Idaho Employers Can Receive Tax Credit for Contributions to Their Employees' 529 Plans
For parents, saving for a child's education is often a major priority and many choose to save for the future costs of education through tax-advantaged 529 plans. And as the cost of higher education rises, employers looking to attract and retain a talented workforce might consider offering contributions to their employees' 529 plans as an employment benefit. Not only can they help employees reach their education savings goals, but employers are also eligible for a 20 percent annual tax credit of up to $500 per employee when they contribute directly to an employee's Idaho College Savings Program account.
Read POSTFirst-time Homebuyers Tax Incentives
There are several potential tax benefits of purchasing a home. The most well-known perks are deducting property tax, mortgage interest, and mortgage insurance premiums when itemizing deductions, and gain exclusion ($250,000 single filers, $500,000 married filers) when you sell your home, if certain requirements are met. However, as a first-time home buyer, it may seem impossible to buy in today’s overwhelming market. Before those real estate listings scare you away from buying, there are some additional tax incentives to consider.
Read POST$10,000 State and Local Tax Limitation Workaround for Idaho Pass-through Entity Owners
Since its inception in 2017, a major point of contention with the Tax Cuts and Jobs Act has been its limitation of the deduction for state and local taxes on individual returns to $10,000. This limitation, which includes state and local income taxes, real property taxes, and personal property taxes, has resulted in a number of taxpayer’s losing out on federal tax deductions they had previously been afforded, while others have been barred from itemizing on their returns altogether.
Read POSTHuge Changes to the Child Tax Credit: Should You Decline the Advanced Payments?
In response to the U.S.’s continued struggles recovering from the Coronavirus Pandemic, President Biden passed the American Rescue Plan Act (ARPA) in January, which contained a major overhaul to the Child Tax Credit (Provision 9611), a credit which currently benefits nearly 39 million households across the country. Now, not only does the maximum credit per child increase, but taxpayers will no longer have to wait to file their taxes in order to reap the benefits of the credit.
Read POSTTaxation of Virtual Currency
As virtual currency gains increasing acceptance by the public, it is important to consider the tax implications for those that invest and engage in various transactions with the digital currency. What is virtual currency? Virtual currency is a digital representation of value. Although virtual currency is exchangeable in the same manner as real currency, for example the dollar, it is not recognized as legal tender in the United States. Some virtual currencies including Bitcoin and Ethereum are convertible virtual currency, meaning they may be exchanged for an equivalent value of dollars, euros, or other types of real currency.
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