tax liability

With Year-end Approaching, 3 Ideas That May Help Cut Your Tax Bill

If you’re starting to worry about your 2021 tax bill, there’s good news — you may still have time to reduce your liability. Here are three quick strategies that may help you trim your taxes before year-end. 1. Accelerate deductions/defer income. Certain tax deductions are claimed for the year of payment, such as the mortgage…

Read More
Tips for avoiding IRS penalties

Tips for Avoiding IRS Penalties

If your job or business has been affected by the COVID-19 pandemic, you may be concerned about your ability to pay taxes on time or to pay a delinquent tax debt. Fortunately, it may be possible to obtain relief from harsh IRS penalties and other consequences of the tax collection process, provided you take action…

Read More
Jan/Feb 2021 Tax Tips

January/February 2021 Tax Tips

What if you can’t pay your taxes on time? If you’re unable to pay your tax bill by April 15, you have several options, but doing nothing isn’t one of them. At the very least, you should file your return to avoid failure to file penalties of 5% of your tax liability per month, up…

Read More
business taxes

Business, the Remote Worker, and Taxes, Part II: Business Entity Related Taxes

The year 2020 has been one for the ages. Travel restrictions, gathering restrictions, and personal health issues have forced businesses to shift their focus, their workforces, and the way they do business. This is the second in our series on business, remote work, and taxes. Over the course of three articles we examine three components…

Read More
what happens if you have a tax liability

What Happens if an Individual Can’t Pay Taxes

While you probably don’t have any problems paying your tax bills, you may wonder: What happens in the event you (or someone you know) can’t pay taxes on time? Here’s a look at the options when you have a tax liability. Most importantly, don’t let the inability to pay your tax liability in full keep…

Read More
powers of appointment

Keep Future Options Open with Powers of Appointment

The amount of flexibility you build into your estate plan will go a long way toward how successful, ultimately, it is at carrying out your wishes after you’re gone. Using powers of appointment is one way to achieve that flexibility. Powers of appointment — defined A power of appointment is simply a provision in your…

Read More
marriage taxes

When it Comes to Taxes, Marriage May Cost You

Most people don’t choose to marry or stay single based on their tax bills, but it may be a factor. One byproduct of the U.S. tax system, under which married couples file joint tax returns, is that marriage may produce a tax penalty or bonus, depending on a couple’s particular circumstances. In other words, when…

Read More
R&D credit

The R&D Credit: Are You Leaving Tax Dollars on the Table?

Federal and state research credits (often referred to as the “research and development,” “R&D” or “research and experimentation” credit) are among the most valuable tax incentives available today. But many businesses overlook these tax breaks because they mistakenly believe that they don’t qualify or wouldn’t benefit. In recent years, federal legislation has expanded the availability…

Read More
new kiddie tax rules

Kiddie Tax: New Hazards, New Opportunities

Despite its name, the “kiddie tax” is far from child’s play. And a change made by the Tax Cuts and Jobs Act (TCJA) puts some adult teeth into the tax. Now, children with unearned income may find themselves in a tax bracket higher than that of their parents. At the same time, the TCJA creates…

Read More
federal gift tax exclusion

Take Advantage of the Gift Tax Exclusion Rules

As we head toward the gift-giving season, you may be considering giving gifts of cash or securities to your loved ones. Taxpayers can transfer substantial amounts free of gift taxes to their children and others each year through the use of the annual federal gift tax exclusion. The amount is adjusted for inflation annually. For…

Read More