Waterfront Tax & Accounting Blog

 The IRS has advised that high-deductible health plans (HDHPs) can pay for 2019 Novel Coronavirus (COVID-19)-related testing and treatment without jeopardizing their status. If you have a HDHP that covers these costs, you may continue to contribute to a health savings account (HSA). Health plans ...

Even if you don't itemize tax deductions, you may be eligible to claim multiple above-the-line deductions and/or tax credits on your 2019 federal tax return. Above-the-line deductions reduce your tax by directly lowering your taxable income. Tax credits are directly subtracted from your total tax...

Some home expenses are deductible on your 2019 tax return whether you use your home for business or not. Others home expenses are deductible on your 2019 tax return only if the home is used for business. Deductible Home Expenses Regardless if used for Business or NOTThe following are deductible a...

If for any reason you will not be able to file your 2019 federal tax return by the April 15, 2020 due date, you can avoid some—but not all—penalty charges by requesting a filing extension. Most taxpayers can receive an automatic extension of up to six months simply by submitting IRS Form 4868. Ta...

Many taxpayers were surprised to learn that they needed to include multiple numbered schedules with their 2018 federal Form 1040s. Since the IRS has now combined some of these schedules, there are fewer numbered schedules overall for 2019. However, as a result of this consolidation, the 2019 sche...

Now is the time to prepare to file your 2019 tax return, and the IRS is reminding taxpayers that certain end-of-year financial transactions might have significant tax impacts. Tax withholding from paychecks does not ordinarily take into account income sources like yearly or holiday bonuses, stock...

If you don’t have the money to pay your taxes this year it is far better to file your return on time and not pay your taxes than it is to not file your return at all. The failure-to-file penalty may be 10 times more than the failure-to-pay penalty. Not filing your return will cost you an addition...

For individuals, basic currency transactions like exchanging dollars for euros while traveling generally have no tax implications. However, the IRS treats virtual currencies like Bitcoins (also called cryptocurrencies) as property, not as true currencies. As a result, many transactions with virtu...

This blog provides guidance for taxpayers who are undergoing an IRS audit. It includes an overview of how audits are conducted as well as a strategy for preparing for the audit. The IRS website defines an Audit as: “An IRS audit is a review/examination of an organization's or individual's account...

The IRS has confirmed that the individual tax filing season will start on Monday, January 27, 2020 and the deadline to file 2019 tax returns and pay any taxes owed is Wednesday, April 15, 2020.Although the IRS systems open for processing on January 27, you do not have to wait until then to begin ...