After passage of the Tax Cuts and Jobs Act, your not-for-profit organization could be charged a hefty excise tax if it pays more than $1 million to certain “covered” employees. The IRS recently issued final regulations regarding who and what is taxed under excess compensation rules. This article provides details.
Childhood is fleeting. One day, you’re enrolling your child in kindergarten. Then, before you know it, you’re moving your child into the college dorm. If you’re planning to withdraw money from your child’s Section 529 college savings plan account this summer or fall, it’s important to understand the tax consequences to avoid any unpleasant surprises. There are also ways to structure the payment to help simplify dealing with the IRS.
Before you sell your home or a vacation home, it’s important to review the basics of the federal income tax home-sale gain exclusion. If you qualify, the gain exclusion is one of the most valuable tax breaks on the books. Here’s an overview of how this break works.
Last year, many people decided to take tax-favored coronavirus-related distributions from traditional IRAs under the CARES Act. This was a great way to obtain needed cash if you were adversely affected by the pandemic. But the tax reporting for these distributions and any subsequent recontributions can be confusing. Here’s an overview of the rules and strategies to help you get the best federal income tax results.
Required minimum distributions (RMDs) from qualified retirement plans and IRAs were suspended for the 2020 tax year under the CARES Act. But the reprieve was only temporary. So, people who previously took RMDs must resume distributions in 2021, while anyone who turned 72 last year or will turn 72 this year must start taking RMDs. Here are answers to common questions about the RMD rules.