Credits & Deductions

  • 2020 Recovery Rebate Credit FAQs Updated Again

    The Internal Revenue Service wants taxpayers to know it has revised some of the frequently asked questions (FAQs) surrounding the Recovery Rebate Credit for a second time. The newly updated information is contained in Topic E of Fact Sheet 2022-26, and covers Receiving the Credit on a 2020 tax return. The IRS has modified Questions…

  • Premium Tax Credit FAQs Updated

    The Internal Revenue Service has published a new set of frequently asked questions on the Premium Tax Credit, giving taxpayers the latest and best information on how—and why—to claim the credit. Start with the basics The Premium Tax Credit is aimed at low- or moderate-income taxpayers and families who may not be able to afford…

  • Recovery Rebate Credit FAQs Updated

    The Internal Revenue Service is pushing out a new version of its frequently asked questions (FAQs) for the 2020 Recovery Rebate Credit. The updated information is featured in Fact Sheet 2022-08, which carries the latest information pertaining to tracing payments. While most of the information on the Fact Sheet was updated in December 2021, Question…

  • IRS Explains Credit for Other Dependents

    Much attention has been given lately to the Child Tax Credit and its advance payments. But taxpayers might be able to claim another credit if their dependents don’t qualify for the CTC. Unlike the Child Tax Credit, the credit for other dependents is non-refundable, meaning it can reduce or even eliminate a taxpayer’s tax bill,…

  • Don’t Fall for Fake Charities

    With the passage of Thanksgiving, Americans are shifting into gifting mode. For many, that means giving a holiday monetary gift to a well-deserving charity of one sort or another. Unfortunately, scammers can use this noble intention to enrich themselves through fake charities. While the scammers’ main prize is money, they also can use the fake…

  • Some Non-Itemizers Can Deduct Charitable Donations

    A new provision in the tax code lets more taxpayers deduct up to $600 in donations to qualified charities—even if they don’t itemize.  Itemizing is ordinarily the key that unlocks the charitable donation deduction; taxpayers choosing the standard deduction usually just don’t have that option. A new, albeit temporary, change in the tax law now…

  • What Info is Needed for the Research Credit?

    Businesses and individuals looking to recoup part of their capital spent on research and experimentation of products and processes now have a clearer roadmap on how to do that. The Internal Revenue Service has unveiled the Chief Counsel memorandum, laying out just what information the IRS requires to validate a research credit claim. The memorandum…

  • IRS Spotlights Credit for Other Dependents

    Much has been made recently of the Child Tax Credit. And what’s not to like? This refundable credit could be worth thousands of dollars in refund and recent legislation allows advance payments to qualified taxpayers. But what if a taxpayer’s dependents just don’t qualify for the Child Tax Credit? The Internal Revenue Service there’s a…

  • Work Opportunity Credit Helps to Counter Hiring Crunch

    The American job market is a changing landscape these days. A year ago, the big push was to retain workers in the midst of the COVID-19 pandemic. Now the need is to find new workers to staff a growing economy. To help do just that, the Internal Revenue Service points to the work opportunity tax…

  • Employee Retention Credit Gets More Guidance

    As more employers utilize the employee retention credit to keep their workers employed—and as the pandemic continues to be a factor in American business—the Internal Revenue Service continues to issue guidance on who qualifies for the credit and how best to apply it. The latest round of guidance from the IRS includes clarification for employers…