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
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
Tax Filing Season Is Quickly Approaching and The IRS Wants You To Be Prepared
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
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
Make Your Money Work For You with Year-end Planning
The end of the year gives us the chance to make the most of our financial gains and prepare for the upcoming year. Remember to keep your long term goals in the forefront as you plan. Here are 7 year-end financial moves. Be sure to check with your financial and tax advisors to optimize your planning. 1 How Is Your … Read More
Student Loans Are Back But Don’t Worry You Have Options
The pandemic has changed so much of our daily lives, including our financial situations. In 2020 The federal government suspended student loan payments. However, payments will begin again January 31, 2022. Here are some options you have when it comes to paying for your student loans again. Income-driven Payment Plan One option is an income-driven payment plan based on your … Read More