Children of military personnel who died in active duty are facing a surprise tax bill for their annual survivor’s benefit thanks to the new tax law. The new law simplified the Kiddie Tax by switching the rate from the parents’ rate to trust tax rates. In one case, a 6-year-old owed $7,000 in federal taxes two years after his father, a U.S. Navy senior chief petty officer, died of a heart attack. To read the full article in Financial Planning, click: Tax Surprise for Children of Gold Star Families: Tax Strategy Scan.
-
-
Despite the changes that came with the Tax Cuts and Jobs Act, clients can still claim the child and dependent care tax credit on their 2018 returns. Working parents who paid for day care, summer camp or a babysitter should take advantage of this tax break, which can help them save as much as $1,050 per child below age 13. Those who intend to claim are advised to pay their babysitter legally and remit the necessary employment taxes. “In general, the nanny tax is paid as part of your tax return,” an expert says. To read the full article in…
-
Revenge Porn, Ugg, VirnetX, and Apple This case law highlights a number of patent, copyright, and business valuation cases litigated in the first quarter of 2018. The revenge porn case highlights a distressing but potential opportunity for litigation support professionals. The VirnetX v. Apple and Deckers Outdoor Corporation v. Romeo & Juliette, Inc. cases highlight the perils of patent litigation and fleeting value of patents.
-
We’re quickly approaching the time of year when most contributions are made to IRAs and Roth IRAs. But there are limits to how much can be contributed to an IRA, and exceeding them can result in costly penalties. Ed Slott, CPA, tells us what to look out for. To read the full article in Financial Planning, click: A Tax Nightmare: Excess IRA Contributions.
-
Strategies to Generate Tax-Free Income From making contributions to Roth individual retirement accounts to renting out their homes for 14 days or less, Sean Williams explores seven tactics that clients can use to generate tax-free income. To read the full article in the The Motley Fool, click: 7 Ways You Can Earn Tax-Free Income.
-
Retirement Savings Require Prioritization of Financial Goals Saving for retirement requires balancing several different objectives such as paying down debt, setting aside enough money to handle emergencies, and making contributions to retirement accounts. Brian Preston and Bo Hanson discuss that how you prioritize these goals will depend on your personal financial situation. To read the full article in U.S. News & World Report, click: How to Prioritize Saving for Retirement.