Many people are thinking about buying electric vehicles because of their advanced technology, high gas prices and the fact there are more models available today. Along with factors like acceleration and the battery range, check out the federal tax break that may be available.
Author Archive | James B. Reynolds
How disability income benefits are taxed
How is disability income taxed? The answer is: It depends on who paid for the benefit. If the income is paid directly to you by your employer, it’s taxable to you just as ordinary salary would be. Frequently, the payments aren’t made by an employer but by an insurance company under a policy providing disability […]
Vehicle expenses: Can individual taxpayers deduct them?
Individuals can deduct vehicle-related expenses in certain circumstances. Unfortunately, under current law, you may not be able to deduct as much as you could years ago. For 2018 through 2025, business and moving miles are deductible only in limited circumstances. Fortunately, if you’re eligible to deduct driving costs, the IRS recently increased the standard amounts […]
Five Tax Implications of Divorce
Are you getting divorced? In addition to the tough personal issues you’re dealing with, tax concerns should be addressed to keep taxes to a minimum. For example, if you sell your personal residence or one spouse remains there while the other moves out, you want to make sure you’ll be able to avoid tax on […]
Your estate plan: Don’t forget about income tax planning
The current federal estate tax exemption ($12.06 million in 2022) means that many people aren’t concerned with estate tax. But they should still plan to save income taxes. For example, be careful making lifetime transfers of appreciated assets. It’s true that the assets and future appreciation generated by them are removed from your estate. But […]
Social Security benefits: Do you have to pay tax on them?
If you’ve begun receiving Social Security benefits, you may wonder: Will my benefits be taxed? It depends on your other income. If you’re taxed, up to 85% of your payments could be hit with federal income tax. If you file a joint tax return and your “provisional income,” plus half your Social Security benefits, isn’t […]
Is it a good time for a Roth conversion?
The stock market downturn has caused the value of some retirement accounts to decrease. But if you have a traditional IRA, a downturn may provide a valuable opportunity: It may allow you to convert to a Roth IRA at a lower tax cost. Roth IRA qualified withdrawals are tax free and you don’t have to […]
The ins and outs of Series EE savings bond taxation
Do you have Series EE savings bonds purchased years ago? You may wonder how the interest is taxed. EE bonds don’t pay interest currently. Instead, accrued interest is reflected in their redemption value. (Owners can elect to have interest taxed annually.) EE bond interest isn’t subject to state income tax. And using the money for […]
IRA charitable donations: An alternative to taxable required distributions
Are you charitably minded? If you’re 70½ or older, you may want to consider making a cash donation to a qualified charity out of your IRA. When distributions are taken out of traditional IRAs, federal income tax (and possibly state tax) must be paid. One way to transfer IRA assets to charity is via a […]
Caring for an elderly relative? You may be eligible for tax breaks
Taking care of an elderly parent or relative may provide more than just satisfaction. You could also be eligible for tax breaks. For example, if the individual qualifies as your “medical dependent,” and you itemize deductions on your return, you can include any medical expenses you incur for the relative along with your own when […]
