As of January 1, 2011, over-the-counter drugs purchased without a prescription will no longer be eligible for reimbursement from health reimbursement accounts and flexible spending accounts (HRAs and FSAs). Insulin purchases are not affected, but as of next year you’ll need a prescription for OTC drugs if you want to use funds in these accounts to pay for them. The IRS has issued guidance explaining this change in the rules. (more…)
Archive for the ‘General Taxation’ Category
Reimbursement for Over-the-Counter Drugs
Tuesday, September 7th, 2010More Bad News for RALs
Friday, September 3rd, 2010The seamy but profitable business of offering refund anticipation loans, or RALs, took a body blow last month when the IRS announced it would no longer provide debt indicators to RAL providers. The news since then has not been good for the RAL industry. (more…)
Get Credit for Education
Friday, August 27th, 2010Tax credit, that is. Last year’s stimulus bill included provisions expanding and renaming the Hope Credit, making it possible for more people to save on taxes when paying college expenses. (more…)
Does the IRS Owe You?
Wednesday, August 11th, 2010The IRS owes lots of money to lots of people. Some failed to file returns even though they had a refund. Others filed a return but the IRS wasn’t able to find them when trying to pay the refund. Are you one of those people? (more…)
Do You Owe the IRS?
Wednesday, August 11th, 2010If you owe money to the IRS, there are a few things they’d like you to know about how to resolve the problem. (more…)
Advance EIC Repealed
Wednesday, August 11th, 2010Beginning 2011 the advance payment option for the earned income credit will no longer be available. This option allowed individuals who were eligible for the credit to receive it as part of their paychecks instead of waiting to file their tax return and receive it as a refund. Few taxpayers took advantage of the option, and Congress decided to eliminate it as part of the legislation providing assistance to cash-strapped state and local governments.
The legislation contains other tax provisions, but these are mainly of interest to multinational corporations that will see new restrictions on their ability to claim the foreign tax credit.
Friday Wrapup
Friday, August 6th, 2010A slow news week allows us to publish our shortest wrapup yet.
Our Friday Wrapup is also published as a free email newsletter. Click here to sign up. (more…)
RIP RAL?
Friday, August 6th, 2010The disgraceful practice of persuading taxpayers to fork over part of their tax refunds so they can receive the money a few days earlier may be on the way out. The IRS has announced that it will no longer provide “debt indicators” that are used by less reputable tax return preparation companies in processing refund anticipation loans, or RALs, that sometimes bear costs that equate to interest rates exceeding 1,000%. (more…)
Push for Sales Tax on Internet Orders
Friday, July 30th, 2010The idea has been out there for years, but a new push could turn it into a reality: companies selling over the Internet to individuals and businesses in states that impose sales tax could be required to collect and remit the tax. The days when you can avoid paying sales tax by ordering from Amazon or eBay could be numbered. (more…)
IRS Tax Tips for Military
Thursday, July 22nd, 2010Continuing their summer series of tax tips, the latest IRS release offers help to taxpayers in the military. (more…)
