One of the most common misconceptions about filing an income tax return is the distinction between deductions and credits. Deductions lower a taxpayer’s taxable income before the tax is calculated. For instance, on an individual return, you can either claim… Read more »
Read Full Newsletter »Federal Tax for Individuals, Tax Credits, tax deductions, VWC CPA's
The individual alternative minimum tax (AMT) rules were made more taxpayer-friendly for 2018 through 2025 by the Tax Cuts and Jobs Act (TCJA). The odds that you’ll owe the AMT for those years have been significantly reduced — and, if you… Read more »
Read Full Newsletter »AMT, exemption deductions, home equity loan, ISOs, SALT deductions, Tax Credits
President Trump signed the Consolidated Appropriations Act (CAA) into law on December 27, 2020. The legislation adds a few new tax breaks for businesses and extends a bevy of other business breaks that were set to expire at the end of… Read more »
Read Full Newsletter »Appropriations Law, Business Deductions, CARES Act Loan Forgiveness, Depreciation for Residential Rental Property, Empowerment zone Breaks, NOL Rules, Tax Credits
The massive COVID-19 relief bill signed by President Trump on December 27, 2020, contains a variety of tax breaks and authorizes direct payments to eligible individuals (see right-hand box). The law is titled the Consolidated Appropriations Act of 2021 (CAA) but… Read more »
Read Full Newsletter »Charitable Gifts, College Tuition Deduction, Educator Expense Deductions, Forgiven Mortgage Debt, New FSA Rules, Tax Credits