Category: Taxation-Individuals

President Biden has released his proposed budget for the federal government for the 2024 fiscal year. The budget, which aims to cut the deficit by nearly $3 trillion over 10 years, includes numerous provisions that would affect the tax bills of both individuals and businesses. While most of these proposals stand little chance of enactment with a Republican majority in the U.S. House of Representatives, they shed light on the Democrats’ priorities as they prepare for the 2024 election season…. Read more ›

The U.S. Supreme Court recently weighed in on an issue in the Bank Secrecy Act (BSA) that has split two federal courts of appeal. The 5-4 ruling in Bittner v. U.S. is welcome news for U.S. residents who “non-willfully” violate the law’s requirements for the reporting of certain foreign bank and financial accounts on what’s generally known as an FBAR. FBAR stands for the Financial Crimes Enforcement Network (FinCEN) Form 114, Report of Foreign Bank and Financial Accounts. FBAR Reporting Requirement The… Read more ›

For married people with large estates, the Tax Cuts and Jobs Act (TCJA) brings welcome relief from federal estate and gift taxes, as well as the generation-skipping transfer (GST) tax. Here’s what you need to know and how to take advantage of the favorable changes. Estate Planning Tips: Estate and Gift Tax Basics The TCJA sets the unified federal estate and gift tax exemption at $12.92 million per person for 2023 (up from $12.06 million for 2022). For married couples,… Read more ›

The 2022 mid-term election has shifted the scales in Washington, D.C., with the Democrats no longer controlling both houses of Congress. While it remains to be seen if — and when — any tax-related legislation can muster the requisite bipartisan support, a review of certain provisions in existing laws may provide an indication of the many areas ripe for action in the next two years. Retirement catch-ups at risk The SECURE 2.0 Act, enacted at the tail end of 2022,… Read more ›

Debtors typically experience a feeling of relief when a creditor agrees to provide debt forgiveness. But that feeling often is replaced by shock and confusion when they learn they owe taxes on so-called “cancellation of debt” (COD) income. Read on to learn the tax rules for COD income and how they might affect your tax situation. General Rule of Debt Forgiveness Taxes The IRS considers your debt canceled if it’s forgiven or discharged for less than the full amount you owe…. Read more ›

To help you make sure you don’t miss any important 2023 deadlines, we’ve provided this summary of when various tax-related forms, payments and other actions are due. Please review the 2023 tax calendar and let us know if you have any questions about the deadlines or would like assistance in meeting them. Date Deadline for  January 10 Individuals: Reporting December 2022 tip income of $20 or more to employers (Form 4070). January 17 Individuals: Paying the fourth installment of 2022 estimated taxes, if… Read more ›

The IRS has announced the 2023 optional standard mileage rates used to calculate the deductible costs of operating a vehicle for business, charitable, medical or moving purposes. Background: If you use a vehicle for business driving, you can generally deduct the actual expenses attributable to your business use. This includes expenses such as gas, oil, tires, insurance, repairs, licenses and vehicle registration fees. In addition, you may claim a depreciation allowance for the vehicle, based on the percentage of business… Read more ›

PDF: 5 Steps to Take Now to Cut Your 2022 Tax Liability As we wrap up 2022, it’s important to take a closer look at your tax and financial plans. Now is the time to review your current tax strategies to make sure they are still meeting your needs, and to take any end-of-year steps that could save you money. We’re here to help you take a fresh look at the health of your tax and financial well-being. Please contact… Read more ›

The IRS recently announced many inflation adjustments for the 2023 tax year. IRS Revenue Procedure 2022-38 provides details about these amounts. Because inflation is high, many of the amounts for 2023 will change more than they have in recent years. Here are some of the tax amounts for 2023, as compared with 2022. Tax Item 2023 2022 Highest tax rate of 37% Will affect singles with income exceeding $578,125 ($693,750 for married taxpayers filing jointly). Affects singles with income exceeding $539,900… Read more ›

Medical expenses can be costly — and they’re not always covered by insurance. But there may be a silver lining: You may be able to claim an itemized deduction for the amounts you pay for medical, dental and vision care, if you incur enough costs to exceed the applicable threshold for the tax year. Here are the details about this deduction. Raising the Bar on Medical Expense Deductions You can claim an itemized deduction for medical, dental, and vision care… Read more ›