The Health Savings Account (HSA) is one of the tax favored plans available designed to offset or help with health care costs. The other tax favored plans are the Medical Savings Accounts, the Flexible Spending Arrangement and the Health Reimbursement Arrangements. We will only address the HSA here. IRS publication 969 explains all of these programs more. An HSA is a tax-exempt trust or custodial account you set up with a qualified HSA administrator. There are a number of qualified trustees … [Read more...] about Health Savings Accounts: A Tax-Favored Plan Worth a Look
Ernie L. Gallardo
Understanding Tax Implications of Gambling
When we decide to make a trip to the casino or to a racetrack on the spur of the moment or on a planned adventure, most people do not spend any time considering the tax implications involved if they actually win. Gambling winnings and losses include raffles, track races, sports betting, lotteries, all casino games, poker games and prizes – the tax burden of which can be significant. The amount won and on what game it is won determine if the casino has to fill out … [Read more...] about Understanding Tax Implications of Gambling
Is the Postcard Size Tax Return a Reality?
The amusing proposal of a tax return fitting on the size of a postcard caused me to revisit this idea because the IRS just released preliminary designs of the new form 1040 and the new schedules that go with it. The new, shorter form 1040 will essentially replace the previous forms 1040, 1040A, 1040EZ for the next tax season. The new 1040 will utilize what they call a “building block” approach, which reduces the information that goes directly on the 1040 form itself by requiring the … [Read more...] about Is the Postcard Size Tax Return a Reality?
Understanding Innocent or Injured Spouse Tax Relief Possibilities
Peak wedding season is in the air. Efforts to save on wedding costs can be important. However, many people seem not to consider the financial or tax situation of their prospective partner as much as they probably should, and this can potentially have a larger effect on their financial picture than wedding costs. When you file a joint income tax return, the law makes both you and your spouse responsible for the entire tax liability. This is called joint and several liability. Joint and … [Read more...] about Understanding Innocent or Injured Spouse Tax Relief Possibilities