The Governor has directed the Commissioner of Taxes to exercise his authority to provide relief to Vermont businesses who owe Meals and Rooms Tax or Sales and Use Tax until further notice. Many of our local businesses find themselves unable to meet the March 25 and April 25 filing deadlines due to the implementation of […]
Author Archive | James B. Reynolds
COVID-19 and Your Tax Returns
As you are undoubtedly aware, the country and our community has been coming together in an unprecedented way to contain, reduce and slow the spread of COVID-19. We are encouraged by this cooperation and hoping for the best outcomes possible. With the help and cooperation of everyone in our office, and in our community, we […]
Why you should keep life insurance out of your estate
If you have a life insurance policy, you probably want to make sure that the life insurance benefits your family will receive after your death won’t be included in your estate. That way, the benefits won’t be subject to the federal estate tax. Under the estate tax rules, life insurance will be included in your […]
The 2019 Gift Tax Return Deadline is Coming Up
If you made large gifts to your children, grandchildren or others in 2019, it’s important to determine whether you’re required to file a gift tax return by April 15 (Oct. 15 if you file for an extension). Generally, you’ll need to file one if you made 2019 gifts that exceeded the $15,000-per-recipient gift tax annual […]
Home is Where the Tax Breaks Might Be
If you own a home, the interest you pay on your home mortgage may provide a tax break. However, many people believe that any interest paid on home mortgage loans is deductible. Unfortunately, that’s not true. First, you must itemize deductions in order to deduct mortgage interest. And the deduction is limited. From 2018-2025, you […]
Tax credits may help with the high cost of raising children
If you’re a parent, or if you’re planning on having children, you know that it’s expensive to pay for their food, clothes, activities and education. Fortunately, there’s a tax credit available for taxpayers with children under the age of 17, as well as a dependent credit for older children.
Reasons why married couples might want to file separate tax returns
Married couples often wonder if they should file joint or separate tax returns. It depends on your individual tax situation. In general, you should use the filing status that results in the lowest tax. But keep in mind that, if you and your spouse file a joint return, each of you is “jointly and severally” […]
The tax aspects of selling mutual fund shares
The tax rules involved in selling mutual fund shares can be complex. If you sell appreciated mutual fund shares that you’ve owned for more than one year, the profit will be a long-term capital gain. As such, the top federal income tax rate will be 20% and you may also owe the 3.8% net investment […]
There still might be time to cut your tax bill with IRAs
If you’re getting ready to file your 2019 tax return, and your tax bill is higher than you’d like, there may still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up until the Wed., April 15, 2020, filing date and benefit from the […]
Answers to Your Questions About 2020 Individual Tax Limits
Right now, you may be more concerned about your 2019 tax bill than you are about your 2020 tax picture. That’s because your 2019 individual tax return is due to be filed in less than 3 months. However, it’s a good idea to familiarize yourself with tax amounts that may have changed. For example, for […]
