Legacy Tax & Resolution Services

Tax and Personal Finance Tips for New Parents

Expanding your family? Whether you’re in the planning stages or your bundle of joy has already arrived, raising a child is one of life’s greatest joys — and biggest expenses. And we’re not just talking about the costs of college. From diapers to daycare, from braces to bicycles, parents are often shocked by the constant outflow of […]

Tax Benefits When Saving for College Education

Article Highlights: Planning for a Child’s Post-Secondary Education  Tax-Favored Plans  Tax-Free Earnings  Coverdell Accounts  Qualified Tuition Plans  Have Others Contribute  Gift Tax Issues  Tuition Gifts  A common question among parents is, “How might I save for a child’s post-secondary education in a tax beneficial way?” The answer depends on how much the education is expected […]

Tax Benefits for People with Disabilities

Article Highlights: ABLE Accounts  Disabled Spouse or Dependent Care Credit  Medical Deductions  Home Modifications  Special Schooling  Nursing Services  Impairment-related Work Expense Individuals with disabilities, as well as parents of disabled children, are eligible for several income tax benefits. This article explains some of these tax breaks. ABLE Accounts – A federal law allows states to offer […]

Portability of Unused Estate Tax Exclusion

Article Highlights: Estate Tax  Lifetime Exemption  Surviving Spouse  Portability Election  Financial Drawback  Election Considerations  Portability Extension  When an individual dies, the value of that individual’s estate is subject to estate taxation, which is currently 40% of the individual’s taxable estate. However, there is a lifetime exclusion (exemption) to the estate tax, which for 2022 is […]

IRS Reference Code 2016 – Savings bond request denied – total offset

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo. You can check the status of your return and your refund check (for paper returns) or direct deposit (for electronic returns) at the IRS.gov website. The “Where’s My Refund?” portal provides an estimate of when you should expect your […]

Not All Interest Is Deductible For Taxes

Article Highlights:  Interest Categories  Category Deductibility  Interest Tracing Rules A frequent question that arises when borrowing money is whether or not the interest will be tax deductible. That can be a complicated question, and unfortunately not all interest an individual pays is deductible. The rules for deducting interest vary, depending on whether the loan proceeds […]

Planning for a Child’s College Expenses Should Start Early

Article Highlights: Sec. 529 plans  Coverdell Education Savings Accounts  The Lifetime Learning credit  Qualified Education Loan Interest  Some in Congress have proposed “free” (i.e., government-paid) tuition for community college attendance. Even if that proposal were to become law, it still leaves parents and their children-students responsible for paying for college and university attendance if the […]

Take Tax Advantage of a Low-Income Year

Article Highlights: Exercise Stock Options Convert a Traditional IRA to a Roth IRA Maximize IRA Distributions Sell Appreciated Stock Delay Business Expenditures Release Dependency Delay Personal Deductible Expenditures People generally assume that tax planning only applies to individuals with the big bucks. But think again, as some tax moves benefit lower-income taxpayers and those who […]