Adoption tax credits: Easing the financial journey of parenthood

There are two tax breaks that help eligible parents offset the expenses of adopting a child. In 2025, adoptive parents may be able to claim a credit against their federal tax for up to $17,280 of “qualified adoption expenses” for each child. This is up from $16,810 in 2024. A tax credit is a dollar-for-dollar […]

What will happen with expiring tax provisions?

How will Republican lawmakers address expiring provisions in the Tax Cuts and Jobs Act and tax-related campaign promises? There are various opinions on how to proceed. President-Elect Donald Trump is calling for “one powerful bill” to address tax, border and energy issues. House Ways and Means Committee Chair Jason Smith (R-MO) also recommends one reconciliation […]

Deductions versus credits

One of the most common misconceptions about filing an income tax return is the distinction between deductions and credits. Deductions lower a taxpayer’s taxable income before the tax is calculated. For instance, on an individual return, you can either claim the standard deduction or itemize deductions, depending on which option reduces your taxable income more. […]

The tax treatment of intangible assets

Intangible assets, such as patents, trademarks, copyrights and goodwill, play a crucial role in today’s businesses. The tax treatment of these assets can be complex, but businesses need to understand the issues involved. Here are some answers to frequently asked questions. What are intangible assets? The term “intangibles” covers many items. Determining whether an acquired […]

IRS tax offset program

Taxpayers with outstanding federal tax debt may be subject to the IRS tax offset program. It allows the IRS to use federal refunds to cover unpaid taxes and other debt, such as child support. The Treasury Inspector General for Tax Administration (TIGTA) recently reported on the program. From tax years 2020–2022, nearly $40.1 billion was […]

Proposals on private placement life insurance uncertain

Private placement life insurance arrangements may enable wealthy taxpayers to borrow against policies at favorable rates and pass on wealth to their heirs tax-free. In late Dec. 2024, outgoing Senate Finance Committee Chair Ron Wyden (D-OR) proposed legislation that would end such preferential tax treatment. According to Wyden, private placement policies are nothing more than […]

Your guide to Medicare premiums and taxes

Medicare health insurance premiums can add up to big bucks — especially if you’re upper-income, married, and you and your spouse both pay premiums. Read on to understand how taxes fit in. Premiums for Part B coverage Medicare Part B coverage is commonly called Medicare medical insurance. Part B mainly covers doctors’ visits and outpatient […]

What is the Social Security Fairness Act?

On Jan. 5, President Biden signed the Social Security Fairness Act into law. It repeals two long-standing provisions that reduce or eliminate Social Security benefits for certain retirees who receive public pensions but also worked in private sector jobs during their careers. Affected individuals include some former firefighters, police officers, teachers, postal workers and government […]

Do you own digital assets?

Do you possess digital assets, such as convertible virtual currencies and cryptocurrencies, stablecoins or non-fungible tokens (NFTs)? If so, you must report any digital asset-related income on your 2024 federal income tax return. According to the IRS, a digital asset is one that can be stored electronically and can be bought, sold, owned, transferred or […]

Drive down your business taxes with local transportation cost deductions

Understanding how to deduct transportation costs could significantly reduce the tax burden on your small business. You and your employees likely incur various local transportation expenses each year, and they have tax implications. Let’s start by defining “local transportation.” It refers to travel when you aren’t away from your tax home long enough to require […]