Menu

Author Archive | James B. Reynolds

What Happens if an Individual Can’t Pay Taxes

While you probably don’t have a problem paying your tax bills, you may wonder: What happens if you (or someone you know) can’t pay taxes on time? It’s important to file a properly prepared return even if full payment can’t be made. Include as large a partial payment as you can. You may be able […]

Continue Reading 0

More Parents May Owe “Nanny Tax” This Year Due to COVID-19

Due to COVID-19, many parents are hiring nannies and babysitters because daycare centers and summer camps have closed. This may result in federal “nanny tax” obligations. You may be liable for federal income tax, Social Security and Medicare (FICA) tax and federal unemployment tax. (Even if you don’t employ a nanny, you may owe nanny […]

Continue Reading 0

The Tax Implications of Employer-provided Life Insurance

Does your employer provide you with group term life insurance? If so, and depending on the amount of coverage, this employee benefit may create undesirable income tax consequences for you. The first $50,000 of group term life insurance coverage that your employer provides is excluded from taxable income and doesn’t add anything to your income […]

Continue Reading 0

Are scholarships tax-free or taxable?

If your child has been awarded a scholarship, congratulations! But be aware that there may be tax implications. Scholarships and fellowships are generally tax-free for students at elementary, middle and high schools, as well as those attending college, graduate school or accredited vocational schools. It doesn’t matter if the scholarship makes a direct payment to […]

Continue Reading 0

Take advantage of a “stepped-up basis” when you inherit property

If you’re planning your estate, or you’ve inherited assets, you may be unsure of the “cost” (or “basis”) for tax purposes. Under the fair market value basis rules (also known as the “step-up and step-down” rules), an heir receives a basis in inherited property equal to its date-of-death value. For example, if your grandfather bought […]

Continue Reading 0

After you file your tax return: 3 issues to consider

After filing a 2019 tax return, there may still be three issues to bear in mind. 1) You can check up on your refund. Go to irs.gov and click on “Get Your Refund Status” to find out. 2) Some tax records can now be thrown out. You should generally save statements, receipts, etc. for three […]

Continue Reading 0

If you’re selling your home, don’t forget about taxes

Traditionally, spring and summer are popular times for selling a home. Unfortunately, the COVID-19 crisis has resulted in a slowdown in sales. The National Association of Realtors reports that existing home sales in April decreased 17.2% from April 2019. Still, many people are selling this year. If you’re one of them, it’s a good time […]

Continue Reading 0