Democratic lawmakers argue that a recent U.S. Census Bureau report illustrating a decline in child poverty shows the Child Tax Credit (CTC) enhancements that expired at the end of 2021 should be made permanent. From 2020 to 2021, the supplemental poverty measure among children fell to 5.2% from 9.7%. The drop is largely attributable to … Read More
When you filed your federal tax return this year, were you surprised to find you owed money? You might want to change your withholding so that this doesn’t happen again next year. You might even want to adjust your withholding if you got a big refund. Receiving a tax refund essentially means you’re giving the … Read More
The IRS has updated information on the Work Opportunity Tax Credit (WOTC). This credit is available to employers that hire designated categories of workers who face significant barriers to employment. In today’s tight job market, the WOTC may help employers. In IR 2022-159, the IRS updates include information about the pre-screening and certification processes. To … Read More
As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid it. But now, because many estates won’t be subject to estate tax, more planning can be … Read More
Do you invest in cryptocurrency? Keep in mind that selling it is a taxable event. The nature of the gain or loss depends on whether the cryptocurrency is a capital asset (for example, stocks, bonds and investment property) held by the taxpayer, as well as the length of time the position was held. What if … Read More
High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you. 3.8% NIIT This tax applies, in addition to income tax, on your net investment income. The NIIT … Read More
If you’re thinking about buying an electric vehicle (EV), make sure you qualify for the EV tax credit. The Inflation Reduction Act has changed the rules. For example, qualified vehicles now must be assembled in North America. Starting Jan. 1, 2023, you no longer have to worry about snapping up an EV before its manufacturer … Read More
In its latest report, the National Association of Realtors (NAR) announced that July 2022 existing home sales were down but prices were up nationwide, compared with last year. “The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June,” said NAR Chief Economist Lawrence Yun. However, he added that … Read More
Federal regulation of digital transactions is a long time coming. In March 2022, President Biden directed federal agencies to assess the benefits and risks of integrating digital assets into the mainstream. On Sept. 16, he announced a digital-asset agenda that includes development of a U.S. central bank digital currency (CBDC). But the Federal Reserve first … Read More
IRS processing delays are hindering businesses awaiting COVID-19-related tax benefits. That’s the bottom line according to a recent Treasury Inspector General for Tax Administration (TIGTA) audit. TIGTA reports that processing claims for qualified Sick and Family Leave Credits and Employee Retention Credits didn’t begin until 12 months after the relevant legislation was enacted. Processing claims … Read More