This is a popular time of year for many of our clients to make gifts. Each U.S. citizen has a lifetime exemption they can use to shelter transfers from estate and gift tax (both of which are 40%). The exemption, which is adjusted for inflation each year, is $12.92 million[…]
Read More »After decreasing two years in a row, the rate by which taxpayers may compute their deductions for costs of using an automobile for business purposes will go up to 58.5 cents per mile for the 2022 tax year, an increase of 2.5 cents per mile over the 2021 rate. Notice[…]
Read More »IR-2021-71, March 31, 2021 WASHINGTON — To help taxpayers, the Internal Revenue Service announced today that it will take steps to automatically refund money this spring and summer to people who filed their tax return reporting unemployment compensation before the recent changes made by the American Rescue Plan. The legislation,[…]
Read More »The Internal Revenue Service posted information about how to correctly compute the new exclusion on a portion of unemployment income as Congress pushes the IRS for further tax-filing relief. The guidance, which the IRS posted on its website Friday, explains a provision of the American Rescue Plan Act that President[…]
Read More »On Friday, December 20, 2019, the President signed the Further Consolidated Appropriations Act, 2020 which addresses several tax provisions such as retirement plan funding and distribution reform, items related to tax extender provisions and disaster tax relief. Some of the highlights include but are not limited to: The start date[…]
Read More »Payments for the services of a child under age 18 aren’t subject to Social Security and Medicare taxes, if the business is a sole proprietorship or a partnership in which each parent is a parent of the child. Payments to a child under age 21 aren’t subject to FUTA. Payments[…]
Read More »If you don’t expect to be in a higher tax bracket next year, deferring income into the following tax year and accelerating expenses into the current tax year is a proven planning tool. If you are an independent contractor or other self-employed individual, you may decide to hold off on[…]
Read More »Determine who will care for your pets when you are no longer able. Write detailed instructions for the Pet(s) care. This information may be especially useful immediately following the death of the owner. Be sure the person you choose agrees. Determine payments to your chosen pet caregiver and distribution wishes[…]
Read More »A taxpayer’s adjusted gross income (AGI) is one factor that determines their total income tax. Taxpayers who plan today can lower their AGI. Here are a couple things taxpayers can do now to lower their AGI: Make Contributions to a Health Savings Account Pay student loan interest Contribute or Increase[…]
Read More »Health Savings Account (HSA) contributions do not have to be spent each year and unused balances can remain in the account for future use. It is a good idea to contribute the maximum amount allowable each year to take advantage of the tax savings. HSA contributions are tax deductible and[…]
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