Tax News

October 11, 2021 1:27 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 11, 2021 1:25 am

A surviving spouse who inherits an IRA, including a Roth IRA, may roll over the funds to his/her own IRA. Doing so allows the surviving spouse to name his/her own beneficiaries and postpone IRA distri...

October 11, 2021 1:24 am

If you buy a home testing kid, you may treat it as a deductible medical expense if you itemize deductions (IR-2021-181). It is an expense for the diagnosis of a medical condition. The cost may also be...

October 11, 2021 1:22 am

Planning ahead for health insurance for 2022? If you have affordable minimum essential health coverage from an employer or are covered by Medicare, you may not use the premium tax credit to help pay f...

August 5, 2021 1:57 am

A state correctional officer won a $500,000 award for back pay from a discrimination lawsuit.  This consisted of $144,304 for compensatory damages, $355,696 for back pay, and $31,864 for interest; he...

August 5, 2021 1:54 am

The mid-year report from National Taxpayer Advocate Erin M. Collins contains an assessment of the 2021 filing season. It assesses the IRS response to 73 administrative recommendations that the Advoca...

August 5, 2021 1:48 am

If an employer has a leave-based donation program, employees may contribute their unused leave time (e.g., vacation, sick, and personal days) for the benefit of employees who need the time. Usually, e...

August 5, 2021 1:45 am

Gain on the sale of a principal residence is tax free up to $250,000 ($500,000 on a joint return) if certain conditions are met. The question put to a district court was whether the basis in the home ...

August 5, 2021 1:42 am

When an IRA owner died, the account passed to a Trust. Some months after the death, the trustee transferred the funds into a regular brokerage account to be able to trade stocks. But he soon learned t...

August 5, 2021 1:40 am

Each year the IRS releases a book providing insight into IRS activities for the government’s fiscal year ending September 30. The 2020 Data Book covers October 1, 2019, through September 30, 2020 (I...

August 5, 2021 1:37 am

Each year the IRS compiles a list of the “worst of the worst tax scams.” This year, the scams are grouped into categories: Pandemic-related scams, such as Economic Impact Payment theft and une...

June 30, 2021 11:40 pm

The Affordable Care Act has come before the U.S. Supreme Court three times. In the latest challenge, the Court declined to rule on a constitutional challenge to the so-called individual mandate in the...

June 30, 2021 11:38 pm

The American Rescue Plan Act of 2021, which was enacted on March 13, 2021, greatly expanded the dependent care credit for 2021. It raised the cap on expenses taken into account in figuring the credit ...

June 30, 2021 11:36 pm

The IRS has the discretion to grant extensions of up to one year for certain tax actions for those impacted by federal disasters. The Further Consolidated Appropriations Act, 2020, created a mandatory...

June 30, 2021 11:34 pm

Despite concerns about inflation, the interest rates on overpayments and underpayments are unchanged from the second quarter of 2021 (Rev Rul. 2021-10). The rates for the third quarter of 2021 beginni...

June 30, 2021 11:29 pm

According to a Treasury report (https://home.treasury.gov/system/files/136/The-American-Families-Plan-Tax-Compliance-Agenda.pdf), the tax gap, which is the spread between what the federal government c...

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....

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Tax Glossary

Return of capital

A distribution of your investment that is not subject to tax unless the distribution exceeds your investment.

More terms