The Qualified Business Income (QBI) deduction was part of the Tax Cuts and Jobs Act and is the net income generated by any qualified trade or business under Internal Revenue Code (IRC) §162.

It was unclear if rental real estate would be treated as a trade or business solely for the purpose of claiming the QBI. Typically, rental properties are treated as passive activities ….

The IRS allows for penalty-free early withdrawals (before age 59 1/2) from an IRA for higher education expenses or medical expenses, but certain rules do apply.

Withdrawals are allowed to pay for higher education costs for the IRA owner, their spouse, or dependent…. 

Knowing your worker status is critical because it determines who is responsible to withhold income taxes and pay Social Security, Medicare taxes, and unemployment tax on wages. People are often surprised to receive a 1099-MISC income form at the end of the year, soon accompanied by a large tax bill when your return is filed. Moreover, if you were not paying estimated taxes during the year, you may incur an estimated tax penalty….

The IRS reported a spring surge of evolving phishing emails and telephone scams with two new variations of tax-related scams. The first scam threatens to suspend or cancel the victim's Social Security number related to a tax issue. The second scam involves a fake tax agency and the mailing of a letter….

It has always been the responsibility of the employee to report their tip income to the employer so it could be included on the W-2 form.  However, with the increase of tips being entered on credit and debit cards, the IRS is beginning to match data from electronic tips.…