Final regulations on RMDs issued

The IRS has issued final regulations on the required minimum distribution (RMD) rules for inherited IRAs. In 2022, the IRS issued proposed regs that provide that, if the deceased dies on or after the required beginning date for RMDs, beneficiaries must take taxable RMDs in years one through nine after death, receiving the balance of […]

Summer expenses may lead to tax savings

Summer isn’t tax season but it’s a season when some common activities have tax implications. If you get married, you should notify the IRS and Social Security Admin. about any name or address changes. If you’re sending your kids to day camp, depending on the details, you may qualify for the Child and Dependent Care […]

School returns soon…Is your 529 plan in order?

Before long, school bells will be ringing again. If you’ve set up Section 529 college savings plans for your kids or grandkids, you know these plans bring federal (and possibly state) tax advantages. For example, qualified withdrawals are free from federal income tax, subject to limitations. But 529 accounts aren’t just for college. The funds […]

The No Tax on Tips Act

A Republican-led bill to exempt tipped wages from federal income tax may gain momentum, thanks to a few Democrats. The No Tax on Tips Act was introduced by Senator Ted Cruz (R-Tex) and has mostly received support from Republicans. But Senators Catherine Cortez Masto (D-Nev) and Jacky Rosen (D-Nev) announced they’re backing the bill, primarily […]

Virtual Currency Tax Compliance Enforcement Can Be Improved

A new report from The Treasury Inspector General for Tax Administration (TIGTA) expresses concern about the IRS’s ability to review and investigate digital asset transactions. The IRS recently released final digital asset regulations (in accordance with the Infrastructure and Jobs Act). TIGTA praises the tax agency’s increase in criminal enforcement using data analytic tools. However, […]

Deductible medical Expenses?

If you’ve incurred medical expenses this year, you may qualify for a tax deduction. Taxpayers can deduct the amount of unreimbursed medical expenses that exceeds 7.5% of their adjusted gross income. To qualify for the deduction, the expenses must be paid specifically for medical or dental services, prescription drugs, insulin, medical equipment and supplies, medical […]

The Self Employment Tax Credit

You’ve probably never heard of the “Self Employment Tax Credit.” That’s because it doesn’t exist! However, unscrupulous promoters on social media are peddling the nonexistent credit as a way for self-employed people and gig workers to receive big payments related to the COVID-19 pandemic. In reality, the underlying limited and technical credits referenced in these […]

Ransomware attack on car dealers

Recently, there was a ransomware attack aimed at car dealers. As a result, the IRS is warning individuals and businesses selling cars about evolving phishing and smishing scams. Scammers relentlessly pursue the sensitive financial and personal data of individuals, which they may use to steal identities or assets or install malicious software on victims’ computers. […]

Should i convert to a Roth IRA?

If you expect the tax rates you pay to rise, you may be able to proactively avoid higher taxes on retirement funds by converting a traditional IRA to a Roth account. This may be a smart tax move but be aware that there’s a current cost. That is, a conversion is treated as a taxable […]

No plans to extend BOI reporting deadline

Recently, several members of the U.S. House Financial Services Committee claimed that many small business owners weren’t aware of the Beneficial Ownership Information (BOI) reporting deadline. They are, according to these members, vulnerable to noncompliance penalties. However, U.S. Treasury Secretary Janet Yellen responded that there are no plans to extend the regulation’s compliance deadline. This means […]