We are almost at the start of a new year! We have all faced challenging changes in tax laws, rising interest rates, and inflation this year. Congress may enact additional legislation in the upcoming year to include retroactive reinstatement of a few tax extenders that expired at the end of the 2023 tax year. Prospects of substantial changes in legislation seem to be slim during the remainder of the year.
The COVID pandemic prompted numerous temporary changes to the tax laws for 2020 and 2021. From Economic Impact Payments, penalty-free IRA distributions and the expanded child tax credit to Employee Retention Credits and credits for paid leave, taxpayers had ample areas to make mistakes when completing their tax returns — on top of the usual annual tripwires.
The market value of your home will be an important consideration in several decisions you might make, including refinancing, borrowing against the home's accumulated equity, putting the home up for sale, estimating homeowner's insurance, estimating annual property taxes, estimating the return from remodeling jobs, estate planning, and so forth. Remember, how much was paid for the home when it was first purchased is irrelevant to its current market value.
Let's say you have an unincorporated sideline activity that you think of as a business, including an activity involving horses. If you have a net loss (deductible expenses exceed revenue) on that activity and you think you can deduct that loss on your personal federal income tax return, think again!
Before President Trump signed the latest economic stimulus law, several temporary COVID-19-related federal tax relief measures were set to expire on December 31, 2020. This article explains the current status of eight important temporary relief measures and whether the Consolidated Appropriations Act (CAA) extended them.
The CARESAct created the Paycheck Protection Program (PPP) to issue loans to help small businesses that were adversely affected by the COVID-19 pandemic. The original program expired on August 8, 2020. Now it's been retroactively reinstated, liberalized, and expanded by the new Consolidated Appropriations Act. Here are some key details for small business owners, including clarification about the tax treatment of forgiven PPP loans.
SELECTED IMPORTANT 2020 TAX ITEMS:
• Casualty Loss: Effective beginning in 2018, this deduction has been eliminated, with the exception of casualty losses suffered in a federal disaster area. A taxpayer who suffers a personal casualty loss from a disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act will still be able to claim a personal casualty loss as an itemized deduction, subject to the $100-per-casualty and 10%-of-Adjusted Gross Income limitations.
Value investors look for bargains. In other words, they attempt to find stocks that are trading below the value of the companies they represent. In contrast, growth investors are using today's information to identify tomorrow's strongest stocks. Read on to learn more about the strategies that value investors and growth investors use.
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Tips to Prevent the Number One Cause of Marital Rift
One surveyfound financial matters is "the most common source of discord among American couples." Further, the survey concluded, arguments over money predominantly involve a differing opinion of "needs" versus "wants," unexpected expenses and insufficient savings. Fortunately, couples may be able to head off many of the problems in a marriage that money can cause. Here are ten tips.
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FAQs About Tax-Free Disaster Relief Payments During the COVID-19 Crisis
The COVID-19pandemic has caused many forms of financial distress. If you've been adversely affected by this federally declared disaster, you may be eligible for federal-income-tax-free qualified disaster relief and disaster mitigation payments paid by some employers. Here are some frequently asked questions about these payments, including those made by employers and charities.
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The Equal Opportunity Employment Commission is capping off a busy year of discrimination cases. With the Biden Administration making plans to take the reins in the White House, what can employers expect going forward? This article looks at possibilities and focuses on several enforcement actions that made news in 2020. Read on for more.
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Additional Federally Funded Benefits Supplemental Federal Pandemic Unemployment Compensation. Through July 31, 2020, the federal government would provide a temporary Federal Pandemic Unemployment Compensation (FPUC) of $600 a week for any worker eligible for state or federal unemployment compensation (UC) benefits.
Leasing a car offers some advantages over purchasing one, including a much lower down payment. But in the event that you suffer a total loss of the car, the financial risk can be greater. What you owe may exceed both the value of the car and what your automotive insurance covers. That's where gap insurance becomes critical. To learn more about gap insurance for your leased car, continue reading.
Retirement has changed over time. Not everyone wants to cease working completely. And not everyone can afford to live the rest of their lives without an income apart from Social Security. Many people work for decades in one industry and dream of retiring so they can pursue another field. Don't underestimate the possibility of a second act until you've looked at the benefits. Continue reading for more.
The IRS recently clarified who's eligible for the new $500 tax credit for dependents who aren't qualifying children under age 17, as well as how much income those individuals can earn each year without negating the credit. The income test is also relevant if you're unmarried and want to use the beneficial head of household (HOH) filing status. Here are the details.
