Let's talk about the premium tax credit ... the Obamacare subsidy available to eligible individuals who buy health insurance through an exchange. Temporary easings in the March stimulus law hike the credit amount and let more people qualify. Who is eligible for the...

We always appreciate questions from readers. It helps us to know what topics you are interested in. Here are recent queries and our answers. I inherited an IRA from my aunt last year. When must I take distributions from it? You have 10 years from your aunt's death to...

Let's discuss the taxation of capital gains, in light of the president's proposal to impose more taxes on the rich, including higher tax rates on their gains. Long-term capital gains get favorable rates. Profits from the sale or exchange of capital assets held over a...

Thinking about your tax plans for this year? Keep in mind this popular tax write-off: The 20% qualified business income deduction. Self-employed people, farmers, and individual owners of pass-through entities, such as partnerships, LLCs, S corporations and certain...

Readers are intensely interested in IRAs. One topic that comes up the most lately, judging by the number of questions we receive: Required minimum distributions. RMDs are back, after being halted last year. Folks 72 and older must take annual RMDs from traditional...

Revenue lost from tax cheating is huge. $441 billion fell through the cracks yearly from 2011 through 2013, per an IRS calculation last done in 2019. Of that, IRS recouped $60 billion through audits, leaving a net tax gap of $381 billion. The Treasury Dept. says the...

Joe Biden wants to cut a cherished tax break: Stepped-up basis for inherited property. Currently, a decedent's unrealized gains aren't hit with income tax at death, and heirs step up their basis in the assets they receive, equal to fair market value on death. Biden's...

Take a look at the American Families Plan ... which sets forth President Biden's domestic priorities on education, paid leave for workers and more. There are lots of tax proposals for individuals. They include tax breaks and tax increases. Note that the plan's...

Reporting hobby losses is an audit red flag. IRS is on the hunt for taxpayers who year after year report large losses from hobby-sounding activities on Schedule C of the 1040 to help offset other income, such as wages, or business or investment earnings. Revenue you...

Spring is here, tax season is in full swing ... And readers are peppering us with questions. Will RMDs be waived for 2021? No. The CARES Act halted required minimum distributions from IRAs and 401(k)s for 2020. An extension of the waiver wasn't included in the latest...

Democratic lawmakers got a legislative win with passage of the American Rescue Plan Act of 2021. It includes a long-standing Democratic goal: Fighting child poverty through the tax code. There's a revamped child tax credit for 2021. The law hikes the $2,000-per-child...

Do you buy and sell a fair number of stocks? Consider whether you're a trader or investor ... Because there are some major tax differences. We will discuss the basic rules so you can apply them to your own situation when filling out your 2020 return. Key factors...