Tag: tax

Vehicle rebates are a selling tool car dealerships and manufacturers use to drive more business, even when most consumers are paying above sticker price on vehicles. Since rebates are not discounts or coupons, dealerships receive the funds from the rebate after the vehicle has been purchased from the manufacturer and sold to a consumer. This means accounting teams at the dealership must make adjustments once the rebate is received. When rebates are not paid for promptly, it can create over-aged… Read more ›

Get the most from Social Security. Younger retirees face a harsh penalty for working part-time. For every $2 earned over $19,560 in 2022 (up from $18,960 in 2021), you lose $1 in Social Security benefits. In the year you reach full retirement age, a higher earnings threshold applies. Your benefits will be reduced by $1 for every $3 of earnings only when earnings exceed $51,960 in 2022 if you reach full retirement age (up from $50,520 for 2021). After you… Read more ›

Inflation has been surging this year. The July 2022 consumer price index (CPI) was up 8.5% year over year, according to the latest data from the U.S. Bureau of Labor Statistics. The rate of inflation is expected to stay high for at least the rest of the year. Many taxpayers are understandably concerned about how elevated inflation rates will impact their 2023 tax situation. When planning for the rest of your 2022 tax year, it’s important to understand what tax… Read more ›

Taxpayers will soon have access to a resource to protect against tax-related identity theft and the potentially serious outcomes that come with it. Before the next tax filing, the IRS will roll out to each tax filer a six-digit PIN number, as part of its new Identity Protection (IP) PIN opt-in program individuals can use. Participation in the program is voluntary and includes the following features: ●     The IP PIN should be entered onto an electronic tax return when prompted… Read more ›

If you’re looking for money to buy a new car or pay off some bills, your 401(k) plan may seem like a pot of untapped gold. The temptation to tap your retirement funds often comes when you switch jobs and must decide how to handle your account. But in most cases, breaking into a retirement plan early is a mistake that will just melt away your savings. Unfortunately, many people make the unfortunate decision to “cash out” their retirement accounts… Read more ›

“I’ll do your family’s dental work for free if you build a deck onto my house.” If you’re in the construction industry, you’ve probably received an offer like this or made a similar offer to someone else in a different line of business. It’s a modern variation of the age-old practice of barter. What makes it especially intriguing in this day and age is the idea that you can exchange services or products with someone without exchanging money. Keep in… Read more ›

First the bad news: Despite passage of the Tax Cuts and Jobs Act (TCJA), the individual alternative minimum tax (AMT) is still in place. But there’s some good news: The law has made AMT rules more taxpayer-friendly through 2025. In addition, other TCJA changes reduce the odds that you’ll owe the AMT for those years. Even so, you may still benefit from taking steps now to avoid or minimize it. Know the Basics The AMT is connected to, but separate… Read more ›

Organizations that are created to provide goods or services exclusively (or primarily) to Section 501(c)(3) organizations (or governmental entities) may think that this purpose is sufficient to also qualify them under tax law. However, providing commercial-type services exclusively to exempt organizations is not by itself an exempt purpose. Much more is required for qualification under the rules of Internal Revenue Code Section 501(c)(3) than just having a mission to assist charitable organizations. Basic Requirements An exemption under tax code Section… Read more ›

You may think you don’t need disability insurance — but you probably do. Whether you have group disability insurance from your employer or buy it yourself, chances are you’re underestimate and may not be able to afford what you need for short-term or long-term insurance in the event of sickness or injury. Even if you have group disability insurance, it may not be enough. The drawbacks include: Coverage may be limited to a short term, perhaps only two years, Coverage… Read more ›

In today’s tight labor market, small businesses may need to think outside the box to find employees to fill open positions. In some cases, you may have to sweeten the deal with higher salaries or extra benefits. But you may be able to offset higher compensation costs with a lucrative federal tax credit for hiring members of certain “targeted” groups. Here’s what employers should know to take advantage of the Work Opportunity Tax Credit (WOTC). Targeted Groups The WOTC can… Read more ›