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 … [Read more...]

Critter Corner: 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 … [Read more...]

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 … [Read more...]

Critter Corner: 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 … [Read more...]

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 … [Read more...]

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 … [Read more...]

Critter Corner: 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 … [Read more...]

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 … [Read more...]

Critter Corner: 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 … [Read more...]

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 … [Read more...]

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