The IRS has increased the health Flexible Spending Account (FSA) carryover amount. In Notice 2020-33, the IRS stated that the FSA carryover limit (currently fixed at $500) will now be indexed for inflation. For a plan year starting in 2020, the maximum unused amount that can be carried over to the next plan year starting … Read More
More than 130 million individuals have already received Economic Impact Payments (EIPs) worth more than $200 billion, according to the IRS. “Millions more are on the way every week,” said IRS Commissioner Chuck Rettig, to help offset economic damage caused by the novel coronavirus (COVID-19) crisis. The U.S. Treasury Dept. and the IRS have just … Read More
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 rules, life insurance will be included in your … Read More
The federal government logged an estimated budget deficit of $1.48 trillion for the first seven months of fiscal year 2020, which a Congressional Budget Office (CBO) report said “appears to be unprecedented.” The deficit was $949 billion more than the same period last year, as receipts fell $200 billion and outlays rose $749 billion. “That … Read More
Do you own a business but haven’t gotten around to setting up a tax-advantaged retirement plan? Fortunately, it’s not too late to establish one and reduce your 2019 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2019, and you can make contributions to it that you can deduct on your … Read More
Can an employer that averaged 100 or less full-time employees in 2019 treat its health plan expenses as qualified wages for purposes of the Employee Retention Credit? The answer is “yes.” According to an updated version of the IRS FAQs about the credit, an eligible employer can count health plan expenses paid or incurred, after … Read More
Do you own a business but haven’t gotten around to setting up a tax-advantaged retirement plan? Fortunately, it’s not too late to establish one and reduce your 2019 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2019, and you can make contributions to it that you can deduct on your … Read More
The IRS is answering questions about the tax treatment of higher education grants under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The law allows universities to use supplemental educational opportunity grant funds to award emergency financial aid grants to students experiencing “unexpected expenses and unmet financial need” due to the novel coronavirus (COVID-19) … Read More
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 must file? Generally, you must file … Read More
Does someone who died qualify for an Economic Impact Payment? The IRS says the answer is “no.” In new FAQs on its website, the IRS explains that the entire EIP should be returned unless it was made to joint filers and there’s a surviving spouse. In that case, only the deceased spouse’s portion of the … Read More