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New Tax Law Improves QCD Benefits

Seniors who must take withdrawals from their IRA may be able to benefit from a special tax provision for qualified charitable distributions (QCDs). Briefly stated, this provision allows people in their 70s and older to transfer funds directly from an IRA to a charity without any adverse tax consequences. The new SECURE 2.0 law enhances these

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Warning: Your 2022 Tax Bill May Ring in Higher

It’s that time of year again: tax season. Temporary tax relief measures that were provided during the pandemic have expired, so the changes to the tax rules for 2022 are generally unfavorable to many individual taxpayers. That means that you may owe more than you have in recent years. The reason is that many of the

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Casualty Losses: How to Claim Deductions and Avoid Pitfalls

Every year, the United States experiences natural and manmade disasters, ranging from hurricanes and earthquakes to wildfires and electrical grid failure. If you’re unlucky enough to suffer a disaster-related loss, you’ll need to understand the federal income tax rules to determine whether you’re eligible for a casualty loss deduction. Personal Casualty Loss Deduction Basics You

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5 Major Tax-Favored Retirement Plan Changes for Individuals under New Law

After months of negotiations, Congress finally passed the long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). This part of the omnibus funding package builds on the SECURE Act of 2019 and contains major changes in the required minimum distribution (RMD) rules and other retirement provisions. Here are five major taxpayer-friendly changes that

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Tax Treatment of Debt Forgiveness: Watch Out for Tax Bills Delivered COD

Debtors typically experience a feeling of relief when a creditor agrees to forgive their debt. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to learn the tax rules for COD income and how they might affect your tax situation.

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Medicare Coverage: 2023 Premiums and Key Tax Considerations

Medicare health insurance premiums can add up — especially if you’re upper-income, married, and both you and your spouse pay premiums. Here are the basics of how Medicare health insurance works, including 2023 premium amounts and when you can deduct Medicare health insurance premiums on your tax return. Important: If you have a health savings

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Tricky Tax Angles to Fringe Benefits

Competition for top-notch workers can be fierce. Your business currently may be understaffed due to a number of factors – including the “Great Resignation” and “quiet quitting” where employees do the bare minimum before eventually leaving. A proven way to help attract and retain the cream of the crop is to expand or enhance your company’s

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Do You Know the Tax Implications of Equity-Based Compensation?

Equity-based compensation often is associated with startup companies. But businesses in a cash crunch also might consider such awards in lieu of year-end cash bonuses. In addition to recognizing high performance, stock options and other types of equity-based compensation can boost retention. Before you jump in headfirst, it’s important to understand the different types of awards

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New Law Expands Deduction for Energy-Efficient Commercial Buildings

There’s good news for owners and designers of commercial buildings that are energy efficient. In 2021, the energy-efficient commercial buildings deduction (also known as Section 179D) was made permanent, thanks to the Consolidated Appropriations Act. Now, the recently passed Inflation Reduction Act (IRA) has significantly changed the tax deduction again. The IRA boosts the potential value

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The IRS Has Announced Various Tax Benefit Increases for 2023

The IRS announced many inflation adjustments for the 2023 tax year. IRS Revenue Procedure 2022-38 provides details about these amounts. Because inflation is high, many of the amounts for 2023 will change more than they have in recent years. Here are some of the tax amounts for 2023, as compared with 2022. Tax Item 2023 2022

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