Individual Taxation — Newsletter/Blog

4 ideas that may help reduce your 2023 tax bill

Before you know it, 2024 will be here. But until then, there may still be time to reduce your 2023 federal tax liability by taking these steps.

Individual TaxationDebbie HarryDecember 7, 2023

11 Exceptions to the 10% penalty tax on early IRA withdrawals

If you need cash, you may want to tap your traditional IRA. But if you’re not yet 59½, you may have to pay a penalty tax if you do. Here are 11 exceptions to the penalty.

Individual TaxationDebbie HarryNovember 14, 2023

Contributing to your employer’s 401(k) plan: How it works

Does your employer offer a 401(k) plan, but you haven’t started participating? Here are the basic features of these plans to illustrate why you should strongly consider it.

Individual TaxationDebbie HarryNovember 2, 2023

What are the tax implications of winning money or valuable prizes?

There are tax implications if you hit a sizable jackpot in the lottery or while gambling. Here are the basic rules.

Individual TaxationDebbie HarrySeptember 28, 2023

Evaluate whether a Health Savings Account is beneficial to you

Many employers offer Health Savings Accounts to their workers. You may also be able to open one of these tax-saving accounts through some banks and other financial institutions. Here are the basic rules.

Individual TaxationDebbie HarrySeptember 21, 2023

Investment swings: What’s the tax impact?

For some investors, 2023 has been a wild ride in the stock market. How will that affect your 2023 tax bill? Here’s how to determine the tax impact.

Individual TaxationDebbie HarrySeptember 12, 2023

Plan now for year-end gifts with the gift tax annual exclusion

The estate and gift tax exemption amount is scheduled to be cut drastically in 2026 when the related Tax Cuts and Jobs Act provisions expire (unless Congress acts to extend them). Making tax-free gifts before then can cut the size of your taxable estate and may be one way to address this potential threat.

Individual TaxationDebbie HarrySeptember 7, 2023

Selling your home for a big profit? Here are the tax rules

If you’re selling your principal residence, or you already sold your home in 2023, some or all of the profit may be tax-free. It depends on the amount of profit and your income. Take a look at the basic rules.

Individual TaxationDebbie HarrySeptember 5, 2023

Disabled family members may be able to benefit from ABLE accounts

Family members often want to help disabled loved ones financially but don’t want them to lose eligibility for their government benefits. A tax-advantaged ABLE account may be the answer.

Individual TaxationDebbie HarryAugust 16, 2023

Can you deduct student loan interest on your tax return?

If you are resuming student loan payments soon, be aware that interest is deductible for some borrowers subject to certain limits. Here are the rules.

Individual TaxationDebbie HarryAugust 8, 2023

Pocket a tax break for making energy-efficient home improvements

Have you heard there’s an enhanced tax credit for making energy-efficient home improvements, beginning this year? Here are the rules.

Individual TaxationDebbie HarryAugust 1, 2023

Retirement account catch-up contributions can add up

If you’re eligible and not making catch-up contributions to your retirement plan, you’re missing out on building more tax-favored savings. Here are the rules of the road.

Individual TaxationDebbie HarryJuly 20, 2023

Inheriting stock or other assets? You’ll receive a favorable “stepped-up basis”

When planning your estate or inheriting assets, it’s essential to understand the “step-up” basis rules. They can affect the taxes due on the sale of the assets.

Individual TaxationDebbie HarryJuly 12, 2023

The best way to survive an IRS audit is to prepare

Don’t panic if you get a letter from the IRS telling you your tax return is being audited. In many cases, the IRS completes audits after receiving requested documentation. Here are the latest IRS statistics, as well as some tips on how to help survive an audit.

Individual TaxationDebbie HarryJune 28, 2023

Are you married and not earning compensation? You may be able to put money in an IRA

If you’re married and don’t earn compensation, you may think you can’t contribute to a retirement plan. But you may be eligible for a spousal IRA. Here are the rules for 2023.

Individual TaxationDebbie HarryJune 20, 2023

When can seniors deduct Medicare premiums on their tax returns?

Seniors who have Medicare insurance (including supplemental) know that it can be costly to get the desired coverage. If this is your situation, you may be able to deduct the cost of premiums, along with other medical expenses, on your tax return.

Individual TaxationDebbie HarryJune 13, 2023

Reduce the impact of the 3.8% net investment income tax

In addition to regular income tax, high-income taxpayers may face the 3.8% net investment income tax. This article explains who the tax applies to, as well as some strategies to minimize it.

Individual TaxationDebbie HarryJune 6, 2023

Benefits of a living trust for your estate

You’ve probably heard that you should avoid probate in estate planning. But what does that mean and how is it done?

Individual TaxationDebbie HarryMay 31, 2023

You may be liable for “nanny tax” for all types of domestic workers

In 2022, if you pay a household worker cash wages of $2,400 or more, you must withhold and pay Social Security and Medicare taxes. What will this amount be for 2023? Here’s the answer, as well as other tax obligations.

Individual TaxationDebbie HarryOctober 27, 2022

Tax and other financial consequences of tax-free bonds

Do you want to add municipal bonds to your portfolio? Here are some of the tax consequences.

Individual TaxationDebbie HarryOctober 14, 2022

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