The arrival of the holiday season is when many people think about how they can give back. Often taxpayers want to donate to a charity. This year, the new “universal” deduction makes it easier for people to receive a tax benefit for giving. Because the deduction is taken “above the line,” it reduces, by up [...]
Here's how the CARES Act changes deducting charitable contributions made in 2020: Whether taxpayers are supporting natural disaster recovery, COVID-19 pandemic aid or another cause that's personally meaningful to them, their charitable donations may be tax deductible. These deductions basically reduce the amount of their taxable income. Passed in late March, the federal government's COVID-19 relief package [...]
Marriage changes a lot of things and taxes are on that list. Newlyweds should know how saying “I do” can affect their tax situation. Here’s a checklist of items for newly married couples to review: Name and address changes Name. When a name changes through marriage, it is important to report that change to the Social [...]
With millions of Americans now receiving taxable unemployment compensation, many of them for the first time, the Internal Revenue Service today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year. By law, [...]
Whether it's online, in-person, part-time or full-time, higher education can be expensive. The good news is there are tax credits that can help offset these costs. These credits reduce the amount of tax someone owes. If the credit reduces tax to less than zero, the taxpayer could even receive a refund. Taxpayers who pay for [...]
Now is a good time for people to begin thinking about next year's tax return. While it may seem early to be preparing for 2021, reviewing your record keeping now will pay off when it comes time to file again. You need good records to prepare accurate financial statements. These include income (profit and loss) [...]