As we are quickly approaching 2024, it’s important to be aware of the changes in the Social Security wage cap and benefit amounts. The wage cap is now set at $168,600, marking a significant threshold for taxpayers. Additionally, beneficiaries of Social Security and Supplemental Security Income (SSI) will see a 3.2% increase in their benefits. […]
Understanding the Updated Social Security Changes for 2024 Read More »
The IRS announced that it had started issuing refunds to eligible taxpayers who paid taxes on 2020 unemployment compensation that was excluded from taxable income by the recently enacted American Rescue Plan. Keep in mind that unemployment compensation is taxable, but the ARP excludes $10,200 in unemployment compensation when calculating the amount of taxes owed.
Unemployment Tax Refunds on the Way Read More »
Like most of us, you are probably more focused on your 2020 tax bill than how to manage your personal finances in 2021. However, as you get ready to file your annual tax filing, it’s a good idea to also think about changes that will impact your taxes for 2021. Not all tax figures are
Six 2021 Tax Questions & Answers Read More »
Estate planning allows you to put in writing how you want your wealth distributed to loved ones after your death. What if you want to use that wealth to help a family member in need while you’re still alive? This has been an increasingly common and pressing issue in 2020 because of the COVID-19 pandemic
Making Intrafamily Loans and Creating a Family Bank Read More »
As the year is coming to a close, it is a good time to review any mutual fund holdings in your taxable accounts and and do what is necessary to avoid potential tax traps. Avoid surprises Near the end of the year, mutual funds typically distribute all or most of their net realized capital gains
Handle Mutual Funds With Care at Year End Read More »
Most of us are ready for 2020 to end. From a tax perspective, however, the end of the year means thinking about the filing status you’ll use when filing your tax return for the year. Partly, it depends on whether you’re married on December 31, 2020. Five different statuses When you file your federal tax
Do You Know Your Taxpayer Filing Status? Read More »
First, let’s define what a nonqualified deferred compensation (NQDC) plan is. These plans allow you to set aside large amounts of tax-deferred compensation and then schedule distributions that align with your financial goals. Sound intriguing? Like most things in life, they also come with substantial risk. If your (or a prospective) employer offers an NQDC plan
Is Nonqualified Deferred Compensation for You? Read More »
Many people have been severely impacted by the economic downturn triggered by the COVID-19 crisis. Whether through job loss or some other factor, quite a few have found themselves in need of cash to pay unexpected medical bills, mortgage payments and other expenses. One option some are using is to borrow against the cash value
Life Insurance Loans: Risk-Benefit Analysis Read More »
While the extended tax deadline just passed, it is time to start thinking about your mid-year tax planning. With new laws in place, there are opportunities in 2020 that we haven’t had before, along with time tested tax reduction strategies. Here are a few things to think about. Business Owners The deadline to apply for
2020 Mid-Year Tax Check-In Read More »
The IRS recently announced a series of steps to ease the burden for people who owe taxes in the wake of the COVID-19 emergency. Here are some of the highlights of the “IRS People First Initiative:” Installment Agreements. For taxpayers with existing agreements with the IRS, payments due between April 1 and July 15, 2020 are
IRS Works to Ease Tax Burden Read More »
On December 20, a substantial piece of legislation, the Setting Every Community Up for Retirement Enhancement (SECURE) Act, was signed into law, making quite a few changes to our ever-changing tax laws. Some items included in the act simply extend or revise provisions from the Tax Cuts and Jobs Act (TCJA) of 2017, while others
The SECURE Act Brings Further Tax Changes Read More »