We get this question a lot at ClarkSilva. Luckily, it’s one of the few tax inquiries that are easy to explain! Short answer: yes, you can potentially deduct medical expenses such as prescription drugs on your federal tax return. That said, it can be hard to qualify for this rule, but with proper planning, you [...]
About bluefishThis author has not yet filled in any details.
So far bluefish has created 9 blog entries.
We get this question all the time at ClarkSilva, and for good reason. It’s tempting to toss old tax returns that no longer seem relevant. But which can go? And, are you opening yourself up to issues down the road by doing so? A good base rule is to save tax records for the past [...]
When you buy gas at the pump you are paying a fuel tax to the federal government that they use to maintain highways and roads. But what if the fuel you are purchasing is actually for off-road use? Answer: You can request a credit for the fuel tax paid on your federal income tax return. [...]
Established in 1996, the Work Opportunity Tax Credit (WOTC) is a federal tax credit available to employers for hiring individuals from certain targeted groups who have consistently faced significant barriers to employment, such as veterans, the physically and mentally disabled, former felons, and other groups in need. The benefits are two-fold: individuals receiving government assistance [...]
Many small businesses and self-employed individuals are familiar with Form 1099-MISC. Starting in 2020, the Internal Revenue Service has split the Form 1099. Non-employee compensation (NEC) will now be reported on a new form, separate from other miscellaneous income types. While the general rules of reporting remain the same, the most significant change is the [...]
Sending gifts to your customers is a smart move for several reasons: it reinforces your relationship, it can be used as a marketing tool, and it can get you a tax deduction. That said, don’t just give, ‘deduct’ the cost, and be done with it; here’s the rules to keep in mind this holiday season. [...]
Tax rates haven't changed since 2018, however, the IRS updates the income brackets annually for inflation. Since tax planning is all about thinking ahead, now’s the opportunity to start planning on how to handle your 2021 finances, in anticipation of filing returns in 2022. Taxpayers will fall into one of seven brackets: 10%, 12%, 22%, [...]
Don’t itemize, but you’re still eager to help your local charity out this season; sound familiar? Good news: the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, created a charitable deduction of up to $300 in 2020, even if you don't itemize. As a result of the Tax Cuts and Jobs Act of [...]
The Coronavirus Aid, Relief and Economic Security (CARES) Act provides qualified retirement plan distribution relief for those who need to withdraw funds from certain retirement accounts. Waiver of the 10% Early Withdrawal Penalty Pursuant to the CARES Act, the 10% early withdrawal penalty is being waived for coronavirus-related retirement distributions, up to an aggregate total [...]