The adventures & musings of an Enrolled Agent representing clients in Tax Controversy cases at the Neighborhood Christian legal clinic - Low Income Taxpayer Clinic.

Indianapolis, Indiana

Avoid a surprise tax bill: get enough tax taken out of pension payments

Avoid a surprise tax bill: get enough tax taken out of pension payments

With tax reform bringing major changes for the year ahead, the Internal Revenue Service urges retirees to make sure they are paying in enough tax during the year by using the Withholding Calculator, available on IRS.gov. The Tax Cuts and Jobs Act, enacted in December 2017, changed the way tax is calculated for most taxpayers includingRead more about Avoid a surprise tax bill: get enough tax taken out of pension payments[…]

Tax Deduction for Alimony Payments? – Yes!

Tax Deduction for Alimony Payments? – Yes!

Over 50% of marriages end in divorce in the United States. Many divorce decrees include provisions for the payment of alimony. The IRS takes the position that such payments constitute a form of income and create an alimony tax deduction for the person making payments. (https://www.irs.gov/publications/p17/ch18.html) According to the IRS, alimony payments are taxable toRead more about Tax Deduction for Alimony Payments? – Yes![…]