If you want to pay less when you retire, moving to one of the states that don’t tax retirement income might be one way to do that. So, if your retirement income includes Social Security benefits, distributions from a 401(k) or IRA, or a pension, you might want to consider one of these states.
One of the common misconceptions that divorced parents have is that whatever the divorce agreement says will be honored by the IRS. This is no longer true. Starting in 1996, the IRS came up with the custodial parent rules and Form 8332 (or its equivalent) to determine who can legally claim a dependent.
Did you know that there are several categories of income are not taxable in the eyes of the IRS?
While Tax Day 2024 is April 15, each year, the IRS extends tax deadlines for taxpayers in certain areas impacted by severe storms and natural disasters.
The IRS announces these tax deadline extensions for various states as disasters occur and these new tax deadlines are usually different for different states. In addition, the individual states may or may not conform their state tax deadlines to the extended federal tax deadlines.
The FBI has issued a warning to Americans that they should exercise caution when scanning QR codes with their smartphones because cybercriminals tamper with the codes to steal login and financial information.
A QR code—the square barcode that people can scan with their smartphone cameras—can provide quick and convenient access to a website or to a direct payment to an intended recipient.
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: