The IRS extends through June 2021 the acceptance of digital signatures and emailed documents. The extension, set to expire on Dec. 31, 2020, was extended in a recent IRS memo to employees. Last March, the IRS announced that its employees could temporarily deviate from procedures and accept images of signatures (scanned or photographed) and digital … Read More
You may be able to deduct some of your medical expenses, including prescription drugs, on your federal tax return. However, the rules make it hard for many people to qualify. But with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes. Itemizers must meet a threshold For … Read More
A Congressional Budget Office (CBO) report estimated that the first two months of fiscal year 2021 resulted in a $430 billion federal budget deficit. Compared to the same period in FY 2020, receipts fell by $14 billion and outlays rose $73 billion. Individual income tax refunds rose by 5%. “Because such payments in October and … Read More
Contributing to a tax-advantaged retirement plan can help you reduce taxes and save for retirement. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a smart way to build a substantial sum of money. If you’re not already contributing the maximum allowed, consider increasing your contribution rate. Because of tax-deferred … Read More
Taxpayers with student loan debt get more relief. Collection actions and wage garnishments were first suspended as of March 13, 2020 when President Trump declared a national emergency due to COVID-19. The suspension was to expire Dec. 31, 2020. Because of the ongoing economic effects of the virus, the suspension has now been extended without … Read More
If you have a family member who’s disabled, you likely know that financial and estate planning can be tricky. You don’t want to jeopardize his or her eligibility for means-tested government benefits such as Medicaid or Supplemental Security Income (SSI). A special needs trust (SNT) is one option to consider. Another is to open a … Read More
The Setting Every Community Up for Retirement Enhancement Act (SECURE Act) increased the maximum amount of an employee’s compensation, from a 10% cap to a 15% cap, which can be automatically deferred to an employer’s 401(k) plan after the employee’s first plan year. In Notice 2020-86, the IRS has provided additional guidance in the form … Read More
The IRS has issued final regulations regarding the deduction for qualified transportation fringe (QTF) expenses and commuting expenses following changes made by the Tax Cuts and Jobs Act (TCJA). The TCJA generally disallows employer deductions for QTF expenses. The final regs address the disallowance of the deduction for expenses related to QTFs provided to a … Read More
As President-elect Joe Biden moves forward with the transition and prepares for the inauguration next month, you may be wondering how the federal estate tax may be affected. During the campaign, Biden pledged to roll back many of President Trump’s tax policies. In response to the Tax Cuts and Jobs Act (TCJA), Biden has promised … Read More
Tax overpayment and underpayment interest rates will remain unchanged for the first quarter of 2021. For noncorporate taxpayers, the rate for both underpayments and overpayments for the quarter starting Jan. 1 will be 3%. The 3% rate also applies to estimated tax underpayments for the first quarter of 2021. For corporations, the overpayment rate will … Read More