Understanding Tax Lingo
Article Highlights Filing status. Adjusted gross income (AGI). Taxable income. Marginal tax rate. Alternative minimum tax (AMT). Tax Credits. Underpayment of estimated tax penalty. When discussing taxes, reading tax related articles or instructions one needs to understand the basic lingo and acronyms used by tax professionals and authors to be able to grasp what they […]
Coverdell Education Savings Accounts – Planning Your Child’s Education
Overview of Coverdell Education Accountants These accounts, originally referred to as Education IRAs, have been available for over 15 years. These accounts are nondeductible education savings accounts. The investment earnings from a Coverdell account accrue and are withdrawn tax-free, provided the proceeds are used to pay qualified education expenses of the account beneficiary. Annual Contributions […]
Which is the Best Way to Deduct Education Expenses?
Which is the Best Way to Deduct Education Expenses? Self-employed taxpayers should consider their options carefully when it comes to applying tax benefits for their own education tuition and expenses. Tax law provides multiple ways to benefit from the educational expenses and one may provide more benefit to you than another based on your particular […]
Understanding the Taxation of Cryptocurrency Transactions
Article Highlights: How Cryptocurrency is Treated for Tax Purposes Capital Asset Who Keeps Track of Cryptocurrency Ownership and Transactions How Many Cryptocurrencies Are There? What Is Cryptocurrency Mining? What Is a Cryptocurrency “Hard Fork”? Why Is Cryptocurrency Appealing to Some? How Is the Value of Cryptocurrency Determined? Are Cryptocurrencies Good Investments? Virtual Currency and 1031 […]
Tax Breaks for Higher Education
Over the years, Congress has continued to enhance tax breaks for students and their parents. These tax benefits provide taxpayers with a large number of options for tax-favored financing of their education and the education of their family members. This brochure highlights the various education benefits included within the U.S. income tax system. Coverdell Education […]
How Long Can the IRS Audit | How Long Can the IRS Audit You | Legacy Tax & Resolution Services
How Long Can the IRS Audit | How Long Can the IRS Audit You | Legacy Tax & Resolution Services IRS Audit How Far Back? Most taxpayers dread the possibility of undergoing an audit by the Internal Revenue Service (IRS). No matter how careful you are, it’s still possible to make a mistake or an error […]
Biden Administration Backs Off on Proposed Bank Transaction Threshold
Article Highlights: Tax Compliance Hard-to-Trace Income Sources Two-Tiered Compliance Bank Transaction Reporting Threshold Tax-compliance rates in the United States are based, in large part, on how taxpayers accrue income. Those who receive income that is reported by a third-party source, such as wage earners, exhibit near-perfect compliance rates on their salaries – since the payer […]
Big Changes to College Savings Plans
Article Highlights: Sec. 529 Plans Saving for College Elementary and Secondary School Tuition ABLE Account Transfers Tax reform added some new taxpayer-advantageous changes to college savings plans. These plans are also known as qualified tuition programs (QTPs) or Sec. 529 plans, named after the part of the Internal Revenue Code that established them. Background: Sec. 529 […]
Tax-Advantaged College Savings
Overview Section 529 Plans (named after the section of the IRS Code that created them) are plans established to help families save and pay for college in a tax-advantaged way and are available to everyone, regardless of income. These state-sponsored plans allow you to gift large sums of money for a family member’s college education, […]
Are You a Candidate for Bunching?
Article Highlights: Standard Deductions Itemized Deductions Bunching Strategy Medical Expenses Taxes Charitable Contributions The changes in the 2017 Tax Cuts and Jobs Act (TCJA) included nearly doubling the standard deduction and placing limitations on or suspending certain itemized deductions, effective for tax years 2018 through 2025. The new standard deduction amounts for 2018 were $12,000 […]