Taxes Archives - Page 5 of 36 - Milliken, Perkins & Brunelle

IRAs: Build a tax-favored retirement nest egg

0 Comments

January 23, 2024 Kevin Brunelle IRA, IRA distribution, Roth IRA, Traditional IRA

traditional IRA

Although traditional IRAs and Roth IRAs have been around for decades, the rules involved have changed many times. The Secure 2.0 law, which was enacted at the end of 2022, brought even more changes that made IRAs more advantageous for many taxpayers. What hasn’t changed is that they can help you save for retirement on a tax-favored basis. Here’s an overview of the basic rules and some of the recent changes.

Continue Reading: IRAs: Build a tax-favored retirement nest egg

Answers to your tax season questions

0 Comments

January 16, 2024 Kevin Brunelle

tax season 2024

The IRS announced it will open the 2024 income tax return filing season on January 29. That’s when the tax agency will begin accepting and processing 2023 tax year returns.

Here are answers to seven tax season questions we receive at this time of year.

Continue Reading: Answers to your tax season questions

The kiddie tax could affect your children until they’re young adults

0 Comments

January 9, 2024 Kevin Brunelle capital gains, dividend, kiddie tax, unearned income

kiddie tax

The so-called “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. For purposes of this federal income tax provision, a “child” can be up to 23 years old. So, the kiddie tax can potentially affect young adults as well as kids.

Continue Reading: The kiddie tax could affect your children until they’re young adults

It’s possible (but not easy) to claim a medical expense tax deduction

0 Comments

January 2, 2024 Kevin Brunelle medical expense deduction, medical mileage, Tax Cuts and Jobs Act

medical expense tax deduction

One of your New Year’s resolutions may be to pay more attention to your health. Of course, that may cost you. Can you deduct your out-of-pocket medical costs on your tax return? It depends. Many expenses are tax deductible, but there are several requirements and limitations that make it difficult for many taxpayers to actually claim a deduction.

Continue Reading: It’s possible (but not easy) to claim a medical expense tax deduction

Don’t overlook taxes when contemplating a move to another state

0 Comments

December 27, 2023 Kevin Brunelle domicile, legal domicile, residency, state tax

legal domicile

When you retire, you may think about moving to another state — perhaps because the weather is more temperate or because you want to be closer to family members. Don’t forget to factor state and local taxes into the equation. Establishing residency for state tax purposes may be more complex than you think.

Continue Reading: Don’t overlook taxes when contemplating a move to another state

Court awards and out-of-court settlements may (or may not) be taxed

0 Comments

December 19, 2023 Kevin Brunelle court settlement, damages, personal injury

damages

Monetary awards and settlements are often provided for an array of reasons. For example, a person could receive compensatory and punitive damage payments for personal injury, discrimination or harassment. Some of this money is taxed by the federal government, and perhaps by state governments. Hopefully, you’ll never need to know how payments for personal injuries are taxed. But here are the basic rules — just in case you or a loved one does receive an award or settlement and needs to understand them.

Continue Reading: Court awards and out-of-court settlements may (or may not) be taxed

The “nanny tax” must be paid for nannies and other household workers

0 Comments

December 12, 2023 Kevin Brunelle employee taxes, nanny tax, SS-4

nanny tax

You may have heard of the “nanny tax.” But if you don’t employ a nanny, you may think it doesn’t apply to you. Check again. Hiring a housekeeper, gardener or other household employee (who isn’t an independent contractor) may make you liable for federal income and other taxes. You may also have state tax obligations.

Continue Reading: The “nanny tax” must be paid for nannies and other household workers

4 ideas that may help reduce your 2023 tax bill

0 Comments

December 6, 2023 Kevin Brunelle charitable donation, mortgage interest, retirement contribution

2023 tax

If you’re concerned about your 2023 tax bill, there may still be time to reduce it. Here are four quick strategies that may help you trim your taxes before year end.

Continue Reading: 4 ideas that may help reduce your 2023 tax bill

Don’t forget to empty out your flexible spending account

0 Comments

November 28, 2023 Kevin Brunelle dependent care FSA, flexible spending account, FSA

flexible spending account

If you have a tax-saving flexible spending account (FSA) with your employer to help pay for health or dependent care expenses, there’s an important date coming up. You may have to use the money in the account by year-end or you’ll lose it (unless your employer has a grace period).

As the end of 2023 gets closer, here are some rules and reminders to keep in mind.

Continue Reading: Don’t forget to empty out your flexible spending account