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Tax Tip Library

Tax tips and timely information for businesses and individuals.

Take Advantage of the Gift Tax Exclusion Rules

Take Advantage of the Gift Tax Exclusion Rules

As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual...

When is Tax Due on Series EE Savings Bonds?

When is Tax Due on Series EE Savings Bonds?

You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE bonds is taxed. And if they reach final maturity,...

Uncle Sam May Provide Relief from College Costs on Your Tax Return

Uncle Sam May Provide Relief from College Costs on Your Tax Return

We all know the cost of college is expensive. The latest figures from the College Board show that the average annual cost of tuition and fees was $10,230 for in-state students at public four-year universities — and $35,830 for students at private...

The Solar Investment Tax Credit to Decline

The Solar Investment Tax Credit to Decline

Important information if you’re considering solar for your home or businessThe Solar Investment Tax Credit, or ITC, is available for solar panel systems on both residential and commercial properties. ITC is an incentive that grants a credit worth 30% of...

Expenses That Teachers Can and Can’t Deduct on Their Tax Returns

Expenses That Teachers Can and Can’t Deduct on Their Tax Returns

As teachers head back for a new school year, they often pay for various expenses for which they don’t receive reimbursement. Fortunately, they may be able to deduct them on their tax returns. However, there are limits on this special deduction, and some...

Taking Distributions from Your Traditional IRA

Taking Distributions from Your Traditional IRA

If you’re like many people, you’ve worked hard to accumulate a large nest egg in your traditional IRA (including a SEP-IRA). It’s even more critical to carefully plan for withdrawals from these retirement-savings vehicles.Knowing the fine points of the IRA...

What to Do If Your Business Receives a “No-Match” Letter

What to Do If Your Business Receives a “No-Match” Letter

In the past few months, many businesses and employers nationwide have received “no-match” letters from the Social Security Administration (SSA). The purpose of these letters is to alert employers if there’s a discrepancy between the agency’s files and data...

The Tax Implications of Being a Winner

The Tax Implications of Being a Winner

Winning at gamblingWhether you win at the casino, a bingo hall, or elsewhere, you must report 100% of your winnings as taxable income. They’re reported on the “Other income” line on Schedule 1 of your 1040 tax return. To measure your winnings on a...

The “Kiddie Tax” Hurts Families More Than Ever

The “Kiddie Tax” Hurts Families More Than Ever

Years ago, Congress enacted the “kiddie tax” rules to prevent parents and grandparents in high tax brackets from shifting income (especially from investments) to children in lower tax brackets. And while the tax caused some families pain in the past, it...

The “Nanny Tax” Must be Paid for More Than Just Nannies

The “Nanny Tax” Must be Paid for More Than Just Nannies

You may have heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You...

Volunteering for Charity: Do You Get a Tax Break?

Volunteering for Charity: Do You Get a Tax Break?

If you’re a volunteer who works for charity, you may be entitled to some tax breaks if you itemize deductions on your tax return. Unfortunately, they may not amount to as much as you think your generosity is worth.Because donations to charity of cash or...

You May Have to Pay Tax on Social Security Benefits

You May Have to Pay Tax on Social Security Benefits

During your working days, you pay Social Security tax in the form of withholding from your salary or self-employment tax. And when you start receiving Social Security benefits, you may be surprised to learn that some of the payments may be taxed.If you’re...

Donating Your Vehicle to Charity May Not be a Taxwise Decision

Donating Your Vehicle to Charity May Not be a Taxwise Decision

You’ve probably seen or heard ads urging you to donate your car to charity. “Make a difference and receive tax savings,” one organization states. But donating a vehicle may not result in a big tax deduction — or any deduction at all.Trade in, sell or...

Hire Your Children This Summer: Everyone Wins

Hire Your Children This Summer: Everyone Wins

If you’re a business owner and you hire your children (or grandchildren) this summer, you can obtain tax breaks and other nontax benefits. The kids can gain on-the-job experience, save for college and learn how to manage money. And you may be able to:•...

Selling Your Home? Consider These Tax Implications

Selling Your Home? Consider These Tax Implications

Spring and summer are the optimum seasons for selling a home. And interest rates are currently attractive, so buyers may be out in full force in your area. Freddie Mac reports that the average 30-year fixed mortgage rate was 4.14% during the week of May 2,...

Check On Your Refund – Find Out Why the IRS Might Not Send It

Check On Your Refund – Find Out Why the IRS Might Not Send It

It’s that time of year when many people who filed their tax returns in April are checking their mail or bank accounts to see if their refunds have landed. According to the IRS, most refunds are issued in less than 21 calendar days. However, it may take...

Plug In Tax Savings for Electric Vehicles

Plug In Tax Savings for Electric Vehicles

While the number of plug-in electric vehicles (EVs) is still small compared with other cars on the road, it’s growing — especially in certain parts of the country. If you’re interested in purchasing an electric or hybrid vehicle, you may be eligible for a...

How Entrepreneurs Must Treat Expenses on Their Tax Returns

How Entrepreneurs Must Treat Expenses on Their Tax Returns

Have you recently started a new business? Or are you contemplating starting one? Launching a new venture is a hectic, exciting time. And as you know, before you even open the doors, you generally have to spend a lot of money. You may have to train workers...

Three Questions After Filing Your Tax Return

Three Questions After Filing Your Tax Return

Once your 2018 tax return has been successfully filed with the IRS, you may still have some questions. Here are brief answers to three questions that we’re frequently asked at this time of year.Question #1: What tax records can I throw away now? At a...

Seniors: Medicare Premiums Could Lower Your Tax Bill

Seniors: Medicare Premiums Could Lower Your Tax Bill

Americans who are 65 and older qualify for basic Medicare insurance, and they may need to pay additional premiums to get the level of coverage they desire. The premiums can be expensive, especially if you’re married and both you and your spouse are paying...

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