Tax News

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...

February 22, 2022 1:50 am

If you received advance child tax credits in 2021, you’re likely to receive a special IRS Letter 6519 (COVID Tax Tip 2022-03). Do not throw it out. It will be used to help you figure the amount of t...

January 2, 2022 10:20 pm

If a business has losses year after year, the IRS may disallow them on the grounds that the owner is engaged in a hobby activity and lacks a profit motive. A finding that an activity is a hobby becaus...

January 2, 2022 10:18 pm

A self-employed individual may deduct various business expenses. However, as a recent Tax Court decision points out, you must actually function as a going concern (an active trade or business) to take...

January 2, 2022 10:15 pm

The IRS announced the optional standard rates that can be used for certain driving costs in lieu of deducting actual costs (Notice 2022-3). For 2022, the rate for business driving is 58.5 cents per mi...

December 13, 2021 1:37 am

The CMS announced premiums and deductibles for Medicare in 2022 (CMS.gov, 11/15/21). The basic Part B monthly premium for 2022 is $170.10, or $21.60 more than in 2021. For those with modified adjusted...

December 13, 2021 1:35 am

An individual received distributions from several retirement plans, reported their existence on his self-prepared 2017 income tax return, but only included a portion of the distributions in income. He...

December 13, 2021 1:32 am

Each year, the IRS can adjust various amounts used to figure contributions, benefits, deductions, and credits related to qualified retirement plans and IRAs. The IRS has now done so for 2022 amounts (...

December 13, 2021 1:29 am

No longer are communications restricted to written notices. You may now request to receive communications from the IRS in large print, Braille, audio (MP3), plain text files, or Braille ready file. Yo...

December 13, 2021 1:27 am

A couple whose household income exceeded 400% of the federal poverty level had to repay the premium tax credit for 2018 (Amburgey, TC Memo 2021-124). They applied for medical insurance through the gov...

December 13, 2021 1:24 am

Victims of disasters may receive goods and financial help from organizations, such as the Red Cross. IRS Commissioner Rettig confirmed that such payments are not taxable to recipients. Gifts from orga...

December 13, 2021 1:23 am

The IRS adjusts more than five dozen items annually for inflation. Due to significant inflation over the past year, the tax brackets and many items have been increased for 2022 (Rev. Proc. 2021-45). T...

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Tax Glossary

Incentive stock option

Option meeting tax law tests that defers tax on the option transaction until the obtained stock is sold.

More terms