If you’re getting ready to file your 2019 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the Wed., April 15, 2020, filing date and benefit from the […]
Author Archive | James B. Reynolds
Answers to Your Questions About 2020 Individual Tax Limits
Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax picture. That’s because your 2019 individual tax return is due to be filed in less than 3 months. However, it’s a good idea to familiarize yourself with tax amounts that may have changed. For example, for […]
Can you deduct charitable gifts on your tax return?
Many people who used to claim a tax break for making charitable contributions are no longer eligible. That’s because of some tax law changes that went into effect a couple years ago. You can only claim a deduction if you itemize deductions on your tax return and your itemized deductions exceed the standard deduction. Today’s […]
Help Protect Your Personal Information by Filing Your 2019 Tax Return Early
The IRS is opening the 2019 individual income tax return filing season on Jan. 27. Even if you usually don’t file until closer to the April 15 deadline (or you file an extension), consider being an early-bird filer this year. It can potentially protect you from tax identity theft. In these scams, a thief uses […]
4 New Law Changes That May Affect Your Retirement Plan
If you save for retirement with an IRA or other plan, be aware there’s a new law that makes several changes to these accounts. For example, the SECURE Act repealed the maximum age for making traditional IRA contributions. Before 2020, traditional IRA contributions weren’t allowed once you reached age 70½. Starting in 2020, an individual […]
Your Home Office Expenses May Be Tax Deductible
Technology has made it easier to work from home. However, just because you have a home office doesn’t mean you can deduct expenses associated with it on your tax return. In order to be deductible, you must be self-employed and the space must be used regularly and exclusively for business purposes
Do you have a side gig? Make sure you understand your tax obligations
The number of people engaged in the “gig” or sharing economy has grown in recent years. And there are tax consequences for the people who perform these jobs, such as providing car rides, renting spare rooms, delivering food and walking dogs. Generally, if you receive income from these gigs, it’s taxable. That’s true even if […]
Adopting a child? Bring home tax savings with your bundle of joy
If you’re adopting a child, or you adopted one this year, there may be significant tax benefits available to offset the expenses. For 2019, adoptive parents may be able to claim a nonrefundable credit against their federal tax for up to $14,080 of “qualified adoption expenses” for each adopted child. (This amount is increasing to […]
3 Last-Minute Tips That May Help Trim Your Tax Bill
You may still have time to reduce your federal tax liability by taking certain steps. For example, contribute the maximum to your retirement plans by year end, including traditional IRAs and SEP plans. Another idea: If you make your Jan. 2020 payment this month, you can deduct the interest portion on your 2019 tax return […]
Medical Expenses: What it Takes to Qualify for a Tax Deduction
Medical services and prescriptions are expensive. You may be able to deduct some expenses on your tax return but the rules make it difficult for many people to qualify. You may be able to time certain medical expenses to your tax advantage. For 2019, the medical expense deduction can only be claimed to the extent […]
