• Some taxpayers qualify for more favorable “head of household” tax filing status

    When preparing your tax return, we’ll check one of the following statuses: Single, married filing jointly, married filing separately, head of household or qualifying widow(er). Filing a return as a head of household is more favorable than filing as a single taxpayer. For example, the 2023 standard deduction for a single taxpayer is $13,850 while it’s $20,800 for a head of household taxpayer. To be [...]

    Published On: April 4, 2023Categories: Featured, Individual Tax
  • The 2022 gift tax return deadline is coming up soon

    Did you make large gifts to your children, grandchildren or other heirs last year? If so, it’s important to determine whether you’re required to file a 2022 gift tax return. And in some cases, even if it’s not required to file one, you may want to do so anyway. Filing requirements The annual gift tax exclusion has increased in 2023 to $17,000 but was $16,000 [...]

    Published On: April 3, 2023Categories: Featured, Individual Tax
  • Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances

    You generally must pay federal tax on all income you receive but there are some exceptions when you can exclude it. For example, compensatory awards and judgments for “personal physical injuries or physical sickness” are free from federal income tax under the tax code. This includes amounts received in a lawsuit or a settlement and in a lump sum or in installments. But as taxpayers [...]

    Published On: March 6, 2023Categories: Featured, Individual Tax
  • There still may be time to make an IRA contribution for last year

    If you’re getting ready to file your 2022 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until this year’s April 18 filing deadline and benefit from the tax savings on your 2022 return. Rules for eligibility You can [...]

    Published On: February 23, 2023Categories: Featured, Individual Tax
  • Answers to your questions about 2023 limits on individual taxes

    Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have changed for 2023. Due to inflation, many amounts have been [...]

    Published On: February 17, 2023Categories: Featured, Individual Tax
  • Child tax credit: The rules keep changing but it’s still valuable

    If you’re a parent, you may be confused about the rules for claiming the Child Tax Credit (CTC). The rules and credit amounts have changed significantly over the last six years. This tax break became more generous in 2018 than it was under prior law — and it became even better in 2021 for eligible parents. Even though the enhancements that were available for 2021 [...]

    Published On: February 16, 2023Categories: Featured, Individual Tax
  • Retirement plan early withdrawals: Make sure you meet the requirements to avoid a penalty

    Most retirement plan distributions are subject to income tax and may be subject to an additional penalty if you take an early withdrawal. What’s considered early? In general, it’s when participants take money out of a traditional IRA or other qualified retirement plan before age 59½. Such distributions are generally taxable and may be subject to a 10% penalty tax. Note: The additional penalty tax [...]

    Published On: February 6, 2023Categories: Featured, Individual Tax
  • Why you might want to file early and answers to other tax season questions

    The IRS announced it opened the 2023 individual income tax return filing season on January 23. That’s when the agency began accepting and processing 2022 tax year returns. Even if you typically don’t file until much closer to the mid-April deadline (or you file for an extension), consider filing earlier this year. The reason is you can potentially protect yourself from tax identity theft. Here [...]

    Published On: February 4, 2023Categories: Featured, Individual Tax
  • Tax-saving ways to help pay for college — once your child starts attending

    If you have a child or grandchild in college — congratulations! To help pay for the expenses, many parents and grandparents saved for years in tax-favored accounts, such as 529 plans. But there are also a number of tax breaks that you may be able to claim once your child begins attending college or post-secondary school. Tuition tax credits You can take the American Opportunity [...]

    Published On: January 26, 2023Categories: Featured, Individual Tax
  • SECURE 2.0 law may make you more secure in retirement

    A new law was recently signed that will help Americans save more for retirement, although many of the provisions don’t kick in for a few years. The Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0) was signed into law on December 29, 2022. SECURE 2.0 is meant to build on the original SECURE Act of 2019, which made major changes to the [...]

    Published On: January 25, 2023Categories: Featured, Individual Tax
  • Renting to a relative? Watch out for tax traps

    If you own a home and rent it to a relative, you may be surprised to find out there could be tax consequences. Quick rundown of the rules Renting out a home or apartment that you own may result in a tax loss for you, even if the rental income is more than your operating costs. You’ll be entitled to a depreciation deduction for your [...]

    Published On: January 24, 2023Categories: Featured, Individual Tax
  • Save for retirement by getting the most out of your 401(k) plan

    Socking away money in a tax-advantaged retirement plan can help you reduce taxes and help secure a comfortable retirement. If your employer offers a 401(k) or Roth 401(k), contributing to the plan is a smart way to build a substantial nest egg. If you’re not already contributing the maximum allowed, consider increasing your contribution. Because of tax-deferred compounding (tax-free in the case of Roth accounts), [...]

    Published On: December 28, 2022Categories: Featured, Individual Tax
  • Selling stock by year-end? Watch out for the wash sale rule

    If you’re thinking about selling stock shares at a loss to offset gains that you’ve realized during 2022, it’s important to watch out for the “wash sale” rule. The loss could be disallowed Under this rule, if you sell stock or securities for a loss and buy substantially identical stock or securities back within the 30-day period before or after the sale date, the loss [...]

    Published On: December 26, 2022Categories: Featured, Individual Tax
  • Answers to your questions about taking withdrawals from IRAs

    As you may know, you can’t keep funds in your traditional IRA indefinitely. You have to start taking withdrawals from a traditional IRA (including a SIMPLE IRA or SEP IRA) when you reach age 72. The rules for taking required minimum distributions (RMDs) are complicated, so here are some answers to frequently asked questions. What if I want to take out money before retirement? If [...]

    Published On: December 24, 2022Categories: Featured, Individual Tax