4Thought Blog

4thought graphic - blog 2020

Rent Your Vacation Home? Watch for Adverse Tax Consequences

Posted by Concannon Miller on Thu, May 13, 2021

Do you own a vacation home that's classified as a rental property for tax purposes? Rental property owners may be tempted to use their rental properties for their personal "staycations" or as remote office locations during the COVID-19 pandemic.

But this could cause adverse tax consequences, depending on your situation. Here's what you need to know.

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Topics: Individual tax planning

Bitcoin and Other Virtual Currencies: The Impact on Your Tax Situation

Posted by Concannon Miller on Tue, Apr 27, 2021

Virtual currencies, also known as cryptocurrencies, have gone mainstream. For example, you can use Bitcoin to buy a Tesla, or you can use a Bitcoin wallet on your smartphone to make everyday purchases. But beware: Using virtual currency has federal income tax implications that may surprise you.

With increasing market acceptance and the skyrocketing price of Bitcoin, virtual currency has become an IRS hot-button issue. Here's an overview of the tax rules that apply to this blockchain-based method of payment.

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Topics: Individual tax planning

Child and Dependent Care Credit: Learn the New Benefits for 2021

Posted by Concannon Miller on Tue, Apr 20, 2021

The American Rescue Plan Act includes major, but temporary, changes to the longstanding federal income tax child and dependent care credit.

The changes are favorable for most taxpayers, except high-income individuals. Here's what you need to know about this credit and how it's changing for 2021.

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Topics: Individual tax planning

The New Child Tax Credit: How Much More Will You Get?

Posted by Concannon Miller on Thu, Mar 25, 2021

The American Rescue Plan Act significantly liberalizes the rules for the federal child tax credit, which means more money in the pockets of eligible parents this year.

However, the liberalizations are only for the 2021 tax year. Here's the story.

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Topics: Individual tax planning

IRS Extends Federal Income Tax Deadline to May 17, 2021

Posted by Concannon Miller on Thu, Mar 18, 2021

The IRS has announced a one-month extension for filing federal individual income tax returns to May 17, 2021.

The extension affects the filing of your federal individual income tax return and your federal tax payment for the year 2020.

The extension was made to allow for more time to adjust to the many tax changes included in the third stimulus act – officially known as the American Rescue Plan – which passed earlier this month. Get details on the many changes for individuals and businesses here.

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Topics: Individual tax planning

Deducting Home Office Expenses for Telework: The Pros & Cons in Pennsylvania

Posted by Pennsylvania Department of Revenue on Tue, Mar 16, 2021

The COVID-19 pandemic has brought about a great deal of changes for Pennsylvanians, with one of the biggest disruptions coming in the workplace. Namely, many taxpayers are now finding themselves working from home, setting up workstations at their kitchen tables or in their home offices.

With remote work becoming commonplace, the Pennsylvania Department of Revenue has received questions from taxpayers who are wondering about the deduction of home office expenses on their 2020 tax returns and wrote this article to answer taxpayers’ questions.

The guidance below pertains mostly to Pennsylvania taxes — not federal taxes. (Some federal guidance can be found here.)

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Topics: Individual tax planning

Act Now on These Expiring Business, Individual Tax Benefits

Posted by Concannon Miller on Tue, Nov 24, 2020

The CARES Act granted several valuable federal tax breaks for individuals and businesses. But most will expire at the end of 2020 or at the end of tax years that begin in 2020.

Here's a roundup of tax breaks scheduled to go off the books soon, unless Congress extends them.

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Topics: Business tax planning, Individual tax planning

Biden’s Tax Plans: The Key Changes for Businesses, Individuals

Posted by Concannon Miller on Thu, Nov 12, 2020

President-Elect Joe Biden has expressed support for major changes to the current federal tax laws, though with control of the Senate still up in the air, it’s unknown which of his plans may come to fruition.

But it’s still wise to educate yourself on his plans, especially as you start working on year-end tax planning. Biden’s plans may mean rollbacks or revisions of several Tax Cuts and Jobs Act provisions.

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Topics: Business tax planning, Individual tax planning

Strategies to Save on Personal Taxes in 2020 and Beyond

Posted by Concannon Miller on Thu, Nov 5, 2020

It’s time to implement strategies to help reduce your 2020 federal income tax bill and position yourself for future tax savings.

Here are some ideas to consider before year end.

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Topics: Individual tax planning

Act Now: 7 Tax Breaks for Individuals Expiring in 2020

Posted by Concannon Miller on Tue, Oct 6, 2020

Several significant federal tax breaks are set to expire at the end of 2020, unless Congress renews them.

Lawmakers customarily extend these so-called "extender" provisions for another year or two, sometimes retroactively. However, in this tumultuous time, nothing is certain.

In the face of that uncertainty, you should consider the following seven tax breaks that are scheduled to go off the books at the end of this year.

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Topics: Individual tax planning

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