Charitable contributions are a great way to support organizations you care about and your local community! On top of that, depending on your client’s tax situation, donations to a qualified charitable organization could be a way for them to reduce their tax liability at the end of the year. The Taxpayer Certainty and Disaster Relief Act… Read More
Taxpayers who are paying someone to take care of their children or another member of household while they work, may qualify for child and dependent care credit regardless of their income. For tax year 2021, the maximum eligible expense for this credit is $8,000 for one child and $16,000 for two or more. Depending on their income,… Read More
Some educator expenses may be tax deductible The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes. They can only claim this deduction for expenses that were not reimbursed by their employer, a grant or other source. Who is an eligible educator The taxpayer… Read More
Some parents who have a legal agreement with their child’s other parent about who claims the child on their taxes may have some questions this tax season about the child tax credit and the 2021 recovery rebate credit. Here’s what people in this situation need to know before filing their 2021 federal tax return. Economic… Read More
Beginning Jan. 1, 2022, any individual or business receiving more than $600 in payments for goods or services via credit card or third-party payment processor during the year must be issued a Form 1099-K, Payment Card and Third Party Network Transactions. The significantly reduced reporting threshold was enacted as part of the American Rescue Plan Act… Read More
April 18 tax deadline: The filing deadline is April 18 for most taxpayers. There are currently no plans to extend the filing deadline. For those who need more time to file, an automatic six-month extension of time to file is available for anyone by filing Form 4868, Application for Automatic Extension of Time to File U.S. Individual… Read More
Tax Time Guide: American Rescue Plan changes can boost refunds for many families; people should file even if they haven’t for years WASHINGTON – The Internal Revenue Service today urged Americans to file a 2021 federal income tax return so they can take advantage of key tax benefits included in the American Rescue Plan… Read More
Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to processing delays that slow your refund and may also help you find overlooked deductions or credits. Please bring the following documents to your tax appointment Forms W-2 from your employer(s) Forms 1099 from banks, issuing agencies… Read More
Get ready for taxes: Here’s what’s new and what to consider when filing in 2022 The IRS encourages taxpayers to get informed about topics related to filing their federal tax returns in 2022. These topics include special steps related to charitable contributions, economic impact payments and advance child tax credit payments. Taxpayers can visit IRS.gov/getready for online tools,… Read More
In IR-2021-245, the IRS reminds retirement plan participants and individual retirement account owners that required minimum distributions (RMDs) must usually be taken by Dec. 31. Generally, account owners must withdraw RMDs annually starting with the year they reach 72 or, if later, the year they retire. However, if the retirement plan account is an IRA or… Read More