Universal Savings Accounts idea gaining traction

As Congress debates extending provisions of the Tax Cuts and Jobs Act, one concept that’s gaining traction is the use of Universal Savings Accounts (USAs). Speaking before the Senate Finance Committee, Veronique de Rugy, a senior research fellow at George Mason University, said if enacted, “[USAs] will allow workers to save in one simple account […]

Planning for next year’s tax return

Summer’s almost here, and the April tax season is in the rearview mirror. But a few simple tax planning steps during the year can take the stress out of filing your next tax return. You might even be able to improve your next refund or lower your next tax bill. Before heading to the beach, […]

Clean Vehicle Credits

The IRS has issued final regulations to clarify and modify the tax credits for new and previously owned clean vehicles. The credits are part of the Inflation Reduction Act, which allows a maximum credit of $7,500 for a new clean vehicle that meets certain requirements. The credit for previously owned clean vehicles is up to […]

Credit for Summer Camp Expenses

Once kids are out of school for the summer, many will head to summer camp. Although camp can be a costly proposition for parents, day camp costs may count as an expense toward the federal child and dependent care credit. This credit ranges in value from 20% to 35% of day camp expenses, depending on […]

Billiionaire tax rejected

Recently, U.S. Treasury Secretary Janet Yellen rejected a proposal made by Brazil’s finance minister and other Group of 20 (G20) countries to implement a 2% global minimum tax on billionaires. The proposal would tax 3,000 of the world’s wealthiest taxpayers, similar to the Organization for Economic Co-operation and Development’s Pillar Two tax on the world’s […]

US Tax Policy

At a Tax Forum event, tax experts from both sides of the aisle agreed that bipartisanship is the key for “more stable, more predictable” tax reform. Katherine Mongé, a tax advisor to former House Speaker Nancy Pelosi (D-CA), said that Democrats were “left out of the room” during negotiations over the Tax Cuts and Jobs […]

Receiving money from Abroad?

Taxpayers who live in the United States and receive money from abroad are potentially subject to a range of U.S. tax-reporting requirements. If they file information returns late, an IRS system automatically applies penalties “without any review or action from IRS personnel,” the National Taxpayer Advocate, Erin Collins, wrote in a blog post. She said […]

Estimates due soon

You may still be reeling from paying your 2023 taxes by the April 15, 2024, due date. And if you’re required to make estimated payments, you probably also made your first estimated payment for 2024 by April 15. But don’t relax yet. The next estimated payment due date for 2024 income is rolling up fast, […]

Has the Inflation Reduction Act been beneficial?

Has the Inflation Reduction Act (IRA) been beneficial? That’s the subject of a recent survey by the AP-NORC Center for Public Affairs Research at the University of Chicago. The IRA is a federal law passed in 2022, aimed at enhancing clean energy. Yet nearly two years later, 67% of adults said they don’t believe enough […]

Do you have kids in college?

Do you have kids in college or are you in school yourself? You may be eligible for an education tax break. The American Opportunity Tax Credit (AOTC) covers 100% of the first $2,000 of tuition and eligible expenses, and 25% of the next $2,000 of expenses. With the AOTC, you can claim up to $2,500 […]