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 … Read More
The IRS wants more tools to regulate cryptocurrency. The Biden administration’s fiscal 2022 revenue proposals include a new requirement that cryptocurrency transfers of $10,000 or more be reported to the IRS in much the same way that banks report cash transfers of that amount and brokers report securities transactions. The proposed change would start in … Read More
If you’re getting ready to retire, you’ll soon experience changes in your lifestyle and income sources that may have numerous tax implications. Here’s a brief rundown of four tax and financial issues you may deal with when you retire: Taking required minimum distributions. This is the minimum amount you must withdraw from your retirement accounts. … Read More
Have you ever wondered what happens when the IRS receives your tax return? In a blog post, the National Taxpayer Advocate explains the steps the IRS takes when it receives a tax return. A return goes through a series of reviews to ensure the information on the return is correct. If no errors are identified, … Read More
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, … Read More
The G7 finance ministers of the United States, United Kingdom, Canada, France, Germany, Italy and Japan recently announced an agreement on a series of tax measures. Notably, they agreed on a 15% minimum tax on corporations. In a nutshell, the global minimum tax is intended to deter multinational companies from avoiding taxes by holding their … Read More
Eligible parents will soon begin receiving payments from the federal government. The IRS announced that the 2021 advance child tax credit (CTC) payments, which were created in the American Rescue Plan Act (ARPA), will begin being made on July 15, 2021. How have child tax credits changed? The ARPA temporarily expanded and made CTCs refundable … Read More
The filing deadline for 2020 tax returns has passed, but that won’t slow down thieves. The IRS continues to warn taxpayers to guard their tax and personal information. Tax-related identity theft occurs when stolen data, such as a Social Security number, is used to claim a false refund. To protect yourself and prevent tax crimes, … Read More
Do you pay for care for a child under age 13 or other individual incapable of self-care? You may qualify for a larger child and dependent care tax credit for 2021. The American Rescue Plan Act increased the credit amount and the percentage of employment-related expenses for care considered in calculating it. The credit phase-out … Read More
You’ve likely spent a lot of time working with your advisor to plan your estate. While documents such as your will, various trusts and a power of attorney are essential, consider adding a “road map” to your plan. Plot it out Essentially, the road map is an informal letter or other document that guides your … Read More