Recent News & Blog / Individual Tax
What tax records can you throw away?
After filing, you may want to do some spring cleaning and discard tax documents. But don’t throw away records you might need in the case of an IRS audit. Here are the rules. Contact our individual tax advisors with questions.
Tax Record Retention Guidelines for Individuals
What tax records can you toss once you’ve filed your return? The answer is simple: none. You need to hold on to all of your tax records for now. But it’s the perfect time to go through old tax records and see what you can discard.
Deduct a loss from making a personal loan to a relative or friend
Suppose your adult child or friend needs to borrow money. You may want to help by making a personal loan. But there are tax implications that you should understand. That way, if the loan goes bad, you can claim a non-business bad debt deduction for the year the loan becomes worthless. Contact SEK's tax advisors if you have questions.
Some taxpayers qualify for more favorable “head of household” tax filing status
You may feel you’re the head of your household if you’re married, single, divorced, a parent or child-free. However, only certain people can file a tax return with the favorable “head of household” status. Here are the rules. Contact SEK's tax advisors with questions.
Claiming losses on depreciated or worthless stock
Have you ever bought stock shares that later became worthless? You can claim a capital loss equal to your basis in the stock. Contact our tax advisors at SEK with your stock questions.
Riding the tax break train: Maximizing employee transportation fringe benefits
If your employer offers tax-favored transportation fringe benefits, you should probably take advantage of them. Here’s a quick summary of the current federal tax treatment of transportation-related benefits. Contact our tax advisors with questions.
To file or not to file a gift tax return, that is the question
If you made substantial gifts of wealth to family members in 2024, you may have to file a gift tax return. The return is due by April 15 of the year after you make the gift, so the deadline for 2024 gifts is coming up soon. Contact the CPAs and tax advisors at SEK for more details.
Can I itemize deductions on my tax return?
With the 2024 tax deadline approaching you may wonder if you can itemize deductions. You can if the total of your allowable itemized write-offs for the year exceeds your standard deduction allowance for the year. The basic standard deduction allowances for 2024 are: $14,600 for single taxpayers, $29,200 for married joint filers and $21,900 for heads of households. Itemized deductions include charitable contributions, mortgage interest, state and local taxes, and medical expenses. Other rules and limits apply. Contact the tax advisors at SEK with questions.
If you didn’t contribute to an IRA last year, there’s still time
If you’re gathering documents to file your 2024 tax return and you’re concerned that your tax bill may be higher than you’d like, there might still be an opportunity to lower it. If you qualify, you can make a deductible contribution to a traditional IRA right up to the April 15, filing date and benefit from the tax savings on your 2024 return. Contact the CPAs and tax advisors at SEK to get the most out of your tax return and for more tax tips.
Child tax credit: The rules keep changing but it’s still valuable
The Child Tax Credit (CTC) has long been a valuable tax break for families with qualifying children. Whether you’re new to claiming the credit or you’ve benefited from it for years, it’s crucial to stay current on its rules and potential changes. As we approach the expiration of certain provisions within the Tax Cuts and Jobs Act (TCJA) at the end of 2025, here’s what you need to know about the CTC for 2024, 2025 and beyond. Contact SEK's tax advisors with questions.