Estate & Tax Tips
Helpful tips to guide you on your financial journey
Since December 31, 2018 there have been eight federal tax bills enacted. Minnesota is not in conformity with any provisions in these bills.
The much talked about stimulus package was signed late Sunday night. It is a $900 billion Covid-19 relief bill with over 5,000 pages.
The “general rule” is a business owner must issue a Form 1099-MISC or a 1099-NEC (new this year) to each person whom you paid at least $600 in rents, services (including parts and materials) prizes and awards or other income payments.
Although everyone is struggling in this pandemic, also known as the year 2020, if you can find any extra money to give to a charity that might be even more careworn than you, you could get up to a $300 above the line deduction on your 2020 federal tax return.
“I am working from home; can I deduct my house?” Ok, it may not be that direct but we are getting several questions this year about deductible expenses of the home office.
For important insight on the newest PPP ruling, read this article. PPP loans have been perplexing since they were released but there is a new ruling that sheds some light on the stance the IRS wants to take on deductions.
Wealth transfer and taxes, meaning both individual and potentially estate taxes, are important considerations when taking into account a Roth IRA conversion. A primary benefit of conversion is that qualified distributions from a Roth IRA are tax-free. Read more to find out if this is something that would benefit you.
Although we can all relate to the above picture when it comes to 2020, you might be able to have some reprieve from the year with tax options to save you money. Among all of the other things that 2020 has done to you, take the time to review the topics so that you can say you conquered at least one category, taxes!
The roadmap for going back to school this year may seem like a treasure map drawn by your 4 year old but we can show you a guide on how to save on taxes that is a clear path to the red X. Many families with qualifying dependents, grades K-12, have t
he ability to receive a subtraction/credit on their Minnesota return. There is a credit, based on income, and a subtraction based on grade level. So don’t forget to save your receipts for all of your back to school shopping.
Alert! Please be aware that people are taking advantage of the turmoil that has now become the world's norm. There have been many reports of cyber hackers. To learn more about recent attacks and how to prevent them, please read the article below.
It is important to keep up with all of the changes regarding the CARES act. Check out the link below for information on RMD's being waived. Also read about the early withdrawal penalty not being admissible on retirement accounts for some individuals and so much more.
You may want to consider making a last-minute contribution to an IRA. It could help reduce your 2019 tax bill. If you qualify, your traditional IRA contribution may be tax deductible.
PPP Forgiveness - SBA Application:
The AICPA is working with the Small Business Administration to expand the time considered for the payroll deduction and hoping for further discussion for tax deductions of the expenses used by the loan. We will keep you updated.
Still crunching numbers to make ends meet during the Covid-19 pandemic? Check out these options provided by the AICPA that could help provide some relief.
Tax filing due dates are constantly changing. See the most updated list here.