Tax Information
How Much You Really Pay In Taxes
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…
Read MoreUnderstanding Your Annual Social Security Letter
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…
Read MoreUnique IRA Opportunities for 2020
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…
Read MoreDid You Overlook Something on a Prior Tax Return?
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…
Read MoreHere’s What Could Happen If You Try to Short-Change the IRS
Article Highlights: Self-employed taxpayers Underreported income Unscrupulous tax preparers Phony deductions or credits Inflating the Earned Income Tax Credit Taking fake education credits Petty cheating Some refer to it as “creative accounting” or just “a little fudging here and there,” but if your tax return is missing some income that should have been reported or…
Read MoreThe IRS Is Issuing Some Stimulus Payments by Debit Card; Some Are Being Mistaken as Junk Mail and Thrown Out
Article Highlights: Junk Mail Stimulus Payment Debit Card If you are like most Americans, you receive tons of junk mail, which you tend to discard without ever reading. Well, if you haven’t already received your stimulus payment from the feds, maybe you shouldn’t be so quick to throw away those envelopes from unknown senders, at…
Read MoreTax Issues That Arise When Converting a Home into a Rental
Article Highlights: Reason for Conversion Basis Depreciation Cash Flow versus Tax Profit or Loss Passive Losses Home Gain Exclusion There are many reasons to convert a home into a rental, such as to ensure that a prior home produces income and appreciation after the owner buys a new home; to maximize the tax benefits for…
Read MoreHaven’t Filed Past Returns? IRS May File One for You and It Won’t Be Pretty
Article Highlights: Non-Filers IRS Information Reporting IRS Prepared Substitute Return Notice of Deficiency Tax Court Appeal Liens and Levies There are millions of individuals who do not file a tax return each year, many of them simply because their income is below the filing threshold levels for the year based upon their filing status. Still…
Read MoreHealth Savings Account (HSA)
Looking to shield some of your hard-earned money from income taxes? You should definitely consider funding a Health Savings Account (HSA). You deposit a portion of your wages into the HSA and get a tax write-off for the deposit. The money held in the HSA is typically invested in stocks, bonds and mutual funds. The…
Read MoreTax Effects of a Business Making a Charitable Contribution
Article Highlights: Charitable Contributions Business-Related Charitable Contributions Charitable Pass-Through Deductions 20% Business Pass-Through Deduction Charitable contributions are generally allowed as part of an individual’s itemized deductions on his or her income tax return, while a business expense deduction generally isn’t allowable for a contribution made to a charitable organization. However, the IRS recently issued…
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