• 2018 FACTS on WHO PAYS TAX

    2018 FACTS on WHO PAYS TAX The top 1% of individual filers paid 40.08% of all U.S. income taxes for 2018 per IRS (up from 2017’s figure of 38.47%). The top 1% earned at least $540,009. The top 5% earned at least $217,913 and paid 60.30% of total income tax. The top 10%, those with AGIs…

  • NOL 2020 COVID-19

    COVID-19 related changed to Net Operating Losses (NOL) CARES Act reverses the general ban on carrybacks of NOLs by requiring NOLs arising in 2018, 2019 or 2020 to first be carried back five years, unless the taxpayer elects to instead carry the NOLs forward.  It suspends the 80% taxable income limit for NOLs in 2018 to…

  • 2020 Social Security & Full Retirement Age (FRA)

    If you are younger than full retirement age and earn more than the yearly earnings limit, the amount you receive may be reduced. If you are under full retirement age for the entire year, $1 is deducted from your benefit payments for every $2 you earn above the annual limit. For 2020, that limit is $18,240. In the…

  • Donations for 2020 – new deduction

    Nonitemizers can claim an above-the-line deduction max of $300for charitable 2020 cash contributions.  Individuals not itemizing Schedule A can take both the standard deductionand a max deduction of up to $300 in cash contributions. This is per return, meaning couples who file jointly can deduct only $300, not $600. The 60%-of-AGI limit on charitable gifts of…

  • Offer in Compromise (OIC)

    An Offer in Compromise (OIC) is an offer by you to settle the tax debt for less than what you owe. Two payment options:      Lump Sum Cash is 20% upfront with balance over five or fewer payments within 5 months of the day your offer is accepted.      Periodic Payment requires first…

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