People enrolled in Medicare can not contribute to a health savings account. But do not despair, if you have a balance remaining in an existing HSA. While on Medicare, you can continue to tax-free withdrawals from your account to pay out-of-pocket medical expenses, such as your share of prescription drug costs, co-payments and deductibles. Once […]
More cash donations to charity can be deducted for 2020 under the new law. The 60%- of- AGI limit on cash donations by individuals is suspended. Gifts to donor-advised funds and private non-operating foundations are excluded. The taxable income limit on charitable gifts of cash by C corps rises to 25%. Plus, nonitemizers can write […]
Penalties for failing to report overseas accounts are stiff. $13,481 apiece for nonwillful violations, the larger of $134,806 or 50% of the highest balance in the account for willful failures. Be sure you comply with the reporting rules, because increasing taxpayer compliance in this area is a key IRS enforcement priority. The standard for willfulness […]
The coronavirus paid- leave package includes tax credits for many employers. The law requires firms with fewer then 500 workers to provide paid sick and family leave to employees who can not work because they or a family member is affected by COVID-19, or who need to stay home to care for their kids while […]
NOW there is a 10- year clean-out rule for many beneficiaries of inherited IRAs. The IRA funds must be distributed to them within 10 years of the owners death. This new clean-out rule doesn’t mean that the payouts must be distributed evenly over a 10-year period. The beneficiary can wait until year 10 to take […]
