March 27, 2023
The federal income tax treatment of business-related meal and entertainment expenses has been a moving target the last few years. If you’re confused about what rules currently apply, you’re not alone. Here’s a refresher on what’s currently deductible — and what’s… Read more »
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50% deduction for business meals, business tax, Deductions, Favorable Exceptions, Federal Income Tax, food and beverage costs, IRS Regulations, Meals vs. entertainment, Meals while traveling, TCJA Impact, Update on Deducting Business Meal and Entertainment Expenses
March 27, 2023
In a statement posted to its website on February 3, 2023, the IRS asked certain taxpayers to temporarily hold off on filing their 2022 returns until it could issue guidance on how to treat special tax refunds and payments made by… Read more »
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2022 Taxes, Business auto expenses, Filing an Extension, In-progress "like-kind" exchanges, Medical expense deductions, Reasons to Extend Your Deadline, Should You Extend Your 2022 Tax Return
March 1, 2023
Retirement Plan Distributions: Know the Tax Rules At tax time, age matters. Taxpayers who take distributions from their retirement accounts before age 59½ will generally owe a penalty of 10% of the amount of the distribution. There are exceptions, such… Read more »
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Advantages of Using Direct Deposit for Tax Refunds, Consequences of Unpaid Federal Tax Debt, Excludable Income from Some States, Federal Tax News for Individuals, Retirement Plan Distributions
March 1, 2023
Seniors who must take withdrawals from their IRAs may be able to benefit from a special tax provision for qualified charitable distributions (QCDs). Briefly stated, this provision allows people in their 70s and older to transfer funds directly from an IRA… Read more »
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CRAT, CRT, CRUT, How QCDs Work, IRAs, New Rules, New Tax Law Improves QCD Benefits, Seniors who must take withdrawals
March 1, 2023
Debtors typically experience a feeling of relief when a creditor agrees to forgive their debt. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to… Read more »
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Exceptions and Exclusions, Recourse vs. Nonrecourse Debt, Tax Treatment of Debt Forgiveness, Watch Out for Tax Bills Delivered COD
January 24, 2023
Energy Efficient Home Tax Credit FAQs The IRS recently updated its FAQs regarding the Energy Efficient Home Improvement (EEHI) Tax Credit. As amended by the Inflation Reduction Act, the EEHI Credit amount increases to 30% of a taxpayer’s cost for… Read more »
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Clean Vehicle Tax Credit List Expands, Didn't File a Tax Return? The IRS May File for You, Energy Efficient Home Improvement (EEHI), Energy Efficient Home Improvement (EEHI) Tax Credit, Federal Tax News for Individuals, IRS Award, joint federal tax returns, Spouses who file joint federal tax returns, tax credit, Tax for Individuals, Two Innocent Spouse Relief Outcomes in Court, Updated IRS FAQ, Whistleblower Award, Whistleblower Qualifies for IRS Award
January 24, 2023
After months of negotiations, Congress finally passed the long-awaited Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0). This part of the omnibus funding package builds on the SECURE Act of 2019 and contains major changes in the required… Read more »
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401(k), 403(b), 457(b), 5 Major Tax-Favored Retirement Plan Changes for Individuals under New Law, 50 or older, early withdrawals, Emergency Expenses, Emergency Savings Accounts, Failure to comply with RMD, Increased Starting Age for RMDs, individual retirement annuities, IRS penalties, Larger Catch-Up Contributions, Major Tax Changes, Major Tax-Favored Retirement Plan Changes for Individuals under New Law, minimum distribution (RMD), Penalty-Free Withdrawals, Penalty-Free Withdrawals for Designated Emergency Expenses, profit-sharing plans, Reduced Penalty for Failure to Take RMDs, Retirement Plan Emergency Savings Accounts, RMDs, Salary reduction catch-up contributions, SECURE 2.0, Setting Every Community Up for Retirement Enhancement 2.0 Act (SECURE 2.0), SIMPLE plans, Starting Age for RMDs, Starting in 2025, Tax Year 2023, tax-deferred retirement accounts, Traditional IRA
January 24, 2023
The following table provides some important federal tax information for 2023, as compared with 2022. Many of the dollar amount increases are higher than in past years due to inflation. * Only available for active-duty members of the military.** Provided by… Read more »
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& 457 deferrals (Section 457(b)(2)), 2023 Tax, 401(k), 403(b), 403(b) Deferrals (Section 402(g)), 457 & SARSEP additional "catch-up" contributions for employees age 50 and older, Amount used to reduce the net unearned income reported on a child's return that's subject to the Kiddie Tax, Amount you can give each recipient, Annual Gift Exclusion, Business Equipment, Business Meals, Business mileage, Charitable mileage, Compensation defining highly compensated employee (Section 414(q)(1)(B)), Compensation defining key employee (officer) in a top-heavy plan, Compensation triggering Simplified Employee Pension contribution requirement (Section 408(k)(2)(c)), Defined Benefit Plan limit on benefits (Section 415(b)(1)(A)), Defined Contribution Plan limit on additions (Sections 415(c)(1)(A)), Domestic Employees, Driving Deductions, Employee portion of Medicare, Employee portion of Social Security, Estate Tax, etc., Federal estate tax exemption, General deduction for eligible business-related food and beverage expenses, Heads of Household, house cleaners, Important Tax Figures for 2023, Individual Retirement Accounts, Kiddie Tax, Married filing jointly, Maximum compensation used to determine contributions, Maximum estate tax rate, Maximum Section 179 deduction, Medical and eligible moving*, Medicare Tax Wage Base, Monthly commuter highway vehicle and transit pass, Monthly qualified parking, per mile, Phase out for Section 179, Qualified Plan Limits, Roth and traditional IRA additional annual "catch-up" contributions for account owners age 50 and older, Roth IRA Individual, SARSEP, SIMPLE additional "catch-up" contributions for employees age 50 and older, SIMPLE deferrals (Section 408(p)(2)(A)), Single (and married filing separately), Social Security, Social Security Tax Wage Base, Social Security/ Medicare, Standard Deduction, Tax, Threshold when a domestic employer must withhold and pay FICA for babysitters, Traditional IRA Individual, Transportation Fringe Benefit Exclusion, up to 100% of earned income
December 27, 2022
Court: Farmers Are Partially Allowed Depreciation Write-offs If you’re a business owner hoping to deduct asset depreciation from your gross income, it’s crucial to track the percentage of business use of assets. In one case, a married couple were long-time… Read more »
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1099-NEC, Closing a Business, Closing a Business? Here Are Some Steps to Take, Court Rules Business Must Show a "Profit Motive", Court: Farmers Are Partially Allowed Depreciation Write-offs, Deductions Disallowed Due to Insufficient Records, Federal Tax News for Businesses, Filing a final tax return and related forms, Filing annual reports, filing employment tax reports for the quarter, Issuing final paychecks to employees, Maintaining business records for at least four years, Notify the IRS in writing of the closure and request the cancellation of your Employer ID number and business accounts, Providing Forms W-2 to employees, Trust Fund Recovery Penalty is Upheld by Court