What are the basics of the stimulus program signed by the President? After months of uncertainty and mounting desperation, U.S. lawmakers have come to a final agreement regarding a second stimulus package as a result of the COVID-19 economic downturn. The agreement was reached late Sunday night on December 20, 2020, on the second-largest stimulus bill in U.S. history (the first stimulus package passed in March is holding the title of “largest stimulus bill”). The bill was sig

Hakeem Abubakr and Saharmila Kassim v. Commissioner gives us an interesting look at how not to report deductions on a tax return. Mr. Abubakr was a travel agent. Ms. Kassim was a software engineer. They reported his business activity on Schedule C, reporting only some $18,000 in gross receipts and claiming over $94,000 of deductions. They used the resulting $76,000 loss to reduce their other income of almost $14,000 in Social Security payments and Ms. Kassim’s $150,000 wage i

Even though there’s less than one month left in the year, you still have some changes that can be made to help stretch your dollar! First, check your withholding with your employer. If you expect to owe more than usual in taxes, then it is likely easier to change your withholding now. It likely won’t eliminate any amounts owed, but it should make a noticeable difference in what you’ll owe after April 15, 2021. Next, make a contribution to your “nest egg”. For some people, thi