Individual Tax Insights

New Tax Law Increases in the Earned Income Tax Credit

The earned income tax credit (EITC) has been around for years. But for some folks, it’s never been worth as much as it will be for 2021. That’s thanks to liberalizations included in the American Rescue Plan Act of 2021 (ARPA). Some of the ... (continued)

Tax Bonanza--Expanded Individual Tax Credits for 2021

For tax year 2021, Congress is giving away billions of dollars in additional tax credits on your Form 1040 individual tax return. These temporarily expanded tax credits include the child tax credit, the dependent care credit, and the health insurance premium tax credit. With good planning ... (continued)

Disaster Losses--New Tax Law Qualifications

Disasters such as storms, fires, floods, and hurricanes damage or destroy property. If property such as an office building, rental property, business vehicle, or business furniture is damaged or destroyed in a disaster, your business may qualify for a casualty loss deduction. It’s easier to deduct ... (continued)

COVID 19 Boosts Temporary Tax Dedcutions & Credits

Embedded in the COVID-19 relief law is $900 billion for financial assistance. As you would expect in these unusual times, some of the relief is in the form of direct government financial assistance and some is from tax benefits that can impact both tax year ... (continued)

A Word About Stimulus Payments and Tax Implication(s)

They received the full amounts of both Economic Impact Payments if: Their first Economic Impact Payment was $1,200 for individuals; $2,400 married filing jointly for 2020, plus $500 for each qualifying child including those born in 2020. Their second Economic Impact Payment was $600 for individuals; ... (continued)

E-Filing Will Start February 12, 2021 for Individuals

The IRS will begin accepting and processing 2020 tax year returns on Friday, February 12, 2021. The most expedient way for taxpayers to receive their refunds is by filing electronically and choosing direct deposit for their refund. By Law. the IRS cannot issue refunds before mid-February ... (continued)

Tax Planning When Love One Passes

If you become an executor of your loved one’s estate, you may have some important tax decisions to make. Here are some quick thoughts. The decedent’s medical expenses provide you with planning opportunities to deduct as itemized deductions (subject to the 7.5 percent floor) not only ... (continued)

Domestic Service in Private Homes-What You Need to Know

You might not be aware that the “Nanny Tax” is not just limited to nannies. The IRS is stepping up its audits on those with workers in their private homes and its not just because of “nannies”. Here are some of the rules: the tax does ... (continued)

Here’s 4 More Year End Tax Strategies

The end of the year is approaching, so now is the time to utilize last-minute strategies to lower your tax bill. Here are four tax-deduction strategies that apply if you are getting married or divorced, have children who did or could work in your ... (continued)

It’s OK to Gamble This Way?

Most people gamble periodically. Rule 1- Your Winnings are taxable. Your income from gambling is taxable, and is reported to the IRS on Form W-2G. Rule 2- Keep records of your losses. You are allowed to offset your gambling winnings with your gambling losses-however, the IRS ... (continued)

Warning! The IRS is Now Outsourcing Tax Debts

The IRS is using 4 private collection agencies to collect inactive tax receivables. If you nor the IRS has taken any recent actions to resolve your tax debts, the IRS may assign your case to one of these agencies. Once your case is assigned, ... (continued)

HSA’S- Here’s Why They Work!

There are generally tax strategies that can work for you and your business, if you understand the tax code. The Health Savings Account is a powerful part of a health care strategy because: saves you $$$ through lower taxes grows tax-free gives you a chance to ... (continued)

Simple Strategy for 100% Tax-Free Rental Income!

Generally rental income is similar to any other income, its taxable income subject to income tax. However, there is a loophole known by a very few, that allows in the tax law certain amount of tax-free rental income. Yes, tax-free, and not reported on your ... (continued)

New IRS Repair Regulations for Real Estate Investors

Owning a building has many headaches–such as new roofs, HVAC Units, lighting systems, etc., as they all eventually new replacement. Prior law added to these unwanted events, as you were stuck capitalizing and depreciating the new roof-and continued to to depreciate the old one ... (continued)

2015 Dirty Dozen Tax Scams

On February 6th, the IRS released its 2015 “Dirty Dozen” tax scams list, and also posted the 2015 version of “The Truth about Frivolous Tax Arguments.” Compiled annually, the dirty dozen lists a variety of common scams that taxpayers may encounter during the busy ... (continued)

ObamaCare and Your Taxes

Here are 5 important points that you should know about the new Health Insurance and your taxes: Watch the mail for From 1095-A. If you enrolled in a Marketplace healthcare plan in 2014, you’ll get this new form in the mail from the Marketplace ... (continued)

The Alternative Minimum Tax-The Worst Tax of All!

The Alternative Minimum Tax (AMT) is a tax on your deductions. Yes, you read that right. Its an additional tax that is calculated and added to the regular tax computed. The AMT stealth tax works by eliminating or reducing taxpayer’s deductions that one gets ... (continued)

Here’s Some Ways to Negate the Kiddie Tax

The Kiddie Tax was created by lawmakers to prevent taxpayers from shifting income to their children to take advantage of the child’s lower tax bracket. This tax can arise also without income shifting as well. Does your child have investment accounts that generate income? ... (continued)

Potential Tax Credit for Summer Camp for Your Children

There are many benefits to sending your children to summer camp, but did you know the IRS will give you a tax credit for the cost and effort. If your child goes to day camp this summer while you and your spouse work, the ... (continued)