Legacy Tax & Resolution Services

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

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 refund and any status using a reference code.   See a quick reference guide in plain language to […]

What Does The Inflation Reduction Act Mean To You?

Article Highlights: Increased Internal Revenue Service (IRS) Funding  Drug Pricing  Affordable Care Act Insurance Premiums  Corporate Minimum Tax  Excise Tax on Corporate Stock Buybacks  Home Solar Energy Credit Extended and Increased  Credit For Energy Efficient Home Modifications  Clean Vehicle Credit  Credit For Previously Owned Clean Vehicles  Credit For Qualified Commercial Clean Vehicles  Research Credit  On […]

Twists and Turns of the Education Tax Credits

Article Highlights: American Opportunity Tax Credit  Lifetime Learning Credit  Refundable Credit  Which Credit to Take  Post-secondary Education  3-month Rule  Maximizing the Credit  Qualified Expenses  Who Claims the Credit  Qualified Educational Institutions  Gift Tax Issues If you have a child or children in college, or perhaps you or your spouse is a student, it can be […]

Highlights of College Savings Plans (Sec 529 Plans)

Article Highlights: Benefits of College Savings Plans  Contributions  Plan Modifications by Recent Tax Acts   Prudence in Using the Funds  Gift Tax Twist  The Qualified State Tuition Plan, often referred to as the Sec 529 Plan, is a tax-beneficial incentive for parents, grandparents, and others to save money for an individual’s future college tuition and fees. […]

IRS Providing Penalty Relief to 1.6 Million Taxpayers

Article Highlights: Penalty Relief  2019 & 2020 Tax Returns  Includes 1040, 1120, Certain 1099 Series Filings  Refunds Are Automatic  September 30, 2022, Deadline   The First-Time Abatement Penalty Relief  To help struggling taxpayers affected by the COVID-19 pandemic, the IRS has issued a notice, which provides penalty relief to most people and businesses who file or filed […]

Student Loan Debt – Paying and Avoiding It, Plus Tax Benefits

Article Highlights: Tax Advantaged Repayment of Student Loans  Employer Provided Educational Assistance  Qualified Tuition Programs  The Deductibility of Student Loan Interest  Student Loans Forgiven in 2021 through 2025  Avoiding Student Loan Debt  Section 529 Plans  Coverdell Education Savings Account  Education Tax Credits  The American Opportunity Credit  The Lifetime Learning Credit  Despite recent rounds of forgiveness […]

Will You Benefit from Biden’s Student Loan Relief?

Article Highlights: Relief Amounts  Income Limitations  Dependents of Another  Pell Grant Recipients  Repayment Pause  Monthly Payment Reduction  Cancellation of Debt Income  On August 24, President Biden announced a three-part plan to deal with student loan debt which includes, among other things, $20,000 in loan relief to borrowers with loans held by the Department of Education […]

Electric Vehicle Credit Undergoes Major Overhaul

Article Highlights: Assembly Requirement  August 15 Deadline  Transition Rule  The New Law  Income Limit  Manufacturer’s Suggested Retail Price Limitation  New Vehicle Definition  Transfer of Credit to the Dealer  Credit for Used Vehicles  With the recent passage of the Inflation Reduction Act of 2022, the electric vehicle credit has undergone some major changes. Although most of […]

Solar Tax Credit Gets New Life

Article Highlights: Effective Years  Credit Percentage  Batteries  Worth the Cost?  Non-Refundable Credit  Maximum Credit Qualifying Property  Who Gets the Credit?  When is the Credit Available?  Multiple Installations  Installation Costs  Basis Adjustment  Association or Cooperative Costs  Mixed-Use Property  Newly Constructed Homes  Utility Subsidy  Leased Installations  The Inflation Reduction Act signed into law by President Biden on […]