Tax News

September 2, 2018 10:21 pm

After the Tax Cuts and Jobs Act of 2017 put a $10,000 cap on the itemized deduction (starting in 2018) for state and local taxes ($5,000 for married persons filing separately), some states created or ...

September 2, 2018 10:19 pm

The IRS announced that it was using a new format for tax return transcripts to better protect taxpayer’s personal information (IR-2018-171, 8/22/18). Starting September 23, 2018, Get Transcript Onli...

September 2, 2018 10:15 pm

In 2014, the IRS created the Annual Filing Season Program for voluntary education and testing of unenrolled tax return preparers (Rev. Proc. 2014-42). Those completing the program gain a limited right...

September 2, 2018 10:12 pm

A taxpayer can claim the premium tax credit for assistance in paying for health coverage purchased through a government Marketplace. To be eligible, household income must be no more than 400% of the f...

September 2, 2018 10:03 pm

Ordinarily, yearly contributions to ABLE accounts are capped at the annual gift tax exclusion ($15,000 in 2018). The Tax Cuts and Jobs Act temporarily increased the contribution limit. For 2018 throug...

September 2, 2018 10:00 pm

In 2016, the U.S. Treasury created the Hardest Hit Fund (HHF) program to provide certain homeowners with assistance designed to help them keep their homes. States set up and administer the program, wh...

August 1, 2018 11:03 pm

If you buy an electric drive car, you may qualify for a tax credit of up to $7,500. However, the credit is reduced once the manufacturer has sold more than 200,000 cars in the U.S. Tesla reported that...

August 1, 2018 11:02 pm

To claim a home office deduction, space must be used regularly and exclusively for business. There are two exceptions to exclusive use: day care businesses and storage of inventory or product samples ...

August 1, 2018 11:00 pm

If a taxpayer files a fraudulent tax return, both civil and criminal penalties can result. The civil penalty is 75% of the underpayment attributable to the fraud (Code Sec. 6663). But if a fraud resul...

August 1, 2018 10:57 pm

If you have a plan loan outstanding and take a distribution that’s partially used to pay off the loan, are you taxed on the gross amount or the net amount (gross amount minus loan repayment)? That w...

August 1, 2018 10:50 pm

National Taxpayer Advocate Nina Olson’s mid-year report lays out the issues that she plans to address during the fiscal year ending September 30, 2019 (https://taxpayeradvocate.irs.gov/reports/fy-20...

June 28, 2018 9:54 pm

If you want to lose weight, you may be able to take a medical expense deduction for certain costs. Remember that for 2018, medical expenses in excess of 7.5% of adjusted gross income are deductible as...

June 28, 2018 9:51 pm

If you run your business through an S corporation and it produces losses, you can deduct them on your personal return only to the extent of your basis in the S corporation’s stock and debt. When it ...

June 28, 2018 9:50 pm

The U.S. Supreme Court has reversed a position it has held for more than 25 years and likely it will hit your pocketbook. Here’s what the case is about and how it may affect you.In 1992, the Cou...

June 28, 2018 9:48 pm

The IRS may adjust interest rates for various purposes at various times. For example, the rates for overpayments and underpayments of tax are adjusted quarterly.Interest rates for Q3 in 2018. The ...

May 30, 2018 11:50 pm

If you receive a letter in the mail from the IRS that’s marked “CP 2000,” it isn’t an audit notice. The IRS sends it because the Service has identified that the information on your return does...

May 30, 2018 11:47 pm

A mother ran a consulting business that provided services to various federal agencies through contract labor. She had two children in college, and she paid for their tuition and related education cost...

May 30, 2018 11:46 pm

Recently, the IRS confirmed that the contribution limits for 2018, which were announced in 2017, are unchanged for the year, despite the requirement in the Tax Cuts and Jobs Act that the IRS refigure ...

April 26, 2018 9:40 pm

If you buy or lease a car, light truck, or van for your business, special tax rules may limit what you can write off. If you buy the vehicle, dollar limits cap depreciation write-offs. If you lease th...

April 26, 2018 9:38 pm

A taxpayer who fails to carry minimum essential health coverage through 2018 and is not exempt from this requirement owes a shared responsibility payment. It is treated as a tax owed on the person’s...

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Tax Glossary

Qualifying widow or widower

A filing status entitling the taxpayer with dependents to use joint tax rates for up to two tax years after the death of a spouse.

More terms