TRJ Accounting

Because people are living longer now than ever before, many individuals are funding in-home care or serving as care providers for loved ones (such as parents or spouses) who cannot live independently. For these individuals, the cost of such care may be deductible as a medical expense.

Tax Accounting Humor Friday

Congress made some significant tax changes that will take effect in the 2020 tax year and may apply to your required minimum distribution (RMD) requirements, IRA contributions, IRA-to-charity transfers, and beneficiary RMDs.

Tax law changes allow either kiddie tax computation to be used in 2018 and 2019, allowing the method that provides the lowest tax to be used. This opens up the possible opportunity to amend the 2018 return for a refund.

Wednesday Wisdom

Taxpayers frequently ask what benefit is derived from a tax deduction. For most non-business deductions, the savings are based upon your tax bracket. For example, if you are in the 24% tax bracket, a $1,000 deduction would save you $240 in taxes. However, some deductions are eliminated or reduced because of thresholds, phase-outs or the AMT.