Hiring your children for summer jobs? Tax benefits ahead
If you’re a business owner and you’re hiring your children for summer jobs, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, spend time with you, save for college and learn how to manage money. And you may be able to: Shift your high-taxed income into tax-free or low-taxed […]
Still have tax return questions after you filed?
Even after your 2020 tax return has been successfully filed with the IRS, you may still have some tax return questions. Here are brief answers to three questions that we’re frequently asked at this time of year. Tax return question 1: When you will receive your refund? The IRS has an online tool that can […]
Why it’s important to meet the tax return filing and payment deadlines
The May 17 deadline for filing your 2020 individual tax return is coming up next week. It’s important to file and pay your tax return on time to avoid penalties imposed by the IRS. Here are the basic rules. Failure to pay Separate penalties apply for failing to pay and failing to file. The failure-to-pay […]
A look at the Biden administration’s far-reaching tax overhaul
President Biden recently announced his $1.8 trillion American Families Plan (AFP), the third step in his Build Back Better policy initiative. The announcement followed the previous releases of the proposed $2.3 trillion American Jobs Plan and the Made in America Tax Plan. These plans propose major investments in various domestic initiatives, such as expanded tax credits for […]
President Biden details his tax proposals for individuals
President Biden’s proposals for individual taxpayers were outlined in an April 28 address to Congress and in an 18-page fact sheet released by the White House. The American Families Plan contains tax breaks for low- and middle-income taxpayers and tax increases on those “making over $400,000 per year.” Here’s a summary of some of the […]
Opportunity for individual tax savings for 2020 returns
Individual tax savings may be available! In recent months, there have been a number of tax changes that may affect your individual tax bill. Many of these changes were enacted to help mitigate the financial damage caused by Covid-19. Here are two changes that may result in tax savings for you on your 2020 or […]
How to determine your home sales basis
The housing market in many parts of the country is strong this spring. If you’re buying or selling a home, you should know how to determine your “basis,” otherwise known as home sales basis. How home sales basis works You can claim an itemized deduction on your tax return for real estate taxes and home […]
Head of household tax filing status: Who qualifies?
When you file your tax return, you must check one of the following filing statuses: Single, married filing jointly, married filing separately, head of household or qualifying widow(er). Who qualifies to use the head of household tax filing status, which is more favorable than single? To qualify, you must maintain a household, which for more […]
New child care tax break may make care less expensive
The new American Rescue Plan Act (ARPA) provides eligible families with an enhanced child and dependent care credit for 2021; in other words, parents are getting a much-needed child care tax break. This is the credit available for expenses a taxpayer pays for the care of qualifying children under the age of 13 so that […]
Estimated tax payment deadline for 2021 is coming up
The 2020 individual tax return deadline has been moved from April 15 to May 17, 2021, but the first quarterly estimated tax payment deadline is still April 15, 2021, for those who are required to make one. You may have to make estimated tax payments if you receive interest, dividends, alimony, self-employment income, capital gains, […]