Tax News

March 29, 2021 2:29 am

The interest rates on overpayments and underpayments are unchanged from the first quarter of 2021 (Rev Rul. 2021-6). The rates are:Noncorporate overpayments and underpayments: 3% Corporate over...

March 29, 2021 2:28 am

When a worker at Home Depot retired at age 55, he transferred his 401(k) to an IRA. The next year, when he was 56 years old, he took a distribution from the IRA to pay for living expenses. He received...

March 29, 2021 2:25 am

The American Rescue Plan Act of 2021, which was signed into law on March 11, 2021, is a new stimulus measure (P.L. 117-2). It provides a third round of Economic Impact Payments (EIP3) and makes many o...

March 29, 2021 2:12 am

The IRS announced a one-month postponement for the deadline to file 2020 individual income tax returns (IR-2021-59). Instead of the April 15, 2021, deadline, it is now May 17, 2021 (May 15 is a Saturd...

March 1, 2021 9:20 pm

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 (...

March 1, 2021 9:18 pm

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...

March 1, 2021 9:16 pm

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...

March 1, 2021 9:15 pm

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 ...

December 30, 2020 11:04 pm

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...

December 30, 2020 11:02 pm

The interest rates on overpayments and underpayments are unchanged from the fourth quarter of 2020 (Rev Rul. 2020-28). The rates are:Noncorporate overpayments and underpayments: 3% Corporate ov...

December 30, 2020 10:58 pm

If you use a vehicle for certain driving purposes, you can deduct your costs based on your actual expenses or rely on an IRS-set mileage rate. The IRS has announced the standard mileage rates that can...

December 30, 2020 10:53 pm

The key feature of the new law signed by the President on December 27 ,2020, is a second stimulus payment to individuals. The payment is $600 per individual (compared with the initial payment of $1,20...

December 9, 2020 10:45 pm

The foreign earned income exclusion allows an individual living abroad who meets a foreign residency or physical presence test to exclude earned income up to a set limit ($107,600 in 2020; $108,700 in...

December 9, 2020 10:43 pm

The IRS has updated the life expectancy tables used to figure required minimum distributions beginning after December 31, 2021 (T.D. 9930). The new tables reflect changes in mortality rates; people ar...

December 9, 2020 10:41 pm

The basic Part B premium amount for 2021 is $148.50 per month, only a little more than the $144.60 per month premium in 2020. The Part D premium for drug coverage in 2021 has declined on average by 34...

December 9, 2020 10:38 pm

Unfortunately, the pandemic has caused some taxpayers to be unable to pay their taxes. The IRS announced a Taxpayer Relief Initiative to help these taxpayers get caught up (IR-2020-248). Some of the k...

December 9, 2020 10:36 pm

The IRS has announced cost of living adjustments for more than 60 tax items for 2021 returns (Rev. Proc. 2020-45). Due to very low inflation, increases to various amounts and limits have been modest o...

November 3, 2020 10:56 pm

Due to low inflation, cost-of-living adjustments to various retirement plan limits are unchanged or only slightly higher (Notice 2020-79). The following are some key numbers to help you plan for the c...

November 3, 2020 10:55 pm

While most miscellaneous itemized deductions cannot be taken in 2018 through 2025, those that are not subject to the 2% of adjusted gross income floor continue to be deductible. One such deduction is ...

November 3, 2020 10:54 pm

Employers may offer employees a reimbursement plan to pay for certain costs not covered by group health insurance. An Excepted Benefit Health Reimbursement Arrangement (EBHRA) can cover a set dollar a...

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Tax Glossary

Earned income

Compensation for performing personal services. You must have earned income for a deductible IRA or to claim the earned income credit.

More terms