The Internal Revenue Service issued a temporary regulation and a proposed regulation to reconcile advance payments of refundable employment tax credits and recapture the benefit of these credits when necessary. The regulations authorize the assessment of erroneous refunds of the credits paid under both the Families First Coronavirus Response Act (Families First Act) and Coronavirus […]
Recapturing Excess Employment Tax Credits Read More »
School may look a little different this year, but eligible teachers and other educators can still deduct certain unreimbursed expenses on their tax return next year. Who is considered an eligible educator The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal, or aide. They must also work at least 900 hours
Teachers: School Expenses Might Be Tax Deductible Read More »
When people think of tax-free retirement savings, they think of IRAs and 401(k)s. The problem with those, however, is they are taxed. Either the distributions are taxed at retirement or the contributions are taxed when earned. Health Savings Accounts (HSAs) do not share that problem. HSAs do come with one big problem, however. You cannot
Health Savings Accounts as Retirement Savings Plans Read More »
Tool plans that claimed to pay employer reimbursements or rental fees to employees who used their own tools in their jobs were abusive tax schemes. The Tax Court imposed civil penalties on two executives of CMS, the company that developed the arrangements and falsely marketed them as accountable plans to reimburse employee expenses. Why Mischaracterize
Tool Reimbursement, Rental Arrangements Were Abusive Tax Schemes Read More »
People whose adverse financial consequences count for getting a coronavirus-related distribution now include spouses and other household members. The IRS has also clarified with lots of examples the thorny intersection between recontributions, taxes, and amended returns. The new IRS guidance presents the rules set out in Act Sec. 2202 of the Coronavirus Aid, Relief, and
Coronavirus Distributions and Adverse Financial Consequences Read More »