Do you toss this or toss that?

What to toss and what not to toss is the question! With a sigh you are relieved that yet another tax return has been sent off to the government. Another 12 months before you need to With a sigh you are relieved that yet another tax return has been sent off to the government. Another 12 months before you need to file a tax return again. Butfile a tax return again. But before you close that

Thinking of Selling Your Home?

Thinking of Selling Your Home? Understanding the Home Gain Exclusion. Often a tax surprise occurs when selling your home. The possibility of capital gains tax should be understood before selling your residence. Here is a summary of the rules. One of the largest tax breaks available to most individuals is the ability to exclude up to $250,000 ($500,000 married) in capital gains on the sale of your personal residence. Making the assumption that this gain

Section 529 College Savings Plan

Is a Section 529 plan the right college savings plan for you? 529 college plans. There are many ways to save for college, but one thing is certain: it is never too early to start. One way to save for college is with a “Section 529” plan. These plans offer a way to pay for college expenses with some nice tax advantages. What are they? Section 529 plans allow you to set up a tax-advantaged

Check your credit report – it’s free

Check your credit report – it’s free You can check your credit rating from all three of the major credit reporting agencies for free. To insure the accuracy of your report simply click here. Alternatively, you can receive your free report if you call 1-877-322-8228. You are able to receive one free report from each agency annually. Why bother to get a credit report? Identity theft is a multi-billion dollar industry. Checking your credit rating

IRS mails out 1 million pieces of mail

  Did you know the IRS mails out 1 million pieces of mail per week? During the shut down due to COVID-19, this trickeld down to no automaic notices for the last two months or so. According to the National Taxpayer Advocate, the IRS never stopped PRINTING, but they stopped MAILING. The Internal Revenue Service is about to begin mailing TWENTY MILLION back notices. Many of the notices will have expired – for exmaple ‘we

If you have a household employee

The Household Employee Problem. Nanny Tax. This often overlooked bookkeeping and payroll tax requirement can cause a tangle of tax problems if not handled correctly. It ended a run for Congress by Caroline Kennedy (JFK’s daughter) and killed a U.S. Attorney General nominee’s chances for appointment. Could you be impacted? This is what you need to know. Nanny Tax Explained In an effort to capture income from household employees, the tax code requires you to

Coronavirus (COVID-19) Legislation—Individuals

Coronavirus (COVID-19) Legislation for Individuals. Recent legislation, such as the Families First Coronavirus Response Act and the Coronavirus, Aid, Relief, and Economic Security (CARES) Act has provided some financial and tax relief for certain taxpayers. The following is a summary of some of the provisions. Filing and Payment Deadline The due date for any person required to file a federal income tax return is now July 15, 2020. This is automatic and therefore no extension

Adjusted Gross Income and Gross Income

Question: How does “adjusted gross income” differ from “gross income”? Answer: For income tax purposes, there are three levels of income: gross income, adjusted gross income, and taxable income. Adjusted Gross Income.  Firstly, to arrive at adjusted gross income (AGI), you are allowed a long list of deductions from gross income. For example, business expenses, certain losses, and retirement account contributions. These deductions, also called above-the-line deductions, are allowed even if you don’t itemize your personal deductions

Second Quarter Estimated Payments

Second Quarter Estimated Payments – June 15 deadline moved to July 15 The IRS recently announced a delay in the deadline to file second quarter estimated tax payments. The IRS issued a tax filing and tax payment delay due to the coronavirus pandemic, from April 15, 2020 to July 15, 2020. Many of the payments are in this delay for both individuals and small businesses. It includes filing of all tax returns, the related payments

IRS sending prepaid debit card

  Millions of people will get their Economic Impact Payment by prepaid debit card. Nearly four million people are being sent their Economic Impact Payment by prepaid debit card, instead of paper check. The determination of who will receive a debit card was by the Bureau of the Fiscal Service, another part of the Treasury Department that works with the IRS to handle distribution of the payments. These Economic Impact Payment Cards will arrive in a