Student Loan Forgiveness & Taxes With the recent student loan forgiveness announcement, many borrowers have been left confused or even unaware of their tax obligation for the coming tax year. Here is a list of common tax-related questions surrounding student debt relief. Is student debt forgiveness taxable? For the most part, no. The American Rescue… Read More

Seniors can reduce their tax burden by donating to charity through their IRA In most cases, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them but there are some exceptions. A qualified charitable distribution is one of the few exceptions. A QCD is a nontaxable distribution made… Read More

For deaths occurring in 2022, add together the fair market value of all assets included in the estate, before deductions.  If the total is less than $12.06 million, then no Federal Estate Tax Return is required, and no tax will be due.  All heirs will receive their property free of tax, and will receive a… Read More

Selected Expired Individual Tax Items The one year only increase in the child credit expired at the end of 2021.  This credit reverted back to $2,000 (from $3,000); reduced the age back to under 17 (from under 18); is no longer fully refundable ($1,400 max); and reverts back to lower income phase outs. The one… Read More

IRS Statement on Balance Due Notices (CP-14) The Internal Revenue Service on July 27, 2022, issued the following statement on Cp-14 balance due notices: The IRS is aware that some payments made for 2021 tax returns have not been correctly applied to joint taxpayer accounts, and these taxpayers are receiving erroneous balance due notices (CP-14… Read More

IRS Refund Delays I contacted the Taxpayer Advocate Service since I am receiving many calls from clients asking when they would receive their tax refunds. I received a report from National Taxpayer Advocate Erin Collins, which says the Internal Revenue Service is concerned about the 21.3 million paper-return backlogs. In her midyear report to Congress,… Read More

IR-2022-113, June 1, 2022 WASHINGTON — The Internal Revenue Service today began its “Dirty Dozen” list for 2022, which includes potentially abusive arrangements that taxpayers should avoid. The potentially abusive arrangements in this series focus on four transactions that are wrongfully promoted and will likely attract additional agency compliance efforts in the future. Those four… Read More

IRS: Taxpayers now have more options to correct, amend returns electronically IR-2022-130, June 23, 2022 WASHINGTON — The Internal Revenue Service announced today that more forms can now be amended electronically. These include people filing corrections to the Form 1040-NR, U.S. Nonresident Alien Income Tax Return and Forms 1040-SS, U.S. Self-Employment Tax Return (Including the… Read More

The U.S. tax code can be confusing, especially when considering the steady stream of changes that seem to appear each year. In 2022, a slew of new rules could have an impact on your efforts to build a larger nest egg that will see you through your retirement years. Following are a few important changes… Read More