Standard Tax Deduction: 2020-2021 and When to Take It
The standard deduction is a specific dollar amount that reduces your taxable income. In 2020 the standard deduction is $12,400 for single filers and married filing separately, $24,800 for married filing jointly and $18,650 for head of household. In 2021 the standard deduction is $12,550 for singles filers and married filing…
Use Form 8915-E to report, repay COVID-related retirement account distributions
With the holidays here and no additional immediate COVID-19 economic relief payment in sight, some folks likely have or are considering tapping their retirement accounts. That option was made easier as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act enacted on March 27. It provides more favorable tax…
Tax Penalties in 2021 by inflation
The NFL is pressing ahead this coronavirus-affected football season. There's been COVID-19 positive personnel and postponed games, but one thing remains the same in 2020. On-field officials are still "throwing flags. The Internal Revenue Service has its own version of referees who penalize taxpayers and tax professionals for violating rules. They don't…
Watch out for continuing COVID-19 tax (scams)
It's no surprise that bad people take advantage of bad situations. That's why as we continue to cope with COVID-19, pandemic-related scams — tax and otherwise — proliferate. The latest coronavirus tax scam arrives via a text message. COVID-19 text scam warning: It was created by thieves who are trying to…
Working from home is an advantage that should be taxed, says report
Remote work has been among the many COVID-related challenges of 2020. Many employees have appreciated the added flexibility and no commute. Those who aren't that social say they've been more productive since they haven't had to spend time schmoozing with coworkers and bosses. The experience has many workers and companies…
IRS updates life expectancy tables that determine RMDs
If you've been saving for retirement, then you likely are as jazzed as I am about a provision of the Setting Every Community Up for Retirement Enhancement Act of 2019, or SECURE Act. This law, which took effect this year, gives all us owners of tax-deferred retirement savings accounts an…
