Passage of the Tax Cuts and Jobs Act (TCJA) in December 2017 has led to confusion over some of the changes to longstanding deductions, including the deduction for interest on home equity loans. In response, the IRS has issued a statement clarifying that the interest on home equity loans, home equity lines of credit and… [keep reading…]
Category: Tax
What’s your mileage deduction?
Individuals can deduct some vehicle-related expenses in certain circumstances. Rather than keeping track of the actual costs, you can use a standard mileage rate to compute your deductions. For 2017, you might be able to deduct miles driven for business, medical, moving and charitable purposes. For 2018, there are significant changes to some of these… [keep reading…]
Recognize the risks of employees’ off-work misbehavior
When employees clock out, whether literally or figuratively, how they choose to spend their time is up to them. But that doesn’t mean a staffer’s off-work misbehavior poses no risk to his or her employer. Your organization can be severely harmed by an employee’s actions — even when he or she isn’t on the job…. [keep reading…]
IRS letter addresses COBRA premiums for HRAs
Employers with 20 or more employees are generally required to offer continuing health care coverage to departing staff members. This is commonly referred to as “COBRA” after the legislation that made it law: the Consolidated Omnibus Budget Reconciliation Act of 1985. Employers may charge a premium for COBRA coverage, but they must step carefully when… [keep reading…]
Tax deduction for moving costs: 2017 vs. 2018
If you moved for work-related reasons in 2017, you might be able to deduct some of the costs on your 2017 return — even if you don’t itemize deductions. (Or, if your employer reimbursed you for moving expenses, that reimbursement might be excludable from your income.) The bad news is that, if you move in… [keep reading…]
Families with college students may save tax on their 2017 returns with one of these breaks
Whether you had a child in college (or graduate school) last year or were a student yourself, you may be eligible for some valuable tax breaks on your 2017 return. One such break that had expired December 31, 2016, was just extended under the recently passed Bipartisan Budget Act of 2018: the tuition and fees… [keep reading…]
New budget agreement brings additional tax changes
The ink on the Tax Cuts and Jobs Act (TCJA), which swept in a tidal wave of changes to federal tax rules, had been dry for only seven weeks before Congress passed more legislation that could affect many taxpayers. The Bipartisan Budget Act of 2018 (BBA), which President Trump signed into law on February 9,… [keep reading…]
Putting a number on employee turnover
Many employers have spent countless hours and dollars recruiting good people. On the one hand, each new hire brings fresh strategic ideas, offers creative feedback and, most important, provides distinctive insight into your organization’s mission and operations. On the other hand, recruiting procedures — even effective ones — can drain financial resources. The solution is… [keep reading…]
TCJA temporarily lowers medical expense deduction threshold
With rising health care costs, claiming whatever tax breaks related to health care that you can is more important than ever. But there’s a threshold for deducting medical expenses that may be hard to meet. Fortunately, the Tax Cuts and Jobs Act (TCJA) has temporarily reduced the threshold. What expenses are eligible? Medical expenses may… [keep reading…]
Payroll matters: 2018 withholding tables are a-changin’
For employers, managing payroll smoothly and properly is a delicate, critical matter. There may be no quicker way to turn a happy employee into a disgruntled one than by mishandling his or her paycheck. This year, employers have an additional challenge to contend with in this area. When Congress passed and the President signed into… [keep reading…]