• Retiring soon? Recent law changes may have an impact on your retirement savings

    If you’re approaching retirement, you probably want to ensure the money you’ve saved in retirement plans lasts as long as possible. If so, be aware that a law was recently enacted that makes significant changes to retirement accounts. The SECURE Act, which was signed into law in late 2019, made a number of changes of interest to those nearing retirement. You can keep making traditional [...]

    Published On: March 10, 2021Categories: Featured, Individual Tax
  • Didn’t contribute to an IRA last year? There still may be time

    If you’re getting ready to file your 2020 tax return, and your tax bill is higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the April 15, 2021 filing date and benefit from the tax savings on your 2020 return. Who is eligible? You can [...]

    Published On: February 24, 2021Categories: Featured, Individual Tax
  • Did you make donations in 2020? There’s still time to get substantiation

    If you’re like many Americans, letters from your favorite charities may be appearing in your mailbox acknowledging your 2020 donations. But what happens if you haven’t received such a letter — can you still claim a deduction for the gift on your 2020 income tax return? It depends. What is required To support a charitable deduction, you need to comply with IRS substantiation requirements. This [...]

    Published On: February 17, 2021Categories: Featured, Individual Tax
  • 2021 individual taxes: Answers to your questions about limits

    Many people are more concerned about their 2020 tax bills right now than they are about their 2021 tax situations. That’s understandable because your 2020 individual tax return is due to be filed in less than three months (unless you file an extension). However, it’s a good idea to acquaint yourself with tax amounts that may have changed for 2021. Below are some Q&As about [...]

    Published On: February 12, 2021Categories: Featured, Individual Tax
  • The power of the tax credit for buying an electric vehicle

    Although electric vehicles (or EVs) are a small percentage of the cars on the road today, they’re increasing in popularity all the time. And if you buy one, you may be eligible for a federal tax break. The tax code provides a credit to purchasers of qualifying plug-in electric drive motor vehicles including passenger vehicles and light trucks. The credit is equal to $2,500 plus [...]

    Published On: February 11, 2021Categories: Featured, Individual Tax
  • Don’t forget to take required minimum distributions this year

    If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last March, allowed people to skip taking these withdrawals in 2020 but now that we’re in 2021, RMDs must be taken again. The basics Once you attain [...]

    Published On: February 10, 2021Categories: Featured, Individual Tax
  • Can you qualify for a medical expense tax deduction?

    You may be able to deduct some of your medical expenses, including prescription drugs, on your federal tax return. However, the rules make it hard for many people to qualify. But with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes. Itemizers must meet a threshold For 2020, the medical expense deduction can only be claimed to [...]

    Published On: February 6, 2021Categories: Featured, Individual Tax
  • Your taxpayer filing status: You may be eligible to use more than one

    When it comes to taxes, December 31 is more than just New Year’s Eve. That date will affect the filing status box that will be checked on your 2020 tax return. When filing a return, you do so with one of five tax filing statuses. In part, they depend on whether you’re married or unmarried on December 31. More than one filing status may apply, [...]

    Published On: February 5, 2021Categories: Featured, Individual Tax
  • One reason to file your 2020 tax return early

    The IRS announced it is opening the 2020 individual income tax return filing season on February 12. (This is later than in past years because of a new law that was enacted late in December.) Even if you typically don’t file until much closer to the April 15 deadline (or you file for an extension), consider filing earlier this year. Why? You can potentially protect [...]

    Published On: February 4, 2021Categories: Featured, Individual Tax
  • Buying and selling mutual fund shares: Avoid these tax pitfalls

    If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling shares. Surprise sales You may already have made taxable “sales” of part of your mutual fund investment without knowing it. One way this can happen is if your mutual fund allows you to write checks against your fund investment. Every time you write a check against your mutual [...]

    Published On: October 31, 2020Categories: Featured, Individual Tax
  • What tax records can you throw away?

    October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic.) If you’re finally done filing last year’s return, you might wonder: Which tax records can you toss once you’re done? Now is a good time to go through old tax records and see [...]

    Published On: October 30, 2020Categories: Featured, Individual Tax
  • There may be relief from tax liability for “innocent spouses”

    If you file a joint tax return with your spouse, you should be aware of your individual liability. And if you’re getting divorced, you should know that there may be relief available if the IRS comes after you for certain past-due taxes. What’s “joint and several” liability? When a married couple files a joint tax return, each spouse is “jointly and severally” liable for the [...]

    Published On: October 13, 2020Categories: Featured, Individual Tax
  • Why it’s important to plan for income taxes as part of your estate plan

    As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted to saving income taxes for your heirs. While saving both [...]

    Published On: October 7, 2020Categories: Featured, Individual Tax
  • Can investors who manage their own portfolios deduct related expenses?

    In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through 2025 if they’re considered expenses for the production of income. But they are deductible if they’re considered trade or business expenses. (For tax years before 2018, production-of-income expenses were [...]

    Published On: September 29, 2020Categories: Featured, Individual Tax