The ABCs of the Dependent Care Credit
Do you pay someone to watch your young child or another qualifying dependent while you’re at work? If so, you may be entitled to claim the dependent care credit on your 2022 return, but you must file by April 18. Recent enhancements provided under the American Rescue Plan Act (ARPA) expired at the end of…
How to Claim Casualty Loss Deductions and Avoid Pitfalls
Every year, the United States experiences disasters, ranging from hurricanes and earthquakes to wildfires and electrical grid failure. If you’re unlucky enough to suffer a disaster-related loss, you’ll need to understand the federal income tax rules to determine whether you’re eligible for a casualty loss deduction. Personal Casualty Loss Deduction Basics You can potentially claim…
501(c)(4) vs. 501(c)(3) – Which Do I Choose?
It is important to understand the differences between nonprofit classifications when deciding between forming a 501(c)(3) or 501(c)(4) organization. The distinction between underlying exempt purpose, restrictions on lobbying and political activities, and anticipated donor composition should be considered, among other non-tax considerations.
5 Major Tax-Favored Retirement Plan Changes for Individuals under New Law
The long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) has finally passed. Here are five taxpayer friendly changes.
Tax Treatment of Debt Forgiveness: Watch Out for Tax Bills Delivered COD
Debt forgiveness is a relief, however; a debtor may still owe taxes on “cancellation of debt” (COD) income. Read on to learn the tax rules for COD income and how they might affect your tax situation.
Optimizing Business Losses
While no one likes to lose money, the federal tax code helps soften the blow by allowing businesses to apply their losses to offset taxable income in future years, subject to certain limitations. Here’s what you need to know.
Four Tax Breaks for Home Improvements
Are you contemplating some significant improvements to your home? Whether it’s adding a pool to assist with a medical condition, finishing a basement, or installing energy-saving equipment, you may be in line for generous tax breaks under current law. We outline four potential options.
2023 Minimum Wage and Overtime Threshold Increases
In 2023, many states and localities will increase their minimum wage amounts. In some areas, the amounts paid to tipped employees may also increase and overtime salary thresholds may also change. The information below briefly details the changes that will kick in on New Year’s Day or later in 2023. For more information about your…
Are You Missing the Boat for a Roth IRA?
Many self-employed individuals are eligible to make annual contributions to Roth IRAs, despite having healthy earnings from their businesses. Making annual Roth contributions can have a big upside by allowing you to accumulate a federal-income-tax-free nest egg for retirement. This article offers some Roth IRA basics.
Double Your Tax Savings with Home Sale Gain Exclusion Plus Like-Kind Exchange
Although the residential real estate market has cooled off in many areas, the values in some locations are still at — or near — all-time highs. If you’ve owned your principal residence for a while, it may currently be worth a lot more than you originally paid for it. If you’re fortunate enough to be…