Ask a CPA

COLA's were first paid in 1975 as a result of a 1972 law. Prior to that, benefits were increased irregularly by special acts of Congress. Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012. The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.

Social Security payroll taxes are collected under authority of the Federal Insurance Contributions Act (FICA). The payroll taxes are sometimes called "FICA taxes".
FICA is nothing more than the tax provisions of the Social Security Act, as they appear in the Internal Revenue Code.

Until June 2011, The first three digits are assigned according to the geographic region in which the person was residing at the time he or she obtained a number. Generally, numbers were assigned beginning in the northeast and moving westward. The remaining six digits in the number are randomly assigned.
Social Security is changing the way Social Security numbers (SSN) are issued. This change is referred to as “randomization.” Social Security is developing this new method to help protect the integrity of the SSN. SSN Randomization will also extend the longevity of the nine-digit SSN nationwide.
Social Security plans to implement the new assignment methodology on June 25, 2011. SSN randomization will affect the SSN assignment process in the following ways: n It will eliminate the geographical significance of the first three digits of the SSN, currently referred to as the area number, no longer allocating the area numbers for assignment to individuals in specific states. n It will eliminate the significance of the highest group number and, as a result, the High Group List will be frozen, but can be used for validated SSNs issued prior to the randomization implementation date. n Area numbers previously unassigned will be introduced for assignment excluding area numbers 000, 666 and 900-999.

No. Some government, church and self-insured plans are exempt from the COBRA law, so be sure to check before assuming you can continue coverage.

ER0 is the acronym for Electronic Return Originator. EROs have passed suitability and background checks by the IRS and are accepted into the Electronic Filing Program. This means that they can transmit tax returns via computer.

You cannot deduct parking at your regular place of work because it's considered a commuting expense. Parking and other transportation expenses are often deductible, even by employees, if you work at more than one location in one day or work on a temporary basis away from your regular workplace.

For all Treasury securities such as bills, bonds or notes, the minimum purchase amount is $1,000. Bids must be made in multiples of $1,000.
Non-competitive bids from a single bidder may not exceed one million for the same offering of Treasury bills, or five million for the same offering of Treasury notes or bonds.

Strips are sold in the marketplace as "Treasury zeros" or treasury zero coupons. They are called zeros because purchasers do not receive interest payments. The Treasury does not issue or sell Strips. They can be purchased through broker/dealers and depository institutions. They are the people to contact for rates. Bid and ask quotes and ask yields for US Treasury Strips are in the Wall Street Journal under the table "Treasury Bonds, Notes and Bills." These tables are in other financial reporting newspapers as well.

No. Your annual contribution to a Roth IRA is not a deduction on your tax return. Distributions at age 70 and a half are not requires. Contributions after age 70 are allowed. Distributions are not taxable. IRA minimum distribution rules do not apply.

The annual $5,500 ($6,500 if age 50 or older) per spouse annual contribution is deductible on your tax return. Distributions at age 70 and a half are required. Contributions past age 70 and a half are not allowed. Premature distributions are subject to penalty. Distributions are taxable in your current tax return. IRA minimum distribution rules do apply.