Dear Magic, I am working on my 2018 taxes now. I understand that the Tax Cuts and Jobs Act is in effect for this year’s taxes. How does this tax reform affect U.S. citizens ages 65 and older? Any financial credits still available for family caregivers? Thanks! Chan Jess—Dear Chan, The new tax laws are […]
How Can You Reduce Your Capital Gains Taxes?
Diane, at age 80, resides in the home she has lived in for nearly 40 years. When she initially purchased the home after her husband’s death, it cost only $25,000 (and she since put in $45,000 in improvements); today it’s worth at least $675,000. Diane’s only child, Michael, moved in with Diane several years ago […]
Taxes in the DMV Area For Retirees
Dear Bebe, My husband and I live in our family home in Northern Virginia, and are both recently retired. What state exemptions and deductions are available for retirees? Could you also tell me about Maryland and DC, since we have family and friends in both places. Thanks for your help! Virginia Seenyor —- Dear Virginia, […]
Internet Scams Targeting the Elderly
Q. My Aunt Julie was recently the victim of tax-related fraud. She explained what happened and I knew right away that it was a scam targeting the elderly. Someone claiming to be from the IRS called her and told her that she owed back taxes and threatened that, unless funds were wired immediately, legal action […]
Is Social Security Taxable?
Q. I retired last year, and started receiving Social Security benefits. I am getting ready to do my taxes, and was wondering if I have to pay federal or state taxes on my Social Security income. My understanding was that Social Security is considered a tax-free benefit, but I heard that is not always the […]
How is the Virginia ABLE Act Affected by the Tax Overhaul?
Q. My sister Sophie is intellectually disabled, but has a knack for baking. She recently enrolled in cooking school to work towards her dream of becoming a pastry chef. My family has been assisting Sophie with her educational expenses by contributing to an ABLE account for her, because it doesn’t affect any other government benefits […]
How Will the New Tax Law Affect Healthcare?
Hi Bebe, I recently read your article about the new tax law. It didn’t talk much about healthcare. Do you know how the tax overhaul will affect healthcare? Thanks for your help, Heath Kerr — Dear Heath, The new tax law will actually be the most important health care legislation enacted since the Affordable Care […]
Often Overlooked Tax Breaks for Seniors
Dear Ribbit, I read recently that Trump’s Tax Plan may eliminate the ability for seniors to deduct their medical expenses. That would certainly be a horrendous result, as my husband and I depend on that deduction. For future reference, what are some other things can seniors deduct? Thanks, Dee Duxions Dear Dee, As we all […]
Tax Advantages and Overlooked Deductions for Retirees
Q. April 15 is quickly approaching, and my husband and I are planning on doing our taxes soon. As retirees, I know that there must be some deductions that we may be overlooking. Of course, similar to most seniors on a fixed income, we want to deduct all we can. Are you aware of any tax advantages or overlooked deductions for retirees for 2016 taxes? A. Tax season is here and, as you mentioned, it’s important to be […]
Special Alert to Existing Clients and Potential Clients
YOUR LIVING TRUST MAY HAVE OUT OF DATE PROVISIONS AND NEED TO BE REVISED AS SOON AS POSSIBLE. A once-popular estate planning tool, called a “Credit Shelter Trust” or – also called a “Bypass Trust” or a “Family Trust” — may now cost families more than it saves. If your estate plan includes one, it could be doing more harm than […]
New, Overlooked, and Odd Tax Deductions for Seniors
Q. With tax season upon us, I am preparing for the grueling task of filing my taxes. I am aware that every year, the IRS makes a litany of changes to the tax code and Congress often weighs in with its own alterations as well. Of course, like most seniors on a fixed income, I want to deduct all I can. Are you aware of […]
Lawmakers Introduce Bill to Provide Tax Credit for Caregiving Expenses
Dear Baxter, I read something about a Bill that was just introduced to provide tax credit for caregiving. I am a part-time caregiver for my father and work 20 hours a week at my job. Iwould be interested in learning more about this, if you can provide any details. Thanks! Bill Foruss —- Dear Bill, […]
Do I need to file taxes for a deceased relative?
Dear Commander Bun Bun, My mother passed away in 2014, and I am the executor for her estate. I typically wait until the last minute to file my taxes. Even though she is no longer with us, do I need to file taxes for her, as well? Thanks for your help! Filene Taxus ——— Dear […]
Ask the Expert: Can You Deduct a Toupee from Taxes?
Q. My boyfriend, Richard, became self-conscious about his baldness last year and went out one day and purchased a toupee. We also took in a foster cat, landscaped our property, and installed an in-ground pool to help us stay fit. I know these things sound random, but I read online that you can deduct some […]
Can You Claim a Pet as a Dependent?
Dear Baxter, My dog, Rover, is like a child to me. He is cute, loveable, and playful, and like a human child, relies on me for support. Vet bills, food, cleanup, and repairs caused by damage, have cost a lot of money this past year. Am I allowed to claim him as a dependent on […]
Are Estate Planning Services Tax Deductible?
Dear Saki and Alley, It is November and the end of the year is drawing near. Every year, at around this time, I begin paying close attention to tax deductions. I was wondering, if I use your firm to do my estate planning in 2014, are my legal expenses tax deductible? Juana Deduct-Allican — […]
LGBTQ Marriage Ruling Brings New Planning Choices
LGBTQ married couples can now celebrate another important victory in their fight for equal rights. Yesterday, the Supreme Court ruled to let the appeals court rulings allowing same-sex marriage in five states stand, clearing the way for same-sex marriages in Indiana, Oklahoma, Utah, Virginia and Wisconsin. Now, same-sex couples can marry in 24 states, along […]