Inflation-adjusted Health Savings Account (HSA) Figures for 2023

Health Savings Accounts (HSAs) allow eligible individuals to make deductible contributions that can be withdrawn tax-free for reimbursement of eligible medical expenses. For 2023, the limitation on HSA deductions is $3,850 (up from $3,650 for 2022) for an individual with self-only...

I bonds offer a high-return option for some savers

I bonds, an inflation-protected and nearly risk-free investment backed by the U.S. government, will pay 9.62% through October 2022, the U.S. Department of the Treasury announced.  With average savings account yields under 1%, and most one-year CDs paying less than...

Tax refunds are slow coming to paper filers for a second year

In 2020, pandemic-related factors significantly delayed refunds due to taxpayers.  Those filing 2021 taxes may find an unwelcome repeat of last year's delay, as it could again take six months or more for taxpayers who filed paper returns to receive their...

Caretakers may exclude certain Medicaid waiver payments from income

Family members who care for a disabled relative in their shared home, and receive Medicaid payments to provide that care, may qualify for an exclusion of certain Medicaid waiver payments on their gross income calculation. IRS Notice 2014-7 provides guidance on...

Employer-provided tuition assistance programs must meet requirements

An employer-provider educational assistance program is a separate written plan that provides educational assistance only to employees*. For Employers: The program qualifies only if all of the following tests are met: The program doesn't favor highly-compensated employees**. To determine whether...

Tax consequences of compensation clawbacks for issuers and executives

Corporate executives with lucrative contracts can be subject to "clawbacks", or reclaiming of already-paid compensation, for violating company policy, agreement, or law.  This can raise questions about the tax implications for both the company who issued the clawback and the executive...

New IRS proposal could affect timing of inherited IRA distributions

If you've inherited an IRA in 2020 or later, take note: the wait-until-the-tenth-year approach to distributing the account might no longer work.  Most have interpreted the IRS' regulation of the 2019 SECURE Act to mean that an IRA inherited in...

SR Client Question: Is a salary advance taxable?

Some employers offer employees the option of requesting a salary advance ahead of the standard payment date; for instance, the paycheck would be issued on the first of the month, as opposed to the standard payday of the 15th of...

Employee Retention Tax Credits still available for some businesses

Your business may be eligible for an employee retention tax credit, though the program expired in September. There’s still time to file a claim for up to $28,000 per employee, even if you received a PPP loan. Certain startups and...

“Snowbirds” may want to establish residency in their low-tax Florida winter destination

Florida's sunny winter climate is not its only attraction for retirees from chilly northern climates; Florida is also one of only nine states without an income tax. For "snowbirds" who summer in a high-tax state up north, there is a...