Important Tax Changes for Individuals and Businesses
Posted on January 5th, 2021
Every year, it’s a sure bet that there will be changes to current tax law and this year is no different. From standard deductions to health savings accounts and tax rate schedules, here’s a checklist of tax changes to help you plan the year ahead. Read More…
Standard Mileage Rates for 2021
Posted on January 4th, 2021
Starting January 1, 2021, the standard mileage rates for the use of a car, van, pickup, or panel truck are as follows: Read More…
Employee Business Expense Deductions: Who Qualifies?
Posted on January 1st, 2021
Prior to tax reform, an employee was able to deduct unreimbursed job expenses, along with certain other miscellaneous expenses, that was more than two percent of adjusted gross income (AGI) as long as they itemized instead of taking the standard deduction. Starting in 2018, however, most taxpayers can no longer claim unreimbursed employee expenses as miscellaneous itemized deductions unless they are a qualified employee or an eligible educator. Read More…
The Home Office Deduction
Posted on September 6th, 2020
With more people working from home than ever before, taxpayers may be wondering if they can claim a home office deduction when they file their 2020 tax return next year. The short answer is that self-employed taxpayers who use their home for business may be able to deduct expenses for the business use of it whether they rent or own their home. If you are an employee, however, you are not eligible to take the home office deduction – even if you are working remotely in your home office. Read More…
RIC Shareholder Dividends Qualify as Section 199A
Posted on August 4th, 2020
Section 199A, enacted as part of the Tax Cuts and Jobs Act (TCJA), allows individual taxpayers and certain trusts and estates to deduct up to 20 percent of certain income (section 199A deduction). It is available to eligible taxpayers with qualified business income (QBI) from qualified trades or businesses operated as sole proprietorships or through partnerships, S corporations, trusts, or estates, as well as for qualified REIT dividends and income from publicly traded partnerships. The deduction is not available for C corporations. Read More…
Tax Breaks for Teachers and Educators
Posted on August 1st, 2020
While many schools are switching to hybrid or remote learning models, teachers and other educators should remember that they can still deduct certain unreimbursed expenses such as classroom supplies, training, and travel. Deducting these expenses helps reduce the amount of tax owed when filing a tax return.
To qualify for the deduction, the taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law. Read More…
Estates and Trusts: Guidance for Itemizing Deductions
Posted on June 1st, 2020
The Tax Cuts and Jobs Act (TCJA) prohibits individual taxpayers from claiming miscellaneous itemized deductions for any taxable year beginning after December 31, 2017, and before January 1, 2026. However, proposed guidance has recently been issued clarifying that certain deductions of estates and non-grantor trusts are not miscellaneous itemized deductions and are allowable in figuring adjusted gross income, specifically: Read More…
Self-Employment COVID-19 Relief and Tax Benefits
Posted on May 6th, 2020
If you are in business for yourself—say, as a corporation or self-employed—payroll taxes and self-employment taxes are likely two of your biggest tax burdens.
Here’s some possible good news: Congress decided to give you significant relief from these taxes due to the COVID-19 pandemic. We’ll tell you what relief options are available and whether or not you qualify. Read More…
What Expenses Can I Write Off Working From Home During the Pandemic?
Posted on May 2nd, 2020
Robert Russo’s interview in The Daily Beast
A guide to defraying rent and utilities when your office is also your abode.
It’s the question on every sweatpants-clad telecommuter’s mind, right after What should I have for lunch? and Will I get laid off soon?
Home Equity Loan Interest Still Deductible
Posted on March 5th, 2020
The Tax Cuts and Jobs Act has resulted in questions from taxpayers about many tax provisions including whether interest paid on home equity loans is still deductible. The good news is that despite newly-enacted restrictions on home mortgages, taxpayers can often still deduct interest on a home equity loan, home equity line of credit (HELOC) or second mortgage, regardless of how the loan is labeled. Read More…
Tax Treatment of State and Local Tax Refunds
Posted on March 4th, 2020
The Tax Cuts and Jobs Act (TCJA), enacted in December 2017, limited the itemized deduction for state and local taxes to $5,000 for a married person filing a separate return and $10,000 for all other tax filers. The limit applies to tax years 2018 to 2025.
As in prior years, if a taxpayer chose the standard deduction then state and local tax refunds are not subject to tax. However, if a taxpayer itemizes deductions for that year on Schedule A, Itemized Deductions, part or all of the refund may be subject to tax – but only to the extent that the taxpayer received a tax benefit from the deduction. Read More…
It’s Not Too Late to Make an IRA Contribution
Posted on March 2nd, 2020
If you haven’t contributed funds to an Individual Retirement Account (IRA) for tax year 2019, or if you’ve put in less than the maximum allowed, you still have time to do so. You can contribute to either a traditional or Roth IRA until the April 15th due date, not including extensions. Read More…
Claiming an Elderly Parent or Relative as a Dependent
Posted on February 5th, 2020
Are you taking care of an elderly parent or relative? Whether it’s driving to doctor appointments, paying for nursing home care or medical expenses, or handling their personal finances, dealing with an elderly parent or relative can be emotionally and financially draining, especially when you are taking care of your own family as well. Read More…
Tax Extenders, Retirement Plan Changes, and Repeals
Posted on February 2nd, 2020
In addition to averting a government shutdown, the Further Consolidated Appropriations Act, 2020, signed into law on December 20, 2019, extended a number of expired tax provisions for businesses and individuals through 2020. It also included several retirement plan changes and repealed three health care taxes. Here’s what you need to know. Read More…
Standard Mileage Rates for 2020 or Actual Cost of Use Deduction?
Posted on January 6th, 2020
Starting January 1, 2020, the standard mileage rates for the use of a car, van, pickup or panel truck are as follows: Read More…