2025 Budget released

President Biden has released his fiscal year 2025 budget. The tax-related proposals aim to make wealthy individuals and corporations “pay their fair share” of taxes, according to a White House statement. Biden highlighted many of the proposals in his State of the Union speech. In the budget, Biden targets the tax avoidance of large, U.S. […]

Summary of the Latest Federal Income Tax Data, 2024 Update

Summary of the Latest Federal Income Tax Data, 2024 Update https://bit.ly/3TjnSiL

Need time to pay your taxes?

If an individual can’t pay a tax bill in full by the April 15, 2024, due date, there are ways to ease the burden. The taxpayer may be able to enter into a written agreement with the IRS to pay the tax in installments. Plans include a short-term installment agreement of up to 120 days […]

Is disability income taxable?

Is disability income taxable? Generally, income you receive for disability through an employer-paid accident or health insurance plan must be included on your tax return. An exclusion exists if the payments are for personal injury or sickness. One married couple received disability income from the husband’s retirement plan and were sent a Form 1099-R for […]

Tax Calculator: How the TCJA’s Expiration Will Affect You

Tax Calculator: How the TCJA’s Expiration Will Affect You https://bit.ly/3ICFCk9

IRS asks for feedback

The IRS wants to hear your thoughts about improving certain federal tax processes! The agency is calling on taxpayers to submit ideas for its 2024–2025 Priority Guidance Plan. The plan will identify regulations, revenue rulings, notices and other guidance the IRS intends to provide from July 1, 2024, through June 30, 2025. In evaluating submissions, […]

New option for unused funds in a 529 college savings plan

With the high cost of college, many parents begin saving with 529 plans when their children are babies. Contributions to these plans aren’t tax deductible, but they grow tax deferred. Earnings used to pay qualified education expenses can be withdrawn tax-free. However, earnings used for other purposes may be subject to income tax plus a […]

General health care is not medical care

Do you have a health flexible spending account, health savings account or similar plan through your employer? The IRS is warning about misinformation that could lead to serious mistakes. Non-medical nutrition, wellness and exercise expenses that aren’t explicitly related to a medical diagnosis or treatment aren’t deductible or reimbursable under these plans. That hasn’t stopped […]

Proposal for new homebuyer credit

One proposal in President Biden’s State of the Union address was to help potential homebuyers and current homeowners. Biden proposed a $10,000 mortgage relief tax credit for first-time homebuyers. It would provide a $5,000 credit for two years. He also proposed a one-year credit of up to $10,000 to middle-class families who sell their starter […]

Tax-wise ways to take cash from your corporation while avoiding dividend treatment

If you want to withdraw cash from your closely held corporation at a low tax cost, the easiest way is to distribute cash as a dividend. However, a dividend distribution isn’t tax efficient since it’s taxable to you to the extent of your corporation’s “earnings and profits,” but it’s not deductible by the corporation. 5 […]