Living abroad?

U.S. citizens and resident aliens living abroad may have tax obligations, and there’s still time to file 2023 tax returns. For these individuals, worldwide income (including wages, unearned income and tips) is subject to U.S. income tax, regardless of where they live or earn income. They also have filing requirements. Taxpayers have an automatic two-month […]

Innocent Spouse Relief

A married couple filing a joint tax return makes the spouses “jointly and severally” liable for the entire tax due. A joint filer may seek “innocent spouse” relief to avoid liability. In one case, an ex-wife was denied relief. She and her ex-husband managed rental properties. The tax deficiency arose from sources including unreported cancellation […]

IRS warns taxpayers they may be a scam victim

The IRS is reporting that this tax season it’s seeing an uptick of inflated refund claims centered around the Fuel Tax Credit, the Sick and Family Leave Credit, and household employment taxes. It stated that a series of tax scams and inaccurate social media advice has led to thousands of taxpayers claiming credits for which […]

Extending expiring provisions in the TCJA would increase deficit

Most of the individual income tax provisions in the Tax Cuts and Jobs Act (TCJA) are slated to expire at the end of 2025. The estimated cost of extending expiring tax provisions, including those under the TCJA, for the next 10 years would add nearly $4.6 trillion to the federal budget deficit, according to the […]

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 […]

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 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 […]

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 […]