RECENT LEGISLATION CHANGES SOME IRA RULES How does this affect you? The CARES Act suspended the required minimum distribution (RMD) rules for 2020. This means any RMD a taxpayer would have been required to make before Dec. 31, 2020, as well as any RMD required to be made by April 1, 2020, based on meeting…
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…
Year End Tax Planning: Grouping Itemized Deductions Given that the passage of the Tax Cuts and Jobs Act in December of 2017 has changed things a bit. Here are a few ideas on how to best take advantage of the new law. The biggest change affecting individual tax payers is the increase of the standard…
Is it true that if I buy an expensive truck I’ll save a lot on taxes? So you might have heard rumors of business owners making large purchases at the end of the year to save on taxes, and wonder if the stories are really true. So the truth is that yes there are purchases…
Will operating as an LLC save my business on taxes? As a business owner, you might have heard some rumors that one way to lower your tax bill is to form a Limited Liability Company (LLC). While there are many ways to lower your taxes, there are rarely simple sweeping statements that apply to every…
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…
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…