If you participate in a qualified retirement plan through your job or self employment — such as a 401(k), profit-sharing, or Keogh plan — you might be allowed to borrow from the account. (The borrowing option is not available for traditional IRAs, Roth IRAs, SEPs or SIMPLE-IRAs.) In the right circumstances, taking out a plan loan...

Members of the U.S. Armed Forces and veterans are required to pay taxes on their income like everyone else. But special rules sometimes apply. Here’s an overview of key tax benefits that the IRS provides to military personnel to thank them for risking their lives for our country. Combat Zone Exemption One of the most significant...

A new law closes loopholes in the Social Security rules that have allowed married couples to receive more benefits over their lifetimes by following certain strategies. The Bipartisan Budget Act of 2015, signed by President Obama on November 2, 2015, shuts down loopholes that Congress said will “prevent individuals from obtaining larger benefits than Congress intended.” Here’s...

The big advantage of Section 529 college savings plans is that withdrawals used to cover qualified higher education expenses are free from federal income tax (and usually state income taxes too). That part is very easy to understand, but the full story on withdrawals is not so simple. What are qualified expenses? What happens if you...

  The Federal Trade Commission estimates as many as 9 million Americans have their identities stolen every year. Although the security of personal data is a top priority of all types of entities, the IRS is especially vigilant, because tax-related identity theft is the most common form of reported identity theft. The number of identity theft...

This happens more frequently than you may be aware of — when you receive your business or personal mail and there is a check from the IRS or your state taxing agency. Great, except you were not expecting a refund. The common reaction is to deposit that check into your bank account. However, if you...