Tax News

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...

December 13, 2021 1:19 am

Married persons with a divorce or agreement finalized before 2019 may continue to handle alimony under old rules: payments that meet the definition of alimony are deductible by the payor-spouse and ta...

December 13, 2021 1:17 am

The approximately 70 million Social Security beneficiaries will receive a cost-of-living adjustment (COLA) of 5.9% starting with the December 2021 benefits, which are payable in January 2022. This is ...

October 11, 2021 1:50 am

Despite indications of increased inflation, the interest rates on overpayments and underpayments are unchanged from the second quarter of 2021 (Rev Rul. 2021-17). The rates for the fourth quarter of 2...

October 11, 2021 1:47 am

In order to claim losses from real estate activities, other than a $25,000 loss allowance for active participants with adjusted gross income below a set amount, a taxpayer must be a “real estate pro...

October 11, 2021 1:44 am

A qualifying child many entitle a taxpayer to a variety of breaks, including head of household status, the earned income credit, the child tax credit, and Economic Impact Payments (EIPs). Before 2018,...

October 11, 2021 1:42 am

Individuals with investment income may be subject to an additional Medicare tax called the net investment income (NII) tax. One couple living in France wanted to use their foreign tax credit carryover...

October 11, 2021 1:39 am

Vehicles acquired for business can result in tax write-offs. For vehicles that are purchased, there’s depreciation as long as you opt to deduct your actual costs and don’t use the IRS standard mil...

October 11, 2021 1:33 am

A best-selling crime fiction writer earned considerable income each year from her publisher. She reported all the income, but only treated a portion of it as trade or business income subject to self-e...

October 11, 2021 1:31 am

When property is sold due to an involuntary conversion, gain is deferred if qualified replacement property is purchased within a replacement period. When livestock (other than poultry) is sold because...

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...

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Tax Glossary

Recovery property

Tangible depreciable property placed in service after 1980 and before 1987 and depreciable under ACRS.

More terms