Tax News

May 3, 2021 10:48 pm

The Consolidated Appropriations Act, 2021, authorized funds to states and other political subdivisions to provide assistance to renters. The funds provide households with help to pay rent, utilities, ...

May 3, 2021 10:46 pm

The IRS announced that the cost of personal protective equipment (PPE) purchased for the primary purpose of preventing the spread of COVID-19 is a deductible medical expense (Ann. 2021-7). PPE include...

March 29, 2021 2:29 am

The interest rates on overpayments and underpayments are unchanged from the first quarter of 2021 (Rev Rul. 2021-6). The rates are: Noncorporate overpayments and underpayments: 3% Corporate over...

March 29, 2021 2:28 am

When a worker at Home Depot retired at age 55, he transferred his 401(k) to an IRA. The next year, when he was 56 years old, he took a distribution from the IRA to pay for living expenses. He received...

March 29, 2021 2:25 am

The American Rescue Plan Act of 2021, which was signed into law on March 11, 2021, is a new stimulus measure (P.L. 117-2). It provides a third round of Economic Impact Payments (EIP3) and makes many o...

March 29, 2021 2:12 am

The IRS announced a one-month postponement for the deadline to file 2020 individual income tax returns (IR-2021-59). Instead of the April 15, 2021, deadline, it is now May 17, 2021 (May 15 is a Saturd...

March 1, 2021 9:20 pm

Credit cards may provide rewards for the purchase of goods and services. The IRS has long held that the rewards are not taxable; they are viewed as a reduction in the price of the goods and services (...

March 1, 2021 9:18 pm

Individuals must report annually on foreign financial accounts if balances exceed a threshold amount. The question raised is whether these balances include cryptocurrencies. The Financial Crimes Enfor...

March 1, 2021 9:16 pm

It’s not a penalty despite being called one. That’s what the Tax Court said when a 42-year old worker who took a distribution from the New York State pension plan. She reported the distribution of...

March 1, 2021 9:15 pm

Teachers who are not reimbursed for the cost they incurred after March 12, 2020, for personal protective equipment, disinfectant, and other supplies to prevent the spread of COVID-19 in the classroom ...

December 30, 2020 11:04 pm

It’s not uncommon for couples to divorce and have a property settlement only to see that settlement unmet. Does this constitute a theft loss that can be deductible? (Remember that for 2018 through 2...

December 30, 2020 11:02 pm

The interest rates on overpayments and underpayments are unchanged from the fourth quarter of 2020 (Rev Rul. 2020-28). The rates are: Noncorporate overpayments and underpayments: 3% Corporate ov...

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...

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Tax Glossary

Self-employment tax

Tax paid by self-employed persons to finance Social Security coverage. In 2007, there are two rates. A 12.4% rate applies to a taxable earnings base of $95,700 or less and a 2.9% rate applies to all net earnings.

More terms