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: 

• battery component and critical mineral requirements for new clean vehicles, 
• dealer time-of-sale reports for new and previously owned clean vehicles, and 
• incremental cost guidance for the commercial clean vehicle credit calculation. 

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

The IRS has announced Monday, Jan.

 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.

Although scams can happen any time of the year, they tend to be more prevalent during tax season. Scammers use tax refund time to target victims through various email phishing attempts, fraud schemes, phony phone calls and other deceptive activities. Here are four common tax season scams:

In October of 2023, the IRS announced a 

 As of Jan. 1, 2024, certain types of corporations, limited liability companies and other similar entities created in or registered to do business in the United States must report information to FinCEN about their beneficial owners—the persons who ultimately own or control the company. BOI reporting is not an IRS program; all inquiries must be directed to FinCEN.

The Internal Revenue Service said that it is providing failure-to-pay penalty relief for roughly 4.7 million taxpayers who didn't receive automated collection reminder notices from the tax agency.

The IRS has announced that the optional standard mileage rate for business use of an automobile will increase by 1.5 cents starting January 1, 2024, to 67 cents per mile. The depreciation element increases to 30 cents. The rates apply to electric, hybrid, and gasoline-powered vehicles. 

The mileage rate for medical/moving purposes decreases to 21 cents per mile (from 22 cents per mile in 2023).

The mileage rate for service to charitable organizations remains at 14 cents per mile. The charitable mileage rate is a statutory rate and not indexed.

The retirement planning changes in a nutshell: