Time grows short to get medical purchases completed for this tax year

Taxpayers who plan to claim medical expense deductions on their 2024 tax returns have less than one month to fit in any eligible appointments and purchases. To qualify, you must itemize deductions and file Schedule A. You can only claim qualified medical expenses not covered by insurance that exceed 7.5% of your adjusted gross income. […]

Qualified Charitable Distributions limit increased in 2024

Beginning in 2024, eligible senior taxpayers may donate more from their IRAs with qualified charitable distributions (QCDs). Owners or beneficiaries of IRAs who are 70½ or older can make QCDs directly to IRS-approved charities. In 2024, the annual QCD limit is $105,000 (up from $100,000 in 2023). In 2025 it rises to $108,000. This limit […]

Estate and Inheritance Taxes by Stat

Estate and Inheritance Taxes by State https://bit.ly/4fe2pRk

Catch-up Contributions

Employers that offer 401(k) plans and allow catch-up contributions need to prepare for some changes in 2025. The SECURE 2.0 Act allows 401(k) plan participants who will be 60, 61, 62 or 63 in 2025 to make annual catch-up contributions equal to $10,000 or 150% of the regular catch-up limit for the previous year, whichever […]

Giving can also be saving

If you’re one of the millions of people giving to charity this holiday season, your gifts may be tax deductible. To be eligible for a deduction of up to 60% of your adjusted gross income, you must itemize deductions. Also, charities that receive your donations must be tax-exempt. You can check the IRS’s site (https://bit.ly/3ViMOcb […]

Businesses can still cut their 2024 taxes

The qualified business income (QBI) deduction allows owners of pass-through entities, including sole proprietors, to deduct up to 20% of their QBI. The deduction is set to expire in 2026, at which point income would be taxed at owners’ individual income tax rates. (However, with Republicans in control of the White House, the Senate and […]

1099-K reporting threshold reducing in 2025

IRS Form 1099-K, Payment Card and Third Party Network Transactions, is an information return that reports payments from payment apps or online marketplaces. These entities are also known as third-party settlement organizations (TPSOs) and include PayPal, Venmo and eBay. For 2024, the reporting threshold is $5,000. The IRS recently announced that in 2025, TPSOs must […]

IRS extends R&D Credit claim period

The IRS is extending the research credit’s transition claim period through Jan. 10, 2026. Taxpayers must provide significant documentation when submitting a claim for the research credit. (The credit is also called the research and development, R&D, or research and experimentation credit.) The IRS provides a 45-day transition period to taxpayers who fail to comply […]

Unlocking the mystery of taxes on employer-issued nonqualified stock options

Employee stock options remain a potentially valuable asset for employees who receive them. For example, many Silicon Valley millionaires got rich (or semi-rich) from exercising stock options when they worked for start-up companies or fast-growing enterprises. We’ll explain what you need to know about the federal income and employment tax rules for employer-issued nonqualified stock […]

Appreciated Stock?

If you own stock that has appreciated over time, selling it could result in capital gains taxes. However, if you’re charitably inclined and itemize deductions on your tax return, there’s a tax-savvy alternative. Consider donating publicly traded stocks that you’ve held for more than a year directly to an IRS-approved charity. That allows you to […]