News

Should You Consider an Employer Roth 401(k) Account?

According to a 2020 survey, 75% of employer plans now offer DRAs, which are also known as Roth 401(k) accounts.

NY HERO ACT Update: Department of Labor Issues Industry-Specific Model Airborne Disease Prevention Plans

The NY Hero Act requires employers to adopt airborne disease prevention plans by August 6, 2021.  The DOL has recently released a generally applicable prevention standard along with model plans for specific industries. Employers have until September 5, 2021 to provide a copy of their…

The deductibility of corporate expenses covered by officers or shareholders

Do you play a major role in a closely held corporation and sometimes spend money on corporate expenses personally? These costs may wind up being nondeductible both by an officer and the corporation unless proper steps are taken. This issue is more likely to arise…

Curtailing tax surprises with cryptocurrency

As investing in Bitcoin, Dogecoin and other cryptocurrencies becomes increasingly popular, investors need to understand the potential tax ramifications.

Advance Child Tax Credit Payments Are Starting

The IRS began issuing the Advance Child Tax Credit payments on July 15, 2021. The payments are 50 percent of the estimated amount of the Child Tax Credit you will qualify for on your 2021 tax return.  The payment is based on either your 2020…

There’s currently a “stepped-up basis” if you inherit property — but will it last?

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. The current rules Under the current fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a…

Can taxpayers who manage their own investment portfolios deduct related expenses? It depends

Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re…

IRS audits may be increasing, so be prepared

The IRS just released its audit statistics for the 2020 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audit these days, that will be little consolation if…

Seniors may be able to write off Medicare premiums on their tax returns

Are you age 65 and older and have basic Medicare insurance? You may need to pay additional premiums to get the level of coverage you want. The premiums can be expensive, especially if you’re married and both you and your spouse are paying them. But…

Tax-favored ways to build up a college fund

If you’re a parent with a college-bound child, you may be concerned about being able to fund future tuition and other higher education costs. You want to take maximum advantage of tax benefits to minimize your expenses. Here are some possible options. Savings bonds Series…