The Tax Cuts and Jobs Act of 2017 (TCJA) made two significant changes that have a direct impact to post-divorce college planning. Alimony payments are no longer taxable to the recipient, and no longer tax deductible to the payor. College savings plans (also known as 529 plans) can now be used for K-12 education (up to $10,000 per year). This can be used for public, private, or religious schools.

For taxpayers who owe more in taxes than they are currently able to pay, the IRS does allow you to enter into a tax payment plan. You might even think of this as a loan (with applicable penalties and interest). However, unlike other lenders, the IRS requires you to come up with the terms on how you intend to repay the outstanding balance. The IRS then decides if those terms are acceptable or not.

What happens if, in all the hustle and bustle, we forgot to file our tax returns on time? This article will attempt to outline the basics that would apply to most taxpayers. However, in the spirit of most disclaimers, this is not an all-encompassing article. It might not address your specific situation.

When dividing assets in a divorce, a common mistake people make is assuming that IRAs and 401k accounts are the same. While both are different types of retirement accounts, there are some key differences. Not accounting for those differences can have a huge financial impact. Here are six key differences between IRAs and 401ks that you should know.

This is part two of a two-part article on the IRS’ first time tax penalty abatement. While this policy can provide a lot of relief for taxpayers, particularly those with six figures of tax debt, there are a lot of details involved. Instead of writing one long article, we decided to break this up into two. The first article detailed the IRS’ first time tax penalty policy, while this article will outline the procedures involved. That way, after reading the eligibility requirements outlined in the first article, you can decide if you need to go through the trouble.

This is part one of a two-part article on the IRS’ first time tax penalty abatement. While this policy can provide a lot of relief for taxpayers, particularly those with six figures of tax debt, there are a lot of details involved. Instead of writing one long article, we decided to break this up into two. The first article will detail the IRS’ first time tax penalty policy, while the second article will outline the procedures involved. That way, after reading the eligibility requirements outlined in the first article, you can decide if you need to go through the trouble.