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Tax

Scholarships are usually tax free but they may result in taxable income

Scholarships, Tax, Tax Requirements for Scholarships /

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax-free for students at the elementary, middle, and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct […]

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5 possible tax aspects of a parent moving into a nursing home

AGI (Adjustable Gross Income), Care for Aging Parents, Deductable Expenses, Deductions, Federal Income Tax, Individual Income Tax, Nursing Home Deduction, Real Estate, Tax /

If you have a parent entering a nursing home, you may not be thinking about taxes. But there are a number of possible tax implications. Here are five. 1. Long-term medical care. The costs of qualified long-term care, including nursing home care, are deductible as medical expenses to the extent they, along with other medical

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Eligible Businesses: Claim the Employee Retention Tax Credit

American Rescue Plan Act, Employee Retention Tax Credit (ERTC), Employment Tax, Paycheck Protection Program, Tax /

The Employee Retention Tax Credit (ERTC) is a valuable tax break that was extended and modified by the American Rescue Plan Act (ARPA), enacted in March of 2021. Here’s a rundown of the rules. Background. Back in March of 2020, Congress originally enacted the ERTC in the CARES Act to encourage employers to hire and

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Plan ahead for the 3.8% Net Investment Income Tax

(NIIT) Net Investment Income Tax, Capital Gains, Income Tax, Internal Revenue Service (IRS), Modified Adjusted Gross Income (MAGI), Tax, Tax Planning /

High-income taxpayers face a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Fortunately, there are some steps you may be able to take to reduce its impact. The NIIT applies to you only if modified adjusted gross income (MAGI) exceeds: $250,000 for married taxpayers filing jointly and surviving spouses,

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Working in the gig economy results in tax obligations

Deductable Expenses, Deductions, Gig Economy, Independent Contractors, Internal Revenue Service, Tax, Tax Planning /

Before the COVID-19 pandemic hit, the number of people engaged in the “gig” or sharing economy had been growing, according to several reports. And reductions in working hours during the pandemic have caused even more people to turn to gig work to make up the lost income. There are tax consequences for the people who

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The IRS has announced 2022 amounts for Health Savings Accounts

Health Care, HSA, Tax, Tax Deduction, Tax Savings /

The IRS recently released guidance providing the 2022 inflation-adjusted amounts for Health Savings Accounts (HSAs). Fundamentals of HSAs An HSA is a trust created or organized exclusively for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established for the benefit of an “eligible individual” who is

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Still have questions after you file your tax return?

Internal Revenue Service (IRS), Tax, Tax Record Retention, Tax Refund /

Even after your 2020 tax return has been successfully filed with the IRS, you may still have some questions about the return. Here are brief answers to three questions that we’re frequently asked at this time of year. Are you wondering when you will receive your refund? The IRS has an online tool that can

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Working in the gig economy results in tax obligations

Deductable Expenses, Deductions, Gig Economy, Independent Contractors, Internal Revenue Service (IRS), Tax, Tax Planning /

Before the COVID-19 pandemic hit, the number of people engaged in the “gig” or sharing economy had been growing, according to several reports. And reductions in working hours during the pandemic have caused even more people to turn to gig work to make up the lost income. There are tax consequences for the people who

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Providing education assistance to employees? Follow these rules

COVID-19, Employee Benefits, Qualified Educational Assistance Program, Small Business, Tax /

Many businesses provide education fringe benefits so their employees can improve their skills and gain additional knowledge. An employee can receive, on a tax-free basis, up to $5,250 each year from his or her employer for educational assistance under a “qualified educational assistance program.” For this purpose, “education” means any form of instruction or training

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Why it’s important to meet the tax return filing and payment deadlines

Income Tax, Individual Income Tax, Internal Revenue Service (IRS), Tax, Tax Deadlines /

The May 17 deadline for filing your 2020 individual tax return is coming up soon. It’s important to file and pay your tax return on time to avoid penalties imposed by the IRS. Here are the basic rules. Failure to pay. Separate penalties apply for failing to pay and failing to file. The failure-to-pay penalty

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