Your 2021 Go-To Tax Moves

Here are three time-tested steps you can take to begin your 2021 tax planning on the right foot: Check your withholding. Confirm you have the right amount withheld from your paycheck in 2021. Doing this will help you make sure your withholdings will meet minimum tax payment requirements so you don’t end up paying underpayment…

Be Prepared For These Pandemic-Related Tax Surprises

Don’t get shocked by a high tax bill! Be prepared for these pandemic-related tax surprises when you file your 2020 tax return. Taxes on unemployment income. If you received unemployment benefits in 2020, you need to report these benefits on your tax return as taxable income. Check to see if either federal or state taxes were…

Your Tax Season Checklist

With tax filing just around the corner, now is a great time to look through your tax filing plan for 2021. Here are some ideas: Organize your records. Find a place in your house and put all the documents there when you receive them, or consider scanning documents to store on your computer. A great…

Additional COVID Relief Explained

You could soon see, or already have, another stimulus payment in your bank account with the recent passage of the Emergency Coronavirus Relief Act of 2020, which means more direct relief to you and your family. Here are some of the major points you need to know that are buried inside this $900 billion piece…

PPP Loan Expenses Are Now Tax Deductible

If you or your business received funds from the Paycheck Protection Program (PPP), the recently passed Emergency Coronavirus Relief Act of 2020 will help to dramatically cut your tax bill. Here’s what you need to know. Background The PPP program was created by the CARES Act in March 2020 to help businesses which were adversely…

Got mutual funds? Pay attention to year-end tax issues

If you’re among the millions of Americans who invest in mutual funds, you need to be aware of the year-end issues that could affect your 2020 tax bill. Year-end distributions. One key fact to be aware of is that mutual funds are usually required to distribute their income annually to shareholders. If you purchase a…

Four Tax Moves to Make Before 2020 Ends

Here are a few time-tested tax strategies to consider as we head towards the end of 2020: Maximize retirement plan contributions. You’ve heard this advice many times, because it’s one of the best strategies for saving tax dollars, especially when wages are your primary source of income. The maximum contribution to a 401(k) for 2020…

This Estate Planning Mistake Could Cost You Thousands

While you may never need to worry about forking over an estate tax payment to the federal government, there is a financial trap hidden within your estate that could bite you big time. Spend a few minutes with the following example to see where you could get tripped up by a simple mistake that could…

Don’t Let Plummet in IRS Audits Lead to Complacency

Prepare for an IRS audit despite a low risk for getting selected. In 2018, the most recent year for which the IRS has released information, you have a 0.05% chance of getting audited if you make more than $1 million. In comparison, if you made more than $1 million in 2010, you had a 9.72%…

Timing Matters When Paying Education Expenses

As college tuition bills begin arriving for the fall semester, start thinking about education tax credits. Why? The two federal education credits available – the American Opportunity Credit and the Lifetime Learning Credit – include timing rules. For example, say you’re planning to pay qualified tuition expenses with loan proceeds. You can claim an education…