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RMDs-Required Minimum Distributions

Those over age 70 ½ are generally required to receive payments from their individual retirement accounts and workplace retirement plans by the end of the tax year.  There is a special rule that allows those who reached 70 ½ in 2016 to wait until April 1, 2017 to receive them. There is a hefty penalty […]

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Deducting clothing on your tax return

The answer is almost always NO unfortunately. If the clothing is required to be worn by your employer, your employer won’t reimburse you and the clothing is not something you COULD wear outside of work, then maybe. Suits are a  no no….even if you don’t want to wear them outside work….you COULD….so not deductible. Jean, […]

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Healthcare.gov Extended!!!!

Good news! If you missed the 12/15 deadline to sign up for medical coverage to begin on 1/1/17 then you are in luck.  Healthcare.gov announced that they have extended the deadline to sign up until 12/19/16 11:59 PM PST. Why is this good news?  Well, there are penalties for not having medical coverage. Depending on […]

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Deducting mileage

There are lots of ways you can deduct mileage.  To do so though, you need to be able to substantiate that deduction. How do you do it? A mileage log for each vehicle including the Date, Destination, Business Purpose, Starting & Stopping Odometer Readings and Miles for that trip. Also keep track of business vs. […]

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Year End Tax Tips!

Here are a few things to consider before the tax year ends: If you qualify to have a Health Savings Account you need to OPEN it by the end of the tax year. Even those over 65 years of age will get to deduct only those qualified expenses over 10% of adjusted gross income in […]

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Tax Breaks for the Military

Are you a member of the U.S. military?  If so, first of all, thank you for your service.  Secondly, you may be entitled to tax breaks.  Following are some examples: Possible postponement of the tax filing deadline for those serving in in combat zones.  If you qualify, you are entitled to an automatic extension. Some […]

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New Overtime Rule Postposed

December 1 was to be the day millions of salaried workers would start being eligible for overtime pay based on change made by the Obama administration.  A federal judge blocked this rule to extend mandatory overtime from taking effect.   21 states and a coalition of business groups, including the U.S. Chamber of Commerce, were […]

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Gambling Winnings – Uncle Sam Wants His Share

How exciting – you just won it big at the slot machines and you are trying to think of how to spend it.  Not so fast.  This is considered income.   You may need to pay taxes on your winnings. The payer is required to provide you with Form W-2G if you receive certain gambling winnings.  This form […]

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Are gifts a tax deduction?

Well…maybe….. If you give gifts from your business they are deductible up to $25 per person per year. Also keep in mind that gifts to a specific person, even if there is a hardship, do not qualify as a charitable contribution.   You may owe gift tax if you give gifts over a specified amount […]

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New IRS SCAM to watch out for

The scammers are sending fake IRS2000 notices that involve the Affordable Care Act (aka Obamacare).  In many cases the fake notices arrive as an attachment to an email or by US mail.  There may be a payment link in the mail.   DO NOT OPEN THE ATTACHMENT or click any links.  Doing so may install […]

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