Tax News

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...

November 3, 2020 10:51 pm

More than 70 million Social Security beneficiaries will receive a cost-of-living adjustment (COLA) of 1.3% starting with the December 2020 benefits, which are payable in January 2021. This COLA adjust...

November 3, 2020 10:48 pm

The IRS is including barcodes to CP14 and CP14 IA notices sent to taxpayers who have unpaid taxes (IR-2020-233). These notices are the first contact made with taxpayers who have a balance due.  Scann...

November 3, 2020 10:47 pm

Achieving a Better Life Experience (ABLE) Accounts was added to the law in 2014 to enable tax-free savings accounts to be set up for people with disabilities that occur or occurred before age 26 that ...

October 6, 2020 12:08 am

A sale or exchange of livestock (other than poultry) held by a taxpayer for draft, breeding, or dairy purposes in excess of the number that would be sold following the taxpayer’s usual business prac...

October 6, 2020 12:05 am

The IRS has released extensive questions and answers that address some changes made by the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act and the Bipartisan American Min...

October 6, 2020 12:01 am

Employers that want to use a per diem rate to reimburse employees’ lodging, meals, and incidental expenses on business trips within the continental U.S. (CONUS) can use either the IRS’s high-low m...

October 5, 2020 11:54 pm

The IRS has announced that the interest rates applicable to overpayments and underpayments of federal taxes are the same in the fourth quarter of 2020 as they were in the third quarter of 2020 (Rev. R...

August 27, 2020 10:32 pm

About 3 million Form 1040-X, Amended U.S. Individual Income Tax Return, are filed annually. The IRS announced that Form 1040-X can now be filed electronically using commercial tax-filing software (IR-...

August 27, 2020 10:31 pm

Federal law limiting the itemized deduction for state and local taxes to $10,000 ($5,000 for married persons filing separately) prompted a number of states, including Connecticut, New Jersey, and New ...

August 27, 2020 10:29 pm

The IRS reports statistics on its filing season (https://www.irs.gov/newsroom/filing-season-statistics-for-week-ending-july-24-2020). Through July 24, 2020, 152,875 income tax returns were filed for i...

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Tax Glossary

Patronage dividend

A taxable distribution made by a cooperative to its members or patrons.

More terms