The tax filing deadline for 2019 tax returns has been extended until July 15 this year, due to the COVID-19 pandemic. After your 2019 tax return has been successfully filed with the IRS, there may still be some issues to bear in mind.
Here are three considerations.
Continue Reading What to Consider After Filing Your Taxes on July 15
Married couples often wonder whether they should file joint or separate tax returns. The answer depends on your individual tax situation.
It generally depends on which filing status results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly and severally” liable for the tax on your combined income. And you’re both equally liable for any additional tax the IRS assesses, plus interest and most penalties. This means that the IRS can come after either of you to collect the full amount.
Continue Reading The Benefits for Married Couples Filing Taxes Separately
If you’re getting ready to file your 2019 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the Wednesday, April 15, 2020, filing date and benefit from the resulting tax savings on your 2019 return.
Continue Reading How an IRA Can Benefit Your 2019 Tax Return
Internal Revenue Code (IRC) Section 512(a)(7) was recently retroactively repealed by the Taxpayer Certainty and Disaster Tax Relief Act of 2019. Section 512(a)(7) increased unrelated business taxable income by amounts paid or incurred for qualified transportation fringes, and Congress originally enacted this provision for amounts paid or incurred after December 31, 2017.
As a result
Many taxpayers make charitable gifts — because they’re generous and they want to save money on their federal tax bills.
But with the tax law changes that went into effect a couple years ago and the many rules that apply to charitable deductions, you may no longer get a tax break for your generosity.
Continue Reading Are Charitable Gifts Deductible on Your Tax Return?
The IRS announced it is opening the 2019 individual income tax return filing season on January 27. Even if you typically don’t file until much closer to the April 15 deadline (or you file for an extension), consider filing as soon as you can this year.
The reason: You can potentially protect yourself from tax identity theft — and you may obtain other benefits, too.
Continue Reading Protect Yourself by Filing Your 2019 Tax Return Early
The number of people engaged in the “gig” or sharing economy has grown in recent years, according to a 2019 IRS report. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare bedrooms, delivering food, walking dogs or providing other services.
Basically, if you receive income from one of the online platforms offering goods and services, it’s generally taxable. That’s true even if the income comes from a side job and even if you don’t receive an income statement reporting the amount of money you made.
Continue Reading Your Tax Obligations if You Have a Side Gig…
As we all know, medical expenses, such as services and prescription drugs, are expensive. You may be able to deduct some of your expenses on your tax return, but the rules make it difficult for many people to qualify.
However, with proper planning, you may be able to time discretionary medical expenses to your advantage for tax purposes.
Continue Reading Medical Expenses – How to Qualify for a Tax Deduction
You may have Series EE savings bonds that were bought many years ago. Perhaps you store them in a file cabinet or safe deposit box and rarely think about them. You may wonder how the interest you earn on EE bonds is taxed.
And if they reach final maturity, you may need to take action to ensure there’s no loss of interest or unanticipated tax consequences.
Continue Reading Do You Need to Redeem Your Series EE Savings Bonds?
We all know the cost for higher education is expensive. The latest figures from the College Board show that the average annual cost of tuition and fees was $10,230 for in-state students at public four-year universities — and $35,830 for students at private not-for-profit four-year institutions.
These amounts don’t include room and board, books, supplies, transportation and other expenses a student may incur.
Continue Reading Tax Credits for Higher Education You Should Know About