Tax News

National Taxpayer Advocate Nina Olson’s mid-year report lays out the issues that she plans to address during the fiscal year ending September 30, 2019 (https://taxpayeradvocate.irs.gov/reports/fy-20...

If you want to lose weight, you may be able to take a medical expense deduction for certain costs. Remember that for 2018, medical expenses in excess of 7.5% of adjusted gross income are deductible as...

If you run your business through an S corporation and it produces losses, you can deduct them on your personal return only to the extent of your basis in the S corporation’s stock and debt. When it ...

The U.S. Supreme Court has reversed a position it has held for more than 25 years and likely it will hit your pocketbook. Here’s what the case is about and how it may affect you. In 1992, the Cou...

The IRS may adjust interest rates for various purposes at various times. For example, the rates for overpayments and underpayments of tax are adjusted quarterly. Interest rates for Q3 in 2018. The ...

If you receive a letter in the mail from the IRS that’s marked “CP 2000,” it isn’t an audit notice. The IRS sends it because the Service has identified that the information on your return does...

A mother ran a consulting business that provided services to various federal agencies through contract labor. She had two children in college, and she paid for their tuition and related education cost...

Recently, the IRS confirmed that the contribution limits for 2018, which were announced in 2017, are unchanged for the year, despite the requirement in the Tax Cuts and Jobs Act that the IRS refigure ...

If you buy or lease a car, light truck, or van for your business, special tax rules may limit what you can write off. If you buy the vehicle, dollar limits cap depreciation write-offs. If you lease th...

A taxpayer who fails to carry minimum essential health coverage through 2018 and is not exempt from this requirement owes a shared responsibility payment. It is treated as a tax owed on the person’s...

Amounts in 401(k) plans are designed for retirement savings. However, they can be tapped for an immediate and heavy financial need. There are certain situations that clearly fit this bill, such as fac...

The IRS has released its annual list of the top 12 tax scams that taxpayers should avoid (IR-2018-66). These tax scams are: Phishing: Taxpayers should be alert to potential fake emails or website...

Individuals with foreign financial accounts over certain thresholds must include the earnings as income on their tax returns and report the accounts annually or face serious tax penalties. In 2009, th...

That’s what one taxpayer learned from the Tax Court (Toni Harris, TC Summary Opinion 2018-12). The taxpayer was a Walmart employee enrolled as an undergraduate student at a state college. She regist...

Time is running out for taxpayers who are owed refunds for 2014 to claim them. They must file a 2014 income tax return no later than April 17, 2018, in order to obtain a refund. The IRS points out tha...

A divorce decree required a spouse to continuing paying the expenses on a home in which his ex-spouse lived. And when the home was sold, he was required to pay her half the net proceeds, which he did....

Health savings account contributions are only permitted if the taxpayer is covered by a high-deductible health plan meeting IRS tests (HDHP). The IRS has taken the position that treating male steriliz...

The interest rates on overpayments and underpayments are increasing by 1% for the second quarter of 2018, which runs from through April 1, 2018 through June 30, 2018 (Rev Rul. 2018-07). The rates are:...

The Tax Cuts and Jobs Act lowered tax rates and made other changes that impact withholding on wages and other taxable compensation. Employees do not have to complete a revised Form W-4; employers will...

Those who purchased a home on or after April 9, 2008 and before January 1, 2009, were able to claim a first-time homebuyer credit of $7,500. However, the credit is recaptured ratably over a period of ...