Winter is coming…and so is tax season. While Tax Season is not quite as scary as that last season of Game of Thrones, navigating your taxes alone can be pretty mind numbing. With frequent tax law changes, even more so now in this unprecedented year of 2020, the tax code can be very complicated. Be […]
Here are some planning strategies that may lower your individual income tax bill for 2020. Take Advantage of Generous Standard Deduction Allowances. If your annual deductions will be close to your standard deduction, consider making additional expenditures to exceed your standard deduction. That will lower this year’s tax bill. Next year, you can claim the […]
Lending to friends and relatives is a tricky business, and not only because of the stress it can place on your relationships. There are tax issues involved as well. If you have to lend money to someone close, here are some tips to do it right in the eyes of the tax code. Charge Interest, […]
If you are like millions of taxpayers in the service industry, you may receive tips. The tax code is clear; if you receive tips you must report them as income. Some employers have systems to make this easy. Others do not. Here are some suggestions: Proper Tip Reporting Has Three Components (Think 1-2-3) Keeping a […]
With the increased popularity of lotteries and casinos, more unsuspecting winners are experiencing a lucky payday only to end up with a huge tax head-ache when filing their income taxes. Here is what you need to know: What Should Be Reported When it Comes to Gambling Wins? You are required to report as income any […]
Wouldn’t it be nice to have a source of nontaxable income? You may be more fortunate than you realize. Listed here are a number of income items that the IRS does not tax. Tax-Free Interest. Municipal bond interest is federal tax-free. This includes bonds issued by a state or municipality. The tax-free benefit increases the […]
With the proliferation of cell phones, and the corresponding accessibility of you to your employer, most employees are receiving and making business calls on cell phones. So, how can you deduct your cell phone expenses on your tax return? Here are some ideas and tips: Expense Report If you are an employee and use your […]
