Five tax benefits you need to know about:

There are five tax benefits that cannot be split on the tax return when unmarried couple is living together under one roof, dependency exemption, child tax credit, EIC, the child and dependent care credit and the head of household filing status. These benefits can be split only when the parents are separated under a divorce or separation agreement and

Section 179 deduction for 2011 tax year

The deduction limit for tax year 2011, after the most recent Stimulus Act, is $500,000 while the total amount of equipment purchased not to exceed 2 million.

Listed below are examples of equipment that qualifies for section 179 deduction, for the 2011 tax year, as long as it was purchased or leased and placed into service between January 1, 2011 and December 31, 2011.

Employee Benefit Program: Circuit court overrules IRS’s attempt to deny taxpayers deduction

Employee Benefit Program: Circuit court overrules IRS’s attempt to deny taxpayers deduction

Here is court case. A husband and his wife operate a farm. The husband is the owner and the decision maker on the farm. Before 2001, the wife worked for her husband on the farm for 20 years without compensation. In 2001, the wife becomes an employee of the farm supervised by the husband. The wife worked about 40 hours a week. She set up an employee medical reimbursement plan. The couple used the plan to deduct 100 percent of their federal, state and FICA taxes for family medical costs and saved on average of $4000 a year. The wife opened an individual checking account and used it to pay family insurance premiums and medical bills not covered by insurance for the couple and their two children. Besides