The IRS has established a national Earned Income Tax Credit awareness day (EITC). The pandemic has brought several efforts to ease financial hardships. In lieu of the Child Tax Credit given to families with children, some taxpayers without children may be wondering what resources are available for financial tax assistance? The great news is an increasing number of people are … Read More
RMDs May Soon Start Even Later for Retirement Plan Savers
Investors may soon be able to preserve their retirement war chest for longer. The Securing a Strong Retirement Act, a bill originally pushed in 2021 but which may finally pass this year, would push the starting point for required minimum distributions (RMDs) to 74 and 75 years of age. That means retirees could stave off being required to tap into their tax-deferred … Read More
2022 Tax Filing Deadlines
Did you know the last day to file federal income tax returns is a little different this year? Tax return deadlines are not allowed to fall on a holiday or weekend. The last day to file federal taxes this year will be April 18th. Deadline Extension Additionally, states struck by natural disasters this year have an extended deadline. These include … Read More
The IRS Issued Inaccurate Child Tax Credit Tax Forms
Approximately 36 million families received the advance Child Tax Credit (CTC) payments last year, the tax form documenting those payments could contain errors. While the agency has yet to identify how many people were mailed inaccurate letters, the mistake is understood to be limited to a small subset of taxpayers who recently relocated or changed bank accounts in December. The … Read More
Transfer Tax Update
Due to inflation, the steady rise of prices, transfer tax exemptions have increased this year. The transfer tax is a tax on the transfer of ownership of property or money. Types of transfer tax transactions include: estate tax, gift tax, and generational skipping tax. The increase in transfer tax exemptions will remain in effect until December 31, 2025. Reminder: Gift tax … Read More
IRS Announces Changes To Filing For Tax-Exempt Status
The IRS announced changes to the process of applying for tax exempt recognition. Their revisions apply to Form 1024. The changes are part of an effort to move toward a more digitized process. Starting January 3, 2022 tax exemption filers must submit their applications online. However, The IRS will accept paper applications and letters within a 90-day grace period. The … Read More
Lenders Should Not Report Student Loans Discharged Under ARPA
Lenders and services of most student loans should not file Form 1099-C, Cancellation of Debt, for loans in 2021 through 2025. On Tuesday, The IRS stated that borrowers do not have to include these forgiven amounts as income for tax purposes. Additionally, the guidance in Notice 2022-1 (https://www.irs.gov/pub/irs-drop/n-22-01.pdf) pertains to a provision of the American Rescue Plan Act (ARPA), … Read More
Changes To Earned Income Credit
The Earned Income Credit (EIC) changes every year. In 2020 the Maximum Earned Income Credit for families with 4 or more children was $6,660. In 2021 the Maximum Earned Income Credit for families with 4 or more children is $6,728. If you have 3 or fewer children the credit is reduced. In either case, the tax credit is worth … Read More
What Can You Deduct? IRS Gives 2022 Standard Mileage Rates
On December 17th the IRS updated its 2022 standard mileage rates used for tax deductibles. They include cars, vans, pickup trucks, or panel trucks used for business, charity, medical, or moving (within the Armed Forces). Taxpayers have the option of using the provided standard rates or calculating their actual expenses. The 2022 rates began on January 1st. Some rates have … Read More
Prices Are Steady On The Rise
Inflation is a hot topic in the news today as prices go up and the value of the dollar goes down. The continuation of this pandemic has surely impacted our economy and day to day finances. Inflation today is the highest it has been since 1982 and rapidly increasing. We have seen a decrease in supply leading to multiple shortages. … Read More