Tax-News.com: Tax inspectors from the Italian Revenue Agency have again taken to making spot
checks, this time at Courmayeur, to check whether its shops, restaurants and bars,
even those on the ski slopes of Mont Blanc, are issuing the necessary tax receipts.

Tax-News.com: Switzerland’s Federal Council has announced that it does not intend to
introduce tax incentives to promote the traditional family model of parents
staying at home to look after their children.

Tax-News.com: The Organisation for Economic Cooperation and Development, in a recent report
on Norway’s fiscal policy, has recommended a comprehensive review of the Norwegian tax regime with respect to capital taxation and its wealth tax.

When tax time is looming, Benjamin Franklin’s famous quote about death and taxes is often mentioned. His “Nothing is certain except death and taxes” quote is one of the most enduring quotations from the inventor, politician, writer and founding father.

However, few people really understand why the words were uttered and under what circumstances.

The French Letter

The quote, as it happens, was not uttered in English. It was written by Franklin in French in November of 1789, in a letter to Jean-Baptiste Leroy, a French scientist. Franklin, fluent in French, had once been the U.S. Ambassador to France.

The letter he wrote to Leroy discussed the French Revolution and wished France, and its king, well. He also described the constitution that had recently been accepted and his hopes for its durability. However, he knew that little in the world was truly durable. Out of this came his quote about death and taxes, telling the scientist that these two things are all that really could be counted on with any certainty.

The constitution had been drafted in 1776, and in 1787 it was put in practice by the Constitutional Convention in Philadelphia. The fledgling young government was a great hope to the founding fathers, but its future was still highly uncertain. After two years, Franklin was still worried about it standing the test of time.

Why a French Scientist?

Most of Franklin’s best-known quotes came from his domestic writings, including Poor Richard’s Almanac and assorted essays published in newspapers. His letter to a foreign scientist about his hopes and fears about the new constitution may seem unlikely, but they are actually very much in line with Franklin’s life’s work.

As the U.S. Ambassador to France for nine years, he became a celebrity in the country. He was well known throughout France and much of the rest of Europe, and he used that celebrity to drum up support for the revolutionary cause back home. However, even before his term as ambassador, he was already known in the scientific community of France.

To see why, think back to the image of Franklin flying his kite in the lightning storm. This electricity experiment, as well as others he conducted, had allowed him to be held in high esteem among French scientists. Though Franklin knew nothing of it, Franklin’s kite experiment was conducted about a month after a similar experiment had been conducted in France.

With Franklin and French scientists having much the same interests in electricity, Franklin continued to be held in high esteem 24 years later when he became ambassador to France in 1776. It was in this atmosphere of goodwill as well as the increasingly serious situation in France that spurred Franklin to write his letter.

The French Revolution

Franklin and Leroy had been corresponding for many years, but at the time he wrote his famous letter, Franklin had not heard from his friend in more than a year. He feared that Leroy had been killed in the frenzy of executions that had swept France. The letter opened by asking Leroy, “Are you still living?” In the end, it was Franklin who was not to live much longer. He died five months after writing the letter, at the age of 83.

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Tax-News.com: Switzerland’s Federal Council has recently decided to bring the amendment
to the Banking Act designed to resolve the ‘too big to fail’ issue
into force on March 1, 2012.

Tax-News.com: According to a statement by China’s State Council, after a meeting chaired
by Premier Wen Jiabao, the government promised to push forward its structural
reform programmes, including tax measures, to improve the country’s economic
development and improve people’s living standards.

Tax-News.com: According to a statement by China’s State Council, after a meeting chaired
by Premier Wen Jiabao, the government promised to push forward its structural
reform programmes, including tax measures, to improve the country’s economic
development and improve people’s living standards.

Tax-News.com: Luxembourg’s Prime Minister and President of the Eurogroup Jean-Claude Juncker
has underlined his confidence that the Eurogroup will indeed be able
to implement all the necessary decisions regarding Greece’s second adjustment
programme during its forthcoming meeting on February 20.

There are many ways through which the elderly can reduce their income taxes. Approximately 13% of the U.S. population is over the age of 65, and a large percentage of seniors are on fixed incomes. Reducing tax liability is necessary for many individuals, as senior income doesn’t usually increase when living expenses increase.

Here are a number of tax credits and deductions that an elderly person is likely to qualify for:

Tax Deductions and Tax Credits Specific to Senior Citizens

The following credits and deductions are available for senior citizens to help reduce their tax liability:

Increased Standard Deductions

If you are a senior over the age of 65 and do not itemize tax deductions, you can increase your standard deduction by an additional $1,150 or $1,450 (for 2011 and 2012) depending on your filing status.

Real Estate Tax Credits

Some states will allow seniors who own a home to take a tax credit for a percentage of their real estate taxes. Check with your state taxation department for eligibility requirements.

A Tax Credit for the Elderly

If you are at least 65 years old or permanently disabled and you meet the income requirements for your tax filing status, you may qualify for the Credit for the Elderly or the Disabled. The following income limits are for adjusted gross income (AGI) and nontaxable pensions, including Social Security income (for tax year 2011):

In-Home Care Services

If an individual has an in-home care provider, you will need to distinguish between whether or not the individual is a household employee or a contractor. The caregiver is considered an employee if he or she only works for you, and you decide the hours they work and in that case, you will need to withhold payroll taxes, income taxes, Social Security and Medicare and make an employer matching contribution to both Social Security and Medicare on the individual’s behalf. If you have an in-home caregiver employee, you must also file taxes like a “business” – quarterly and annually.

If your in-home caregiver provides medical services, the cost of medications, bathing and grooming are eligible for the medical expense tax deduction.

Medical Expense Tax Deduction

This is a deduction that is available to anyone regardless of age, but the elderly are more likely to qualify for it. If your medical expenses are more than 7.5% of your AGI, you can deduct your medical expenses. With the fixed income of most senior citizens and the increased need for medical care as we age – this is generally a money saving deduction for the country’s elderly.

Allowed medical expenses include prescription drugs, insurance premiums, long-term care insurance premiums, nursing homes, and other items such as dentures or wheelchairs.

Senior Tax Preparation Services

The AARP Foundation sponsors a free tax preparation service called Tax-Aide, available for individuals over the age of 60. Last year, over 35,000 volunteers assisted seniors with 2.6 million tax returns using IRS provided software. The preparers were able to file senior tax returns for free and electronically file both federal and state returns free of charge.

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2. Legally Reduce IRS Income Taxes Using These Tax Credits & Deductions
3. Tax Credits to Keep in Mind for 2010 Taxes

Tax-News.com: Leader of Germany’s ruling Christian Social Union Horst Seehofer has
recently announced plans to make tax policy a central issue of the upcoming elections
in 2013, following the decision by the Social Democrats and the Green Party to reject the coalition government’s tax relief measures in
the Bundesrat.