Category: Direct Tax

The Qualified Business Income (QBI) deduction under Section 199A of the Internal Revenue Code provides a valuable tax break for owners of pass-through entities like partnerships and S corporations. If you receive a Schedule K-1, Box 20 is where the...

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For residents of states that don’t impose a personal income tax—such as Florida, Texas, Alaska, and Washington—the process of tax planning is significantly streamlined. There’s no need to file a state income tax return, and with that comes a notable...

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Schedule K-1 is a powerful and complex tax form used by partnerships, S corporations, and certain trusts and estates to report a taxpayer's share of income, deductions, and credits. One of the most critical distinctions within the K-1 is whether...

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When partnerships and S‑corporations operate across multiple states, partners and shareholders face a complex web of filing requirements. Each state has its own deadlines, nexus rules, extension procedures, and penalty regimes. Missing a state return deadline—even if the federal extension...

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Nebraska residents filing state income tax in 2025 may qualify to deduct medical and dental expenses—but only the portion that exceeds 4% of their Nebraska-modified AGI. This is notably lower than the federal threshold of 7.5%, making state deductions more...

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For taxpayers with significant healthcare expenses, understanding how medical deductions work can result in meaningful tax savings. While the Internal Revenue Service (IRS) allows deductions for qualified medical expenses that exceed 7.5% of your Adjusted Gross Income (AGI), California applies...

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When itemizing deductions on your federal tax return, you may be able to claim unreimbursed medical expenses paid for yourself, your spouse, and your dependents. But the definition of a “dependent” for medical expense purposes isn't always straightforward. The IRS...

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Taxpayers facing substantial out-of-pocket healthcare costs often turn to medical expense deductions to alleviate some of the financial burden. While the federal tax code offers an itemized deduction for qualified medical expenses that exceed a specific percentage of adjusted gross...

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As tax season approaches, one of the most important decisions you'll need to make when filing your federal income tax return is whether to take the standard deduction or itemize your deductions, including medical expenses. In 2025, this decision can...

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Iowa largely conforms to the federal rules for medical expense deductions—but with important state-specific twists. Understanding the Iowa rules can help you determine what you can deduct on your Iowa return and what expenses may not qualify. Here’s an in-depth...

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