Cost-of-living adjustments have been made to the dollar limitations related to retirement and pension plans for 2021. Contributions to traditional IRAs can be deducted by taxpayers meeting certain conditions. If the taxpayer (or their spouse) is covered by a retirement plan at work, the deduction may be affected. The new income phaseout ranges are below: …
Did anyone else feel like this tax season was never-ending? Now that October 15th has come and gone, it is time to shift gears over to 2020 taxes. For many tax professionals, November and December is the time to sit down (likely virtually this year) with clients. It is a great time to see how …
When California’s Governor Gavin Newsom signed the 2020 budget on June 29, 2020, the first-year exemption from the $800 minimum tax was finally extended to limited liability companies (LLCs), limited partnerships (LPs) and limited liability partnerships (LLPs). California corporations have been exempted from the $800 minimum tax in the initial year for some time. Don’t …
Have you heard that there is an election going on? And while most of the attention has been focused on the presidential election, there are local elections and initiatives, as well. A very interesting proposition in Arizona is Proposition 208 (Prop 208). This is also sometimes known as the Invest in Education Act. (Or Invest …
Tax season, like the rest of 2020, seems to be going on forever this year. I am not sure if it is actually October 15th or March 229th. I think we can all agree that it has been a very long year. We started out 2020 with a bang, just knowing that it was going …
Do you owe the IRS money? Or maybe you are unsure of your payment options. In theory, you know that there is much in the way of good information on the IRS website (IRS.gov – don’t be fooled by a scammer trying to take you to a look alike website), but it can be overwhelming …
The amount of identity theft cases continues to increase each year and could even affect your tax return and/or refund. Identity thieves will use another individual’s social security number in order to file a false tax return to claim a refund. This tends to happen early in the tax filing season. You may be a …
For those of you with children, you hear rumors about the tax benefits of children. Unfortunately, some of the tax benefits seem to be less than the actual monetary cost of the child, but there is a way to potentially offset your tax bill with credits related to those adorable urchins. The Child Tax Credit …
Writing a check to your favorite charity is always a great way to support the organization and often results in an itemized deduction on your tax return. Throwing a fundraiser in your home for that organization can result in a tax deduction as well. You just need to make sure you follow some rules. First, …
It’s been termed a crisis and the numbers bear that out. In the first quarter of 2019 student loan debt reached an all-time high of $1.4 trillion. In the last ten years the amount of student loan debt has increased by 116%. There has been a great deal of discussion regarding student loans and various …
Do you qualify for the Employee Retention Credit? How about a Paycheck Protection Loan? Looking for all COVID tax related information? We have you covered! Download the e-Book now.
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