Higher-income taxpayers will feel a significant increase in taxes for which they need to prepare. We highlight two in this Tax Strategist.
You have the option of directing your tax refund to multiple accounts with direct deposit. Learn more in this Tax Tip.
If you receive a deduction on your taxes for something and later recover the "loss," you must return the "loss" to your income. This rule, the Tax Benefit Rule, is seen most often when a taxpayer receives a 1099-G on their state tax refund from the prior year. For an explanation of how the Tax Benefit Rule works and other instances where you should consider adding this money to your income, read this C.P.A. Insight.
Normally when debt is forgiven, the forgiven amount is considered taxable income for the person responsible for the debt. Recent tax law changes have made exceptions for qualified principal residence indebtedness. However, this is not necessarily a tax-free transaction–more likely tax-deferred. For more information on the rules surrounding mortgage forgiveness, read this C.P.A. Insight.
With nearly 30% of the U.S. population expected to reach retirement age in the next 18 years, more resources will be required for them to live comfortably during retirement. It is imperative that proper plans and tools are set in place so that they can reach their retirement goals. For more information on the retirement of the baby boomer generation, read this C.P.A. Insight.