Dear Raider, A friend of mine told me that there has been an uptick in tax season scams, where identity thefts and refund thefts are taking place. What is this all about so we can stay vigilant? Thanks for your help! Rhee Fundthefft — Dear Rhee, Unfortunately, this is correct. Last year, the IRS received […]
How Are Taxes Filed if One Spouse is on Medicaid and the Other Spouse Has an Irrevocable Trust? And Does Getting Social Security Change How Taxes Get Filed?
Q. Thank you again for working with our family last year to protect our parents’ assets, get our father approved for nursing home Medicaid, and set up an irrevocable Living Trust Plus for our mother. Now that it’s tax time, we have numerous questions. I’m helping my mother this year for the first time given […]
What Tax Deductions Should Seniors Know About this Year?
Dear Kiwi and Mango, We are filing our taxes this weekend. Are there any special tax deductions we should be aware of for seniors for the 2023 tax year? Thanks for your help! Dee Duxshuns — Dear Dee, Many seniors are missing out on tax deductions and tax savings! The following deductions could be very […]
What Are Some Tax Breaks for Veterans?
Q. Due to inflation, rising costs of home ownership, and increased property taxes, everything is so expensive these days. As veterans, my husband and I can use any tax breaks we can get. I know that you are accredited to work with veterans at your firm. Do you know what tax breaks my husband and […]
Property Tax Exemptions for Veteran Homeowners
Dear Raider, Home values went up so much last year that our property taxes have increased dramatically. My husband is a disabled veteran. Are there any programs where disabled veterans can get a property tax break or even have them waived? Thanks so much for your help! Payton Tacksess — Dear Payton, Thank you to […]
Using LLCs and Asset Protection Trusts for Asset Protection of Rental Property
Q. I own a rental property in Springfield, Virginia, that’s just in my name. I heard the best way to protect my assets, should I be subject to a lawsuit, is by creating an LLC for my rental and deeding the house to the LLC. But I also know that your firm offers asset protection […]
What Is the Difference Between a Tax Credit and a Tax Deduction?
Q. When talking about taxes, I’ve heard phrases including, “just write it off,” “go ahead and deduct it,” and sometimes “I think there’s a tax credit for that.” My understanding is that both tax deductions and tax credits can save me money on taxes, but I’m unclear on the difference between the two. I saw […]
How Can I Get Organized and File Taxes Earlier this Year?
Dear Angel, Tax season is upon us, and I heard that it may take longer to get tax refunds this year. I am not the most organized person in the world, but want to make sure I am prepared earlier than usual this year since I usually wait until the last minute. Do you have […]
Farr Law Firm Now Filing Tax Returns for Our Clients
Q. My sister and her husband set up an irrevocable asset protection trust with your firm as part of their estate planning. She was trying to explain this type of trust to me, but I still don’t understand, so I signed up for one of your upcoming seminars. She is a very prepared person and […]
Farr Law Firm Now Filing Estate Tax Returns and Gift Tax Returns — What You Need to Know
Dear Oakley, My father died last year at the age of 95, and my mother is still alive, but she’s in an assisted living facility suffering from pretty significant memory loss. I’m wondering if you can tell me whether I need to file an IRS Form 706 Estate Tax Return, and if your firm helps […]
Giving Gifts to Grandchildren Without Wrecking Your Own Financial Future or Creating a Sense of Entitlement
Q. I have six grandchildren — three from each of our two daughters. They live close by so I see them often and adore every one of them. I am not getting any younger and have some money I’d like to gift to them now, while I am still alive, so I can see them […]
What are the Medicaid, Tax, and Liability Implications of Paying an Independent Caregiver?
Q. We are getting ready to hire a new caregiver for my mom, and she is an independent contractor. Prior to now, we have hired caregivers from an agency. The caregiver has asked about being paid in cash, which will amount to $3,000 per month. How does payroll, taxes, and insurance work for an independent […]
What Taxes Do We Need to Pay for an Independent Caregiver?
Dear Oakley, We are hiring an independent caregiver, meaning she is not from an agency. My understanding is that we are responsible for paying taxes for her, since she is considered to be a household employee. What taxes are we responsible for paying? Thanks for your help! Payton Ataxis —- Dear Payton, As an employer […]
Does my Life Estate Qualify for Real Estate Tax Relief? Links for all County and City Tax Relief Applications.
Q. My mom has owned her home for over 20 years. Last year she came to your firm and did an irrevocable Medicaid Asset Protection Trust. Your firm deeded her house into the trust but had her keep a life estate in the house. She now wants to apply for real estate tax relief, which […]
What Tax Changes Should I Be Aware of Before I File?
Dear Oakley, I’m getting ready to file my taxes for 2020. I know that last year was different than most years in many ways, including getting stimulus checks from the government. Is there anything I should know before I file my taxes? Thanks, Chan Jess — Dear Chan, Tax season has officially kicked off, and […]
How is Income in Irrevocable Grantor Trusts Taxed?
Q. My mother set up an irrevocable grantor trust with your firm as part of her estate planning. Can you explain more to me about what that means? She also asked me to inquire about how the trust’s income is taxed and what forms she should use to file. Thanks for your help! A. Thanks […]
Easing Tax Time for Seniors
Erin loves the winter season in the DC area. She enjoys the brisk weather and the beauty that surrounds her, especially when the ground and the trees are covered with a light dusting of snow. She celebrates three of her grandchildren’s birthdays in February and her anniversary and St. Patrick’s Day in March. One thing […]
IRAs and Taxes in 2020
Dear Ernie and Jannette, As part of my retirement portfolio, I have IRAs. I’d like to make the most of these accounts and save money on my taxes both now and in the future. Do you have any tips that could help? Thanks! Ira Sentaxes — Dear Ira, As you likely know, IRAs are useful […]
How Taxes Work if You Have a Paid In-Home Caregiver
Stacey, an only child, was an in-home caregiver for her ailing mother for several years. She lived with her mom and cared for her while she completed college and graduate school, and even after she got married. However, after three children, one of whom has special needs, caring for her mother and her children became […]
Do You Need to Pay Taxes if You Are Only Collecting Social Security?
Q. My husband and I plan to retire when we turn 70 and hope to live the “American dream.” We have saved our whole life to be able to enjoy our summers up north and our winters in Florida. After decades of having Social Security payroll taxes withheld from our paychecks, we feel like we’ve […]