Pursuant to the Bipartisan Budget Act in 2018, the IRS has created a new tax form for those age 65 and older at https://www.irs.gov/pub/irs-dft/f1040s–dft.pdf. The form, which can be used for the 2019 income tax return filed during the 2020 tax filing…
A married couple filed a joint return for one year that did not include the wife’s Social Security benefits. These benefits resulted from her being formally classified as disabled. In the following year, the benefits were reported, but they didn’t pay…
Distributions from health savings accounts (HSAs) to pay qualified medical expenses are not taxable. These accounts must be combined with a high-deductible health plan (HDHP). The question has been: Can an HDHP pay for preventive care without a deduct…
Depending on your perspective, shopping can be a fun pastime or must-do drudgery. Either way, it eventually becomes unavoidable. While shopping, we are bombarded with multiple choices of products and services. No matter what we are searching for, there…
We all slip up when it comes to handling money. But sometimes small infractions we think are no big deal, end up becoming mistakes that sabotage our long-term wealth. Be careful not to make these five mistakes.
1. Carrying debt
Debt, espe…
Last year I decided to make a change when it came to setting resolutions. I sat down and wrote out a long list of huge goals I wanted to achieve in five different categories: self-improvement, wealth, health, professional, and relationship.
…
The IRS has announced that the interest rates applicable to overpayments and underpayments of federal taxes is lower in the third quarter of 2019 compared with the rates in the second quarter of the year (Rev. Rul. 2019-15). The rates are:
5% for over…
If you report income on your return that doesn’t match what’s been reported by banks, brokerage firms, and other third parties, to the IRS, you may receive IRS Notice CP2000 (FS-2019-10). This notice informs you of the mismatch and gives you steps for…
When you own an IRA, you can designate who you want to inherit it. This can be a spouse, a child, a trust, or your estate. There are different tax consequences for each type of designation you select. Here are two examples:
IRA payable to trust for th…
Prior to 2018, homeowners could exclude from gross income the cancellation of a mortgage on their principal residence up to $2 million. This exclusion was limited to a loan to buy, build, or substantially improve a main home. It did not apply to the i…
