You Should Be Keeping Home Improvement Records

Jon Weaver Tax Information

Article Highlights: Keeping home improvement records Home gain exclusion amounts Records may be required to avoid tax Individuals who meet the 2-out-of-5-year use and ownership tests can exclude up to $250,000 ($500,000 if both filer and spouse qualify) of gain from the sale of their home, and generally don’t need to keep a record of improvements made to the home. …

Big Tax Breaks for Hiring Your Children in the Family Business

Jon Weaver Tax Information

Article Highlights: Child Under the Age of 19 or a Student Under the Age of 24 Kiddie Tax Tax on a Child’s Earned Income Deduction for the Business Employment Taxes IRAs and Retirement Plans With jobs at a premium during the COVID-19 pandemic, you might consider hiring your children to help out in your business. Financially, it makes more sense …

Gifts to Friends and Family

Jon Weaver Tax Information

It always feels good to hook your friends and family up with gifts, but gifters beware. There are limits on how nice you can be before taxes become a factor. And it matters because federal gift tax rates ain’t no joke. They can reach as high as 40%. Connecticut is the only state that charges, so it’s basically a federal …

IRS Provides Additional 2020 RMD Rollover Relief

Jon Weaver Tax Information

Article Highlights: CARES Act Waiver of RMDs 60-Day Rollover Period Extension Further Rollover Relief RMDs in General Effect of Withholding on RMD Rollover One IRA Rollover per 12 Months Rule The CARES Act waived required minimum distributions (RMDs) from IRAs and employer plans such as 401(k)s for 2020. However, the CARES Act was not passed until March 27, 2020 and …

Government Keeping Your Refund?

Jon Weaver Tax Information

Article Highlights: Bureau of the Fiscal Service Allowable Refund Offsets Disputing an Offset Injured Spouse Claim We all look forward to receiving our tax refunds, but what if you were expecting a refund and it never arrived?  It may be because you have outstanding federal or state debts—and not just tax-related debts.  The Treasury Department’s Bureau of the Fiscal Service …

Charity Volunteer Tax Breaks

Jon Weaver Tax Information

Article Highlights: Away-from-home travel Lodging and meals Entertaining for charity Automobile travel Uniforms Substantiation requirements If you volunteered your time for a charity or governmental entity during the COVID-19 pandemic, you probably qualify for some tax breaks. These rules actually apply to all charity volunteers not just COVID-19 volunteers. Although no tax deduction is allowed for the value of services …

How Much You Really Pay In Taxes

Jon Weaver Tax Information

Taxes seem like they are everywhere. That’s because they are. Look at your paystub or Box 2 of your W-2 and you will find the most expensive one. It is federal income tax. Down a bit further on the W-2 shows your state and local income tax withholdings. These are also significant amounts. I live in Guilford County North Carolina …

Understanding Your Annual Social Security Letter

Jon Weaver Tax Information

Article Highlights: Medicare B Premiums Medicare D Premiums Modified AGI 2020 Premiums Table Effect of Recreational Gambling Appealing the Social Security Administration’s Decision If you are receiving Social Security, then you have just recently received your annual letter from the Social Security Administration letting you know that your Social Security benefits for 2020 have increased by 1.6 percent as a …

Unique IRA Opportunities for 2020

Jon Weaver Tax Information

Article Highlights: 2020 Tax Saving Opportunities Traditional IRA to Roth IRA Conversions Paying the Conversions Tax Required Minimum Distribution (RMD) 2020 RMD Waiver Coordinating Distributions with 2020 Income As bad as it has been financially for many individuals, 2020 does provide some unique tax opportunities for those who have traditional IRA accounts. These range from converting traditional IRAs to Roth …

Did You Overlook Something on a Prior Tax Return?

Jon Weaver Tax Information

Article Highlights: Repercussions of Incorrect Tax Returns Filing Amended Returns Statute of Limitations for Refunds Potential of Audit It is not uncommon to discover that an item of income was overlooked, a deduction was not claimed, or that an amended tax document was received after the tax return was already filed. Regardless of whether the oversight will result in more …