WHEN IS EMPLOYER-PROVIDED LIFE INSURANCE TAXABLE?

By | August 1st, 2022|Accounting and Auditing, Estate planning, Retirement, Uncategorized|

If your company benefits include group term life insurance paid by your employer, a portion of the premiums paid for the coverage may be taxable.  Depending on the amount of coverage you’re provided, some of it may create undesirable income tax consequences for you. The cost of the first $50,000 of group term life insurance [...]

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MEDICARE PREMIUMS MAY LOWER YOUR TAXES

By | July 25th, 2022|Accounting and Auditing, Estate planning, Retirement, Taxation|

Do you pay premiums for Medicare health insurance? If so, you may be able to combine them with other qualifying health care expenses and claim them as an itemized deduction for medical expenses on your individual tax return.  This includes amounts for “Medigap” insurance and Medicare Advantage plans, which cover some costs that Medicare Parts [...]

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NONWORKING SPOUSES MAY STILL CONTRIBUTE TO AN IRA

By | June 20th, 2022|Accounting and Auditing, Estate planning, Retirement, Taxation, Uncategorized|

Married couples may not be able to save as much as they need for retirement when one spouse doesn’t work outside the home – perhaps so that spouse can take care of children or elderly parents.  In general, an IRA contribution is allowed only if a taxpayer earns compensation.  However, there’s an exception involving a [...]

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TO GET AN ‘EARLY’ REFUND, ADJUST YOUR WITHHOLDING

By | May 23rd, 2022|Accounting and Auditing, Estate planning, Retirement, Taxation|

Each year, millions of taxpayers claim an income tax refund.  To be sure, receiving a payment from the IRS for a few thousand dollars can be a pleasant influx of cash.  But it means you were essentially giving the government an interest-free loan for close to a year, which isn’t the best use of your [...]

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SHIELD YOUR LIFE INSURANCE FROM FEDERAL ESTATE TAX

By | April 25th, 2022|Accounting and Auditing, Estate planning, Retirement, Taxation|

If you have a life insurance policy, be aware that the proceeds your beneficiary receives could be subject to federal estate tax.  That is, unless you take steps to ensure that the policy isn’t part of your estate. WHAT TO DO Life insurance proceeds will be included in your taxable estate if: Your estate is [...]

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SLIM YOUR 2021 TAX BILL BY FATTENING YOUR IRA

By | March 7th, 2022|Accounting and Auditing, Estate planning, Retirement, Uncategorized|

If you didn’t get around to contributing to an IRA in 2021 and you’re looking for ways to lower your tax bill, you may still have an option.  Qualified taxpayers can make deductible contributions to traditional IRAs until the tax filing date of April 18, 2022, and claim the benefit on their 2021 returns. WHO [...]

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