One of the most - I think - was the tax rule concerning those whose join the military was that your state of residence for tax purposes was where you signed up for the military. So, if you joined the military from a state that has state income tax laws, you had to pay state taxes to to that state - even if you currently live in a state that had no tax.
Congress finally fixed it.
Eligible small employers may claim a general business credit of up to $5,000 for the cost of establishing a pension plan, such as a SEP or SIMPLE plan, for eligible employees. An eligible employer is one with 100 or fewer employees who received at least $5,000 in compensation the previous year. The credit is allowed for the year the plan is established and each of the two subsequent years.
For plan years starting after Dec. 31, 2022:
The Internal Revenue Service announced the launch of a new page on IRS.gov explaining the Employer-Provided Childcare Tax Credit, an incentive for businesses to provide child care services to their employees.
Taxpayers for whom using the technology required to comply with electronic filing requirements conflicts with their religious beliefs may claim a religious exemption and file paper forms instead. IRS Notice 2024-18 provides updated guidance on claiming the religious exemption for taxpayers filing business returns such as Form 1120, Form 1120-S, or Form 1065.
The Internal Revenue Service has announced work is underway on the Simple Notice Initiative, an effort to simplify and clarify about 170 million letters sent annually to taxpayers. It's about time and those who have received one can certainly testify to that.
In a bipartisan vote, the Ways and Means Committee approved legislation to help American job creators stay competitive, allow Main Street businesses to survive and grow, and give tax relief to working families struggling under the weight of elevated prices and interest rates. The Tax Relief for American Families and Workers Act also accelerates the end of the COVID-era Employee Retention Tax Credit (ERTC), a program rife with fraud and cost overruns, that will save taxpayers over $70 billion.
The 2023 increases in Social Security benefits could mean that some of the beneficiaries could end up with a higher tax bill for the 2024 tax season.
In 2023, Social Security benefits were raised by 8.7 percent to compensate for the increase in cost of living, with the average retired worker receiving $1,827 a month instead of $1,681, which they got in 2022. Senior citizens who have never paid taxes on their Social Security benefits may now be required to pay taxes as the higher Social Security benefits push them into the taxable category.
Here is why:
The IRS and other agencies and departments have issued guidance on various aspects of clean vehicle credits. The guidance applies to vehicles placed in service starting in 2024.
We will discuss:
Acronyms used:
One of the biggest nightmares to straighten out is someone stealing your name and social security number and filing a fake tax return with that information. It can take up to a year to straighten out the mess and your refund is held until it is done. But, a very simple added precaution can stop those thieves dead in their tracks. It is called an IP Pin. If that pin number is not on your return, (you get a new one each January) then the IRS will not accept your return electronically. Period. So they can steal my name/SS# and try to file a return to get tha
Prior to 2020, a "Stretch IRA" was used to extend the tax-deferred status of an inherited IRA when it passed to a non-spouse beneficiary (i.e. children and/or grandchildren). This way you could pass an IRA down to the next generation and beneficiaries would enjoy the tax benefits of an IRA over their respective lifetimes.
Most of the revenue collected by the IRS doesn't come from payments submitted with tax returns. It comes from amounts withheld from employees' wages (income tax and payroll tax). Since they represent around 70% of the IRS's revenue, unpaid payroll taxes are taken very seriously.