Kevin Brunelle, Author at Milliken, Perkins & Brunelle

Disabled family members may be able to benefit from ABLE accounts

0 Comments

August 15, 2023 Kevin Brunelle ABLE account, disability, gift tax

ABLE account

If you have family members with disabilities, there may be a tax-advantaged way to save for their needs — without having them lose eligibility for the government benefits to which they’re entitled. It can be done though an Achieving a Better Life Experience (ABLE) account, which is a tax-free account that can be used for disability-related expenses. The SECURE 2.0 law made changes that will allow more people to be eligible for these accounts, beginning in 2026.

Can you deduct student loan interest on your tax return?

0 Comments

August 8, 2023 Kevin Brunelle student loan

student loan interest deduction

The federal student loan “pause” is coming to an end on August 31 after more than three years. If you have student loan debt, you may wonder whether you can deduct the interest you pay on your tax return. The answer may be yes, subject to certain limits. The deduction is phased out if your adjusted gross income exceeds certain levels — and they aren’t as high as the income levels for many other deductions.

Pocket a tax break for making energy-efficient home improvements

0 Comments

August 1, 2023 Kevin Brunelle energy efficiency tax credit, Inflation Reduction Act

energy improvement tax break

An estimated 190 million Americans have recently been under heat advisory alerts, according to the National Weather Service. That may have spurred you to think about making your home more energy efficient — and there’s a cool tax break that may apply. Thanks to the Inflation Reduction Act of 2022, you may be able to benefit from an enhanced residential energy tax credit to help defray the cost.

Moving Mom or Dad into a nursing home? 5 potential tax implications

0 Comments

July 25, 2023 Kevin Brunelle head of household, long-term care insurance, nursing home

nursing home

More than a million Americans live in nursing homes, according to various reports. If you have a parent entering one, you’re probably not thinking about taxes. But there may be tax consequences. Let’s take a look at five possible tax breaks.

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

0 Comments

July 11, 2023 Kevin Brunelle estate tax, step down, step up

estate tax basis planning

If you’re planning your estate, or you’ve recently inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes.

That email or text from the IRS: It’s a scam!

0 Comments

July 5, 2023 Kevin Brunelle

IRS scam

“Thousands of people have lost millions of dollars and their personal information to tax scams,” according to the IRS. The scams may come in through email, text messages, telephone calls or regular mail. Criminals regularly target both individuals and businesses and often prey on the elderly.

The best way to survive an IRS audit is to prepare

0 Comments

June 27, 2023 Kevin Brunelle

IRS Audit

The IRS recently released its audit statistics for the 2022 fiscal year and fewer taxpayers had their returns examined as compared with prior years. But even though a small percentage of returns are being chosen for audits these days, that will be little consolation if yours is one of them.

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

0 Comments

June 20, 2023 Kevin Brunelle IRA, Roth IRA

spousal IRA

When one spouse in a married couple is not earning compensation, the couple may not be able to save as much as they need for a comfortable retirement. In general, an IRA contribution is allowed only if a taxpayer earns compensation. However, there’s an exception involving a “spousal” IRA. It allows contributions to be made for a spouse who is out of work or who stays home to care for children, elderly parents or for other reasons, as long as the couple files a joint tax return.

When can seniors deduct Medicare premiums on their tax returns?

0 Comments

June 13, 2023 Kevin Brunelle medical expense deduction, medical mileage, Medicare, Medigap, Tax Cuts and Jobs Act

Medicare tax deduction

If you’re age 65 and older and have basic Medicare insurance, you may need to pay additional premiums to get the level of coverage you want. The premiums can be costly, especially for married couples with both spouses paying them. But there may be an advantage: You may qualify for a tax break for paying the premiums.

Reduce the impact of the 3.8% net investment income tax

0 Comments

June 6, 2023 Kevin Brunelle MAGI, net investment income tax, NIIT

net investment income tax

High-income taxpayers face a regular income tax rate of 35% or 37%. And they may also have to pay a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. Fortunately, there are some ways you may be able to reduce its impact.