You can lower your tax bill with the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The AOTC offers up to $2,500 per student for the first four years of higher education, with a partial refund possible. The LLC provides up to $2,000 for various educational courses with no annual limit on claiming it, though income limits apply to both credits.
The unified tax credit allows individuals to reduce their tax burden by merging gift and estate taxes, providing flexibility in distributing wealth. The Tax Cuts and Jobs Act significantly increased the lifetime estate and gift tax exemption to $13.61 million for individuals or $27.22 million for married couples in 2024, but it is set to be reduced by half in 2026 unless Congress intervenes. High-net-worth individuals should consider taking advantage of the higher exemption by making larger lifetime gifts before the reduction to avoid future tax penalties.
32M companies are required to file a BOI report. Learn why and what you must do to comply.
Richard Skinner, CPA, has been promoted to Partner at Stephano Slack.
An employee stock option plan (ESOP) is an often-overlooked exit strategy for business owners. An ESOP is a qualified retirement plan that gives employees ownership in the company through stock. They are flexible, allowing owners to slowly sell their shares over time...
From 2017 to 2022, there were several wide sweeping changes to the Tax Code. From the tax cuts created by the 2017 Tax Act to the legislation passed in 2020 and 2021 in response to the Covid pandemic. These tax law changes have effected most US taxpayers. However,...
The Tax Reduction and Jobs Creation Act of 2017 (The 2017 Act) reduced the number of taxpayers who might be subject to Estate Tax upon their death. The Estate Tax exempts estates under a specific exemption amount. For 2024, the exemption amount is $13.6 million or for...
Today’s topic for Tax Tip Friday is Backdoor Roth IRAs. While Roth IRAs are very popular, many high income taxpayers are unable to contribute due to Modified Adjusted Gross Income (MAGI) limits. The backdoor Roth IRA is a strategy that allows high income taxpayers,...
If you're 70 ½ or older and have a traditional IRA account, you might want to explore the option of making a Qualified Charitable Distribution (QCD). With the ongoing increase in standard deductions, many taxpayers find themselves unable to itemize deductions,...