Should I give a gift?

As the year winds down, you may want to combine smart estate tax planning with tax savings using the annual gift tax exclusion. You can give cash or property (up to a specified value) to an unlimited number of family members or friends each year without gift tax implications. That specified amount is subject to […]

Tax breaks may be available for adoption of children

Adopting a child is expensive. Fortunately, there may be tax breaks to help adoptive parents offset some of the costs. In 2024, a credit of up to $16,810 is available for qualified expenses, with phaseouts for higher-income parents. In 2025, the credit will rise to $17,280. The credit is nonrefundable, which means it’s limited to […]

Cannabis remains a scheduled drug not allowing tax deductions

Recently, a California-based medical cannabis dispensary was denied federal tax deductions for business expenses and charitable contributions. Even though the dispensary is licensed in California and its trade is legal under California law, “trafficking marijuana” is illegal under federal law. In denying the deductions, the U.S. Tax Court referenced IRC Sec. 280E, which prohibits deductions […]

Employee health benefit limits updated for 2025

Employers and employees, take note: The IRS has released 2025 inflation-adjusted limits for employee health benefits. Workers who defer earnings to health flexible spending arrangements can contribute as much as $3,300 in 2025 (up from $3,200 in 2024). And for plans that allow carryover of unused amounts, the 2025 carryover maximum will be $660 (up […]

The Premium Tax Credit

The premium tax credit (PTC) helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. It was “enhanced” for the 2021 and 2022 tax years to allow taxpayers with incomes over 400% of the federal poverty line to claim a portion of the credit. The Inflation Reduction Act extended the […]

2025 Inflation adjustments announced

The IRS has announced inflation adjustments for 2025. The 2025 standard deduction for single taxpayers and married individuals filing separately will be $15,000, an increase of $400 from 2024. For married joint filers, it will be $30,000, an increase of $800 from 2024. For heads of households, the standard deduction will be $22,500, an increase […]

Couple claims they have too much proof to present in court

Business owners can generally deduct ordinary and necessary business expenses if they have proof. But one married couple that owned six LLCs claimed they had too much proof to present in court. After they failed to file tax returns for several years, the IRS created substitute returns. In U.S. Tax Court, the taxpayers relied mostly […]

No award given in recent whistleblower case

Taxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. Several conditions must be met, including: The IRS must take action based on a tip provided. Also, proceeds must be derived by the WBO based on the action taken. One tipster alleged that a tax-exempt entertainment […]

There’s still time to reduce your 2024 tax bill with these strategies

There’s still time to reduce your 2024 tax bill with these strategies – CNBC https://bit.ly/3AihVgw

Obtaining documents are a disaster

It’s common for individual and business taxpayers to lose financial records during a natural disaster. Unfortunately, you usually need such records to document losses for your insurance company and to qualify for federal assistance. But if you visit the IRS’s website (https://bit.ly/4dQ3XA7), you can view or obtain copies of your historical tax returns, wage and […]