Nanny tax is one of the tax laws that can jump up and bite you in unexpected places. Do you have a household employee such as a nanny, a caregiver for an elderly relative who moved in with you during the pandemic, or a live-in housekeeper? You may have hired somebody to help out during …
Disasters such as storms, fires, floods, freezes, and hurricanes can damage or destroy vital business records. You need accounting and tax records not only to file your taxes (including claims for casualty losses), but to file insurance claims, bill clients, pay bills, obtain loans, deal with federal and state audits, determine business cash flow and …
First, A Disaster Strikes, Then an IRS Audit. What Now? Read More »
If you are married, most likely you’ve always filed a joint tax return with your spouse. Most of the time, a joint return shows less overall tax than married filing separately (x2) tax returns do, because the married-filing-separately status has many tax disadvantages. Fast-forward to the 2020 tax filing season, however—and nothing is as it …
Married Filing Separately, A Better 2020 Strategy? Wow! Read More »
The earned income tax credit (EITC) has been around for years. But for some folks, it’s never been worth as much as it will be for 2021. That’s thanks to liberalizations included in the American Rescue Plan Act of 2021 (ARPA). Some of the favorable changes are only for the 2021 tax year. Others are …
Earned Income Tax Credit(EITC) Rules Liberalized by ARPA Read More »
Tax Thoughts When a Loved One Passes Away (Part 2) If you become an executor of a loved one who passes away, you may have some important tax decisions to make. Here are some quick thoughts. Choose Tax Treatment for Decedent’s Medical Expenses The decedent’s medical expenses provide you with planning opportunities to deduct as …
Tax Thoughts When a Loved One Passes Away (Part 2) Read More »
We are getting lots of phone calls this week on how the shutdown is going to effect Tax Returns, filing, and refunds. This morning I read a great blog post by an associate of mine, Michelle Weinstein. In this post she lays out great details on Filing Tax Returns, Refunds, IRS Collections, Enforcement, Audits, and …
IRS Services Are Available During the Government Shutdown: What You Need to Know Read More »
Have you ever heard someone say: “Why would I pay someone to do my taxes, I can do it” Or “TurboTax tells me all the rules so I can file my return correctly for a lot cheaper than a professional.” In fact I even said it myself once. That statement cost me over $25,000 for …
What Does The Tax Court Say About Online And Boxed Tax Software Read More »
The new cap on state and local tax (SALT) deductions faces a court test. Starting with 2018 returns, individual filers can deduct on Schedule A state and local income taxes or sales taxes, plus property taxes, up to a $10,000 limit. Conn., Md., N.J. and N.Y…all high-tax states…are suing the U.S. government. They challenge the …
State and Local Tax (SALT) Deductions Faces a Court Test Read More »
The Affordable Care Act (ACA) does not apply to a business that has only one employee. This opens the door (likely regardless of what lawmakers do with the ACA) for what we are going to call the 105-HRA. We created this name from its two predecessors: The Section 105 medical reimbursement plan The health reimbursement …
Is The 105-HRA (Health Reimbursement Arrangement) Right for Your Situation Read More »
Let’s discuss the taxation of capital gains, in light of the new tax law and other goings-on. Long-term gains still get favorable rates. Profits from the sale or exchange of capital assets held for more than a year are taxed at 0%, 15% or 20%. But figuring the rates is a bit more complex. It …
Capital Gains, What is the Same, And What Changed With New Tax Laws Read More »