Tax Deductions for Clergy
Parsonage Allowance: Many members of the clergy are paid a cash “housing allowance,” which they use to pay the expenses related to their homes (e.g. interest, real property taxes, utilities, etc.). Alternatively, some may live in a parsonage owned by the church. Neither a cash allowance (to the extent it is used to pay for home […]
Can a Self-Employed Taxpayer Mix Business and Pleasure During Foreign Travel and Still Get a Tax Deduction?
Article Highlights: 100% Business Primarily Vacation Primarily Business Special Circumstances Foreign Conventions, Seminars, and Meetings Cruise Ships Spousal Travel Expenses Note: the business expenses discussed in this article – both foreign and domestic – are not deductible by employees during years 2018 through 2025. However, they are available to self-employed individuals. When a self-employed […]
Estate Tax Exemption Doubled Under Tax Reform
Article Highlights Estate Tax Exemption Unused Exemption Portability Annual Gift Tax Exemption Check Your Beneficiaries Note: This is one of a series of articles explaining how the various tax changes made by the GOP’s Tax Cuts & Jobs Act (referred to as “the Act” in the article), passed late in December 2017, might affect you and your […]
Minimizing Tax on Social Security Benefits
Article Highlights: Income as a Factor Filing Status as a Factor Benefits Taxable up to 85% Base Amounts Deferring Income Maximizing IRA Distributions How much (if any) of your Social Security benefits are taxable depends on a number of issues. The following facts will help you understand the taxability of your Social Security benefits. For […]
Tax Deductions for Day Care Providers
Auto Travel:Your auto expenses are based on the number of qualified business miles you drive. Auto expenses for you as a day care provider could include your transportation: to and from a class taken to enhance your day care skills; on field trips with those for whom you are providing care; for errands related to […]
Understanding the Health Insurance Mandate
As of 2014, the Affordable Care Act imposed the new requirement that all people in the United States, with certain exceptions, have minimum essential health care insurance or they will be subject to a penalty. How this affects your family will depend upon a number of issues. Penalty ends after 2018. Already InsuredIf you have […]
You May Not Get a Tax Refund Next Year
Article Highlights: Payroll Withholding W-4 2018 Tax Projection Adjusting Withholding With all of the tax reform changes and the corresponding reductions in most taxpayers’ income tax withholding, there are serious concerns that the reduction in withholding, although providing more take-home pay now, could end up resulting in unexpected taxes due at tax time next year. […]
Don’t Toss Those Tax Records Yet!
Article Highlights: Reasons to Keep Records Statute of Limitations Maintaining Record of Asset Basis Even though the 2021 tax due date has come and gone, and even though you have filed your 2021 tax return, you may still need to keep your 2021 tax records. Generally, tax records are retained for two reasons: (1) in […]
Tax Deductions for Restaurant Service Staff
Keeping a Good Tip Record:If you are a waiter or waitress, the IRS requires you to keep a record of your tips. The record needs to include tips you receive from: your customers in cash; other tipped employees because of a “tip-sharing” arrangement; and your customers who pay by credit card. When you receive a […]
Solar Tax Credit – The Dark Side
Article Highlights: Solar Promotions Solar Tax Credit Nonrefundable Credit Financing Costs Solar Credit Phase-out Leasing a Solar System There are TV ads, telemarketing phone calls and sales people at your front door all promoting the benefits of solar power, and one of the key considerations and a frequently mentioned benefit is the 30% federal tax […]