Taxes Archives - Page 17 of 36 - Milliken, Perkins & Brunelle

You can only claim a casualty loss tax deduction in certain situations

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August 31, 2021 Kevin Brunelle casualty loss, federal disaster, Tax Cuts and Jobs Act, tcja

casualty loss tax deduction

In recent weeks, some Americans have been victimized by hurricanes, severe storms, flooding, wildfires and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But there are now restrictions that make these deductions harder to take.

Continue Reading: You can only claim a casualty loss tax deduction in certain situations

Does your employer provide life insurance? Here are the tax consequences

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August 24, 2021 Kevin Brunelle carve-out plan, life insurance, phantom income

employer-provided life insurance

Employer-provided life insurance is a coveted fringe benefit. However, if group term life insurance is part of your benefit package, and the coverage is higher than $50,000, there may be undesirable income tax implications.

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ABLE accounts may help disabled or blind family members

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August 17, 2021 Kevin Brunelle ABLE account, Achieving a Better Life Experience, blind, disabled, SSDI, SSI

ABLE account

There may be a tax-advantaged way for people to save for the needs of family members with disabilities — without having them lose eligibility for 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.

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Scholarships are usually tax free but they may result in taxable income

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August 10, 2021 Kevin Brunelle college cost, scholarship

scholarship tax

If your child is fortunate enough to be awarded a scholarship, you may wonder about the tax implications. Fortunately, scholarships (and fellowships) are generally tax free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to the individual or reduces tuition.

Continue Reading: Scholarships are usually tax free but they may result in taxable income

You may have loads of student debt, but it may be hard to deduct the interest

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July 27, 2021 Kevin Brunelle student loan

student loan interest

More than 43 million student borrowers are in debt with an average of $39,351 each, according to the research group EducationData.org. If you have student loan debt, you may wonder if you can deduct the interest you pay. The answer is yes, subject to certain limits. However, 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.

Continue Reading: You may have loads of student debt, but it may be hard to deduct the interest

There’s currently a “stepped-up basis” if you inherit property — but will it last?

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July 20, 2021 Kevin Brunelle fair market value, inheritance, step down, step up

inherited property

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

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Can taxpayers who manage their own investment portfolios deduct related expenses? It depends.

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July 13, 2021 Kevin Brunelle Investments

investment-related expenses

Do you have significant investment-related expenses, including the cost of subscriptions to financial services, home office expenses and clerical costs? Under current tax law, these expenses aren’t deductible through 2025 if they’re considered investment expenses for the production of income. But they’re deductible if they’re considered trade or business expenses.

Continue Reading: Can taxpayers who manage their own investment portfolios deduct related expenses? It depends.

IRS audits may be increasing, so be prepared

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July 6, 2021 Kevin Brunelle IRS audit, tax recordkeeping, tax return filing

IRS Audit

The IRS just released its audit statistics for the 2020 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 audit these days, that will be little consolation if yours is one of them.

Continue Reading: IRS audits may be increasing, so be prepared

Seniors may be able to write off Medicare premiums on their tax returns

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June 22, 2021 Kevin Brunelle health insurance, Medicare, write-off

Medicare Premium Write-off

Are you 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 expensive, especially if you’re married and both you and your spouse are paying them. But there may be a bright side: You may qualify for a tax break for paying the premiums.

Continue Reading: Seniors may be able to write off Medicare premiums on their tax returns