When you take withdrawals from your traditional IRA, you probably know that they’re taxable. But there may be a penalty tax on early withdrawals depending on how old you are when you take them and what you do with the money. Important: Once you reach a certain age, you must start taking required minimum distributions … Read More
Many people wonder how they can save taxes by transferring assets into their children’s names. This tax strategy is called income shifting. It seeks to take income out of your higher tax bracket and place it in the lower tax brackets of your children. While some tax savings are available through this approach, the “kiddie … Read More
If you’re approaching retirement or have already retired, one of the biggest challenges is balancing the need to maintain your standard of living with your desire to preserve as much wealth as possible for your loved ones. This balance can be difficult to achieve, especially when retirement can last decades. One strategy to consider is … Read More
Have you ever received a letter from the IRS? Some people may get a little panicky from unexpected IRS attention. They might even tuck an unopened letter into a drawer, hoping it will go away. But not all IRS correspondence is scary. It might be a notice of a change to your account. Generally, IRS … Read More
Is income from crowdfunding taxable? It’s a popular way to raise money for emergencies, charities, businesses and more. But the funds could be taxable. Under federal law, gross income is income from all sources, unless it’s excluded by law, such as a gift. For crowdfunded donations to qualify as gifts, certain conditions must be met. … Read More
“Thanks, but no thanks.” If you expect to receive an inheritance from a family member, you might want to use a qualified disclaimer to refuse the bequest. As a result, the assets will bypass your estate and go directly to the next beneficiary in line. It’s as if the successor beneficiary, not you, had been … Read More
One of the provisions of a 2021 law was that the IRS developed an online portal enabling taxpayers to unenroll from receiving advance Child Tax Credit payments. The IRS released an updated website in Jan. 2022 to address the required functionality. But a recent audit by the Treasury Inspector General for Tax Administration (TIGTA) found … Read More
Many offices, plants and other business facilities are once again filled with real, live people. And those hard-working employees need somewhere to park. If your company provides parking as a fringe benefit — either on or near your premises or at a location from which employees commute — the IRS may take an interest in … Read More
The proposed Inflation Reduction Act imposes a new 15% corporate alternative minimum tax on the adjustable financial statement income of certain corporations. The tax will apply if it exceeds the taxpayer’s regular tax, including its base erosion and anti-abuse tax for the tax year. An applicable corporation for a tax year is one that meets … Read More
Business owners often find the greatest obstacle to innovation isn’t the change itself, but employees’ resistance to it. Their hesitation or outright defiance is frequently driven by fear. Some workers might worry about how the innovation will alter their jobs — or whether it will even eliminate their positions. Others could reject the concept and … Read More