Enacting a spendthrift trust can be beneficial to your loved ones
March 23, 2023 Knowledge Center
Enacting a spendthrift trust can be beneficial to your loved ones

Are you concerned that some of your beneficiaries might squander their inheritances or simply aren’t equipped to handle the financial responsibilities that come with large sums of money? You don’t have to hold on to your assets until the day you die with the hope that your heirs will change their ways by that time. […]

Small employers: Don’t forget about the new and improved pension credit
March 21, 2023 Knowledge Center
Small employers: Don’t forget about the new and improved pension credit

At the very end of 2022, President Biden signed into law the Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). Now that the year is well underway, small employers would be well-advised not to forget about a key feature of the law: marked improvements to the small employer pension plan start-up cost […]

President Biden’s proposed budget includes notable tax provisions
March 17, 2023 Knowledge Center
President Biden’s proposed budget includes notable tax provisions

President Biden has released his proposed budget for the federal government for the 2024 fiscal year. The budget, which aims to cut the deficit by nearly $3 trillion over 10 years, includes numerous provisions that would affect the tax bills of both individuals and businesses. While most of these proposals stand little chance of enactment with a Republican […]

Claiming losses on depreciated or worthless stock
March 16, 2023 Knowledge Center
Claiming losses on depreciated or worthless stock

Have you bought stock in a company that later dropped in value? While you may prefer to forget such an ill-fated investment, at least you can claim a capital loss deduction on your tax return. Here are the rules that apply when a stock you own is sold at a loss or becomes completely worthless. […]

IRS final regs expand mandatory e-filing of many information returns
March 14, 2023 Knowledge Center
IRS final regs expand mandatory e-filing of many information returns

The IRS recently finalized regulations that substantially expand mandatory electronic filing (e-filing) of certain information returns. The regulations were proposed in 2021 to implement statutory changes made under the Taxpayer First Act of 2019. Generally, they establish lower thresholds for required e-filing of the following returns related to employee benefit plans: Form 1094 Series; Forms […]

U.S. Supreme Court rules against the IRS on critical FBAR issue
March 10, 2023 Knowledge Center
U.S. Supreme Court rules against the IRS on critical FBAR issue

The U.S. Supreme Court recently weighed in on an issue regarding a provision of the Bank Secrecy Act (BSA) that has split two federal courts of appeal. Its 5-4 ruling in Bittner v. U.S. is welcome news for U.S. residents who “non-willfully” violate the law’s requirements for the reporting of certain foreign bank and financial accounts […]

Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances
March 7, 2023 Knowledge Center
Awarded money in a lawsuit or settlement? It’s only tax-free in certain circumstances

You generally must pay federal tax on all income you receive but there are some exceptions when you can exclude it. For example, compensatory awards and judgments for “personal physical injuries or physical sickness” are free from federal income tax under the tax code. This includes amounts received in a lawsuit or a settlement and […]

To file or not to file a gift tax return, that is the question
March 3, 2023 Knowledge Center
To file or not to file a gift tax return, that is the question

If you made gifts last year you may be wondering if you need to file a gift tax return. The short answer: There are many situations when it’s necessary (or desirable) to file Form 709 — “United States Gift (and Generation-Skipping Transfer) Tax Return” — even if you’re not liable for any gift tax. Let’s […]

There still may be time to make an IRA contribution for last year
February 23, 2023 Knowledge Center
There still may be time to make an IRA contribution for last year

If you’re getting ready to file your 2022 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you’re eligible, you can make a deductible contribution to a traditional IRA right up until this year’s April 18 filing deadline and benefit from the tax […]

Child Tax Credit: The rules keep changing but it’s still valuable
February 17, 2023 Knowledge Center
Child Tax Credit: The rules keep changing but it’s still valuable

If you’re a parent, you may be confused about the rules for claiming the Child Tax Credit (CTC). The rules and credit amounts have changed significantly over the last six years. This tax break became more generous in 2018 than it was under prior law — and it became even better in 2021 for eligible […]

Reading the tea leaves: Potential tax legislation in the new Congress
February 14, 2023 Knowledge Center
Reading the tea leaves: Potential tax legislation in the new Congress

The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen if — and when — any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws may provide an indication of the […]

Answers to your questions about 2023 limits on individual taxes
February 9, 2023 Knowledge Center
Answers to your questions about 2023 limits on individual taxes

Many people are more concerned about their 2022 tax bills right now than they are about their 2023 tax situations. That’s understandable because your 2022 individual tax return is due to be filed in 10 weeks (unless you file an extension). However, it’s a good time to familiarize yourself with tax amounts that may have […]