Unused 529 plan funds can be rolled over

What do you do with leftovers? They may go to waste if you’re not careful. Suppose your leftovers are in the form of unused funds in a tax-advantaged Sec. 529 college savings plan for one of your kids or grandkids. When withdrawals aren’t used for qualified education expenses, the portion attributable to earnings generally will […]

Hearing held on proposed foreign trust regulations

On Aug. 21, 2024, the IRS and U.S. Treasury Dept. held a public hearing for taxpayers living abroad to provide input on proposed foreign trust regulations. Witnesses expressed the need for more clarity from the IRS on when offshore retirement plans must be reported as trusts (which generally don’t qualify for advantageous tax treatment). Also, […]

Federal court rejects FTC’s noncompete agreement ban

In April 2024, the Federal Trade Commission (FTC) approved a final rule prohibiting most noncompete agreements with employees. The ban was scheduled to take effect on September 4, 2024, but ran into multiple court challenges. Now the court in one of those cases has knocked down the rule, leaving its future uncertain. The FTC ban The FTC’s […]

Do you have a Business Tax Account?

Business tax account (BTA) is an IRS online portal for eligible business taxpayers. With enhancements made possible by funding from the Inflation Reduction Act, companies can use BTA to pay Federal Tax Deposits and make payments on their full balances due. Another recent change includes greater accessibility to BTA features in Spanish (with more language […]

Summer Camp expenses

If you sent your child to day camp this summer, you may be able to offset some of the costs by claiming the child and dependent care tax credit. To claim the credit, a taxpayer must have earned income. The credit is calculated based on income and a percentage of the expenses incurred for the […]

The tax implications of disability income benefits

Many Americans receive disability income. Are you one of them, or will you soon be? If so, you may ask: Is the income taxed and if it is, how? It depends on the type of disability benefit and your overall income. The key issue is: Who paid for the benefit? If the income is paid […]

Child Tax Credit proposals

Democratic presidential nominee, Vice President Kamala Harris and Republican vice presidential nominee, Sen. J.D. Vance recently put forth differing views on the future of the Child Tax Credit (CTC). Harris proposes to restore enhancements to the CTC under the American Rescue Plan Act (ARPA). Under ARPA, the CTC amount was $3,600 for children under six […]

How are Series EE savings bonds taxed?

Savings bonds are purchased by many Americans, often as a way to help fund college or show their patriotism. Series EE bonds, which replaced Series E bonds, were first issued in 1980. From 2001 to 2011, they were designated as “Patriot Bonds” as a way for Americans “to express support for our nation’s anti-terrorism efforts,” […]

Secure Act 2.0 can help employees pay student loans

Employees paying student loan debt may greatly benefit from a provision of the SECURE 2.0 Act, which took effect as of Jan. 2024. Employers can now make matching contributions to 401(k) accounts (and certain other retirement plans) with respect to qualified student loan payments (QSLPs). This is true even for taxpayers who aren’t contributing to […]

Heavy Highway Vehicle Use Return due soon

Truckers have a few extra days this year to file required forms, but the due date is still rolling up fast. Owners of most heavy highway vehicles must file their annual Form 2290 (Heavy Highway Vehicle Use Tax Return) by Sept. 3, 2024. The usual Aug. 31 due date falls on a Saturday this year. […]