Reduce Tax Liability: Deducting Medicare Premiums

Nanda Kumar, Tax Advisor, Sterling, Virginia, USA, Tax Blog, TaxConnections

Well, it would be a bit of a stretch to say that most of us don’t want to pay taxes. However, who wouldn’t take a tax deduction if it is available? For all those individuals who are looking out for different ways by which they can reduce their tax liability, here is one effective method of doing so. You can include your Medicare premiums and even dental expenses in tax filing for better deductions. Sure, there are some prerequisites and details that one must consider and they are below.

Deducting Medicare Premiums Read More

IRS To End OVDP Sept. 28 – Last Chance For Taxpayers With Undisclosed Foreign Assets

Ronald Marini, Tax Advisor, Tax Blog, Miami, Florida, USA, TaxConnections
WASHINGTON – The Internal Revenue Service today announced (IR-2018-52) that it will begin to ramp down the 2014 Offshore Voluntary Disclosure Program (OVDP) and close the program on Sept. 28, 2018.
By alerting taxpayers now, the IRS intends that any U.S. taxpayers with undisclosed foreign financial assets have time to use the OVDP before the program closes.

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A Secret Few Know About A Graduate Tax Degree

Graduate Tax Degree, Graduate Tax Program, Multinational Tax Job, Kat Jennings, CEO, Tax Blog, TaxConnections

While speaking to the Dean of a graduate tax program recently, I shared with them an important fact. The majority of corporations, public accounting, and law firms all require a graduate tax degree to get through the front door to interview today (or they want to see you are enrolled in a graduate tax program).  If you have a graduate tax degree like an MST, MLST or an LL.M, you made a great career decision already as these tax professionals are the ones who are being hired by major firms today.   Read More

Retirement Plan Contributions In 2018: An Elderly Parent Might Qualify As Your Dependent

Michael Davis, Tax Advisor, Tax Blog, Jamison, Pennsylvania, USA, TaxConnections

The clock is ticking down to the tax filing deadline. The good news is that you still may be able to save on your impending 2017 tax bill by making contributions to certain retirement plans.

For example, if you qualify, you can make a deductible contribution to a traditional IRA right up until the April 17, 2018, filing date and still benefit from the resulting tax savings on your 2017 return. You also have until April 17 to make a contribution to a Roth IRA.

And if you happen to be a small business owner, you can set up and contribute to a Simplified Employee Pension (SEP) plan up until the due date for your company’s tax return, including extensions. Read More

Tax Benefits And Credits: Planning And Saving For College

Ensen Mason, Tax Advisor, Tax Blog, Redlands, California, USA, TaxConnections
As a CPA, I am asked a lot of questions regarding tax benefits and credits for children. One of the more interesting questions I have heard is “Why do they take away benefits as the kids get older? They don’t cost less, they cost more – a lot more”. While I don’t really have a good answer, one thing I do explain is that there are different benefits and credits that apply to older children as it pertains to their college education.
One of the biggest decisions in a person’s life is what college to attend – or whether to attend at all. The decision and the subsequent attendance and performance will likely have more of an impact on their overall comfort and life style than any other event or decision in their lives.

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Foreign Earned Income Exclusion For U.S. Expatriates

Olivier Wagner, Tax Traveler, Vancouver, Canada, Tax Blog, TaxConnections

Even if you have left the United States for a brighter future elsewhere, you  (something not as strong) take a moment and think about any obligations you have towards the IRS. The US retains its right to tax globally its citizens and resident aliens who are a citizen or national of a country with which the United States has an income tax treaty in effect. Only two countries have such a citizenship-based taxation system: the United States and Eritrea.

What Is A Foreign Earned Income Exclusion For U.S. Expats?

The Foreign Earned Income Exclusion (FEIE) is offered to US citizens and resident aliens that are living abroad on a consistent basis, have earned income in a foreign country and can prove that they have done so for the past tax year by satisfying either the Physical Presence Test or the Bona Fide Residence. Read More

IRS Owes $1.1 Billion To Taxpayers In Unclaimed Tax Refunds For 2014 – Is This You?

Lance Morris, Tax Advisor, Bangkok, Thailand, Tax Blog, TaxConnections

US Expats – Have you filed your 2014 US Tax Return?

IRS Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returns

Claim yours now before you are unable to do so – June 15 is the deadline for US Citizens Living Abroad

WASHINGTON ―Unclaimed federal income tax refunds totaling about $1.1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2014 federal income tax return, according to the Internal Revenue Service.

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U.S. Tax Considerations For The Digital Nomad Living Abroad

Ephraim Moss, Tax Advisor, Tax Blog, New York, USA, TaxConnections

In today’s age of “digital nomads,” the idea of working remotely overseas continues to grow in popularity. New programs, such as Remote Year, have further facilitated overseas commuting by organizing year-long trips for employees and freelancers to live in multiple cities abroad. Participants, for example, travel in groups to live in multiple cities throughout Europe, Asia and South America, for one month each over a year period.

Working abroad presents a number of unique U.S. income tax issues and opportunities for the digital nomad.  One main issue is qualification for the Foreign Earned Income Exclusion (“FEIE”), which allows U.S. citizens living abroad to exclude their foreign earned income from U.S. federal taxation. Another important issue is a digital nomad’s potential liability for state and local taxation even during their time living and working abroad. Read More

US Tax Reform: 5 Things Americans Overseas Need To Know

Olivier Wagner, Vancouver, Canada, Tax Traveler, Tax Blog, TaxConnections

What Are The Important Updates One Needs To Know About U.S. Tax Reform?

The New Tax Bill “Tax Cuts and Jobs Act” presents the first major overhaul of the United States federal income tax system in more than three decades. The major benefits will be mostly felt by the large and small businesses. But what’s about tax reform’s impact on Americans overseas?

What Has NOT Changed For Americans Overseas?

  1. You can still use Foreign Earned Income Exclusion or Foreign Tax Credit to lower your tax bill. In 2018 a U.S. expat can exclude up to $104,100 of foreign earned income.
  2. The reporting requirements for FBAR stay in place: you need to file FinCEN Form 114 if you have an aggregate value of over $10,000 in any foreign financial accounts you own or have a signature over.
  3. FATCA and Form 8938 also didn’t have any changes (unfortunately).

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County Auditors Seek Legislation To Increase Real Estate Conveyance Fee Tax Collections

Thomas Zaino, Tax Advisor, Tax Blog, Columbus, Ohio, USA TaxConnections

County Auditors in Ohio are permitted to collect a fee for the administration related to the transfer of deeds.  There are two elements to the “real estate conveyance fee” (which is also commonly referred to as the “real estate transfer tax”).  R.C. 319.54 levies a fee that is measured as 10 cents of every 100 dollars of the value of the real property transferred.  Counties, under R.C. 322.02, are also given the authority to levy an additional real estate transfer tax of up to 30 cents per one hundred dollars of value (grand total of maximum fee/tax of 40 cents of every 100 dollars of value of real property transferred; or, denoted as a decimal 0.004).  Read More

Do Not Let Cryptocurrency Crimp Your Relationship With The IRS

Barry Fowler, Tax Advisor, Tax Blog, Houston, Texas, USA, TaxConnections

Cryptocurrencies such as Bitcoin are becoming more popular as a form of payment and as investment. However, there has been little attention paid to how this virtual currency will be treated by the IRS until now. In fact, the IRS is taking a much closer look and has established some tax guidelines.

According to an article published in, “For federal tax purposes, virtual currency is treated as property and not currency.” They add, “The fair market value of the virtual currency on the date of receipt determines the taxpayer’s basis.”

Some businesses are actually paying employee wages in virtual currency instead of U.S. dollars. Read More

North Carolina Sales And Use Tax Exemptions For Manufacturers Revised Effective July 1, 2018

Aaron Giles, Tax Advisor, Tax Blog, Norcross, Georgia, USA, TaxConnections

North Carolina sales and use tax law provides an exemption for sales of mill machinery, machinery parts and manufacturing accessories, however these items are subject to a 1% privilege tax with a maximum tax of $80 per article until June 30, 2018. The 1% privilege tax has been repealed effective June 30, 2018 by Senate Bill 257 from the 2017 Legislative Session.  Beginning July 1, 2018 purchases of qualifying mill machinery, machinery parts and manufacturing accessories will be exempt from both North Carolina sales and use tax as well as the privilege tax. Read More

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