Tax News

June 7, 2021 12:10 am

The IRS is sending money to taxpayers for various reasons:Unemployment benefits erroneously reported as income. Some taxpayers may have filed their 2020 income tax returns before Congress enacted ...

June 7, 2021 12:08 am

In response to the COVID-19 pandemic, the Consolidated Appropriations Act, 2021 (CAA) and the American Rescue Plan Act (ARPA) made two important changes in dependent care assistance plans (DCAPs) offe...

June 7, 2021 12:07 am

The IRS announced next year’s contribution limits for health savings accounts (HSAs), as well as requirements for high-deductible health plans (HDHPs) to which HSAs must be linked (Rev. Proc. 2021-2...

June 7, 2021 12:03 am

That was the issue before the Tax Court. The estate initially reported the value of his image and likeness at $2,105 on the estate tax return. At trial, the estate’s expert said it was $3.1 million....

May 3, 2021 10:55 pm

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...

May 3, 2021 10:53 pm

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...

May 3, 2021 10:52 pm

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...

May 3, 2021 10:50 pm

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...

May 3, 2021 10:48 pm

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, ...

May 3, 2021 10:46 pm

The IRS announced that the cost of personal protective equipment (PPE) purchased for the primary purpose of preventing the spread of COVID-19 is a deductible medical expense (Ann. 2021-7). PPE include...

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...

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Tax Glossary

Qualified tuition program (QTP)

A state-sponsored college savings plan or prepayment plan, or a prepayment plan established by a private college.

More terms