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…
Will the IRS be ready for the 2021 tax season?
2020, a year that many of us would just as soon forget, will end in just more than two months. This federal tax filing season, however, will continue for folks who've endured some of the notable natural disasters that have helped make 2020 so terrible. Last week, the Internal Revenue…
Nov. 3 ballot initiatives/ Taxes
In addition to selecting who gets to go to, or stay in, Washington, D.C., voters across the country on Nov. 3 will decide on a variety of ballot measures. This coming Election Day, citizens in 32 states will decide the fate of 120 statewide initiatives. There also are measures on…
Standard & itemized tax deductions for 2021
Tax year in and tax year out, most folks claim the standard deduction instead of itemizing. The option has always been appealing because it's easy. There are no receipts to save. Even better, the Internal Revenue Service provides the standard amount you can claim, based on your filing status, right there…
Work from home pros, cons and home office tax tip
Not that calendars matter so much anymore to many of us — including me — who are still coronavirus quarantining. But time measurement and management are still important if you're working, or trying to, from home. States are in various degrees of reopening, meaning more of us have or will be heading…
Higher earners face more payroll taxes in 2021 as Social Security wage base goes to $142,800
The Social Security Administration (SSA) just gave retirees and other recipients of the program's payments some good news with the announcement of a small hike in their benefits year. Some higher earners, however, aren't so happy. In the same benefits raise announcement, the SSA noted that the amount of income subject to the…
