is $130,200 in 1992. The tax rates remain the same. The maximum amount that Social Security beneficiaries, ages 65 through 69, can earn without losing any benefits increases to $10,200 in 1992. For those 62 through 64, the limit rises to $7,440. STANDARD MILEAGE RATE The standard mileage rate for business use of an automobile in 1992 is increased to 28 cents a mile. 401(K) PLANS The maximum amount you can elect to contribute to a 401(K) Plan in 1992 is $8,728. -0- 12/10/92 /CONTACT: Annette Boyle of Ernst & Young, 404-874-8300; or Tom Salyers or Glen Jackson of Manning, Selvage & Lee, 404-875-1444, for Ernst & Young/
CO: Ernst & Young ST: Georgia IN: SU:
BR-BN -- AT009 -- 5779 12/10/92 12:05 EST
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|Date:||Nov 13, 1992|
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