These days, most businesses have websites. But surprisingly, the IRS hasn’t issued formal guidance on when website costs can be deducted. Fortunately, established rules that generally apply to the deductibility of business costs provide business taxpayers launching a website with some guidance as to the proper treatment of the costs. Plus, businesses can turn to … Read More
Before you know it, tax filing season will be here. One of the basic things to know is your correct filing status. Most of the five statuses are easy to determine. They are single; married filing jointly; married filing separately; head of household; and qualifying widow(er). The head of household status is often misunderstood. It … Read More
The Social Security Administration recently announced that the wage base for computing Social Security tax will increase to $160,200 for 2023 (up from $147,000 for 2022). Wages and self-employment income above this threshold aren’t subject to Social Security tax. Basics about Social Security The Federal Insurance Contributions Act (FICA) imposes two taxes on employers, employees … Read More
The gross tax gap generally is defined as the difference between estimated “true” tax liability for a given period and the amount of tax that’s paid on time. The IRS recently released new tax gap estimates for tax years 2014 through 2016. The data shows that the estimated tax gap increased to $496 billion, a … Read More
How much can you and your employees contribute to your 401(k)s next year — or other retirement plans? In Notice 2022-55, the IRS recently announced cost-of-living adjustments that apply to the dollar limitations for pensions, as well as other qualified retirement plans for 2023. The amounts increased more than they have in recent years due … Read More
It’s no secret that if you call the IRS, you could be waiting on hold for a long period of time. The IRS is addressing this problem by hiring 4,000 customer service representatives to answer phone calls and provide other services. The hiring surge is part of a much wider IRS improvement effort tied to … Read More
You may have heard that the Inflation Reduction Act (IRA) was signed into law recently. While experts have varying opinions about whether it will reduce inflation in the near future, it contains, extends and modifies many climate and energy-related tax credits that may be of interest to individuals. Nonbusiness energy property Before the IRA was … Read More
The Inflation Reduction Act’s tax incentives are designed to help cut the U.S.’s carbon emissions by half by 2030 and achieve net-zero emissions by 2050. But implementing $270 billion in new tax breaks isn’t going to be easy. Already, some electric vehicle (EV) manufacturers and countries such as South Korea are pushing back on the … Read More
If you’re a business owner working from home or an entrepreneur with a home-based side gig, you may qualify for valuable home office deductions. But not everyone who works from home gets the tax break. Employees who work remotely can’t deduct home office expenses under current federal tax law. To qualify for a deduction, you … Read More
The IRS has announced that it will start mailing letters to specific individuals in October on behalf of the Center for Medicare & Medicaid Services. The letters will provide information on how to obtain Marketplace health care coverage by signing up through the healthcare.gov site. However, the IRS stated that it’s unable to answer any … Read More