• Health insurance premium tax credit FAQs!

    Just in time for tax filing season, the IRS has made several updates to (and added several new) FAQs related to the health insurance premium tax credit. This refundable credit is designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace. The size of the premium tax credit is based on a sliding scale. [...]

    Published On: February 26, 2024Categories: Federal Tax Posts
  • Phase 2 has started. #Compliance

    The IRS is beginning phase two of its Pre-Examination Retirement Plan Compliance Program. The overall project is intended to reduce taxpayer burden, minimize IRS time spent auditing plans and encourage plan sponsors to self-correct. Sponsors currently chosen for participation will receive a letter urging them to review their plan documents and operations for tax law compliance. If you’re selected and don’t reply to the IRS [...]

    Published On: February 25, 2024Categories: Federal Tax Posts
  • what is the employer-provided childcare tax credit?

    The employer-provided childcare tax credit is designed to help employers cover some of the qualified facility, resource and referral costs associated with providing childcare services to their employees. A qualified childcare facility is one that meets the requirements of all applicable laws and regulations of the state or local government in which it’s located. The credit is limited to $150,000 per year to offset 25% [...]

    Published On: February 24, 2024Categories: Federal Tax Posts
  • Do you have a “luxury” business vehicle?

    Recent IRS guidance provides the 2024 depreciation limits for “luxury” business vehicles. For vehicles placed in service in 2024, depreciation limits are $20,400 for year one, $19,800 for year two, $11,900 for year three and $7,160 for each year after that. This includes passenger cars, SUVs, trucks and vans. The IRS also announced lease inclusion amounts for lessees of passenger vehicles first leased in 2024. [...]

    Published On: February 23, 2024Categories: Federal Tax Posts
  • Do you have a past due tax bill? Ask for a CDP!

    A taxpayer who disputes a past-due tax bill can request a Collection Due Process (CDP) hearing. At a CDP hearing, one taxpayer didn’t dispute his tax bill of $107,410 but he did submit an offer-in-compromise, proposing to make monthly installment payments of $25. He also proposed being granted currently-not-collectible status and asked for penalty abatement. After analyzing the taxpayer’s ability to pay, the IRS Service [...]

    Published On: February 22, 2024Categories: Federal Tax Posts
  • Did your car dealer submit their report?

    If you’re in the market for an electric vehicle and hope to qualify for the new or used clean vehicle tax credit, take note: Deadlines for submitting seller reports to the IRS have been extended. Your seller is required to submit a report to the IRS Energy Credits portal by a specified deadline and provide you with a copy no later than three days after [...]

    Published On: February 21, 2024Categories: Federal Tax Posts
  • PLESA follow the rules!

    IRS notice 2024-22 provides anti-abuse guidance to employers that offer the new pension-linked emergency savings accounts (PLESAs). The procedures are intended to prevent participants from manipulating rules to cause excessive matching contributions. According to the IRS, a reasonable policy balances PLESA participants’ interests with the plan sponsor’s interest in preventing manipulation of matching contribution rules. On the other hand, it’s generally unreasonable to forfeit contributions [...]

    Published On: February 20, 2024Categories: Federal Tax Posts
  • Disaster Deadline is approaching!

    The IRS is reminding certain disaster victims of a fast-approaching deadline on Feb.15, 2024. Those affected by federally declared disasters that occurred in 2023 between Aug. 8 and Oct. 9 were granted extra time to file their 2022 tax returns, but not extra time to pay taxes due. Among those disasters were Hurricane Lee, Hurricane Idalia and the wildfires in Hawaii. Generally, when the Federal [...]

    Published On: February 7, 2024Categories: Federal Tax Posts
  • Will it pass in the Senate?

    Coming on the heels of its recent passage of the proposed Tax Relief for American Families and Workers Act, the U.S. House of Representatives may soon vote on another tax-related bill, the SALT Marriage Penalty Elimination Act. It addresses the state and local tax (SALT) deduction, which was capped at $10,000 by the Tax Cuts and Jobs Act. The bill would increase the deduction for [...]

    Published On: February 6, 2024Categories: Federal Tax Posts
  • Deductions vs Credit, what’s the difference!

    One of the most common misunderstandings about filing an income tax return is the difference between deductions and credits. Deductions reduce the amount of a taxpayer’s income before tax is calculated. For example, on your individual return, you can either take the standard deduction or itemize deductions if it will reduce your taxable income more. Credits, on the other hand, reduce the actual tax due, [...]

    Published On: January 16, 2024Categories: Federal Tax Posts
  • Make filing your taxes easier!

    Now that Jan. 29 has been announced as the start of the 2024 tax season, the IRS is reminding taxpayers about free tools that can make filing easier. It strongly encourages taxpayers to set up accounts at irs.gov/account to file, make payments, monitor the status of refunds, manage tax records and electronically sign power of attorney authorizations from their tax advisor. If you anticipate owing [...]

    Published On: January 15, 2024Categories: Federal Tax Posts
  • 2024 Tax Season Start Date!

    Mark your calendar for Jan. 29! The IRS announced that’s the date the 2024 tax season opens, meaning it’s the first day the tax agency will accept tax returns. It expects more than 128.7 million individual tax returns to be filed by the April 15 tax deadline. The agency recommends taxpayers file electronically with direct deposit if they want to receive refunds, if eligible for [...]

    Published On: January 12, 2024Categories: Federal Tax Posts
  • Time is expiring!

    Are you due for a refund from the 2019 tax year? You must submit a 2019 tax return by July 17, 2023, to receive your refund. According to the IRS, almost $1.5 billion in refunds may be waiting for nearly 1.5 million taxpayers who didn’t file for 2019. Note: if you are due a 2019 refund but haven’t filed a 2020 or 2021 return, your [...]

    Published On: April 29, 2023Categories: Federal Tax Posts
  • Are you a teacher? This deduction is for you!

    Educators: As you file your 2022 taxes, be aware there’s a tax deduction just for you. Even if you take the standard deduction, an eligible educator can deduct up to $300 in unreimbursed, out-of-pocket expenses. If you’re married filing jointly and both spouses are eligible, you may deduct up to $300 each. Based on inflation, this will increase in $50 increments in future years. Among [...]

    Published On: February 20, 2023Categories: Federal Tax Posts