Article Highlights: Purpose of Qualified Tuition PlansGift Tax ImplicationsSpecial Five-Year ElectionChange of BeneficiaryEligible ExpensesDirect Payment of Tuition Qualified tuition plans (QTPs) provide a means for family members and others to save for the future educational needs of children. Investment earnings within a QTP account are tax deferred and not taxable when withdrawn if used to [...]
June 2019 Individual Due Dates June 10 - Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during May, you are required to report them to your employer on IRS Form 4070 no later than June 10. Your employer is required to withhold FICA [...]
There are different types of IRS penalties that can be assessed against you. The most common penalties include those for failing to file a tax return, filing your return late, or accuracy-related penalties if you didn’t correctly state items on your tax return. But were you aware that sometimes, the IRS can issue penalty abatements [...]
Article Highlights: • IRS Notices • CP Series Notice • Automated Notices • Frequent Errors • ID Theft • What You Should Do • What We Will Do Now that most tax refunds are deposited directly into taxpayers’ bank accounts, the dream of opening your mailbox and finding an IRS refund is all but gone. [...]
Article Highlights: Early WithdrawalsExcess ContributionsMultiple RolloversNo Traditional IRA Contributions in the Year Reaching age 70 Failing to Take a Required Minimum Distribution (RMD)Late ContributionsSwitch the Type of IRABackdoor Roth IRAAlimony as CompensationSpousal IRASaver's CreditIRA-to-Charity Direct Transfers There are both opportunities and pitfalls for IRA owners, and while you definitely don't want to get caught up [...]
Article Highlights: Airbnb, VRBO, and HomeAwayRented for Fewer Than 15 Days during the YearThe 7-Day and 30-Day RulesExceptions to the 30-Day Rule Schedule C Reporting With the advent of online sites such as Airbnb, VRBO, and HomeAway, many individuals have taken to renting out their first or second home through these online rental sites, which [...]
Article Highlights: What They Are AfterEmail Attachments or LinksEmails from the IRSDetecting Phony Email AddressesEmbedded HyperlinksSecurity SoftwareStrong PasswordsIRS Phone CallsEducate the Elderly Too Good to Be True Well, here it is: 2019. The holiday season is over, and the season for preparing tax returns is about to begin. But unfortunately, it is also the season [...]
Article Highlights: Information ReportingIRS MatchingList of Documents To ensure individuals properly report all of their income, the IRS has an ever-expanding series of information-reporting forms used to advise you and the IRS of your wages, retirement plan income, Social Security benefits, health insurance premium subsidies, stock sales, investment income, etc., for each tax year. The [...]
Article Highlights: $600 ThresholdExceptionsForm W-9Impact of Tax Reform1099-MISC Filing If you use independent contractors to perform services for your business or your rental that is a trade or business, for each individual whom you pay $600 or more for the year, you are required to issue the service provider and the IRS a Form 1099-MISC [...]
You know the old line about the inevitability of death and taxes? It’s still true. What isn’t inevitable, however, is the need to pay penalties to the IRS. It happens, but it doesn’t have to, and the main reason that it does is because taxpayers don’t educate themselves about the rules. When you get hit [...]
