The May 17 deadline for filing your 2020 individual tax return is coming up soon. It’s important to file and pay your tax return on time to avoid penalties imposed by the IRS.
Here are the basic rules.
Continue Reading The Importance of Meeting Tax Return Filing and Payment Deadlines
The housing market in many parts of the country is strong this spring. If you’re buying or selling a home, you should know how to determine your “basis.”
Continue Reading Determine Your Home “Basis” Before Buying or Selling
Not-for-profit organizations are different from for-profit businesses in many vital ways. One of the most crucial differences is that under Section 501(c)(3), Sec. 501(c)(7) and other provisions, not-for-profits are tax-exempt. But your tax-exempt status is fragile. If you don’t follow the rules laid out in IRS Publication 557, Tax-Exempt Status for Your Organization, the IRS could revoke it.
Be particularly alert to the following common stumbling blocks.
When you file your tax return, you must check one of the following filing statuses: Single, married filing jointly, married filing separately, head of household or qualifying widow(er). Who qualifies to file a return as a head of household, which is more favorable than single?
To qualify, you must maintain a household, which for more than half the year, is the principal home of a “qualifying child” or other relative of yours whom you can claim as a dependent (unless you only qualify due to the multiple support rules).
Continue Reading Qualifying for “Head of Household” Tax Filing Status
Are you considering buying or replacing a vehicle that you’ll use in your business? If you choose a heavy sport utility vehicle (SUV) as your next business vehicle, you may be able to benefit from lucrative tax rules for those vehicles.
Continue Reading Consider a Heavy SUV for Your Next Business Vehicle
The new American Rescue Plan Act (ARPA) provides eligible families with an enhanced dependent and child care credit for 2021. This is the credit available for expenses a taxpayer pays for the care of qualifying children under the age of 13 so that the taxpayer can be gainfully employed.
Note that a credit reduces your tax bill dollar for dollar.
Continue Reading Child Care May Be Less Expensive with New Tax Law
Jen: This is The PKF Texas – Entrepreneur’s Playbook®. I’m Jen Lemanski, and I’m back once again with Emily Smikal, a tax director and one of the faces of our PKF Texas not-for-profit team. Emily, welcome back to the Playbook.
Emily: Thanks for having me again.
Jen: So, I know for profit organizations can be audited by the IRS. I’m assuming not-for-profit organizations can also be audited for the IRS. Are there any steps that they can take to maybe avoid an audit?
Emily: Yes, not-for-profit entities can be audited, and so, it’s important to just understand how the IRS selects which organizations they’re going to audit so you can be somewhat prepared for that. So, first of all, you can’t fully know; they will randomly select organizations to audit, but there are some common triggers to just be aware of.
Jen: What are those triggers?
Continue Reading How Your NFP Can Avoid Pitfalls of an IRS Audit
If you’re approaching retirement, you probably want to ensure the money you’ve saved in retirement plans lasts as long as possible. If so, be aware that a law was recently enacted that makes significant changes to retirement accounts.
The SECURE Act, which was signed into law in late 2019, made a number of changes of interest to those nearing retirement.
If you’re like many Americans, letters from your favorite charities may be appearing in your mailbox acknowledging your 2020 donations. But what happens if you haven’t received such a letter — can you still claim a deduction for the gift on your 2020 income tax return? It depends.
Continue Reading What to Know About Charitable Deduction Substantiation
Many people are more concerned about their 2020 tax bills right now than they are about their 2021 tax situation. That’s understandable because your 2020 individual tax return is due to be filed in less than three months (unless you file an extension).
However, it’s a good idea to acquaint yourself with tax amounts that may have changed for 2021. Below are some Q&As about tax amounts for this year.
Be aware that not all tax figures are adjusted annually for inflation and even if they are, they may be unchanged or change only slightly due to low inflation. In addition, some amounts only change with new legislation.
Continue Reading Have Questions About Your 2021 Tax Situation?