It’s difficult for many people to think about their mortality, so it’s not surprising to learn that many put off planning their own funerals. Unfortunately, this lack of planning may result in emotional turmoil for surviving family members when someone dies unexpectedly. Also, a death in the family may cause unintended financial consequences. Why not … Read More
If you aren’t required to file a federal tax return (for example, because you have zero adjusted gross income), why would you welcome a new, easy filing method? If this sounds like a trick question, it’s not. IRS Rev. Proc. 2022-12 introduces a simplified electronic procedure so that those who normally wouldn’t file can claim … Read More
Although your will or revocable trust governs the distribution of many or most of your assets, certain assets — such as retirement plans, insurance policies, and bank or brokerage accounts — require you to name a beneficiary (or beneficiaries). This can be an advantage, because when you die, the funds can pass directly to your … Read More
The IRS’s backlog of unprocessed individual tax returns totaled 6 million at the end of 2021. This fact, and the National Taxpayer Advocate’s recent report detailing insufficient funding and staffing at the IRS, has Congress increasing pressure on the IRS to address the backlog. Sen. Dianne Feinstein (D-CA) is seeking emergency funding for the IRS. … Read More
If you’re an employer with a business where tipping is customary for providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Basics of the credit The FICA credit applies with respect to tips that your employees … Read More
Do you want to sell commercial or investment real estate that has appreciated significantly? One way to defer a tax bill on the gain is with a Section 1031 “like-kind” exchange where you exchange the property rather than sell it. With real estate prices up in some markets (and higher resulting tax bills), the like-kind … Read More
Employees may want to update withholding information. The 2022 version of Form W-4, “Employee’s Withholding Certificate,” is used to tell an employer how much to withhold from paychecks. You may want to adjust your withheld amounts to reflect life changes that occurred in the past year. Some of these events include marriage, divorce, the birth … Read More
After two years of no increases, the optional standard mileage rate used to calculate the deductible cost of operating an automobile for business will be going up in 2022 by 2.5 cents per mile. The IRS recently announced that the cents-per-mile rate for the business use of a car, van, pickup or panel truck will … Read More
The attorneys general of 4 states have asked the U.S. Supreme Court to hear a challenge involving the federal cap on state and local tax (SALT) deductions. The states are NY, NJ, CT and MD. In a petition filed with the court, the states argue the 2nd U.S. Circuit Court of Appeals was incorrect in … Read More
The IRS announced it is opening the 2021 individual income tax return filing season on January 24. (Business returns are already being accepted.) Even if you typically don’t file until much closer to the April deadline (or you file for an extension until October), consider filing earlier this year. Why? You can potentially protect yourself … Read More