Unfortunately, divorce seems to be a more common theme in the United States as time goes on. 44% of all households contain at least one person who was previously divorced. One of the largest changes that the Tax Cuts and Jobs Act made was with regards to alimony payments, most of which are no longer deductible. However, as with almost everything in the law, there are exceptions. Amounts paid to a spouse or a former spouse under a divorce or separation instrument (including a divorce decree, a separate maintenance decree, or a written separation agreement) may be alimony or separate maintenance payments for federal tax purposes. Certain alimony or separate maintenance payments are deductible
Small business owners, ask yourself this question. What happens to my business if I die? If you’re unsure of your answer, then the first thing you need to consider is developing a succession plan that details the transfer of your business to the next owner. While there are a lot of steps that a business owner can take to protect the next generation of business owners, one of the most important is life insurance. When it comes to life insurance for small business owners, there are typically four policy types to consider. First, a key person plan. The “key person” insurance policy is purchased by a company on behalf of a key executive (i.e the owner). If the person dies prior the policy, then
The Trump administration is in the talks for further economic support during these troubling times. Art Laffer, a member of President Trump’s economic recovery task force and a distinguished economist, has suggested that a payroll tax waiver may be an easy and effective way to further stimulate the economy. What Is a Payroll Tax Waiver? If you look at your pay stub you will notice a series of deductions before coming to the amount you will actually receive. Two of those deductions or items are what is known as a payroll tax. They are usually listed as set forth below: FICA SS TAX FICA MED TAX The Federal Insurance Contributions Act (FICA) has two components - Social Security and Medicare.
On Friday, April 24, 2002 The treasury Department and the IRS released state-by-state statistics for EIPs. There were 88 million individuals receiving payments worth nearly $158 billion in the first three weeks the program has been up and running. "The IRS, Treasury and partner agencies are working non-stop to get these payments out in record time to Americans who need them," said IRS Commissioner Chuck Rettig. "Tens of millions of people across the country are receiving these payments, and millions more are on the way. We encourage people to visit IRS.gov for the latest information, FAQs and updates on the payments." Below is the table provided by the Treasury Department and IRS: Economic
As of April 9th, the IRS has released several Notices and Revenue Procedures providing guidance on obtaining tax relief under the CARES Act for tax payers with net operating losses. Revenue Procedure 2020-24 provides guidance to taxpayers with net operating losses (NOLs) that are carried back under the CARES Act. The guidance provides procedure for: waiving the carryback period in the case of a net operating loss arising in a taxable year beginning after Dec. 31, 2017, and before Jan. 1, 2021, disregarding certain amounts of foreign income subject to transition tax that would normally have been included as income during the five-year carryback period, and waiving a carryback period, reducin
