The IRS announced it is opening the 2020 individual income tax return filing season on February 12. (This is later than in past years because of a new law that was enacted late in December.) Even if you typically don’t file until much closer to the April 15 deadline (or you file for an extension), … Read More
The IRS has released final regulations on executive compensation at tax-exempt organizations. Under the tax code, an applicable tax-exempt organization (ATEO) must pay a 21% excise tax on remuneration in excess of $1 million paid to a “covered employee,” plus any “excess parachute payment” paid to a covered employee during the tax year. An ATEO … Read More
Attending college is one of the biggest investments that parents and students ever make. If you or your child (or grandchild) attends (or plans to attend) an institution of higher learning, you may be eligible for tax breaks to help foot the bill. The Consolidated Appropriations Act, which was enacted recently, made some changes to … Read More
Do you have questions regarding your eligibility for the second round of economic impact payments (EIPs)? These payments are being sent to help mitigate the financial effects of COVID-19. The IRS recently issued a series of FAQs on this topic. Generally, the IRS is authorized to make EIPs to individuals using their 2019 return information … Read More
Now that the gift and estate tax exemption has risen to $11.7 million for 2021, you may be less concerned about these taxes. But if you have children or grandchildren in college or with medical expenses, you may want to take advantage of the exemption for direct payments of tuition and medical expenses. It can … Read More
The Consolidated Appropriations Act includes a provision that removes the 50% limit on deducting eligible business meals in 2021 and 2022. In general, the ordinary and necessary food and beverage expenses of operating a business are deductible. The new law allows a 100% deduction for these expenses for food or beverages provided by a restaurant. … Read More
Are you a student, or do you know a student, who has received a higher education grant under the CARES Act? The IRS recently posted FAQs on its website about information-reporting requirements for these grants. The 2020 CARES Act allows higher education institutions to use additional supplemental educational opportunity grant funds (received through the Higher … Read More
Did you know that the United States has the highest rate of children living in single parent households? According to the Pew Research Center, nearly a quarter (23%) of U.S. children under the age of 18 live with one parent. This is more than three times the share (7%) of children from around the world … Read More
The Consolidated Appropriations Act (CAA) has aligned the income phaseout rules for two education credits. Taxpayers generally can claim an education tax break with the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). Previously, the two credits were subject to different income phaseout rules, with the AOTC available at a greater modified … Read More
The term and concept known as “blockchain” is hardly new. This technology surfaced more than a decade ago. Bitcoin, the relatively well-known form of cryptocurrency, has gotten much more attention than blockchain itself, which is the platform on which Bitcoin is exchanged. One might be tempted to think that, having spent so many years in … Read More