The threshold for deducting medical expenses on Schedule A is 7.5% of AGI. The adjusted-gross-income threshold was slated to jump from 7.5% to 10% after 2018, but the year-end government funding law revived the 7.5% figure for 2019 and 2020.
The fine for filing late returns is higher for returns with post-2019 due dates. The minimum penalty for returns filed 60 or more days after the due date is the lesser of $435 (up from $215) of 100% of the required tax shown on the return.
Settlement proceeds received by a woman from a fertility clinic are nontaxable, IRS privately rules. The woman contracted with the clinic to provide her with a donor egg and embryo transfer through in vitro fertilization. She got pregnant, but discovered after delivering the baby that her child suffered from a genetic condition with physical and […]Northside Tax Service, Tallahassee Tax Service, TallyTaxMan
The tax reform law revamp of the kiddie tax has been repealed. Prior to 2018, children age 18 or younger (under 24 if a student) were taxed on unearned income in excess of a certain amount at their rate or their parents’ rate, whichever was higher. The tax reform law changed the rules to tax […]Northside Tax Service, Tallahassee Tax Service, TallyTaxMan
Many key dollar limits in retirement plans and IRAs are higher in 2020, thanks to prior-year inflation. The maximum 401(k) contribution is $19,500. Those born before 1971 can put in $6,500 more. The caps apply to 403(b) and 457 plans as well. The cap on SIMPLEs is $13,500 plus $3,000 extra for people age 50 […]IRA, Northside Tax Service, Tallahassee Tax Service, TallyTaxMan
The beginning age for taking required minimum distributions rises to 72 from 70 1/2. This easing applies to account owners who turn 70 1/2 after 2019. So if you turned 70 1/2 in 2019, you must still take your first RMD by April 1, 2020. Employees who work past age 72 can delay taking RMDs […]IRA, RMD, TallyTaxMan
Long-awaited IRS guidance on the taxation of virtual currency is out. Preliminary rules from 2014 treat bitcoin and other cryptocurrencies as property for tax purposes. Taxpayers, Congress and tax professional groups have been urging the Service to update its rules, and IRS has now done just that. Among the tax topics addressed: Selling, trading and […]IRS, Northside Tax Service, TallyTaxMan, Virtual Currency