Generally, the term “leakage” has negative connotations. So, it’s not surprising that the same is true in the context of retirement planning, where leakage refers to pre-retirement early withdrawals from a retirement account. A business owner who sponsors a qualified retirement plan might say, “Well,...
COVID-19’s rapid spread and the economic havoc that followed are vivid reminders of how unpredictable and volatile the broad economy — and each family’s personal finances — can be. This article discusses three financial lessons that may be learned from the pandemic....
If your child has been awarded a scholarship for college or another type of school, it’s certainly cause for celebration. But parents need to be aware of the potential tax implications. This article explains whether or not scholarships are taxable. ...
Many individual taxpayers fondly recall the stimulus payments issued this spring under the American Rescue Plan Act. However, the law contains plenty of other provisions also worth remembering. This article reviews four highlights. A sidebar looks at the income exclusion for unemployment benefits....
The COVID-19 pandemic has significantly affected our lives in many ways that are still playing out. For example, it has served as a reminder of how difficult an unexpected medical crisis can be to manage financially. This article explores the pros and cons of one...
Under the Families First Coronavirus Response Act, employees could (through December 31, 2020) take paid sick time and paid family leave to care for themselves or loved ones because of COVID-19. This brief article notes some changes to the applicable rules with the passage of...
Future retirees have long grappled with whether to opt for a traditional or Roth IRA. Those who have a traditional IRA and have seen a decline in the value of their investments may want to consider a conversion to a Roth. This article reviews how...
Over the last year, many companies have experienced “workforce fluctuations.” If your business has engaged independent contractors to address staffing needs, be careful that these workers are properly classified for federal tax purposes. Tax obligations The question of whether a worker is an independent contractor or an...
No one likes a surprise when filing a tax return. One thing that takes many older people off-guard is getting taxed on their Social Security benefits. This article explains how to calculate provisional income to determine whether your Social Security income is indeed subject to...
The Consolidated Appropriations Act (CAA), signed into law late last year, contains a multitude of provisions that may affect individuals. For example, if you’re planning to fund a college education or in the midst of paying for one, the CAA covers two important areas: ...
This calendar notes important tax deadlines for the second quarter of 2021....
Any U.S. person who has a financial interest in, or signature or other authority over, any foreign financial accounts must file a Report of Foreign Bank and Financial Accounts (FBAR) if the aggregate value of the foreign financial accounts exceeds $10,000 at any time during...
When the COVID-19 pandemic first hit, many people’s emergency funds were suddenly put the test. Now, presumably with the benefit of some hindsight, the financially savvy might want to reconsider their approach to saving. This brief article discusses some key points to keep in mind....
Many people have found themselves working from home during the COVID-19 pandemic and wondering, “Can I claim the home office deduction for 2020?” The short answer is: Only if you’re self-employed. This article delves deeper into the other rules involved....
During the COVID-19 pandemic, many cash-challenged businesses have bartered for goods and services instead of paying dollars for them. This article discusses the tax impact of bartering and explores membership in a barter exchange....
Perpetrators of investment fraud know how to push the right psychological buttons to entice their “marks” to buy worthless or nonexistent securities. This article explains how to recognize and mitigate risk by asking the right questions, performing some research and consulting with trusted advisors....
As the end of 2020 draws near, investors should take the time to review any mutual fund holdings in their taxable accounts and take steps to avoid potential tax traps. This article offers helpful tips such as avoiding capital gains surprises and being careful about...
Most states with a sales tax have enacted “economic nexus” laws that expand the reach of their sales tax collection activities beyond their borders. This article urges businesses to reassess their sales-tax compliance obligations, especially as online transactions soar because of the COVID-19 crisis....
Because of the economic impact of the COVID-19 crisis, many companies may want to conserve cash and not buy much equipment this year. As a result, you may not be able to claim as many depreciation tax deductions as in the past. However, if your...
October 15 — Personal federal income tax returns for 2019 that received an automatic extension must be filed today and any tax, interest, and penalties due must be paid. The Financial Crimes Enforcement Network (FinCEN) Report 114, “Report of Foreign Bank and Financial Accounts” (FBAR),...
The term “sandwich generation” describes people caught between caring for their aging parents and their children. This brief article encourages those in the middle part of the sandwich to initiate family discussions with the other two parts to discuss tax and financial planning issues....
The COVID-19 pandemic has provided many lessons for business owners. One is how to report the impact of a disaster on a company’s financial statements. This brief article discusses two types of “subsequent events” that may need to be disclosed....
The stock market’s roller coaster ride this year, spurred largely by the COVID-19 crisis, has many people craving stability. One way to potentially steady a portfolio is with real estate. This article looks at real estate investment trusts....
Because of the economic downturn triggered by the COVID-19 crisis, many people have found themselves in need of cash to pay unexpected medical bills, mortgage payments and other expenses. One option is to borrow against the cash value of a permanent life insurance policy. This...
The sudden and severe impact of the novel coronavirus (COVID-19) pandemic has generated an intense need for charitable action. This article outlines tax incentives under the CARES Act for charitable giving and suggests some careful steps to take before donating....
If your company has been able to keep some or all of its workers on its payroll, remember that you may still be able to qualify for the payroll tax credit created under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This article discusses...
The novel coronavirus (COVID-19) crisis this year has created ample opportunities for dishonest individuals and criminal organizations. This article suggests various protective actions to take to avoid becoming a victim....
This calendar notes important tax deadlines for the third quarter of 2020....
Earlier this year, in response to the novel coronavirus (COVID-19) crisis, the IRS deferred the filing and payment deadlines for federal tax returns. This article recaps the relief and discusses what taxpayers should know about filing an extension and contributing to certain savings accounts. A...
When a trade or business’s deductible expenses exceed its income, a net operating loss (NOL) generally occurs. The rules applying to NOLs have changed and changed again. This article reviews how they’ve been revised, including most recently under the CARES Act....
