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Tax Tip Library

Tax tips and timely information for businesses and individuals.

Individuals Get Coronavirus (COVID-19) Tax and Other Relief

Individuals Get Coronavirus (COVID-19) Tax and Other Relief

Taxpayers now have more time to file their tax returns and pay any tax owed because of the coronavirus (COVID-19) pandemic. The Treasury Department and IRS announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15,...

Why You Should Keep Life Insurance Out of Your Estate

Why You Should Keep Life Insurance Out of Your Estate

If you have a life insurance policy, you probably want to make sure that the life insurance benefits your family will receive after your death won’t be included in your estate. That way, the benefits won’t be subject to the federal estate tax. Under the estate tax...

The 2019 Gift Tax Return Deadline is Coming Up

The 2019 Gift Tax Return Deadline is Coming Up

If you made large gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2019 gift tax return. And in some cases, even if it’s not required to file one, it may be beneficial to do so anyway. Who...

Home is Where the Tax Breaks Might Be

Home is Where the Tax Breaks Might Be

If you own a home, the interest you pay on your home mortgage may provide a tax break. However, many people believe that any interest paid on their home mortgage loans and home equity loans is deductible. Unfortunately, that’s not true. First, keep in mind that you...

Reasons Why Married Couples Might Want to File Separate Tax Returns

Reasons Why Married Couples Might Want to File Separate Tax Returns

Married couples often wonder whether they should file joint or separate tax returns. The answer depends on your individual tax situation. It generally depends on which filing status results in the lowest tax. But keep in mind that, if you and your spouse file a joint...

The Tax Aspects of Selling Mutual Fund Shares

The Tax Aspects of Selling Mutual Fund Shares

Perhaps you’re an investor in mutual funds or you’re interested in putting some money into them. You’re not alone. The Investment Company Institute estimates that 56.2 million households owned mutual funds in mid-2017. But despite their popularity, the tax rules...

There Still Might Be Time To Cut Your Tax Bill With IRAs

There Still Might Be Time To Cut Your Tax Bill With IRAs

If you’re getting ready to file your 2019 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the Wednesday, April 15, 2020,...

Numerous Tax Limits Affecting Businesses Have Increased for 2020

Numerous Tax Limits Affecting Businesses Have Increased for 2020

An array of tax-related limits that affect businesses are annually indexed for inflation, and many have increased for 2020. Here are some that may be important to you and your business. Social Security Tax The amount of employees’ earnings that are subject to Social...

Can You Deduct Charitable Gifts on Your Tax Return?

Can You Deduct Charitable Gifts on Your Tax Return?

Many taxpayers make charitable gifts — because they’re generous and they want to save money on their federal tax bills. But with the tax law changes that went into effect a couple years ago and the many rules that apply to charitable deductions, you may no longer get...

Four New Law Changes that May Affect Your Retirement Plan

Four New Law Changes that May Affect Your Retirement Plan

If you save for retirement with an IRA or other plan, you’ll be interested to know that Congress recently passed a law that makes significant modifications to these accounts. The SECURE Act, which was signed into law on December 20, 2019, made these four changes....

New Law Provides a Variety of Tax Breaks to Businesses and Employers

New Law Provides a Variety of Tax Breaks to Businesses and Employers

While you were celebrating the holidays, you may not have noticed that Congress passed a law with a grab bag of provisions that provide tax relief to businesses and employers. The “Further Consolidated Appropriations Act, 2020” was signed into law on December 20,...

Top 10 Tax Tips of 2019

Top 10 Tax Tips of 2019

We've reviewed our stats and based on our most read Tax Tips from this past year, we've compiled a list of our Top 10 Tax Tips of 2019. 1. Take Advantage of the Gift Tax Exclusion Rules  With the annual federal gift tax exclusion, you can transfer substantial amounts...

Congress Gives a Holiday Gift in the Form of Favorable Tax Provisions

Congress Gives a Holiday Gift in the Form of Favorable Tax Provisions

As part of a year-end budget bill, Congress just passed a package of tax provisions that will provide savings for some taxpayers. The White House has announced that President Trump will sign the Further Consolidated Appropriations Act of 2020 into law. It also...

Do You Have a Side Gig? Make Sure You Understand Your Tax Obligations

Do You Have a Side Gig? Make Sure You Understand Your Tax Obligations

The number of people engaged in the “gig” or sharing economy has grown in recent years, according to a 2019 IRS report. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare bedrooms, delivering food, walking...

Adopting a Child? Bring Home Tax Savings with Your Bundle of Joy

Adopting a Child? Bring Home Tax Savings with Your Bundle of Joy

If you’re adopting a child, or you adopted one this year, there may be significant tax benefits available to offset the expenses. For 2019, adoptive parents may be able to claim a nonrefundable credit against their federal tax for up to $14,080 of “qualified adoption...

Medical Expenses: What it Takes to Qualify for a Tax Deduction

Medical Expenses: What it Takes to Qualify for a Tax Deduction

As we all know, medical services and prescription drugs are expensive. You may be able to deduct some of your expenses on your tax return but the rules make it difficult for many people to qualify. However, with proper planning, you may be able to time discretionary...

What is Your Taxpayer Filing Status?

What is Your Taxpayer Filing Status?

For tax purposes, December 31 means more than New Year’s Eve celebrations. It affects the filing status box that will be checked on your tax return for the year. When you file your return, you do so with one of five filing statuses, which depend in part on whether...

Using Your 401(k) Plan to Save This Year and Next

Using Your 401(k) Plan to Save This Year and Next

You can reduce taxes and save for retirement by contributing to a tax-advantaged retirement plan. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a taxwise way to build a nest egg. If you’re not already contributing the maximum allowed,...

Small Businesses: Stay Clear of a Severe Payroll Tax Penalty

Small Businesses: Stay Clear of a Severe Payroll Tax Penalty

One of the most laborious tasks for small businesses is managing payroll. But it’s critical that you not only withhold the right amount of taxes from employees’ paychecks but also that you pay them over to the federal government on time. If you willfully fail to do...

Selling Securities by Year End? Avoid the Wash Sale Rule

Selling Securities by Year End? Avoid the Wash Sale Rule

If you’re planning to sell assets at a loss to offset gains that have been realized during the year, it’s important to be aware of the “wash sale” rule. How the rule works Under this rule, if you sell stock or securities for a loss and buy substantially identical...

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...

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