If you’ve been following the news recently, you’re no doubt familiar with the talk about the Internet Revenue Service hiring new agents during a time when they’ve been critically understaffed for years. Indeed, the IRS is expected to receive approximately $80 billion in funding between now and 2031, much of which will be used to […]
May 2023 Individual Due Dates May 10 – Report Tips to Employer If you are an employee who works for tips and received more than $20 in tips during April, you are required to report them to your employer on IRS Form 4070 no later than May 10. Your employer is required to withhold FICA taxes […]
Article Highlights: Flexible Spending Accounts Common Features of an FSA FSA Allowable Medical Expenses Unused Amounts (Use It or Lose It) Health Savings Accounts Enrolled in Medicare Covered Under a High-deductible Health Plan HSA Contributions and Contribution Limits HSA as a Supplemental Retirement Vehicle FSA-HSA Comparison Table The tax code provides two tax advantageous plans […]
Article Highlights: General statute is 3 years Some states are longer Fraud, failure to file and other issues can extend the statute Keeping the actual return Taxpayers often question how long records must be kept and the amount of time IRS has to audit a return after it is filed. It all depends on the […]
Article Highlights: Pay-as-You-Earn System Withholding and Payment Forms IRS On-line Withholding Estimator Situations Triggering Underpayments Safe Harbor Payments True Safe Harbor Under federal law, taxpayers must pay taxes during the year as they earn or receive income, or they can find themselves falling victim to substantial underpayment penalties. Even worse, they may have spent the […]
Think for a moment about the many ways that the world has changed since Steve Jobs first introduced the iPhone to the world in 2007. Overnight, entire industries were upended. Nobody needed a standalone camera because they were suddenly carrying one around with them in their pocket all day. GPS units for your car became […]
To say that things are uncertain right now when it comes to the economy is, in all probability, a bit of an understatement. Inflation is at levels we haven’t seen in decades. Employment costs are rising across the board. Materials in a number of industries are more expensive than ever – if you can even […]
Article Highlights: Early-Withdrawal Penalties Reduction in Retirement Savings Exceptions from the Early-Withdrawal Penalty If you find yourself looking for a quick source of cash, your retirement savings may look like a tempting option. However, if you are under age 59½ and withdraw money from a traditional IRA or qualified retirement account, you will likely pay […]
If you were laid off from your job at some point in the last year, at least take comfort in the fact that you are not alone. In 2022 alone, there were approximately 15.4 million layoffs in the United States as per one recent study. About 6.9 million of them happened in the last half […]
Article Highlights: Contribution Due Date Age Rules Compensation Rules When To Contribute Contribution Limits Deductibility & Benefits Saver’s Credit Choosing Between Traditional & Roth IRAs Most of the time an expense that may be tax deductible needs to be paid by the end of the year for which the expense will be claimed. However, there […]