Pets do more than warm our hearts; they’re road trip buddies, winter lap warmers, and sometimes — legitimate treatments for medical conditions. According to the IRS, if you have a service animal “primarily for medical care to alleviate a mental defect …
The IRS has provided guidance on what disclosure is treated as “adequate” to avoid a 20% penalty for a substantial understatement of tax (Rev. Proc. 2019-42, updating Rev. Proc. 2019-9). Here’s the potential penalty and how to avoid it with respect to…
The interest rates on overpayments and underpayments are unchanged from the fourth quarter of 2019 (Rev Rul. 2019-28). The rates are:
Noncorporate overpayments and underpayments: 5%
Corporate overpayments: 4% generally, but 2.5% for corporate overpaym…
Executive Order 13765, issued in 2017, is aimed at minimizing the economic burden of the Affordable Care Act. However, the IRS has indicated that this doesn’t give the Service the authority to change the tax treatment of lump-sum Social Security benef…
A domestic spending package, called the Further Consolidated Appropriations Act, 2020 (H.R. 1865) which was signed into law on December 20, 2019, makes $426 billion in tax cuts. Here is a brief overview of the key changes impacting individuals (the me…
Gamblers understand the concept of win some, lose some. But the IRS? It prefers exact numbers. Specifically, your tax return should reflect your total year’s gambling winnings – from the big blackjack score to the smaller fantasy football payout. That’…
If you earn income transporting strangers from Point A to Point B, chances are you’re already aware of the most common tax deductions for rideshare drivers: mileage on your car, filling your tank with gas, insurance, etc. But let’s talk about the side …
We all want to get every last one of our hard-earned dimes back from the IRS. Fortunately, working with TaxAct® means you don’t need a master’s degree in accounting to put the figures in your favor. Knowing how deductions and credits affect your situat…
Your Happy Hunting Could Save You Hundreds
That title smells like clickbait. But we promise deer deductions are a real thing. We also promise that the recent film star around the office, our very own deer, is happy, healthy, and raiding the fridge com…
Currently, the estate tax exemption is large enough ($11.4 million for decedents dying in 2019; $11.5 million for those dying in 2020) to protect most estates from having to pay any federal estate tax. This exemption amount is the result of applying t…