Are you a volunteer who works for charity? You may be entitled to some tax breaks if you itemize deductions on your tax return. Unfortunately, they may not amount to as much as you think your generosity is worth. Because donations to charity of cash or property generally are tax deductible for itemizers, it may […]
Author Archive | James B. Reynolds
You may have to pay tax on Social Security benefits
If you’re getting close to retirement age, you may be wondering if your Social Security benefits are going to be taxed. The answer depends on your other income. If you’re taxed, up to 85% of your payments will be hit with federal income tax. (There could also be state tax.) If you file a joint […]
If your kids are off to day camp, you may be eligible for a tax break?
Now that most schools are out for the summer, you might be sending your children to day camp. The good news: You might be eligible for a tax break for the cost. Day camp is a qualified expense under the child and dependent care credit, which is worth 20% to 35% of qualifying expenses, up […]
Is an HSA right for you?
A Health Savings Account (HSA) offers tax-advantaged funding of health care costs. If you have a qualified high-deductible health plan, you can contribute to an HSA sponsored by your employer or set up by you. You own the account, which can bear interest or be invested. It can grow tax-deferred, similar to an IRA. Withdrawals […]
Donating your vehicle to charity may not be a taxwise decision
Let’s say you’re buying a new car and want to get rid of your old one. You’ve heard ads claiming you can get a tax deduction for donating a car to charity. But this may not result in a big deduction — or any at all. It depends on whether you itemize and what the […]
Thinking about moving to another state in retirement? Don’t forget about taxes
If you’re thinking about relocating to another state in retirement, consider the impact of state and local taxes. It may seem like a state with no income tax is a smart choice, but you also have to factor in property and sales taxes, as well as any state estate tax. If you make a move […]
The chances of IRS audit are down but you should still be prepared
The IRS just released its audit statistics for the 2018 fiscal year, and fewer taxpayers had their returns examined compared with prior years. Overall, just 0.59% of individual tax returns were audited (down from 0.62% in 2017). This was the smallest number of audits conducted since 2002. However, even though a small percentage of returns […]
It’s a good time to check your withholding and make changes, if necessary
Did you receive a refund this year that was smaller than you were expecting? Or did you wind up owing additional tax when you filed your return? That might mean it’s time to check and adjust your withholding. This might be necessary due to changes in the Tax Cuts and Jobs Act or because something […]
How Valuators Adjust a Financial Picture
Sometimes professional valuators tweak financial statements before using them to appraise a business. Three common types of adjustments include normaling, nonrecurring and nonoperating items, and discretionary spending.
Selling your home? Consider these tax implications
Depending on where you live, you may see “for sale” signs dotting the landscape. Spring and summer are the optimum seasons for selling a home. So it’s a good time to review the tax implications. If you’re selling your principal residence, you can exclude up to $250,000 ($500,000 for joint filers) of gain, so long […]
