The IRS Issued Inaccurate Child Tax Credit Tax Forms

Ferrone & Associates CPAsBlog, Uncategorized

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

Ferrone & Associates CPAsBlog

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

Ferrone & Associates CPAsBlog

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

Ferrone & Associates CPAsUncategorized

 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

Ferrone & Associates CPAsBlog

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

Ferrone & Associates CPAsBlog

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

Ferrone & Associates CPAsBlog

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

Tax Filing Season Is Quickly Approaching and The IRS Wants You To Be Prepared

Richard FerroneBlog

The IRS has a few reminders for taxpayers this year. They are urging people to take the steps to make sure they are ready to file their 2022 tax returns. Child Tax Credit, Stimulus Checks (Economic Impact Payment), and charitable donations. Child tax credits and the Child and Dependent Care Credit have changed. The changes include ages, and amounts. Please … Read More

IRS Reminds Taxpayers of Online Features During National Tax Security Awareness Week

Ferrone & Associates CPAsBlog

The IRS observed National Tax Security Awareness Week this month. They highlighted key details for protecting your online IRS account and documents. The IRS is taking new measures for taxpayers to use digital signatures for online forms. With online accounts comes the risk for theft and data breaches. They are working on strengthening online security to protect taxpayers. There are … Read More

Social Security COLA takes a Hit – Medicare premiums

Ferrone & Associates CPAsUncategorized

Seniors get the biggest Social Security raise in years and it’s already eaten up by a 14.5% increase in the Medicare premium Premium Increases With a 14.5% increase, the Part B premium for a single individual — with income less than $91,000 — is slated to rise from $148.50 in 2021 to $170.10 in 2022. Since Medicare premiums increase with … Read More