The answer to this question determines whether cancelation of debt is or is not taxable. The issue of whether an interest in a defined benefit (pension) plan should be treated as an asset arose in a T...

The American Rescue Plan Act of 2021 suspended for 2020 any required repayment of an excess advance premium tax credit. The IRS has now clarified what individuals should do with respect to this law ch...

Usually, the cost of a business meal is 50% deductible. However, for 2021 and 2022, the cost is 100% deductible for meals furnished by restaurants. The IRS has now defined the term “restaurant” (N...

If you received unemployment benefits in 2020, you may be eligible for an earned income tax credit (EITC) if you didn’t claim one, or a larger one if you did. Why? The American Rescue Plan Act provi...

The Consolidated Appropriations Act, 2021, authorized funds to states and other political subdivisions to provide assistance to renters. The funds provide households with help to pay rent, utilities, ...

With interest rates still very low, many homeowners have taken this opportunity to refinance their mortgages and obtain a lower interest rate. From a tax perspective, there are consequences to refinan...

In most cases, you have three years in which to submit an amended return to claim a refund of overpaid taxes. But there are situations in which you can recoup taxes paid without submitting an amended ...

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...

Condolences on the death of your spouse. Because you were married for all of 2020, you may file as married filing jointly. If you e-file, simply follow software instructions. If you file a paper retur...

Required minimum distributions were waived for 2020. Anyone who did not take a distribution is fine; no special filing is required....

You may have a capital gain on the sale of land adjacent to your home. Whether or not a mortgage is involved does not impact gain or loss for federal income tax purposes. However, you may be able to u...

Yes. However, if the distribution from a qualified retirement plan or IRA is a “coronavirus-related distribution,” then no 10% penalty applies for anyone under age 59½. What’s more, a coronavir...

If the amount of the underpayment is more than $1,000, you can avoid penalties if you’ve paid at least 90% of the tax liability for the year or 100% of 2019’s tax liability (110% if your adjusted ...