Members of the military and veterans often have unique federal tax situations. The IRS has several resources designed to provide information to current and former military personnel and their families. For example, the IRS has an “Information for Veterans” page (https://bit.ly/39ovBUK), which includes information on tax and non-tax resources available to veterans. And “Tax Information … Read More
The IRS has released a draft of the 2020 Instructions for Schedule K-1 (Form 1041) for a Beneficiary Filing Form 1040 or 1040-SR. The schedule is used to notify beneficiaries of a trust or estate of the amounts of the trust’s or estate’s income to be included on the beneficiaries’ income tax returns. There have … Read More
Many Americans receive disability income. You may wonder if — and how — it’s taxed. As is often the case with tax questions, the answer is … it depends. The key factor is who paid for the benefit. If the income is paid directly to you by your employer, it’s taxable to you as ordinary … Read More
The IRS has issued the 2021 marginal income tax rates. The top tax rate remains 37% for single taxpayers with incomes greater than $523,600 ($628,300 for married couples filing jointly). The other rates are: 35%, for incomes over $209,425 ($418,850 for married couples filing jointly); 32% for incomes over $164,925 ($329,850 for married couples filing … Read More
Fraud doesn’t simply take a vacation during crises, such as the COVID-19 pandemic. If your not-for-profit’s internal controls aren’t effective, crooked individuals can find ways to exploit them and steal from your organization — even if they’re working remotely. Other threats, such as financial shortfalls, might also loom. So it’s important to continue to schedule … Read More
The IRS has announced most 2021 annual inflation-adjusted amounts. These adjustments generally apply to tax returns filed in 2022. The standard deduction for married couples filing jointly will rise to $25,100, up $300 from 2020. For single taxpayers and married individuals filing separately, it will increase to $12,550, up $150. The Alternative Minimum Tax exemption … Read More
Time’s almost up to receive an Economic Impact Payment (EIP). Eligible taxpayers must register by Nov. 21. To encourage people to be ahead of the deadline, the IRS has set Nov. 10 as “National EIP Registration Day,” promoting EIP information in 35 languages. These resources inform taxpayers who don’t normally file tax returns that they … Read More
Portability allows a surviving spouse to apply a deceased spouse’s unused federal gift and estate tax exemption amount toward his or her own transfers during life or at death. For 2020, the exemption amount is $11.58 million, and the IRS just announced that that amount will increase to $11.7 million for 2021. To secure these … Read More
Are holiday treats from employers taxable? With employees working from home during the holiday season, some employers may want to stay connected to them by providing them with small goodies. For example, Halloween treat bags or a coupon for a free pumpkin from a local farm. Generally, such gifts fall under the “de minimis fringe … Read More
From natural disasters and government shutdowns to cyberattacks and fraud, risks abound in today’s volatile, uncertain marketplace. While some level of risk is inevitable when operating a business, proactive owners and executives apply an enterprise risk management (ERM) framework to manage it more effectively. Evolving framework The Committee of Sponsoring Organizations of the Treadway Commission … Read More