IRS Whistleblower Office and it’s role in tax collection

The IRS Whistleblower Office (WBO) plays a key role in tax collection. The federal tax system relies on voluntary compliance, investigations, data analytics and information from people with knowledge of noncompliance. A tip that leads to collection of proceeds based on matters within the IRS’s jurisdiction may result in a valid claim for a cash […]

2025 IRA limits

The 2025 limit on IRA contributions is $7,000. The IRA catch-up contribution limit for those age 50 or older is $1,000. You can claim a deduction for a traditional IRA if you meet certain conditions. If you or your spouse are covered by a retirement plan at work, the deduction may be phased out until […]

Social Security Fairness Acts passes

Congress has passed a bill that changes the way beneficiaries of government pensions are treated for Social Security purposes. The Social Security Fairness Act was sent to President Biden for his signature. It eliminates a provision that reduces Social Security benefits for workers including police, firefighters, teachers and others who were employed by organizations with […]

Estimates due soon

It’s important for taxpayers who didn’t pay enough tax during 2024 to help avoid penalties by making a fourth quarter estimated tax payment by Jan. 15, 2025. Those who may need to make estimated payments include investors, gig workers and others with self-employment income. Also, it’s common for those who owed tax last year to […]

Senior tax-saving alert: Make charitable donations from your IRA

If you’ve reached age 70½, you can make cash donations directly from your IRA to IRS-approved charities. These qualified charitable distributions (QCDs) may help you gain tax advantages. QCD basics QCDs can be made from your traditional IRA(s) free of federal income tax. In contrast, other traditional IRA distributions are wholly or partially taxable, depending […]

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 certain payments are for personal injury or sickness. A married couple received disability income from the husband’s retirement plan and were sent a Form 1099-R for […]

Own a home with someone you aren’t married to?

Are you buying a home with someone you aren’t married to? If so, the IRS says that you may each be entitled to deduct the portion of the mortgage interest and real property tax you pay. This is true even if only one of you receives a Form 1098, Mortgage Interest Statement, from the lender […]

Healthy savings: How tax-smart HSAs can benefit your small business and employees

As a small business owner, managing health care costs for yourself and your employees can be challenging. One effective tool to consider adding is a Health Savings Account (HSA). HSAs offer a range of benefits that can help you save on health care expenses while providing valuable tax advantages. You may already have an HSA. […]

IRS asks for whistleblowers to help identify offshore tax evasion

The IRS recently stated on its website that it “remains very focused on offshore tax evasion through unreported financial accounts and structures.” The tax agency explained that it’s “employing existing tools and data analytics to address the various forms of offshore tax evasion that undermine fairness in the tax system.” However, it added that “certain […]

Did you receive Educational benefits from your employer?

If you receive education assistance fringe benefits from your employer, you may be able to exclude up to $5,250 of the benefits annually from your taxable income. This means your employer can reimburse you for eligible expenses and won’t include those benefits with your wages, tips, and other compensation shown on your Form W-2. You […]