Millions of taxpayers still work from home due to the pandemic. This has some wondering if they can claim home office deductions on their 2021 tax returns. Those who qualify may be able to deduct expenses such as mortgage interest, insurance, utilities, repairs, maintenance, depreciation and rent, though limits may apply. An IRS tax tip … Read More
Your estate plan may include a power of attorney for property that appoints another person to manage your investments, pay your bills, file your tax returns and otherwise handle your property if you’re unable to do so. But not all powers of attorney are created equal. Thus, it’s a good idea to periodically review your … Read More
In a blog post, the National Taxpayer Advocate (NTA) discusses the five different types of IRS transcripts and the information they contain. An IRS transcript is a record of a taxpayer’s tax information. Specifically, the five types are: tax return transcript, wage and income transcript, tax account transcript, record of account transcript, and a verification … Read More
Everyone loves a story. It’s why movies are still big business and many of us spend hours on the couch binge-watching our favorite television shows. What’s important to keep in mind — and to remind your sales team — is that effective storytelling can also drive sales. This doesn’t mean devising fanciful, fictional tales to … Read More
The Congressional Budget Office (CBO) reports that the federal budget deficit for fiscal year 2021 was slightly below an estimated $2.8 trillion, which was $362 billion less than the deficit recorded last year. The deficit CBO now estimates for 2021 is $233 billion smaller than the shortfall estimated in its most recent baseline projections released … Read More
The COVID-19 pandemic is still adversely affecting many businesses and not-for-profit organizations, but the effects vary, depending on the nature of operations and geographic location. Has your organization factored the effects of the pandemic into its financial statements? You might not have considered this question since last year if your organization prepares statements that comply … Read More
To help address labor shortages, the IRS reminds employers that they won’t jeopardize the tax status of pension plans if they rehire retirees or permit distribution of retirement benefits to current employees who’ve reached age 59½ or a plan’s normal retirement age. Due to the pandemic, “many employers, including governmental employers (such as public school … Read More
Studies have found that more people are engaging in online gambling and sports betting since the pandemic began. And there are still more traditional ways to gamble and play the lottery. If you’re lucky enough to win, be aware that tax consequences go along with your good fortune. Review the tax rules Whether you win … Read More
The IRS’s “People First Initiative” was launched in 2020 to help taxpayers by extending tax deadlines during the early days of the COVID-19 pandemic. Recently, the Treasury Inspector General for Tax Administration (TIGTA) assessed these efforts. The IRS, also impacted by the pandemic, “potentially caused confusion and undue burden to numerous taxpayers” because they received … Read More
Given the escalating cost of health care, there may be a more cost-effective way to pay for it. For eligible individuals, a Health Savings Account (HSA) offers a tax-favorable way to set aside funds (or have an employer do so) to meet future medical needs. Here are the main tax benefits: Contributions made to an … Read More