Refunds for Nontaxable Unemployment Compensation

Refunds for Nontaxable Unemployment Compensation The IRS is automatically refunding money to eligible people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. Background Typically, when an individual receives unemployment compensation it is taxable. However, under a recent law change (American Rescue Plan), taxpayers who earned…

Avoiding Tax Surprises When Retiring Overseas

Are you approaching retirement age and wondering where you can retire to make your retirement nest egg last longer? Retiring abroad may be the answer. But first, it’s important to look at the tax implications because not all retirement country destinations are created equal. Taxes on Worldwide Income Leaving the United States does not exempt…

Saving for Education: Understanding 529 Plans

Saving for Education: Understanding 529 Plans Many parents are looking for ways to save for their child’s education and a 529 Plan is an excellent way to do so. Even better, is that thanks to the passage of tax reform legislation in 2017, 529 plans are now available to parents wishing to save for their…

Common Errors to Avoid When Filing a Tax Return

Common Errors to Avoid When Filing a Tax Return While not all mistakes on tax returns cause delays in refunds, some do. 1. Not using electronic filing. While this isn’t necessarily a mistake per se, filing electronically is the best way to cut the chances for many tax return mistakes while maximizing deductions to reduce the…

Economic Impact Payments: Round Three

Economic Impact Payments: Round Three On March 12, following the American Rescue Plan Act’s approval and signing, the IRS began sending out the third round of Economic Impact Payments. Most payments were sent out via direct deposit, but approximately 150,000 checks were mailed by the Treasury Department as well. Taxpayers who received EIP1 or EIP2…

Coronavirus-Related Distributions and Loans

Coronavirus-Related Distributions and Loans The Coronavirus, Aid, Relief, and Economic Security (CARES) Act made it easier to access savings in IRAs and workplace retirement plans for those affected by the coronavirus. This relief provided favorable tax treatment for certain withdrawals from retirement plans and IRAs, including expanded loan options. Distributions: Certain distributions made from Jan. 1,…

Q & A: The $10,200 Unemployment Tax Break

Q & A: The $10,200 Unemployment Tax Break Generally, unemployment compensation received under the unemployment compensation laws of the United States or a state is considered taxable income and must be reported on your federal tax return. However, a new tax break – in effect only for the 2020 tax year – lets you exclude…