During these trying times, employees may be forced to take out loans from their 401(k) plans to meet certain financial obligations. Fortunately, the Coronavirus Aid, Relief and Economic Security (CARES) Act provides some relief for borrowers. Following are the answers to several frequently asked questions (FAQs) about retirement plan loans. What are the limits for [...]
The new retirement planning law passed by Congress late last year—the Setting Every Community Up for Retirement Enhancement (SECURE) Act—includes a tax provision that has nothing to do with your golden years. Accordingly, the way the “kiddie tax” is calculated reverts to the method used before the Tax Cuts and Jobs Act (TCJA) of 2017 [...]
Many people have been asked this question: If I lost my job due to COVID-19, do I have to pay federal income tax on unemployment benefits? The answer, at least for now, is “yes.” The Coronavirus Aid, Relief and Economic Security (CARES) Act authorizes extra unemployment benefits of $600 a week from April 5, 2020 [...]
Below is our understanding of the appropriate ways to be in touch with the Internal Revenue Service (IRS) as of right now. All of this information is as of today, and with all of this type of information, it can change at a moment's notice. The practitioner’s hotline (that's the one we would call on [...]
As part of an update to a prior COVID-19 filing and payment changes, the IRS has now pushed back the second quarter will now also be due on July 15, 2020. So to summarize, all returns that were initially due between April 1, 2020 and before July 15, 2020 are now due on July [...]
The new stimulus bill that was signed on Friday, March 27, 2020, known as the CARES Act is a massive and far ranging $2+ TRILLION bill, so it is probably best for us to break it down by sections or likely impacted group. This Act may be cited as the “Coronavirus Aid, Relief, and [...]
Dear JMF Clients and Friends: As we mentioned in our communication on March 14th, we are in unprecedented times. We wanted to share another update of what JMF is continuing to do to serve our clients while maintaining a safe work environment. This remains a fluid situation and we will continue to communicate with you. [...]
This morning, Friday March 20, 2020, the US Treasury officially changed the filing due date for tax returns from April 15, 2020 until July 15, 2020. Tax returns and tax payments are now both officially due on or before July 15, 2020. This is a welcome change from our communication to you yesterday. The Alabama [...]
MARCH 20 UPDATE: This morning, Friday March 20, 2020, the US Treasury officially changed the filing due date for tax returns from April 15, 2020 until July 15, 2020. Tax returns and tax payments are now both officially due on or before July 15, 2020. ******************* Things are moving very quickly, and there is a lot [...]
At least there is something good about growing old from a tax perspective. Under a unique tax law provision, certain senior citizens can transfer a sizeable amount of funds directly from an IRA to a qualified charitable organization without paying any tax on the distribution. Significantly, this “qualified charitable distribution” (QCD) also counts as a [...]