News
Personal Tax

Don’t forget to take required minimum distributions this year
2/1/2021
If you have a traditional IRA or tax-deferred retirement plan account, you probably know that you must take required minimum distributions (RMDs) when you reach a certain age — or you’ll be penalized. The CARES Act, which passed last...
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One reason to file your 2020 tax return early
1/21/2021
The IRS announced it is opening the 2020 individual income tax return filing season on February 12. (This is later than in past years because of a new law that was enacted late in December.) Even if you typically don’t file until much closer...
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The COVID-19 relief law: What’s in it for you?
1/5/2021
The new COVID-19 relief law that was signed on December 27, 2020, contains a multitude of provisions that may affect you. Here are some of the highlights of the Consolidated Appropriations Act, which also contains two other laws: the COVID-related...
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Your taxpayer filing status: You may be eligible to use more than one
12/30/2020
When it comes to taxes, December 31 is more than just New Year’s Eve. That date will affect the filing status box that will be checked on your 2020 tax return. When filing a return, you do so with one of five tax filing statuses. In part, they...
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The next estimated tax deadline is January 15 if you have to make a payment
12/22/2020
If you’re self-employed and don’t have withholding from paychecks, you probably have to make estimated tax payments. These payments must be sent to the IRS on a quarterly basis. The fourth 2020 estimated tax payment deadline for...
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Can you qualify for a medical expense tax deduction?
12/15/2020
You may be able to deduct some of your medical expenses, including prescription drugs, on your federal tax return. However, the rules make it hard for many people to qualify. But with proper planning, you may be able to time discretionary medical...
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Maximize your 401(k) plan to save for retirement
12/9/2020
Contributing to a tax-advantaged retirement plan can help you reduce taxes and save for retirement. If your employer offers a 401(k) or Roth 401(k) plan, contributing to it is a smart way to build a substantial sum of money.
If you’re not...
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Steer clear of the wash sale rule if you’re selling stock by year end
12/2/2020
Are you thinking about selling stock shares at a loss to offset gains that you’ve realized during 2020? If so, it’s important not to run afoul of the “wash sale” rule.
IRS may disallow the loss
Under this rule, if you sell...
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Employees: Don’t forget about your FSA funds
11/24/2020
Many employees take advantage of the opportunity to save taxes by placing funds in their employer’s health or dependent care flexible spending arrangements (FSAs). As the end of 2020 nears, here are some rules and reminders to keep in...
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Taking distributions from a traditional IRA
11/17/2020
Although planning is needed to help build the biggest possible nest egg in your traditional IRA (including a SEP-IRA and SIMPLE-IRA), it’s even more critical that you plan for withdrawals from these tax-deferred retirement vehicles. There are...
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How Series EE savings bonds are taxed
11/11/2020
Many people have Series EE savings bonds that were purchased many years ago. Perhaps they were given to your children as gifts or maybe you bought them yourself and put them away in a file cabinet or safe deposit box. You may wonder: How is the...
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Disability income: How is it taxed?
11/3/2020
Many Americans receive disability income. You may wonder if — and how — it’s taxed. As is often the case with tax questions, the answer is … it depends.
The key factor is who paid for the benefit. If the income is paid...
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Divorcing couples should understand these 4 tax issues
10/28/2020
When a couple is going through a divorce, taxes are probably not foremost in their minds. But without proper planning and advice, some people find divorce to be an even more taxing experience. Several tax concerns need to be addressed to ensure that...
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Buying and selling mutual fund shares: Avoid these tax pitfalls
10/21/2020
If you invest in mutual funds, be aware of some potential pitfalls involved in buying and selling shares.
Surprise sales
You may already have made taxable “sales” of part of your mutual fund investment without knowing it.
One...
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What tax records can you throw away?
10/13/2020
October 15 is the deadline for individual taxpayers who extended their 2019 tax returns. (The original April 15 filing deadline was extended this year to July 15 due to the COVID-19 pandemic.) If you’re finally done filing last year’s...
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There may be relief from tax liability for “innocent spouses”
10/6/2020
If you file a joint tax return with your spouse, you should be aware of your individual liability. And if you’re getting divorced, you should know that there may be relief available if the IRS comes after you for certain past-due...
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Why it’s important to plan for income taxes as part of your estate plan
9/29/2020
As a result of the current estate tax exemption amount ($11.58 million in 2020), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because...
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Can investors who manage their own portfolios deduct related expenses?
9/22/2020
In some cases, investors have significant related expenses, such as the cost of subscriptions to financial periodicals and clerical expenses. Are they tax deductible? Under the Tax Cut and Jobs Act, these expenses aren’t deductible through...
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Tax implications of working from home and collecting unemployment
9/15/2020
COVID-19 has changed our lives in many ways, and some of the changes have tax implications. Here is basic information about two common situations.
1. Working from home.
Many employees have been told not to come into their workplaces due to the...
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Homebuyers: Can you deduct seller-paid points?
9/8/2020
Despite the COVID-19 pandemic, the National Association of Realtors (NAR) reports that existing home sales and prices are up nationwide, compared with last year. One of the reasons is the pandemic: “With the sizable shift in remote work,...
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