Tax News

May 5, 2022 4:44 am

New York, Connecticut, Maryland, and New Jersey had challenged the constitutionality of the $10,000 cap on the itemized deduction for state and local income or sales taxes and property taxes. The stat...

May 5, 2022 4:43 am

An IRA owner named himself as beneficiary of his account. When he died, the account went into his estate of which his surviving spouse was the sole heir and sole administrator. She wanted to roll over...

May 5, 2022 4:42 am

A couple who bought a home in 2005 moved from it in 2009 due to one spouse’s medical condition. They rented out the home until it was sold in 2015, but the couple didn’t reside in the home at any ...

May 5, 2022 4:41 am

The IRS indicated in an informal ruling that costs incurred for health and wellness coaching under a health savings account, flexible spending account, or other tax-preferred account could be a qualif...

May 5, 2022 4:38 am

Employers may offer employees certain tax-free transportation fringe benefits up to set dollar limits. These can be arranged through employer payments or employee payments on a pre-tax basis (salary r...

March 30, 2022 3:38 am

High deductible health plans (HDHPs) require minimum insurance deductibles to be met before insurance coverage begins. HDHPs are a prerequisite for contributing to a health savings account (HSA). The ...

March 30, 2022 3:36 am

Passenger vehicles, including light trucks and vans, that are purchased for business and placed in service in 2022 can be depreciated only up to a set dollar amount. And if the vehicles are leased, th...

March 30, 2022 3:24 am

Usually, farmers and fishermen are only required to make one estimated tax payment if they are “qualified.” Being qualified means having two-thirds of gross income in the current or previous year ...

March 30, 2022 3:19 am

On March 4, 2022, the IRS announced the start of the Taxpayer Experience Office, which is a new office designed to focus on taxpayer transactions with the Service (IR-2022-50). The Taxpayer Experience...

March 30, 2022 3:08 am

A short sale occurs when a homeowner in financial distress sells their property for less than the amount due on the mortgage. In one case, homeowners filed for bankruptcy and when their petition was ...

March 3, 2022 11:04 pm

The IRS interest rates on underpayments and overpayments had remained unchanged since the first quarter of 2021. Starting April 1, 2022, the IRS interest rates increase by one percentage rate (Rev. Ru...

March 3, 2022 11:03 pm

If you purchased health insurance through a government exchange, you may be eligible for the premium tax credit. In fact, you may even have received it on an advance basis to help pay premiums monthly...

March 3, 2022 11:01 pm

The SECURE Act changed some of the rules for required minimum distributions (RMDs). It increased the starting age to 72 for those born after June 30, 1949. It effectively killed the “stretch IRA” ...

March 3, 2022 10:58 pm

If you fail to submit your return on time—by the due date or the extended due date if you request an extension—you are subject to a late filing penalty. And if you fail to pay the taxes due by the...

March 3, 2022 10:56 pm

Emergency financial aid grants made by a federal agency, state, Indian tribe, higher education institution or scholarship-granting organization (including a tribal organization) to a student because o...

March 3, 2022 10:53 pm

The IRS treats cryptocurrency as property. This means when your Bitcoin or other digital asset is used to make a purchase, you have to figure gain or loss on the transaction. You can’t duck this res...

February 22, 2022 2:02 am

Usually, there’s a 10% penalty for distributions from an IRA. qualified employer plan, or a commercial annuity before age 59½. However, the penalty does not apply if distributions are taken in a se...

February 22, 2022 1:59 am

The National Taxpayer Advocate Erin M. Collins issued the required annual report to Congress detailing the past filing season and making recommendations for future legislation (IR-2022-11; https://www...

February 22, 2022 1:55 am

Transportation fringe benefits, which include free parking, transit passes, and van pooling, may be funded either by the employer as a tax-free benefit up to a monthly dollar limit ($280 per month in ...

February 22, 2022 1:53 am

Beneficiaries of 529 plans may withdraw up to $10,000 to pay their student loan debt. The funds may also be used to pay student loan debt of siblings. The dollar limit is for a lifetime. The IRS has m...

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Tax Glossary

Straight-line method

A method of depreciating the cost of a depreciable asset on a pro rata basis over its cost recovery period.

More terms