If you made large gifts to your children, grandchildren or others in 2021, it’s important to determine whether you’re required to file a gift tax return by April 18 (Oct. 17 if you file for an extension). The annual gift tax exclusion has increased in 2022 to $16,000 but was $15,000 for 2021. Generally, you’ll […]
Author Archive | James B. Reynolds
Married couples filing separate tax returns: Why would they do it?
If you’re married, you may wonder if you should file joint or separate tax returns. It depends on your individual tax situation. In general, you should use the filing status that results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly […]
Did you give to charity in 2021? Make sure you have substantiation
To claim a tax deduction for a donation of $250 or more, you generally need a contemporaneous written acknowledgment from the charity. “Contemporaneous” means you receive it by the date you file your return, or the extended due date of the return. If you made a donation in 2021 but don’t have a letter from […]
The Ins and Outs of IRAs
Traditional and Roth IRAs can help you save for retirement on a tax-favored basis. Contributions to a traditional IRA reduce your current tax bill, if you’re eligible, and earnings are tax-deferred. However, withdrawals are taxed in full (plus a 10% penalty if taken before age 59½, unless an exception applies). Roth IRA contributions aren’t deductible. […]
Smooth Sailing: Tips to Speed Processing and Avoid Hassles this Tax Season
The IRS began accepting 2021 individual returns on Jan. 24. Here are three quick tips to help speed processing and avoid hassles this tax season. 1) Contact us soon for an appointment to prepare your return. 2) Gather all documents needed to prepare an accurate return. This includes W-2 and 1099 forms. In addition, you […]
Help Safeguard Your Personal Information by Filing Your 2021 Tax Return Early
The IRS is opening the 2021 individual income tax return filing season on Jan. 24. Even if you usually don’t file until closer to the April deadline (or you file an extension), consider filing early. It can potentially protect you from tax identity theft. In these scams, a thief uses another person’s personal information to […]
How will Revised Tax Limits Affect Your 2022 Taxes?
While Congress didn’t pass the Build Back Better Act in 2021, there are still tax changes that may affect your tax situation for this year. That’s because some tax figures are adjusted annually for inflation. It’s a good idea to familiarize yourself with tax amounts that have changed for this year. For example, the amount […]
Are you eligible for a medical expense tax deduction?
You may pay out a bundle in out-of-pocket medical costs. But can you deduct them on your tax return? It’s possible but not easy. Medical expenses can be deducted only to the extent unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical expenses are deductible only if you itemize, which means that your […]
Commission fraud: When salespeople get paid more than they’ve earned
Many employees receive part of their compensation from sales-related commissions. Unfortunately, some of these workers occasionally may be tempted to abuse the commission system by falsifying sales or rates. Generally, this takes one of three forms: 1) invented sales, 2) overstated sales and 3) manipulated commission rates. This last scheme often involves the collusion of […]
Gig workers should understand their tax obligations
Many people have become gig workers to earn extra money through online platforms. Find out more about the tax implications of these jobs.
