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What is a 529 Plan?

A 529 Plan is an investment account that offers tax benefits when used to pay for qualified education expenses.  Investments grow tax free and withdraws are tax- and penalty-free as long as they are used to pay for eligible expenses. Most states offer their own 529 plan; you don’t have to be a resident of the particular state in order to establish an account.  Many states also offer a state income tax deduction or tax credit for 529 plan contributions.  There are even a handful of states Read more [...]
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Understanding Your IRS Notice

Dealing with the IRS can be stressful! There are taxpayers who receive an IRS notice and because they are so fearful, they will pay the notice without verifying the accuracy. The IRS may not have all the facts, so do not pay anything without checking the details. Also, do not ignore any letter sent by the IRS—doing so will only make the situation worse. Understanding your IRS notice empowers you to make the most informed decision for your situation. The IRS sends notices and letters for the Read more [...]
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IRS 2022 Limits

Each year, the IRS adjusts tax rates, standard deduction amounts, and other limits to account for tax law updates and cost-of-living adjustments. Currently for 2022, there are seven tax brackets: 10%, 12%, 24%, 32%, 35%, and 37%. Your filing status (example: single, married filing jointly, head of household) will be the determining factor of where your taxable income will fall within the tax brackets. Keep in mind that should the Build Back Better Act pass in its current form, tax brackets will Read more [...]
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Tax Provisions in the Infrastructure Investment and Jobs Act

While the Infrastructure Investment and Jobs Act of 2021 (IIJA) is primarily a bill that improves roads, bridges, and transit, as well as authorizing additional funding for energy, water, and broadband improvement, there are some tax-related provisions included. Employee Retention Credit Changes The Employee Retention Tax Credit (ERTC), which was a tax credit enacted under the CARES Act, is a provision designated to help small businesses retain their employees during the COVID-19 pandemic Read more [...]
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How to Reconstruct Tax Records After a Disaster

While it’s not always possible to prevent an emergency, you can reduce the likelihood that an emergency will become a disaster by being prepared.  Here are some tips to do just that. Store your documents in a waterproof and fireproof safe that is convenient to access. Make copies of your important documents—store paper copies in a different location than the originals. If making digital copies, store them in the cloud and/or on a portable storage device Make an inventory of your documents—critical Read more [...]