Millions of Americans have already received their Economic Impact Payments (EIPs) authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in response to the economic threats caused by COVID-19.  Under the CAREs Act, eligible individuals can receive $1,200 (or $2,400 for a married couple filing a joint return) and may receive up to an additional $500 for each qualifying child.&...

Whether you are a new or a well-established business, maintaining good business records is essential to supporting your business income and tax deductions. Good recordkeeping means you also claim the full amount of tax deductions to which you’re entitled. And you want to make sure you can defend the amounts reported on your tax returns if you’re ever audited by the IRS or state tax agencies. It...

In these uncertain times (especially with the pandemic), health insurance and medical coverage has become an important issue.  Seniors over the age of 65 can apply for and be covered by Medicare.  Many people have also added Medicare supplemental insurance plans to cover medical costs not included in Medicare such as co-pays, deductibles and other costs.  With the economy the way it is, ever...

When one spouse does not work outside of the home, it can be hard for married couples to save for retirement especially if they are caring for their children or elderly family members. In general, an IRA contribution is allowed only if a taxpayer has compensation. The good news is there is an exception allowing a “spousal” IRA for the non-employed spouse. A spousal IRA has the same contribution limi...

An HSA is an account set up for the purpose of paying the “qualified medical expenses” of an “account beneficiary.” An HSA can only be established if you have a qualifying “high deductible health plan.” In addition, a participant can’t be enrolled in Medicare or have other health coverage (exceptions include dental, vision, long-term care, accident and specific disease insurance). In gener...

Do you want to save more for retirement on a tax-favored basis? If so, and if you qualify, you can make a deductible traditional IRA contribution for the 2019 tax year between now and the extended tax filing deadline and claim the write-off on your 2019 return. Or you can contribute to a Roth IRA and avoid paying taxes on future withdrawals. You can potentially make a contribution of up to $6,000 (or $7...

The coronavirus (COVID-19) pandemic has affected many Americans’ finances. Here are some answers to questions you may have right now. My employer closed the office and I’m working from home. Can I deduct any of the related expenses? Unfortunately, no. If you’re an employee who telecommutes, there are strict rules that govern whether you can deduct home office expenses. For 2018–2025 employee ...

If you have a life insurance policy, you probably want to make sure that the life insurance benefits your family will receive after your death won’t be included in your estate. That way, the benefits won’t be subject to the federal estate tax. Under the estate tax rules, life insurance will be included in your taxable estate if either: Your estate is the beneficiary of the insurance proceeds, orY...

If you made large gifts to your children, grandchildren or other heirs last year, it’s important to determine whether you’re required to file a 2019 gift tax return. And in some cases, even if it’s not required to file one, it may be beneficial to do so anyway. Who must file? Generally, you must file a gift tax return for 2019 if, during the tax year, you made gifts: That exceeded the $15,00...

Are you an investor in mutual funds or have you recently been thinking of putting some money into them? You’re not alone. The Investment Company Institute estimates that 56.2 million households owned mutual funds in mid-2017.  The current number of individual investors is estimated at around 100.0 million.   Despite their rising popularity, the tax rules involved in selling mutual fund sha...