Posts Tagged ‘Individual’

Charitable OrganizationsQualified charitable organizations include nonprofit groups that are religious, charitable, educational, scientific, or literary in purpose, or that work to prevent cruelty to children or animals. Online search tool. The IRS provides a way to search for qualified charitable organizations online at www.irs.gov/charities- non-profits/search-for-tax-exempt-organizations. If you receive a benefit in exchange for a charitable…

Q&A with virtual currency Q1: How is virtual currency treated for federal income tax purposes?A1. Virtual currency is treated as property and general tax principles applicable to property transactions apply to transactions using virtual currency. For more information on the tax treatment of virtual currency, see Notice 2014-21. For more information on the tax treatment…

Gift TaxThere is no dollar limit on the amount that one person is allowed to give to another. Gift tax rules do not prohibit a donor from making gifts in excess of the annual exclusion ($19,000 for 2025). However, if more than the annual exclusion is given to any one recipient, other than a spouse…

Q&A with virtual currency Q1: What is virtual currency?A1. Virtual currency is a digital representation of value, other than a representation of the U.S. dollar or a foreign currency (“real currency”), that functions as a unit of account, a store of value, and a medium of exchange. Some virtual currencies are convertible, which means that…

If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, exceeding certain thresholds, the Bank Secrecy Act may require you to report the account yearly to the Department of Treasury by electronically filing a…

Crypto Currency If you have been paid for services in virtual currency, this payment is generally recognized as ordinary income and should be reported on your tax return. It is important to be able to understand how to determine basis, gains and losses to help ensure accurate reporting. The IRS has compiled several frequently asked…

Education Tax Benefits If you pay tuition, fees, and other costs for attendance at an eligible educational institution for yourself, your spouse, or your dependent, you may be able to take advantage of one or more of the education tax benefits.You can claim more than one education benefit in a tax year as long as…

Identity Theft and Your Taxes Your identity and money can be stolen in a tax-related scam via email (“phishing”), fax, phone, or letters. Some common examples of identity theft scams are:• Phone scam. A bogus phone call or text message where you are told you owe the IRS money and threatened that a warrant will…

Record keeping is an important part of any investment transaction. With the rising popularity of cryptocurrencies, we have had many clients ask us what records they need to maintain regarding their transactions in virtual currencies. The Internal Revenue Code and regulations require taxpayers to maintain records that are sufficient to establish the positions taken on…

The federal income tax is a pay-as-you-go tax. You must pay the tax as you earn or receive income during the year. There are two ways to pay as you go, either by employer withholding or making estimated tax payments. Employer withholding. If you are an employee, your employer generally withholds income tax from your…