Photo by Marcus Aurelius Business success, especially in the retail sector, depends a lot on prioritizing customers and their needs. Sometimes that means making physical changes to an establishment. Uncle Sam might be able to help. The federal tax code has a couple of incentives for businesses that make structural adaptations or other accommodations for employees or customers with disabilities. One tax break is the Disabled Access Credit. As a credit, it provides a dollar-for-dollar offset of tax due. The other is a tax deduction for costs to remove mobility barriers. A deduction reduces a business’ gross income so that... Read more →
Deductions
Photo by Jill Wellington Thanksgiving, of course, is the main focus this month. We spend the days leading up to the holiday thinking about what we’re going to cook, or eat if someone else is doing the kitchen heavy lifting. And figuring out a tactful way to deal with that, shall we say, out-there uncle. Good luck! November is also a great month to make sure we don't fall afoul of tax turkeys. To prevent that, there are some tax moves you can make this month. Since it’s already four days into the month — my bad; I got caught... Read more →
Whether your dream retirement is traveling the world or enjoying your own backyard, you need to save now so you can enjoy it. One way to ensure your post-work years are golden is to take full advantage of tax-favored retirement plans. Regardless of who wins the White House, the Social Security system is going to get a lot of attention in the coming years. The aging population, combined with the much ballyhooed birth dearth, is going to put more pressure on Uncle Sam’s retirement program. Even if the new president and Congress can agree on ways to bolster Social Security,... Read more →
And the disasters (and tax relief) keep coming. A glacial lake outburst in the Juneau, Alaska, area in August produced flooding in the state capital, prompting a major disaster declaration and a new May 1, 2025, tax deadline. Homes and roads in northern Juneau, Alaska, were inundated on August 8, as flood waters overtopped the banks of the Mendenhall River. The flood was caused by glacial lake outburst from Mendenhall Glacier near the Alaskan state capital. A U.S. Geological Survey (USGS) time-lapse video from May 1 to Aug. 7 captures the dramatic rise and fall of water levels in Suicide... Read more →
Mom is the best nurse, but sometimes you need outside medical care. In those cases, some inflation adjusted medical tax breaks could be just the Rx. Autumn’s seasonal change also can bring some medical challenges. Different flora means new pollens to aggravate allergies. Youngsters are back in classrooms, but all that reuniting with friends means sharing germs, too. And, of course, it’s cold and flu (and still COVID-19) season; get your vaccines! Just one unexpected medical emergency can really ding a budget. But the tax code offers some ways that can help your financial hurt, if not your specific ailment.... Read more →
Taking advantage of these inflation-adjusted tax breaks could put more money in your hands instead of Uncle Sam's bank account. (Photo by Osarugue Igbinoba on Unsplash) Many taxpayers look forward to tax filing season because they are getting a refund. Others just want to pay the smallest possible tax bill. Some Internal Revenue Code provisions, ranging from tax deductions to tax credits to income exclusions, can help in both cases. Deductions, like the standard amounts discussed in Part 2 of the ol' blogs annual tax inflation series, are a relatively easy, and popular, way to reduce a tax bill. Deductions... Read more →
Photo: Investment Zen via Flickr Deductions can help reduce your taxable income. The less money subject to taxes, the small your annual bill to Uncle Sam. Some people get the most advantageous deduction amount by itemizing. Most of us, however, claim the standard deduction, especially after the Tax Cuts and Jobs Act of 2017 dramatically increased those amounts. Even better, every year the standard deductions amounts — there are several because the amounts depend on your filing status — get reviewed by the Internal Revenue Service. That usually leads to at least some hike in the standard deduction amounts. Best... Read more →
Water & Land Solutions A conservation easement is a way for landowners to retain ownership and use of their property, while also ensuring that the property’s resources are protected for future generations. In many cases, the easements are donated to nonprofit organizations, providing a nice tax break. Conservation easements also are sometimes used to evade taxes. In fact, bogus arrangements are regularly included in the Internal Revenue Service’s annual Dirty Dozen list of tax scams. In addition to warning taxpayers about abusive conservation easements, the IRS also is intent on stopping, and bringing to justice, those who promote these tax... Read more →
Hurricane Milton seen from the International Space Station on Oct. 8 as it approached the Big Bend of Florida. Milton made landfall as a Category 3 near Siesta Key late Oct. 9. (Photo by NASA/Michael Barratt, Public Domain) It’s been a horrific hurricane season. More than 300 people have lost their lives due to storms in the United States, Mexico, and the Caribbean. Millions in the United States alone have lost at least some property. Some have lost everything. Federal officials are offering assistance to hurricane victims, but misinformation has created problems in delivering that help. The Federal Emergency Management... Read more →
The deadly and destructive aftermath of Hurricanes Debby, Helene, and Milton, prompted the Internal Revenue Service to designate a new statewide federal tax deadline of May 1, 2025, for various tax filings and payments. Hurricane Milton seemed to take a skull shape in this radar image captured as the storm neared Florida on Oct. 8. (Image from post by @MaxVelocityWX on X, formerly Twitter) After Hurricane Debby made landfall in Florida’s Big Bend on August 5, the state got a brief respite. That changed late Sept. 26 when the same area was the target for Hurricane Helene. Helene’s doubling down... Read more →
Update, Friday, Oct. 11, 2024: The Internal Revenue Service today announced disaster tax relief and a Feb. 3, 2025, deadline for individuals and businesses of the San Carlos Apache Tribe in the state of Arizona who were affected by a wildfire that ignited in July. Photo by Matt Howard on Unsplash Hurricane Helene, and now Hurricane Milton, and their deadly aftermath have, naturally, garnered most attention. But other parts of the United States also have been hit by disasters. Wildfires erupted on June 22 in parts of Washington state. Less than a month later, on July 10, the lands of... Read more →
Updated, Jan. 10, 2025: In announcing the start of the 2025 tax filing season today, the Internal Revenue Service also noted that another state, Illinois, has joined Direct File. This brings to 25 the number of participating jurisdictions, more than double those during the 2024 pilot program. Four more states — Alaska, Idaho, Illinois, and Kansas — will join the Internal Revenue Service’s Direct File next tax season. They join Connecticut, Maine, Maryland, New Jersey, New Mexico, North Carolina, Oregon, Pennsylvania, and Wisconsin, who earlier this year joined the IRS-created-and-operated free online tax preparation and e-filing program. These 13 new... Read more →
Photo by RDNE Stock project A home of one’s own has long been part of the traditional American Dream. Nowadays, though, some say it’s a nightmare trying to join the homeownership ranks. So, of course, as we head into the last few weeks of the 2024 election, candidates at all levels also are focusing on housing. Vice President Kamala Harris, the Democratic presidential nominee, has proposed tax breaks she says will increase the housing supply, which should lead to lower prices. She’s also promoting a first-time buyer tax to help buyers get into those homes. Using the tax code to... Read more →
Next year, we go into the final year of the Republican tax reform law's SALT cap. Since the Tax Cuts and Jobs Act (TCJA) of 2017 took effect, taxpayers in high income and property tax states and their Capitol Hill reps have been fighting the law's limit on state and local taxes, or SALT, that can be claimed as an itemized federal deduction. Their main argument is that the TCJA's $10,000 cap is too low. From a fiscal perspective, supporters of the cap pointed out that it benefited wealthier taxpayers. Their big SALT claims also cost the U.S. Treasury lots... Read more →
“Oh, yeah. That’s the spot,” seems to be what this Chow Chow is thinking as he’s getting a neck rub from his owner. (Photo by Omid Armin on Unsplash) Happy National Dog Day! Or, for canine lovers, the 239th day of Dog Year 2024. Personally, I’m a cat fan. But many of my relatives are pooch parents. And let’s be honest, whatever creature you choose to welcome into your home, the animals are part of your family. So, we should be able to claim them as dependents, right? Sorry, but wrong. The Internal Revenue Service probably is full of pet... Read more →
UPDATE, Oct. 4, 2024: Parts of two more states, Illinois and Washington, are the latest to get a Feb. 3, 2025, tax deadline extension due to major disasters. Details in this post. UPDATE, Aug. 29, 2024: The U.S. collection of Caribbean islands joins its fellow territory Puerto Rico in getting tax relief due to Tropical Storm Ernesto effects. It also ups the count to 10 of disaster areas across the country that have the new extended, early 2025 tax return due date. The satellite view, courtesy National Oceanic and Atmospheric Administration's NESDIS/STAR GOES-East imagery, of Tropical Storm Ernesto as it... Read more →
If you bought your youngsters new back-to-school clothes, you’re probably looking for ways to dispose of the older outfits. Many parents take advantage of hand-me-downs, either within their own immediate family or sharing with other relatives or friends. Others donate the old, outgrown clothes. Giving them to a charity could be a win-win. The nonprofits' recycling not only helps those looking for bargain priced apparel, but in some cases it provides a tax break to filers who itemize. 2017 tax rule changes: That donation deduction, however, hasn’t been claimed as much since enactment of the Tax Cuts and Jobs Act.... Read more →
A full Cannon River rushing though Northfield, Minnesota, after rainfall from severe storms in June. (National Weather Service photo) It’s been that kind of weather year. The start of a new week brings another Internal Revenue Service announcement of disaster area tax relief. This time, the areas getting special tax consideration were hard hit by severe storms and subsequent flooding in Minnesota. The affected North Star State individual and business taxpayers now have until Feb. 3, 2025, to meet a variety of filing and payment obligations. Affected counties: The destructive weather throughout Minnesota began June 16, and produced damages in... Read more →
The Department of Justice, per a Drug Enforcement Administration request, is moving to transfer of marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III. That decision aligns with the stance of the U.S. Health and Human Services Department, and is supported by the Biden Administration. The change would not make cannabis legal nationally. It still will be a controlled substance under federal law. But the recategorization would provide state-legal cannabis businesses some banking access, and the ability to claim some tax breaks they currently are denied. Less of a stigma: Going from Schedule I to Schedule... Read more →
The Nov. 5 election results will help put the fate of the Republican tax reform law into sharper focus. Provisions that affect individual taxpayers will end on Dec. 31, 2025. The next Congress and president will decide which ones will stay or go. Regardless of who wins the U.S. presidency this November, the next occupant's first year in (or return to) the Oval Office will be during a potentially tumultuous year for taxes. That’s because 2025 is when the Tax Cuts and Jobs Act’s (TCJA) individual provisions expire. So, Congress will be working to save or ax, depending on party... Read more →