IRS Publishes FAQ on the Recovery Rebate Credit

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From Most individuals eligible for the Recovery Rebate Credit have already received the full amount in two rounds of payments, known as Economic Impact Payments. If we issued you the full amount of each Economic Impact Payment, you won’t need to claim the Recovery Rebate Credit or include any information related to it when … Read more

How do you renew an ITIN?

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In order to renew an ITIN, you must complete a new Form W-7 and submit all required identification documents to the IRS. See the Form W-7 instructions for details. While you do not need to submit a tax return with your ITIN application, you should file a return if you have a filing requirement. Your … Read more

Today is Tax Day 2020!

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While taxes are normally due April 15th, this year Congress extended the filing deadline to July 15th. Today, July 15th, is the deadline to file your 2019 Form 1040 tax return, unless you’ve filed an extension to October 15th. Here some tips for tax day and a little tax day history. The April 15th deadline … Read more

Say Goodbye to These Tax Breaks after 2020

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33 temporary tax breaks (referred to as “tax extenders”) have been set to expire in 2020. 6 of them are related to individual income taxes. Cancelled mortgage debt Cancelled debt is typically included as income. But an exception had been made for cancelled mortgage debt under the Mortgage Forgiveness Debt Relief Act of 2007. Beginning … Read more

What is the tax return filing threshold?

2019 tax return filing threshold

Generally For 2019 tax returns, you’re required to file as follows based on your filing status: IF your filing status is… AND at the end of 2019 you were… THEN file a return if your gross income was at least… single under 65 $12,200 65 or older $13,850 head of household under 65 $18,350 65 … Read more

The IRS Free File Program Gets New Agreement

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The Internal Revenue Service announced today an agreement with Free File, Inc. (FFI) designed to bring more clarity for taxpayers choosing to use free online software during the 2020 filing season. The agreement reached will help make the Free File program more taxpayer-friendly while strengthening consumer protections in several key areas. What is the Free … Read more

Farming Tax Deductions and IRS Hobby Loss Rules

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Farmers who have sustained losses over many years should be aware of the IRS’ hobby loss rules which limit farm loss tax deductions. Hobby losses are one of the most frequently litigated issues in tax. In order to deduct a loss from a business activity, the taxpayer must be able to demonstrate that the activity … Read more

Saving Up for Education – Cloverdell ESA vs. 529 Plan

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Cloverdell ESAs and 529 Plans are great ways to save for college. The investments can grow tax-free in stocks, mutual funds, bonds, and variety of investment vehicles. However, these savings plans may impact financial aid and needs-based scholarship eligibility. Therefore, most financial advisors recommend that parents max out their 401k and IRA contributions before contributing … Read more

Hurricane Dorian Tax Relief

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As Dorian threatens and with the peak of hurricane season just ahead, the Internal Revenue Service posted a reminder to everyone to develop an emergency preparedness plan. Taxpayers, whether individuals, organizations or businesses, should take time now to create or update their emergency plans. Taxpayers can begin getting ready for a disaster with a preparedness … Read more