Saving enough to pay for the future higher education of your children is a daunting task. Some consolation: There is no foolproof method, but at least a Section 529 plan may help you set aside funds, up to generous limits. Q. What exactly is a Section 529 plan? A. Named after the tax code section [...]
The Tax Cuts and Jobs Act (TCJA) created a major new tax deduction for self-employed individuals and owners of pass-through entities like partnerships, S corporations and limited liability companies (LLCs). Effective for 2018 through 2025, the deduction for “qualified business income” (QBI) can be as high as 20%. However, these deductions are reduced or [...]
There are usually some new twists and turns to the current tax return rules for individuals, but this year is especially tricky due to recent legislation. Following are six potential items to watch out for on 2021 returns. 1 Charitable donations: Normally, you can deduct monetary contributions made to qualified charitable organizations only if you [...]
The tax threshold for deducting medical expenses is written in stone…finally. After several years in which the medical deduction threshold jumped back and forth between 7.5% of adjusted gross income (AGI) and 10% of AGI, Congress settled the issue once and for all in the Consolidated Appropriations Act (CAA). Effective as of 2021, the CAA [...]
Do you travel in your vehicle on behalf of a qualified charitable organization? In lieu of keeping track of your actual expenses, you may use a standard mileage rate of 14 cents per mile, plus related tolls and parking fees, to arrive at the deduction. Unlike the IRS-approved standard mileage rates for business reasons, job-related [...]
Did you know about all of the electronic offerings associated with your tax return filing? Bank account direct deposit for refunds and direct draft for payments What is it? The quickest and safest way to receive your refund or make your tax payment associated with most federal and state tax returns How do I [...]
It is no longer unusual to have a spouse, children and grandchildren from a second or third marriage encompass a “blended family.” But these additions to the clan can complicate estate planning. Keeping that in mind, the following techniques may be beneficial for blended families: Will: Your will is the centerpiece of your estate plan [...]
Should you add to your charitable donations before the end of the year? From a tax perspective, it generally depends on whether you expect to itemize deductions this year or if you will be claiming the standard deduction. All other things being equal, it makes sense to “bunch” donations in the tax year it [...]
Tax breaks seem to come and go, but one of the biggest and best “tax shelters” around is still standing. Thanks to Section 121 of the tax code, a taxpayer can exclude from federal income tax up to $250,000 of gain from the sale of a home—$500,000 if you are married and file a joint [...]
Tax season is right around the corner, so we want you to be prepared. As we typically do, we have created this year-end tax planning letter to assist you with certain tips that you should consider before December 31st. This is the time to reassess your overall tax picture for 2021 so you can [...]