Tax return preparation fees are no longer deductible on Schedule A, thanks to the 2017 tax reform law, which axed all miscellaneous itemized deductions that were previously subject to the 2%-of-adjusted-gross-income threshold. But if you file Schedule C, E or F, you can still write off part of the cost. IRS said in a 1992 […]
For those of you who invest in mutual funds, heed this helpful tax tip: Be sure to account for reinvested dividends in computing stock basis. If, like most mutual fund investors, you have your dividends automatically reinvested to buy more shares, remember that each new purchase hikes your tax basis in the fund. That, in […]
The tax system will feel the effects of the federal shutdown for a long time. The five-week closure in Dec. and Jan. couldn’t have come at a worse time for IRS, which was gearing up for the 2019 filing season, its first under the tax reform law. Some experts say it could take the Service […]
If your child aged out of the $2,000 child credit, you’re not totally out of luck. You may qualify for the $500 credit for other dependents. The tax reform law doubled the child tax credit to $2,000 for each dependent who is age 16 or younger. It also raised the income phase-out thresholds for the […]
IRS gives some welcome relief on the underpayment penalty for 2018. Generally, you escape the fine if you prepay, either through withholding or by making estimated tax payments, the lesser of at least 90% of your 2018 tax bill or 100% of what you owed for 2017 (110% if your 2017 AGI was more than […]
