Credit cards may provide rewards for the purchase of goods and services. The IRS has long held that the rewards are not taxable; they are viewed as a reduction in the price of the goods and services (...

Individuals must report annually on foreign financial accounts if balances exceed a threshold amount. The question raised is whether these balances include cryptocurrencies. The Financial Crimes Enfor...

It’s not a penalty despite being called one. That’s what the Tax Court said when a 42-year old worker who took a distribution from the New York State pension plan. She reported the distribution of...

Teachers who are not reimbursed for the cost they incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies to prevent the spread of COVID-19 in the classroom ...

It’s not uncommon for couples to divorce and have a property settlement only to see that settlement unmet. Does this constitute a theft loss that can be deductible? (Remember that for 2018 through 2...

Whether you prepare your return yourself (on paper or electronically) or use a paid preparer, you need information to input. Hopefully, you’ve kept great records throughout the year to simplify your...

The Consolidated Appropriations Act, 2021, made changes late in 2020 that mainly affect 2021 and later years. Some changes may impact your 2020 return; others apply for 2021 and later years. Taken as ...

The deadline for filing your 2020 federal income tax return is April 15, 2021, but it’s not too soon to recognize what payments you received in 2020 that have to be included in gross income. As a ge...

In 2019, Americans gave an estimated $449.64 billion to charities and this year likely will see similar or greater donations. This is the season to be generous, especially with the added need of many ...

It has long been solid general tax advice to defer income so that it becomes taxed in a future year. However, 2020 is a year like no other and standard tax advice does not apply to all individuals. If...

Teachers can include COVID-19-related expenses in claiming their “above-the-line” deduction of up to $250. Such expenses include face masks; disinfectant; hand soap; hand sanitizers; disposable gl...

An amended return to claim a refund generally can be filed up to three years from the due date of that return (or the actual filing date if after the due date)....

Refunds of federal income taxes are never taxable because the taxes were not deductible. Refunds of state income taxes may or may not be deductible. It depends on whether the taxpayer itemized deducti...

Seniors generally are subject to the same tax rules as other individuals when it comes to reporting income and claiming deductions and credits. However, those age 65 and older can claim an additional ...

Yes. The Consolidated Appropriations Act, 2021, created a one-year opportunity. Use the prior year’s income if it results in a larger earned income tax credit. But don’t if it results in reducing ...