UPDATE: The 21st Century Cures Act states the term ‘group health plan’ shall not include any qualified small employer health reimbursement arrangement. Qualified small employers are permitted to reimburse multiple employees up to $4,950 for individuals or $10,000 for family plans using a health reimbursement arrangement. An employer with a single employee may still provide unlimited reimbursements if they so desire. There is a complex interaction between reimbursements an employee receives and the health care premium tax credit. Continue reading
If you owe past due income taxes that you cannot pay, bankruptcy may be an option. There is a common misconception that past taxes cannot be discharged in bankruptcy. This belief is simply untrue. It is possible to discharge income tax debt in bankruptcy, if your tax debt fits within certain requirements. Continue reading
As long as one of the taxpayers makes at least $6,000 in wages, John and Mary can earn up to $52,690 and pay no net income tax. Even though they have no federal withholding they will receive refundable tax credits in the amount of $511. This $511 refund will offset their state tax liability of $506 resulting in an overall net refund of $5 even though no tax was withheld. They will receive a refund from the federal government and will have to pay tax to the state. The two amounts combined result in almost no tax. Continue reading
To continue renting or to purchase a home? It’s a very common question. The concept is that purchasing a home allows you to build equity so that when you sell the home and purchase a smaller one later in life… Continue reading
Charitable contributions are deductible only if you itemize deductions on your Form 1040.
To be deductible, you must make charitable contributions to a qualified organization. Payments to individuals are never deductible. To check to see if an organization is qualified,… Continue reading
The correct person to help you with your taxes is a very personal decision. Other than a spouse or a medical professional, the sharing of your own financial information with a professional tax preparer or financial planner is a very… Continue reading