Cash Stuffing
When I was a kid, my grandparents kept several envelopes of cash in a desk drawer. It was their budgeting system and when money would come in it was allocated between various upcoming expenses each in a different envelope. It was very quaint, but I never recall them expressing any stress about money. The world…
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Unclaimed Property – Could some of it be yours?
We run this post periodically and, each time several people report finding funds held by the state. Also, we’re just happy to send something out that has nothing to do with COVID and the pandemic. Each year, unclaimed or abandoned assets are turned over to Alabama Unclaimed Property by financial institutions and businesses that lose…
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Charitable Contributions
In 2021, taxpayers who do not itemize are allowed to deduct up to $300 ($600 married filing jointly) of cash contributions made to qualifying charitable organizations. Individuals are allowed to deduct contributions to qualifying charities subject to limits based on adjusted gross income (AGI). For example, an individual’s deduction for a cash contribution to a qualifying…
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State and Local Tax Deductions
If you itemize your deductions, you are allowed a deduction on your federal return for certain taxes you paid. The deduction is commonly referred to as SALT, which is short for state and local tax. This includes real estate taxes, personal property taxes (ie car or boat tags) and state and local income taxes. The deduction is…
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Ukraine to Citizens – No Taxes Due on Captured Russian Tanks
Interesting article from CPA Practice Advisor on Ukraine Tax Authority’s position to pass on captured spoils of war. Spoils of War? Ukraine Says No Taxes Due on Captured Russian Tanks Isaac M. O’Bannon – March 3, 2022, CPA Practice Advisor “Have you captured a Russian tank or armored personnel carrier and are worried about how…
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Tips on How to be a Great Individual Tax Client
We’ve just sent out 2021 individual tax organizers. Clients use the organizer in different ways and complete to different degrees –which is fine. Some are meticulously complete while other organizers are return sealed in the mailing envelope untouched by human hands. The most important part of the organizer are the questions on the first few pages….
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New Alabama Legislation to Exempt Federal COVID Benefits from Alabama Income Tax
Yesterday, Alabama House Bill 231 and Alabama Senate Bill 152 were forwarded to Governor Kay Ivey for signature. This legislation, when signed, will effectively exempt from state income taxes certain federal benefits that taxpayers received from the American Rescue Plan Act last year, a coronavirus relief bill passed by Congress. The exemption applies to the…
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Cryptocurrency Reporting
Perhaps it’s just a generational thing, but to be honest I don’t understand cryptocurrencies. I’ve read various articles and can spout off definitions of blockchain, bitcoin and a host of other cool tech-sounding words and phrases. It does make me feel a little better when I read what the IRS has published over the past couple of years on the subject. It appears to me they are trying to catch up as well.
FEMA is Reimbursing Up To $9,000 For Each COVID-19 Related Funeral
Under the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 and the American Rescue Plan Act of 2021, FEMA is providing financial assistance for COVID-19 related funeral costs. The benefit is a maximum of $9,000 per deceased individual or $35,500 per applicant for multiple deaths. As of January 3, 2022, FEMA received 9,077 applications…
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New 1099 Rules
Section 9674 of the American Rescue Plan (HR 1319) added a requirement that payment processors and online marketplaces send sellers a form 1099K if their annual activity exceeds $600. The idea is to provide additional information to the IRS to allow them to catch tax cheats in the gig economy. Sounds reasonable. The problem is…
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