Resources For Individual Taxpayers
COVID-19 RESOURCE CENTER
IRS Provides Relief for Mid-Year Changes to Health and Dependent Care Flexible Spending Arrangements (FSAs)
In response to the COVID-19 crisis, on Tuesday, May 12 the IRS announced relief for Section 125 cafeteria plans during calendar year 2020, providing increased flexibility for: employer-sponsored health coverage health Flexible Spending Arrangements (health FSAs)...
IRA-to-Roth IRA Conversion Opportunity Exists in Current Economic Downturn
While an economic downturn is never good news for investors, it presents a potentially valuable opportunity for individuals considering converting their traditional IRA (and funds that have been rolled over from a qualified plan) to a Roth IRA. It is important to...
Temporary Waiver of Required Minimum Distributions Under CARES Act
The Coronavirus Aid, Relief and Economic Security (CARES) Act waives all required minimum distribution (RMD) requirements for tax-qualified defined contribution plans including IRAs for the calendar year 2020. The 2020 RMD waiver applies to individuals who have...
Pennsylvania Begins Implementing New Federal Unemployment Benefits: Eligible Claimants Get Extra $600 Starting Week of April 13
An announcement from Governor Wolf’s office on April 10 stated “The Pennsylvania Department of Labor & Industry (L&I) is implementing new federal unemployment…
Internal Revenue Service (IRS) Launches New Tools for Economic Impact Payments
The IRS launched a new tool on their website to help non-filers register for Economic Impact Payments. According to the IRS individuals who should be using this tool are eligible U.S. citizens or permanent residents who: Had gross income that did not exceed $12,200...
CARES Act | Recovery Rebates for Individuals
The Coronavirus Aid, Relief, and Economic Security (CARES) Act has made available over $300 billion for direct cash payments to most U.S. individuals and families. The rebate will consist of $1,200 per individual ($2,400 for joint filers), plus $500 per child....
CARES Act | Special Rules for Using Retirement Funds for Coronavirus Costs
If you take money out of a qualified retirement plan before age 59 1/2, you not only pay income tax on the distribution, but generally there is a 10% penalty as well. There are several exceptions to the penalty and the CARES Act adds a new one, allowing a taxpayer to...
CARES Act | Changes to Charitable Contributions
Charitable contributions have been itemized deductions for individual taxpayers. However, due to the high standard deductions, only 8% of taxpayers itemized. If a taxpayer was in that 8% they got a benefit from charitable contributions, if they were in the other 92%...
CARES Act | Exclusion from Income of Employer Payment of Employee Student Loan Debt
As a general rule, if someone pays a debt on your behalf, you have taxable income. As part of the CARES Act, an employer can pay up to $5,250 in 2020 of an employee’s student loan obligation on a tax-free basis. Note, however, that this provision modifies existing...
CARES Act | Pandemic Unemployment Assistance
The Coronavirus Aid, Relief, and Economic Security (CARES) Act expands unemployment benefits in four ways: Self-employed individuals and subcontracted individuals are now covered. In addition to state benefits that would normally be received the Federal government...