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Author Archive | James B. Reynolds

Plan ahead for the 3.8% Net Investment Income Tax

High-income taxpayers face a 3.8% net investment income tax (NIIT) that’s imposed in addition to regular income tax. The NIIT applies only if modified adjusted gross income (MAGI) exceeds: $250,000 for married taxpayers filing jointly and surviving spouses; $125,000 for married taxpayers filing separately; and $200,000 for unmarried taxpayers and heads of household. The amount […]

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Still have questions after you file your tax return?

After filing a tax return, you may have questions. 1) When will you receive your refund? Go to irs.gov and click on “Get Your Refund Status” to find out. 2) How long should you save tax records? In general, save records for three years after filing although you should keep the actual returns indefinitely. However, […]

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Working in the gig economy results in tax obligations

Before the pandemic hit, the number of people engaged in the “gig” or sharing economy was growing. And even more people turned to gig work during the pandemic to make up lost income. There are tax consequences for the people who perform these jobs. Generally, if you receive income from gigs or freelancing, it’s taxable. […]

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Home Sales: How to Determine Your “Basis”

If you’re buying or selling a home, you should know how to determine your basis. The law allows an exclusion from income for all or part of the gain realized on your home sale. The general exclusion limit is $250,000 ($500,000 for married taxpayers). You want your basis to be as high as possible in […]

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Who Qualifies for “Head of Household” Tax Filing Status?

When you file your tax return, you must check one of the following filing statuses: Single, married filing jointly, married filing separately, head of household or qualifying widow(er). Who qualifies to file as a head of household, which is more favorable than single? To qualify, you must maintain a household, which for more than half […]

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