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Overlooked and Obscure Tax Dedications, Credits and Benefits

As tax time approaches, here are some tax issues that taxpayers frequently overlook, ranging from obscure deductions to overlooked tax credits and benefits. Of course, not everything can be included since the tax law has grown significantly in complexity, and it would take a thick book to list everything. But besides what you are probably accustomed to, here are over 20 issues you may not be aware of and that can save you tax dollars. 

IRS Provides Employers A Way to Withdraw Dubious ERC Claims

Despite warnings from the IRS, the American Institute of CPAs, and other professional tax preparer societies, many business owners have fallen victim to aggressive marketing of the Employee Retention Credit (ERC) by marketers or promoters into filing ineligible claims.

As part of a larger effort to protect small businesses and organizations from scams, the IRS has announced the details of a special withdrawal process to help those who filed an ERC claim and are concerned about its accuracy.

Home Energy Audit Tax Benefits

Have you been thinking of making home improvements?  If so, and they include energy saving improvements, you may qualify for some substantial income tax credits.  Even if home improvements aren’t currently on your to-do list, with the increasing cost of energy you may find that energy saving home improvements, along with the tax credits that accompany them, are something you should be considering.

IRS Announced a Novel Way for Taxpayers to Donate to Maui Wildfire Relief

IRS Announced a Novel Way for Taxpayers to Donate to Maui Wildfire Relief

As they have done before in the wake of disasters, including Hurricane Katrina, Superstorm Sandy, COVD-19, and Ukrainian relief, the Internal Revenue Service is allowing special contributions for Maui wildfire relief. It permits employees to donate their unused paid vacation, sick leave, and personal leave time to charities that are providing relief to victims of the Maui wildfire that began August 8, 2023.

The Tax Bit of Powerball Winnings: What You Should Know

Have you ever dreamed of winning the Powerball jackpot? The allure of sudden wealth and financial freedom is undeniable, but there’s one thing that many winners overlook until it’s tax season – the substantial tax bill that comes with their lucky break. Winning the Powerball lottery isn’t just about celebrating. It’s about understanding the tax implications that could significantly impact one’s newfound fortune.

Taxation and Sales of Inherited Property Get Beneficial Treatment

If you are the recent beneficiary of an inheritance, you may be wondering if you will need to pay tax on the cash, stocks or real property that you received. Generally, the answer is no, and you don’t even need to report the receipt of the inheritance on your income tax return. But there is an exception: if you receive untaxed income that a decedent had earned or had a right to receive during their lifetime, you’ll be taxed on it just as the decedent would have been. Examples of this type of income are payments of compensation, wages, bonuses, commissions, vacation and sick pay that the decedent had earned but hadn’t received before they died; uncollected rent; installment payments from property sold before the decedent’s death; and most frequently, traditional IRA distributions.

Tax Implications of Student Loan Forgiveness

Back in August of 2022, President Biden issued an executive order that would forgive federal student loan debt for lower income individuals. The program would have provided up to $20,000 in loan relief to borrowers with loans held by the Department of Education (DOE) whose individual income is less than $125,000 ($250,000 for married couples) and who received a Pell Grant. Borrowers who meet those income standards but did not receive a Pell Grant in college would have received up to $10,000 in loan relief.

Starting a New Business? Things to Consider.

When you are starting a business there are several possible business entity types that need be considered to make sure you get started off on the right foot and avoid costly mistakes that must be corrected later or those that must be changed later to maximize tax benefits.  One also needs to be concerned about potential personal liability.  Each business entity choice has its own pros and cons – the following is an overview of each possible business structure.