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Latest Blog Posts
- More Virus-related Relief From The Feds
- RMDs In The Year Of Coronavirus
- Workers Can Tap IRAs To Cope With Coronavirus Finances
- IRS: Track Your Coronavirus Payment
- The Very Latest Word On Minnesota Estimated Taxes
- Minnesotans: New Tax Day Details
- How Now, New 1040?
- Business Over Dinner? It May Be Delicious, But Is It Deductible?
- Tax Time Begins Today!
- Charitable Contributions: Quickly Find Out Which Groups Qualify!
Category Archives: EricJohn Ltd
The federal government has found another way deep in the nooks and crannies of tax codes to help taxpayers in financial pain from the coronavirus epidemic. The Internal Revenue Service now is allowing mid-year changes to “cafeteria plans,” such as health Flexible Spending Arrangements (FSA), so that workers who use them can deal with losses of income, unexpected bills and, perhaps, postponements of health care appointments. Typically, the employees must tell employers which cafeteria plans they wish to use and how much of their wages to place in them during a firm enrollment period each year. The money goes into … Continue reading
We’ve written recently about ways to tap a retirement account for extra money during the coronavirus emergency. But what about the flip side – holding in tax-deferred money that was scheduled to be withdrawn from an IRA or 401(k)? It winds up that Congress temporarily suspended the rule on Required Minimum Distributions (RMD) in its coronavirus relief law. In short, retired workers can just omit the withdrawals they would have to take from their retirement accounts this year. It’s a one-time offer, good just for tax year 2020. Normally, when workers reach age 72 – it was 70½ until recently … Continue reading
American workers under the age of 59½ generally haven’t been able to reach into their IRAs without paying stiff penalties. But the federal government temporarily has changed that in the throes of the coronavirus epidemic. In March, the CARES Act (Coronavirus Aid, Relief and Economic Security Act) opened retirement plans to as much as $100,000 worth of penalty-free withdrawals for coronavirus victims. That gives workers and their families another lifeline from their own funds to endure the emergency, even if many would view it as a last resort. By the way, the temporary change also is available from some other … Continue reading
First came “Where’s My Refund?”, a way for taxpayers to track refunds from their federal tax returns. Now, with more than 80 million Americans due for coronavirus relief dollars, the Internal Revenue Service is going online again with a tracking service for those Economic Impact Payments. “Get My Payment,” which is located on the IRS Web site (www.irs.gov) , gives taxpayers a quick way to discover how much they will receive in payments and when the deposits might arrive. It tracks either electronic payments or paper checks. To use “Get My Payment,” taxpayers must provide a few identification details, including … Continue reading
Here is a late-breaking update about estimated payments of Minnesota income taxes. As noted in our previous post, the Minnesota Department of Revenue is requiring individual taxpayers to submit estimated taxes for the first quarter of the 2020 tax year by April 15. Those payments were not postponed by the emergency actions involving coronavirus. On Friday (April 10), Minnesota Revenue announced three formulas that will avoid penalties, interest or extra taxes. Taxpayers will be safe if they base the payments on: 90 percent of their estimated tax liability for 2020 or 100 percent of the taxes they paid for the … Continue reading
By now, everyone knows that Tax Day has been pushed back to July 15. That’s the new deadline for individual taxpayers to file 2019 returns and to pay their taxes. Both federal and Minnesota governments gave us some more time because of the severe disruptions caused nationwide by the coronavirus disease emergency. So, original due date, April 15, now looks like just another day in tax season for many of us. Here are a few details Minnesotans will appreciate about the three-month delay: · It’s automatic. There are no applications or extension forms required. File and pay by July 15, and you’re … Continue reading
The Internal Revenue Service is streamlining again for the 2019 tax filing season. Its basic form for individual taxpayers, the IRS Form 1040, is a bit shorter and has some convenient changes. Among them, the tax agency has trimmed the paperwork by dropping three numbered schedules from its main package. The 1040 for 2018 included six of those related schedules. The IRS did help senior citizens with a new, optional twist. Taxpayers who are 65 and older – born before Jan. 2, 1955 – can choose a customized version named. the “1040-SR.” One convenience is a handy chart showing standard deduction … Continue reading
The Internal Revenue Service on Wednesday (Feb. 26) came out with new regulation to “provide guidance” about business meals and related tax deductions. Basically, the tax agency is issuing its interpretations of the federal Tax Cuts and Jobs Act from 2017 that cut out some deductions — most notably, the tax breaks for entertainment expenses. But, although those disappeared at the end of 2017, company owners and their employees still can deduct part of the costs of true business meals. For example, if a sales representative takes a potential client out to dinner for business reasons, the company can deduct … Continue reading
It’s Monday, Jan. 27, and the computers at the Internal Revenue Service will begin to gulp in 2019 returns from individual taxpayers today. They’ll be processing a deluge of numbers. The IRS expects to collect 150 million returns just from individuals this season. Nonetheless, the earliest filers won’t be the bulk of those returns. Many of us still are waiting for necessary records – such as W-2 and 1099 forms from employers – to land in our mailboxes before filing. For example, Friday (Jan. 31) is the IRS’s deadline for employers to send out those pay reports to workers. In … Continue reading
Would the International Organization of Historic Postal Stamp Collectors, if it existed, qualify for a tax-free charitable contribution on your return? How about disaster relief organizations? In the final two weeks of the tax year, you might want to know – and fast. Last week we promised to pass along some guidance from the Internal Revenue Service about donations to charities and other tax-exempt organizations. Charitable giving is one of the few steps you can take to reduce taxes just before year-end, which now is less than two weeks away. Taxpayers can write a check or send money electronically to … Continue reading