Tax is applicable on Long Term Capital Gains (LTCG) if your income (NOT INCLUDING LTCG NOR DIVIDENDS) exceeds Single $41,675 […]
Including Extensions
In reading code (if you ever try to read it you will know why it is called CODE) and regulations (U.S. Treasury Dept interpretation of the Code–this is what we think it means) you will find the term INCLUDING EXTENSIONS. This means INCLUDING A TIMELY FILED EXTENSION. […]
RECOVERY REBATE CREDIT & Social Sec Card Wording
RECOVERY REBATE CREDIT ELIGIBILITY You are not eligible for the Recovery Rebate Credit claimed on a 2020 tax return if any of the following applies: You may be claimed as a dependent on another taxpayer’s 2020 return (for example, a child or student who may be claimed on a parent’s return or a dependent parent […]
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When is 28% bracket not 28%?
This is real from a 2014 tax question Question I had a 401K that I cashed in back in November. I paid 20% taxes on it when I did that. I received my 1099-R and while doing my taxes I entered that in and am now being charged another 30% in taxes. I have double […]
Earned Income Credit & Valid Social Security Number
Earned Income Credit & Valid Social Security Number To qualify for the EITC (Earned Income Tax Credit), everyone you claim on your taxes must have a valid Social Security number (SSN). To be valid, the SSN must be: Valid for employment Issued before the due date of the tax return you plan to claim (including extensions*) For […]
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2021 Tax Law Change – Business Meals
Sale Primary Residence BUT NOT TWO YEARS in Last Five
Reduced Maximum Exclusion Code Sec. 121(c)(2) provides for a reduced maximum exclusion for a taxpayer who sells or exchanges his or her principal residence but fails to meet the use-and-ownership requirements or the two-year limitation. In order for a taxpayer to claim a reduced maximum I.R.C. § 121 (c) (2) (B) — such sale or exchange is by reason […]
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2022 Vehicle Mileage Rates
For 2022, the standard mileage rates for cars, vans, pickups or panel trucks) is 58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021, 18 cents per mile driven for medical, or moving purposes for qualified active-duty members of the Armed Forces, up 2 cents from the rate for […]
IRS Backlog Continues
In late November, IRS has still yet to process 6.5 million personal 2020 tax returns. And it is 2.6 million amended returns behind. […]
2022 Gift Tax
Starting in 2022 the gift tax exclusion is $16,000 per donor in a calendar year. […]