Watch out for Tax Scams in 2020
Most of us find it nerve-wracking enough that we’re forced to focus on gathering our piles of paperwork to fill out our tax returns. Now adding to our stress, we must watch out for tax season scam artists, too. The crooks are everywhere from the gym parking lot to the latest emails and text messages. Fraudsters want... Continue reading→
Canceled Debt – Is It Taxable or Not?
If you borrow money and are legally obligated to repay a fixed or determinable amount at a future date, you have a debt. You may be personally liable for a debt or may own a property that’s subject to a debt. If your debt is forgiven or discharged for less than the full amount you... Continue reading→
8 Surprising Things You May Not Know are Taxable
If you work for a living, you know that your wages are taxable, and you’re probably aware that some investment income is taxable too. But the IRS doesn’t stop there. If you’ve picked up some extra cash through luck, skill or criminal activities, there’s a good chance you owe taxes on that money as well.... Continue reading→
A few more year-end tax tips
Stop, take a deep breath before you pull out that plastic to jump on yet another holiday deal on a TV, toys or a smartphone. Will you really have all the money you need by January or February to cover all those holiday bills? Not necessarily, if you’re banking on a big income tax refund... Continue reading→
YEAR-END TAX SAVING MOVES
First, estimate your 2019 tax tab by adding up your taxable income streams, then subtracting the tax breaks you know you will use. This exercise should help you determine whether you’ll take the standard deduction this year or itemize. The standard deduction for 2019 is $12,200 for single taxpayers and $24,400 for those married filing... Continue reading→
Can I Deduct My IRA Contribution on My Tax Return?
Is a contribution to an individual retirement account (IRA) tax-deductible? For many of us, the short answer is: You bet! That’s what IRAs are for. However, this is the Internal Revenue Service (IRS) we’re talking about, so there are rules and limits. Roughly, your ability to deduct an IRA contribution in part or in full... Continue reading→
Ready to Retire?
If you’re considering retiring early, you’ll forego not only the headaches of working but also the additional money earned that could have made your retirement even more comfortable. Make sure that you’re truly ready before you leave. Key Takeaways Being debt-free, with a healthy retirement account that will support your extra years not working is critical... Continue reading→
How Much Does a Dependent Reduce Your Taxes?
With President Trump’s new tax law, the child tax credit was raised from $1,000 to $2,000 per child for 2018 and 2019. Having qualified dependent children may also allow you to claim other significant tax credits, including the earned income credit (EIC). Together, the tax savings can be significant for many American families. However, at... Continue reading→
Do I Need to File An Amended Return?
It’s well past April 15th, so unless you applied for an extension, the stress and frustration of filing your federal tax return should be a distant memory by now. But what if you suddenly realize there’s a mistake on your return or new development that affects the amount of tax you should have paid? What... Continue reading→
Little Known Medical Deductions
The tax law defines medical expenses as the costs for diagnosis, cure, mitigation, treatment or prevention of disease and for treatments affecting any part or function of the body. Obviously, this definition covers the costs for health insurance premiums (if they aren’t deducted in pre-tax dollars from your paycheck), doctors, hospital stays, diagnostic testing, prescription... Continue reading→