Tax Warrior Chronicles

Why Beneficiary Designations Are Critically Important

Posted on Wed, Jul 28, 2021

by: Cecilia Fernandes and Robert N. Polans, CPA, MT, PFS, ChFC

 

The COVID-19 pandemic unexpectedly took the lives of many loved ones. It made many of us stop and reflect deeply about what is most important: health and family! With that in mind, there is no better time than now to check your beneficiary designations related to your retirement plan accounts, traditional IRAs and Roth IRAs, tax-deferred annuities, and life insurance policies, to ensure they are all up to date and in line with your overall estate distribution goals.

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Calculating Contributions to 529 College Savings Plans

Posted on Wed, Jul 21, 2021

by: Olivia M. Seneca, MBA

 

College costs have skyrocketed over the last 20 years, causing parents to desperately search for the best savings options for their children’s education. Thankfully, there are a variety of plans to help families start saving from day one. Today, we will discuss Pennsylvania 529 Education Savings Plans, how contributions are calculated, how plans can be beneficial for any family, and how they vary from other state plans.

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Your Child Tax Payments Could Be Coming Soon!

Posted on Mon, Jun 28, 2021

By: Irina Moyseyenko, CPA, MT

 

The IRS finally released the much-anticipated child tax portals and will start making advance payments to those who qualify. As you may recall from our previous blog, the American Rescue Plan Act introduced an enhanced child tax credit and directed the IRS to pay half of the original or enhanced child tax credit in advance for those who qualify. The IRS has been working hard to implement these changes and recently released tools to help with receiving the credit.

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Biden Tax Proposals & Highlights from the Green Book:  Retroactive Capital Gains Tax Increase and the Repeal of the Step-up in Basis, Among Others

Posted on Fri, Jun 11, 2021

With Democrats needing to convince 10 Republicans to cross the aisle to enact a tax proposal in the Senate, President Biden’s tax proposals are most likely to move into, and take shape within, the budget reconciliation process where a simple majority of 51 votes are needed. In a practice not seen since 2016, on May 28, 2021, the Biden Administration reviewed and issued an accompaniment to the Administration’s Budget, referred to as the Green Book, that offers general explanations of the revenue proposals. The Green Book contained more detail, insight, and a couple of surprise changes to proposals in The American Jobs Plan and the American Families Plan, which President Biden released

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Guidelines to Adhere to New Philadelphia Ordinance on Reporting Federal Tax Changes

Posted on Mon, Jun 07, 2021

By: Jonathan S. Kandel, CPA

 

On May 6, 2021, the City of Philadelphia passed Bill No. 210139-AA, an ordinance requiring all Philadelphia taxpayers to report changes to their federal taxable income to the Philadelphia Revenue Department. This new ordinance, which was signed by the Mayor on May 19, 2021, is effective immediately.

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Federal Student Loans and Taxes – A Primer

Posted on Mon, May 24, 2021

By: Steve R. Rossman, CPA, MT

 

The recent spotlight on student loans has been intense. Every consideration from suspending payments to outright forgiveness is being discussed in the halls of Congress and the White House. This topic is widely impactful as a recent Forbes article sites current student loan debt in the Unites States tops a record $1.7 trillion amongst 45 million borrowers. So, what is the law today for how loans are handled in the wake of COVID-19, and what might the tax and financial landscape look like if loans are forgiven? Today, we offer a primer on this very question and its possible outcomes.

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Will Capital Gain Rate Changes Kill Opportunity Zone Investments? Quite the Opposite, in Fact…

Posted on Thu, May 20, 2021

By: Chris Catarino, CPA, MT

 

On April 28, 2021, President Biden unveiled the American Families Plan, which includes significant provisions that would increase taxes for wealthy taxpayers. Among a litany of proposed tax changes is a call to increase the tax rate on long-term capital gains from the current 20% to 39.6%, for households making over $1 million. While the proposed legislation has a way to go before enactment, and is likely to see significant revision, many are concerned with the currently proposed rate increase, especially those investing in Qualified Opportunity Zones (OZ).

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Tax Breaks for Parents in 2021!

Posted on Mon, May 10, 2021

By: Irina Moyseyenko, CPA, MT

 

The American Rescue Plan Act (“Act”), passed in March 2021, provides significant benefits for taxpayers with children. Today we will discuss the increased tax benefits, which are applicable only to tax year 2021. These benefits will revert to their previous amounts and limits unless extended by future legislation.

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IRS Springs a Surprise Interpretation of the 10-Year Rule Under the SECURE Act

Posted on Thu, Apr 29, 2021

By: Elizabeth Witko, Macc, MSF and Robert N. Polans, MT, PFS

 

Important Update:

Shortly after this blog was published on April 29, 2021, we received “unofficial word” from several sources including the AICPA and NAIFA that the IRS intends to correct their confusing guidance in Publication 590-B on Stretch IRA’s and the SECURE Act.  We have been informed that the recent IRS Publication update did not reflect the views of IRS officials drafting new regulations or some Congressional Committee staff members who assisted in the writing of the SECURE Act.  As more information becomes available regarding this development, we will provide an update.

 

Are you someone that inherited an IRA post

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American Rescue Plan Act's Free COBRA Mandate for Businesses - What You Need to Know

Posted on Thu, Apr 01, 2021

Today, a guest blogger looks at an important part of the American Rescue Plan Act of 2021, signed into law last month by President Biden. William Duff Esq., a partner at the law firm Royer Cooper Cohen Braunfeld (RCCB), discusses the mandate for businesses to provide free COBRA coverage for certain beneficiaries.

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