Do you need to make estimated tax payments?

A popular way for young people to earn money is through the “gig economy.” That means they provide on-demand work, goods or services, often through an online platform. Many fully employed people also do gig work to supplement their income. The IRS wants gig workers to know that any money they earn this way is […]

Does Your State Have a Gross Receipts Tax?

This week’s tax map will consider the effects of an alternative form of corporate taxation, known as the gross receipt tax (GRT) https://bit.ly/3WRQfYH

Home Improvements may cut your tax bill

For many homeowners, warm weather means it’s time to tackle home improvement projects. By investing in certain energy-efficient updates, taxpayers can not only lower their power bills but also score some tax breaks. The Energy Efficient Home Improvement Credit equals 30% of qualified expenses (up to $3,200) incurred to improve a home after Jan. 1, […]

IRS disaster relief

Unfortunately, late spring and summer mark the natural disaster season. Most years, the number of federally declared disaster zones rises at this time. The good news is that eligible residents and businesses can receive tax relief, including extended filing deadlines. In the past two months, the IRS has announced relief for severe storm victims in […]

IRS extends relief for inherited IRAs

For the third consecutive year, the IRS has published guidance that offers some relief to taxpayers covered by the “10-year rule” for required minimum distributions (RMDs) from inherited IRAs or other defined contribution plans. But the IRS also indicated in Notice 2024-35 that forthcoming final regulations for the rule will apply for the purposes of determining […]

IRS Commissioner warns on 2025 budget request

IRS Commissioner Daniel Werfel is warning about potential repercussions if Congress doesn’t approve the fiscal year 2025 budget request submitted by President Biden. Werfel said he’s worried that recent IRS customer service improvements and enhanced compliance and enforcement efforts made possible by funding from the Inflation Reduction Act could be undermined. On May 7, he […]

Green energy tax incentives

The Inflation Reduction Act (IRA) introduced, extended or enhanced many green-energy-related tax incentives, including those for electric vehicles and home modifications. There’s been much discussion in Washington regarding the fate of these incentives if the political landscape changes in November. The consensus is there won’t be an outright repeal of all incentives. According to Senate […]

Taxes when you sell an appreciated vacation home

Vacation homes in upscale areas may be worth way more than owners paid for them. That’s great, but what about taxes? Here are three scenarios to illustrate the federal income tax issues you face when selling an appreciated vacation home. Scenario 1: You’ve never used the home as your primary residence In this case, the […]

Health Savings Accounts

Health Savings Accounts (HSAs) are tax-advantaged accounts funded with pretax dollars. Funds can be withdrawn tax-free to pay qualified medical expenses. An HSA must be coupled with a high-deductible health plan (HDHP). The IRS annually adjusts HSA and HDHP amounts for inflation. For 2025, the maximum HSA contribution amount for individuals will be $4,300 ($4,150 […]

Need a home downpayment?

If you need cash quickly, you may be considering a withdrawal from your traditional IRA. However, if you’re under age 59½, the IRS defines that as an “early withdrawal,” which is generally subject to a 10% penalty tax. Several exceptions exist. One exception allows you to take a penalty-free withdrawal for the purchase of an […]