Firewall Act introduced to address natural disaster preparation

Natural disasters in the United States totaled nearly $182.7 billion in 2024, the fourth-costliest year on record. In response, U.S. Senators Adam Schiff (D-CA) and Tim Sheehy (R-MT) have introduced the FIREWALL Act. It would provide refundable tax credits to eligible residents to improve their home’s resiliency to natural disasters. Specifically, the bipartisan bill would […]

Is a 529 plan right for you?

As summer nears, many parents are already thinking about covering education costs for the next school year. One option is the Section 529 savings plan, which offers federal (and sometimes state) tax benefits. Originally these plans could only be used for postsecondary education. The Tax Cuts and Jobs Act expanded the plans to cover K-12 […]

Tax-Exempt 2024 filing due soon

The tax filing deadline has passed for most of us, but not for all. For example, the IRS is reminding tax-exempt entities that they must file their 2024 returns by May 15. Those who can’t meet that deadline may seek a six-month extension. Many of the Form 990 series returns and Form 4720 (for private […]

New survey on expiring tax cuts

A new survey conducted by YouGov for the libertarian think tank Cato Institute has found that more than 80% of Americans say they can’t afford to pay higher taxes if the 2017 Tax Cuts and Jobs Act’s (TCJA’s) temporary tax provisions are allowed to expire at the end of 2025. Over half of the respondents […]

Can I deduct my time volunteering for charities?

The time you spend volunteering for charity isn’t tax-deductible, but some of your expenses may be. In general, these are out-of-pocket costs for which the tax-exempt organization doesn’t reimburse you. If you itemize deductions, travel expenses (including airfare, auto mileage, lodging and meals) can be deductible if the trip is primarily charitable. But travel costs […]

Hawaii plans to increase hotel tax to help it cope with climate change

Hawaii plans to increase hotel tax to help it cope with climate change – NPR https://bit.ly/3RIlAcN

Your residence sale may quailfy for capital gain exclusion

If you’ve recently sold your home and realized a capital gain, you may be able to exclude some or all of the gain from the sale. To claim the exclusion, you must pass IRS ownership and use tests. During a five-year period ending on the date of sale, you must have owned the home and […]

What’s the fate of the Child Tax Credit?

As Congress continues to debate the scope of tax reform (including the extension of expiring Tax Cuts and Jobs Act provisions) what’s the fate of the Child Tax Credit (CTC)? Through 2025, for each child under age 17 at the end of the tax year, eligible taxpayers may be able to claim a $2,000 credit. […]

Failure to report digital assets

Digital assets are taxed as property, rather than currency. Gain or loss from digital asset exchanges for goods, services, U.S. dollars and other digital assets must be reported on a taxpayer’s federal income tax return. One individual recently pleaded guilty to criminal charges of filing false income tax returns when he failed to report income […]

Is an Offer in Compromise right for you?

The April 15 due date to file tax returns has passed, but many are still wrestling with unpaid federal tax debt. These individuals may be eligible to seek an offer in compromise (OIC) from the IRS. This IRS program allows qualifying taxpayers to settle a debt for less than is owed, or to pay over […]