Maxing out your retirement account(s) is the first step to limiting your tax liability. Contributions made to 401(k) accounts come out of an employee’s paycheck before taxes are taken out, lowering their taxable income. Similarly traditional IRA contributions are tax deductible and lower a person’s tax liability. In 2022, the[…]
Read More »The IRS again delayed the effective date of the $600 threshold for Form 1099-K reporting for third-party settlement organizations and will treat 2023 as another transition year, the Service said Tuesday in Notice 2023-74. When the IRS does start to implement the new threshold, enacted by the American Rescue Plan[…]
Read More »‘Tis the season for giving, and one way to give and reduce your 2023 income tax liability is by making charitable contributions. Generally, you can claim an income tax deduction of up to 60 percent of your adjusted gross income for cash contributions to a public charity. You might also[…]
Read More »Beginning January 1, 2024, corporations, limited liability companies, and other entities that file with the Secretary of State must report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). The FinCEN is a bureau of the Department of the Treasury, separate from the IRS, that collects and[…]
Read More »Individual taxable earnings of up to $168,600 annually will be subject to Social Security tax in 2024, the Social Security Administration (SSA) announced Thursday. The amount, an increase from $160,200 in 2023, is the wage base limit that applies to earnings subject to the 6.2% OASDI tax (old age, survivors,[…]
Read More »There are special considerations if you’re a business owner who also works in the business, depending on its structure: Partnerships and limited liability companies. Generally, all trade or business income that flows through to you for income tax purposes is subject to self-employment taxes — even if the income isn’t[…]
Read More »You can be subject to penalties if you don’t pay enough tax during the year through estimated tax payments and withholding. Here are some strategies to help avoid underpayment penalties: Know the minimum payment rules. For you to avoid penalties, your estimated payments and withholding must equal at least 90%[…]
Read More »Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 65.5 cents per mile driven for business use, up 3 cents from the midyear increase setting the rate for the second half of 2022. 22 cents per[…]
Read More »401(k), 403(b), Governmental 457(b) plan contribution limits Employee maximum deferral contributions $22,500; Catch-up contribution (if age 50 or older) $7,500 Combined limit for designated Roth account and pretax 401(k), or 403(b) deferral contributions is $22,500 for those younger than 50 and $30,000 for those 50 and older within a particular[…]
Read More »There are a few things to keep in mind for retirement planning at year-end. RMDs, which begin at age 73 (except for Roth IRAs), are one consideration. There is a complex set of rules around when distributions from inherited IRAs must be taken out, so beneficiaries should work with their[…]
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