Tax

Your estate plan: Don’t forget about income tax planning

As a result of the current estate tax exemption amount ($12.06 million in 2022), many people no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. Now, because many estates won’t be subject to estate tax, more planning can be devoted…

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Social Security benefits: Do you have to pay tax on them?

Social Security benefits: Do you have to pay tax on them? Some people who begin claiming Social Security benefits are surprised to find out they’re taxed by the federal government on the amounts they receive. If you’re wondering whether you’ll be taxed on your Social Security benefits, the answer is: It depends. The taxation of…

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Is it a good time for a Roth conversion?

The downturn in the stock market may have caused the value of your retirement account to decrease. But if you have a traditional IRA, this decline may provide a valuable opportunity: It may allow you to convert your traditional IRA to a Roth IRA at a lower tax cost. Traditional vs. Roth Here’s what makes…

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The ins and outs of Series EE savings bond taxation

Many people own Series E and Series EE bonds that were bought many years ago. They may rarely look at them or think about them except on occasional trips to a file cabinet or safe deposit box. One of the main reasons for buying U.S. savings bonds (such as Series EE bonds) is the fact…

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Tax Tips: May/June 2022

Get ready for new cryptocurrency reporting requirements If you own cryptocurrency, such as Bitcoin, or certain other digital assets, be aware that new tax reporting requirements go into effect next year. The new requirements don’t affect your tax liability — you’re already required to recognize gain or loss on certain transactions involving these assets in…

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Are You Making the Most of Your 401(K) Plan?

If your employer offers a 401(k) plan, you probably know that one of the best ways to save for retirement is to max out your contributions each year. In 2022, for example, you can defer up to $20,500 in pretax salary to a 401(k) plan ($27,000 if you’re 50 or older). And if your employer…

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Business Succession and Estate Planning Go Hand-In-Hand

If you’re a business owner, your company likely is your most valuable asset. Thus, addressing it in your estate plan is critical if, for example, you die unexpectedly or become disabled. Your plan can also help provide a smooth transition of the business to your children or other family members after you retire. Draft key…

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IRA charitable donations: An alternative to taxable required distributions

Are you a charitably minded individual who is also taking distributions from a traditional IRA? You may want to consider the tax advantages of making a cash donation to an IRS-approved charity out of your IRA. When distributions are taken directly out of traditional IRAs, federal income tax of up to 37% in 2022 will…

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Research Credits: IRS Tightens Documentation Requirements for Refund Claims

In recent guidance, the IRS has imposed strict new documentation requirements on businesses that file refund claims for federal research credits. These tax breaks are often referred to as “research and development,” “R&D” or “research and experimentation” credits.   Currently, businesses may claim the research credit on an originally filed return or an amended return.…

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Caring for an elderly relative? You may be eligible for tax breaks

Taking care of an elderly parent or grandparent may provide more than just personal satisfaction. You could also be eligible for tax breaks. Here’s a rundown of some of them. 1. Medical expenses. If the individual qualifies as your “medical dependent,” and you itemize deductions on your tax return, you can include any medical expenses…

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