403(b) – Salary reduction retirement plan also known as a tax sheltered annuity for public school employees, tax exempt organizations, and religious organizations. 401(k) – A corporate retirement plan where employees can contribute a percentage of their salary annually. This plan is a “qualified plan” so the employee contribuitons are exlculded from gross income for …
What is Life Insurance? Life insurance is a contract between an insurance company and a policy owner that promises to pay a specified amount of money to one or more beneficiaries when the policyholder dies. The policyholder will typically pay the premium to the insurer during their lifetime in exchange for the beneficiary’s payout. Why …
The Oregon College Savings Plan A “Qualified Tuition Program” or “529 Plan” is a state-sponsored investment plan that allows a taxpayer to save money for a beneficiary’s education expenses. The 529 plan offers tax-free growth on savings and tax-free withdrawals for qualified expenses. Some states also offer annual tax credits or deductions related to the …
To claim a deduction for charitable donations on your taxes, you must have received nothing in return for your donation, and you must itemize deductions on your tax return by filing Schedule A form 1040. This deduction can be taken on your Federal and/or State tax return and includes the donation of cash and household …
How do I record my household goodwill or other charitable donations? Read More »
An IP PIN (Identity Protection Personal Identification Number) is a six-digit number issued by the IRS to a taxpayer that prevents someone else from fraudulently filing a tax return. The IP PIN helps the treasury verify a taxpayer’s identity when they file an electronic or paper tax return. https://youtu.be/YhfSZuwGrlY If you are a confirmed victim …
(IP PIN) Identity Protection Personal Identification Number Read More »
A QCD (Qualified Charitable Distribution) is an otherwise taxable distribution from an IRA (excluding active SEP and SIMPLE) owned by an individual who is age 70.5 or over that is paid directly from the IRA to a qualified charity. Can I make a QCD? Many IRAs are eligible for QCDs – Traditional, Rollover, Inherited, inactive …
The Treasury Department has revealed which cars will be eligible for the new electric vehicle tax credits available under the Inflation Reduction Act. Under the new rule, effective for the 2023 tax year, consumers can receive up to $7,500 back in federal tax credits on eligible vehicles depending on where the EV’s battery components and …
The office in home deduction allows qualified taxpayers in Oregon and the U.S. to deduct an in-home office when they file their taxes. To claim the home office deduction, taxpayers must “exclusively” and “regularly” use part of their home or a separate structure on their property as their place to conduct business. Details about the …
When you sell your primary home, you may be able to exclude $250,000 of gain from the sale and avoid paying taxes on it. The capital gain exclusion is increased to $500,000 for a married couple filing jointly. To qualify for the maximum exclusion of gain, you must meet the Eligibility Test. Eligibility Test Step …
Selling your Primary Home and Calculating the Capital Gain Exclusion Read More »
As a result of the Inflation Reduction Act, the IRS is now offering a Free File Service for Taxpayers who made $73,000 or less in 2022. The service is effective beginning on January 13th 2023; however, those returns won’t be processed until January 23rd, 2023 when the IRS first accepts any electronically filed tax returns. …