U.S. Credit-Card Debt Levels See Record Drop in 2020

U.S. Credit-Card Debt Levels See Record Drop in 2020 Despite the financial challenges experienced by Americans as a result of the coronavirus pandemic, U.S. credit-card debt dropped to record levels in 2020, decreasing by almost $83 billion.1 This unprecedented drop was likely the result of individuals receiving financial assistance through the Coronavirus Aid, Relief, and […]

Due Date for Federal Income Tax Returns and Payments Postponed to May 17

Tax deadline for most individuals: Monday, May 17, 2021 Due to the unusual conditions related to the coronavirus pandemic, the due date for individuals to file 2020 federal income tax returns and make tax payments has been postponed by the IRS from Thursday, April 15, 2021, to Monday, May 17, 2021. No interest, penalties, or […]

Gift and Estate Taxes

If you give away money or property during your life, those transfers may be subject to federal gift and estate tax and perhaps state gift tax. The money and property you own when you die (i.e., your estate) may also be subject to federal gift and estate tax and some form of state death tax. […]

American Rescue Plan Act Provides Relief to Individuals and Businesses

The $1.9 trillion emergency relief package represents an effort to assist individuals and businesses during the ongoing coronavirus pandemic and accompanying economic crisis. On Thursday, March 11, 2021, the American Rescue Plan Act of 2021 (ARPA 2021) was signed into law. This is a $1.9 trillion emergency relief package that includes payments to individuals and […]

National Consumer Protection Week: Beware of Pandemic Scams

National Consumer Protection Week is a coordinated campaign by federal and state government and nonprofit partner organizations to help people understand their consumer rights and make well-informed decisions about money. For more information, visit ftc.gov. This past year, scam artists have taken advantage of people’s concerns over the coronavirus pandemic to defraud them of money. […]

There’s Still Time to Contribute to an IRA for 2020

Making a last-minute contribution to an IRA may help you reduce your 2020 tax bill. If you qualify, your traditional IRA contribution may be tax deductible. And if you had low to moderate income and meet eligibility requirements, you may also be able to claim the Saver’s Credit for 2020 based on your contributions to […]

Pandemic Relief Measures and Your Tax Return

Last year was unpredictable, and your financial situation may have been far from normal Two emergency relief bills passed in 2020 in response to the COVID-19 pandemic will make this an unusual tax season for many taxpayers. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in March, and a second relief package […]

IRA and Retirement Plan Limits for 2021

Many IRA and retirement plan limits are indexed for inflation each year. While some of the limits remain unchanged for 2021, other key numbers have increased. IRA contribution limits The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2021 is $6,000 (or 100% of your earned income, if less), […]

GameStop, Reddit, and Market Mania: What You Need To Know

At the heart of this story are two very different sets of investors: professional managers of multibillion-dollar hedge funds and a small army of individual investors connected through social media.   Over the course of 11 trading days from January 13 to January 28, 2021, the stock of GameStop, a struggling brick-and-mortar video game retailer, […]

Tax Planning for Income

1. Postpone your income to minimize your current income tax liability By deferring (postponing) income to a later year, you may be able to minimize your current income tax liability and invest the money that you’d otherwise use to pay income taxes. And when you eventually report the income, it’s possible that you’ll be in […]