NEW CHARITABLE CONTRIBUTION RULES Nonitemizers can claim a deduction The CARES Act makes two significant changes to the rules governing charitable deductions for individuals. Individuals will be able to claim a $300 above-the- line deduction for cash contributions made to public charities in 2020. This rule effectively allows a limited charitable deduction to any taxpayer…
ECONOMIC IMPACT PAYMENTS How will they affect your 2020 return? As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the IRS made economic impact payments (EIPs) to certain taxpayers. The eligibility for and the amount of an EIP generally depended on the taxpayer’s 2019 federal income tax return. If one wasn’t…
DID YOU RECEIVE A PPP LOAN? Get ready to pay it back or pay the taxman. Many small businesses impacted by the coronavirus pandemic were eligible to apply for a loan through the Payroll Protection Program (PPP). These loans were essential for helping to keep employees working and businesses open. You’ve probably heard a lot…
The “treat me like a child” clause in the Tax Code While studying some tax law, I came across a curious provision about filing status options on individual tax returns. One of the key provisions of an individual income tax return (AKA 1040) is what filing status a taxpayer chooses. Providing for some exceptions for…
The coming affordable healthcare act penalty Open Enrollment at the website www.healthcare.gov starts tomorrow. This year it will be open from November 15, 2014 Until February 15, 2015 for health care coverage in 2015. This is the second year that the so called “marketplace” is open to the public for purchasing health insurance. Regardless of…
How to use your kids to save on taxes Choosing between a Flexible Savings Account for dependent care and the Household and Dependent care Tax Credit You might have seen this person before. A stressed out parent who seems to be juggling 20 things at once. For those of us with children who have to…