Tax Preparation Tips

With these Tax Preparation Tips, we will be able to maximize your refund.
Find out how you can get a higher refund here, when preparing your taxes.

Deductions vs. Credits: How Do They Affect My Refund?

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…

Oh deer. Another surprisingly legal deduction.

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…

No Clawbacks for Gifts if Estate Tax Exemption Changes

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…

COLAs for 2020

The IRS has announced cost of living adjustments for more than 60 tax items for 2020 Act (Rev. Proc. 2019-44). All of the tax brackets have been affected, as well as the taxable income breakpoints for the favorable capital gains rate for long-term cap…

Medicare Premiums in 2020

The basic Part B premium amount for 2020 is $144.60 per month. The Part D premium for drug coverage in 2020 ranges from $13 to $83 per month (depending on the drug plan selected). However, high-income taxpayers with modified adjusted gross income abov…

Home Office Deduction Not for Hobby Activity

A home office deduction can be claimed only if space is used regularly and exclusively for business. But can a taxpayer who has two businesses claim a home office deduction for the same space?
In a recent case, a taxpayer claimed to run a horse busine…

Revised Dollar Amounts for Retirement Plans and IRAs in 2020

Each year, the IRS can adjust various amounts used to figure contributions, benefits, deductions, and credits related to qualified retirement plans and IRAs. The IRS has now done so for 2020 amounts (Notice 2019-59). The adjustments are modest in view…

Social Security Changes for 2020

More than 69 million Social Security beneficiaries will receive a cost-of-living adjustment (COLA) of 1.6% starting with the December 2019 benefits, which are payable in January 2020. This COLA adjustment is less than the 2.8% increase last year (Soci…

More Guidance on ABLE Accounts

ABLE accounts are special savings accounts for certain disabled individuals that can be used without causing the loss of government benefits related to the disability. In 2018, the IRS indicated it would issue proposed regulations on these accounts (N…