Adam’s Tax Blog

Taxpayers now have more time to file their tax returns and pay any taxes owed because of the coronavirus (COVID-19) pandemic. The Treasury Department and IRS announced that the federal income tax filing due date is automatically extended from April 15, 2020, to July...

Businesses across the country are being affected by the coronavirus (COVID-19). Fortunately, Congress recently passed a law providing at least some relief. In a separate development, the IRS has issued guidance allowing taxpayers to defer any amount of federal income...

If you have a life insurance policy, you probably want to make sure the life insurance benefits your family receives after your death won’t be included in your estate. That way, the benefits won’t be subject to the federal estate tax. Under the estate tax rules, life...

Do you own a business but haven’t gotten around to setting up a tax-advantaged retirement plan? If not, it’s not too late to establish one and reduce your 2019 tax bill. A Simplified Employee Pension (SEP) can still be set up for 2019, and you can make contributions...

If you made large gifts to your children, grandchildren or other heirs last year, it’s important to determine if you’re required to file a 2019 gift tax return. In some cases it may be beneficial to file one even if it’s not required. Who must file? Generally, you...

You probably know there’s a tax advantage to taking money out of a C corporation as compensation rather than dividends if you own an incorporated business.. The reason is simple. A corporation can deduct the salaries and bonuses that it pays executives, but not its...

If you’re a homeowner, the interest you pay on your home mortgage may provide you with a tax break. However, many people believe that any interest paid on their home mortgage loans and home equity loans is deductible. Unfortunately, this isn’t true. First, keep in...

If you own a business, be aware that a recent tax law extended a credit for hiring individuals from one or more targeted groups. Employers can qualify for a valuable tax credit known as the Work Opportunity Tax Credit (WOTC). The WOTC was set to expire on December 31,...

If you’re a parent, or you plan on having children, you know it’s expensive to pay for their food, clothes, activities, and education. Fortunately, there’s a tax credit available for taxpayers with children under the age of 17, and a dependent credit for older...

If you’re self-employed and work out from an office in your home, you may be entitled to home office deductions. However, there are some strict rules you must follow to qualify. If you qualify, you can deduct the “direct expenses” of the home office. These include the...

Do you conduct your business as a sole proprietorship or as a wholly owned limited liability company (LLC)? If you do, you’re subject to both income tax and self-employment tax. There may be a way to cut your tax bill by using an S corporation. Self-employment tax...

Married couples frequently wonder whether they should file joint or separate tax returns. The answer depends on your individual tax situation. It generally depends on which filing status results in the lowest tax bill. But something to keep in mind is that, if you and...