Selling mutual fund shares: What are the tax implications?

If you’re an investor in mutual funds or you’re interested in putting some money into them, you’re not alone. According to the Investment Company Institute, a survey found 58.7 million households owned mutual funds in mid-2020. But despite their popularity, the tax rules involved in selling mutual fund shares can be complex. What are the […]

2018 Tax return year closing

If you or someone you know didn’t file a 2018 federal income tax return, time is running out to claim a refund for that year. According to the IRS, $1.5 billion in refund money has yet to be claimed by more than one million taxpayers. To file, you must mail a 2018 paper return no […]

Classroom out-of-pocket expense deduction increases for teachers

In the big picture, $50 may not seem like a lot. But put into the context of the educator expense deduction, it’s notable. Why? Because for 2022, eligible teachers and other educators can deduct up to $300 of out-of-pocket classroom expenses. The $50 increase is the first since the deduction was enacted in 2002. The […]

Deciding between cash and accrual accounting methods

Small businesses may start off using the cash-basis method of accounting. But many eventually convert to accrual-basis reporting to conform with U.S. Generally Accepted Accounting Principles (GAAP). Which method is right for you? Cash method Under the cash method, companies recognize revenue as customers pay invoices and expenses when they pay bills. As a result, […]

Proposed changes to the Affordable Care Act

The IRS has proposed changes to the Affordable Care Act’s family coverage and affordability rules. In a nutshell, the proposed regs would change how to determine the affordability of employer-sponsored coverage for an employee’s family. More specifically, the affordability of family coverage would be based on the employee’s share of the cost of covering the […]

Puerto Rico disaster relief

The IRS is providing disaster tax relief to victims of severe storms in Puerto Rico. This includes those hit by storms, flooding and landslides that started on Feb. 4, 2022, in the Puerto Rico municipalities of Catano, Dorado, Toa Baja, Vega Alta and Vega Baja. Affected individuals and businesses now have until June 15, 2022, […]

What to do with an overfunded 529 plan on graduation day

State and Local Tax Burdens, Calendar Year 2022

From the Tax Foundation : State and Local Tax Burdens, Calendar Year 2022 https://bit.ly/3x5F16a How does your state rank?

Do you have a profit motive?

Taxpayers who are in business to make a profit can generally deduct related expenses on their tax returns. If the IRS doubts a profit motive exists, it may deem an activity to be a hobby with a limited ability to deduct costs. The burden to prove there’s a profit motive is on the taxpayer. In […]

IRS backlog of unprocessed returns is “unprecedented”

The magnitude of the IRS backlog of unprocessed returns is “unprecedented,” said the National Taxpayer Advocate, Erin Collins. Since the start of the pandemic, millions of taxpayers have seen their refunds delayed. To rectify the problem, Collins wants to see the IRS’s “antiquated” system modernized, including the use of scanning technology such as 2-D barcoding […]