Living Overseas?

If you’re a U.S. citizen living or working abroad, you still must file a federal individual income tax return. Generally, IRS rules for filing income, estate and gift tax returns and paying estimated tax are the same for those residing abroad as for those in the United States. The United States taxes its citizens on […]

IRS disallows ERTC claims

The IRS recently mailed nearly 28,000 Employee Retention Tax Credit (ERTC) claim disallowance letters to businesses. The National Taxpayer Advocate, Erin Collins, has provided guidance to taxpayers whose ERTC claims were disallowed. Collins said that, “Unfortunately, a number of the notices were not clear or did not include information on the businesses’ appeal rights. Taxpayers […]

Refundable versus Nonrefundable tax credits

Most of us welcome tax credits. But do you know the difference between a nonrefundable tax credit and a refundable tax credit? A nonrefundable tax credit reduces your tax bill dollar for dollar, but not below zero. For example, suppose you have a tax liability of $9,000 and qualify for a nonrefundable tax credit of […]

Happy Labor Day

“I’m a greater believer in luck, and I find the harder I work the more I have of it.” ― Thomas Jefferson Wishing you a happy and safe Labor Day!

Unused 529 plan funds can be rolled over

What do you do with leftovers? They may go to waste if you’re not careful. Suppose your leftovers are in the form of unused funds in a tax-advantaged Sec. 529 college savings plan for one of your kids or grandkids. When withdrawals aren’t used for qualified education expenses, the portion attributable to earnings generally will […]

Hearing held on proposed foreign trust regulations

On Aug. 21, 2024, the IRS and U.S. Treasury Dept. held a public hearing for taxpayers living abroad to provide input on proposed foreign trust regulations. Witnesses expressed the need for more clarity from the IRS on when offshore retirement plans must be reported as trusts (which generally don’t qualify for advantageous tax treatment). Also, […]

Do you have a Business Tax Account?

Business tax account (BTA) is an IRS online portal for eligible business taxpayers. With enhancements made possible by funding from the Inflation Reduction Act, companies can use BTA to pay Federal Tax Deposits and make payments on their full balances due. Another recent change includes greater accessibility to BTA features in Spanish (with more language […]

Summer Camp expenses

If you sent your child to day camp this summer, you may be able to offset some of the costs by claiming the child and dependent care tax credit. To claim the credit, a taxpayer must have earned income. The credit is calculated based on income and a percentage of the expenses incurred for the […]

Child Tax Credit proposals

Democratic presidential nominee, Vice President Kamala Harris and Republican vice presidential nominee, Sen. J.D. Vance recently put forth differing views on the future of the Child Tax Credit (CTC). Harris proposes to restore enhancements to the CTC under the American Rescue Plan Act (ARPA). Under ARPA, the CTC amount was $3,600 for children under six […]

Secure Act 2.0 can help employees pay student loans

Employees paying student loan debt may greatly benefit from a provision of the SECURE 2.0 Act, which took effect as of Jan. 2024. Employers can now make matching contributions to 401(k) accounts (and certain other retirement plans) with respect to qualified student loan payments (QSLPs). This is true even for taxpayers who aren’t contributing to […]