The IRS is now accepting e-filed Affordable Care Act (ACA) information returns. Forms 1094 and 1095 and transmittals can be electronically filed through the ACA Information Returns system, also known as AIR. These returns provide information about the health coverage that a taxpayer had or was offered in the previous year. Under the ACA, insurance … Read More
While Congress didn’t pass the Build Back Better Act in 2021, there are still tax changes that may affect your tax situation for this year. That’s because some tax figures are adjusted annually for inflation. If you’re like most people, you’re probably more concerned about your 2021 tax bill right now than you are … Read More
Is it better to take the standard deduction or to itemize deductions? It depends on your situation. The standard deduction amount changes yearly and is based on filing status and age. Itemizing is more complicated but if your total deductions exceed the standard deduction, you might save significant taxes. Taxpayers most likely to benefit by … Read More
You may pay out a bundle in out-of-pocket medical costs each year. But can you deduct them on your tax return? It’s possible but not easy. Medical expenses can be claimed as a deduction only to the extent your unreimbursed costs exceed 7.5% of your adjusted gross income. Plus, medical expenses are deductible only if … Read More
Employers who are expecting advance payments of the Employee Retention Credit (ERC) should expect delays, the IRS recently warned. The ERC is a refundable credit enacted and extended by pandemic relief laws. The credit became available to help struggling employers stay afloat and preserve jobs for several quarters of 2020 and 2021. However, the Infrastructure … Read More
The IRS has issued a timely reminder to employers: File Forms W-2 and W-3 with the Social Security Administration by Jan. 31. Make sure the employer identification numbers (EIN) on the W-2s and W-3s, as well as on your payroll tax returns, match your assigned EIN. If you can’t meet the deadline, you may request … Read More
The number of people engaged in the “gig” or sharing economy has grown in recent years. In an August 2021 survey, the Pew Research Center found that 16% of Americans have earned money at some time through online gig platforms. This includes providing car rides, shopping for groceries, walking dogs, performing household tasks, running errands … Read More
Widespread “frustration and dissatisfaction” with IRS customer service has spurred several groups to action. In a letter, a coalition of tax industry organizations asked the IRS to grant taxpayers penalty relief and temporarily halt compliance activities. A recent National Taxpayer Advocate report to Congress highlighted the issue: In some cases, the IRS has taken so … Read More
Ineffective inventory management and reporting can result in bloated working capital and impaired business profits. In industries that rely on overseas suppliers, best practices for managing inventory may have recently changed. In today’s uncertain marketplace, it’s clearly a good idea to review your current approach and make adjustments as needed. What’s the right reporting method? … Read More
The IRS has released the covered compensation tables for the 2022 plan year. For purposes of determining covered compensation for the 2022 year, the taxable wage base is $147,000. The taxable wage base is the amount of an employee’s wages that is subject to Social Security tax. It is also used by employers for qualified … Read More