Tax Filing Deadline Delayed to July 15th
After extending the due date for 2019 tax payments by 90 days, the Treasury has announced the tax filing deadline will also be delayed to July 15, 2020….
Treasury and IRS Announce 90-Day Delay for Tax Payment Deadline
Treasury Secretary Steven Mnuchin has announced a 90-day reprieve for taxpayers to pay their income taxes owed. What does this mean for you?..
What Does a Tax Deduction Save You?
Taxpayers frequently ask what benefit is derived from a tax deduction. Unfortunately, there is no straightforward answer. The reason the benefit cannot be determined simply is because some deductions are above-the-line, others must be itemized, some must exceed a threshold amount before being deductible, and certain ones…
Congress Green-Lights Some Alternative Vehicle Credits
To encourage U.S. taxpayers to move away from gasoline-powered motor vehicles, over the years, Congress has provided various tax credits for purchasing electric or alternative fuel vehicles. These credits generally come with an expiration date or a sales limitation. For example, from 2006 through 2010, a credit was available…
Congress Extends Employers’ Hiring Tax Credit for Another Year
Employers that hire disadvantaged individuals, such as unemployed veterans, SSI recipients, and ex-felons, among others, may benefit from a substantial federal tax credit. Hiring certain new employees can qualify the employer for the Work Opportunity Tax Credit (WOTC), which Congress extended for one additional year, so…
IRS Letters: Tax Scam or Something You Need to Address?
Received a letter from the IRS? Stop, breathe, and contact your tax professional. Then follow these steps….
Congress Adds More Uses for College Savings Plan (Sec 529 Plan)
Congress originally created the Qualified State Tuition Plan, often referred to as the Sec 529 Plan, as a tax-beneficial incentive for parents, grandparents, and others to save money for an individual’s future college tuition and fees. There is no federal tax deduction for making contributions, but taxes on the earnings…
New Twist Added to The IRA-to-Charity Provision
Ever since 2006, individuals age 70½ or older have been able to transfer up to $100,000 annually from their IRAs to qualified charities.
Congress Removes IRA Contribution Age Restriction
In the past, unlike Roth IRAs, which have no age restriction associated with making a contribution, taxpayers were unable to make a traditional IRA contribution in and after the year they reached the age of 70½. This is primarily because a Roth IRA contribution is not tax deductible, while a traditional IRA is, unless
Childbirth & Adoption Penalty Exception Added
If you are looking for cash for a specific purpose, your retirement savings may be a tempting source. However, if you are under age 59½ and plan to withdraw money from a traditional IRA or qualified retirement account, then you will likely pay both income tax and a 10% early-distribution tax (also referred to as a penalty) on any previously untaxed money that you take out.
Video Tips On What To Do If You Receive An IRS Deficiency Notice
Nobody likes getting mail from the IRS – especially when it’s something you weren’t expecting. Watch the video to learn more to do next if you received an IRS deficiency notice.
New Twist for Kiddie Tax With a Refund Opportunity
Your dependent child who worked during the year or had investment income, such as interest or dividends, may be required to file a tax return, depending upon the type and amount of the income. Years ago, to prevent parents from putting their investments in their children’s names to avoid or significantly reduce the tax…
Did You Pay Tax on Home Mortgage Debt Relief in 2018?
Whenever a taxpayer’s debt is forgiven, whether it is credit card debt, home mortgage debt, an auto loan, or other debt, that forgiven debt – referred to as cancellation-of-debt (COD) income – becomes taxable income to the taxpayer unless the debt was discharged in a bankruptcy proceeding or the taxpayer qualifies…
The Home Energy Saving Tax Credit Is Back
The Residential Energy (Efficient) Property Credit was initially introduced in 2006. The credit’s name is somewhat misleading, and the credit is best described as an energy-saving credit since it applies to improvements to the taxpayer’s existing primary home to make it more energy efficient. Over the years since it was first introduced, it has provided a tax credit in amounts varying from 10% to 30% of the cost of energy-saving devices installed as part of a taxpayer’s home, with the maximum credit ranging from $500 to $1,500.
Budget Tips for Covering A Surprise Tax Bill
If this tax season brings you a large, unexpected tax bill, these are the steps you should take to ensure you don’t get into further trouble with the IRS….
Mortgage Insurance Premium Deduction Retroactively Extended
January 23, 2020 Article Highlights: Appropriations Act of 2020 Amended Return for 2018 Qualifications for the Deduction Qualified Mortgage Insurance On December 20, 2019, President Trump signed into law the Appropriations Act of 2020, which included a number of tax law changes, including retroactively extending certain tax provisions that expired after 2017 or were about…
Above-the-Line Education Tax Deduction Reinstated
As part of the Appropriations Act of 2020, Congress has retroactively reinstated the above-the-line deduction for 2018 through 2020.
Employer’s Pension Startup Credit Substantially Increased
If you are considering establishing a qualified pension plan for your business, you may be entitled to the Credit for Small Employer Pension Startup Costs.
Congress Allowing Higher Medical Deductions for 2019 and 2020
Medical expenses are deductible as an itemized deduction but only to the extent they exceed a percentage of a taxpayer’s adjusted gross income (AGI).
2020 Standard Mileage Rates Announced
The Internal Revenue Service (IRS) computes standard mileage rates for business, medical and moving each year, based on a number of factors, to determine the standard mileage rates for the following year.
Do I Have to File a Tax Return?
This is a question many taxpayers ask during this time of year, and the question is far more complicated than people believe. To fully understand, we need to consider that there are times when individuals are REQUIRED to file a tax return, and then there are times when it is to the individuals’ BENEFIT to file a return even if they are not required to file.
Divorced, Separated, Married or Widowed This Year? Unpleasant Surprises May Await You at Tax Time
Taxpayers are frequently blindsided when their filing status changes because of a life event such as marriage, divorce, separation or the death of a spouse. These occasions can be stressful or ecstatic times, and the last thing most people will be thinking about are the tax ramifications. But the ramifications are real, and the following are some of the major tax complications for each situation.
Congress Passes Last-Minute Tax Changes
Congress, at almost the last minute, has passed a large number of tax changes, including retirement plan issues that will become effective in 2020, as well as extensions through 2020 of a number of tax provisions that had expired or were about to end.
Tips To Avoid 2019 Tax Penalties
The holiday season is upon us, complete with family gatherings, over-indulging in food and beverages, and gift shopping and giving, and the last thing most of us want to think about right now is what faces us after the New Year is rung in: tax season! But taking some time now to get in the tax-season spirit may help you to avoid or reduce certain penalties on your 2019 tax return.
Helpful Tax Tips For 2019
As the year draws to a close, we have pulled together a number of tax tips that may be beneficial, some of which need to be acted before the end the of the year to be useful for 2019.