Tax News

An American opportunity credit of 100% of the qualified tuition and other related expenses up to $2,000, plus 25% of such costs of the next $2,000, for a total credit of $2,500. The credit applies for...

The premium tax credit is payable on an advanced basis to defray the cost of health coverage purchased through a government exchange. However, if more of the credit is received than the amount to whic...

If you drive your vehicle for certain purposes, you may deduct the actual costs related to business driving or use an IRS-set mileage rate. The IRS standard mileage rates for 2023 (Notice 2023-03) are...

The IRS interest rates on overpayments and underpayments for the first quarter of 2023 are one percentage point higher than in the fourth quarter of 2022 (Rev. Rul. 2022-23). The interest rates have i...

Withholding for federal (and where applicable) state income taxes on wages is mandatory, but you can tell employers whether you need additional withholding. Consider filing a new Form W-4 for 2023. ...

Credit card processors and other third-party settlement organizations (e.g., PayPal) were supposed to report transactions in 2022 exceeding $600 on Form 1099-K. However, the IRS has postponed this thr...

A $1.72 trillion omnibus spending bill, which was signed into law on December 29, 2022, funds the federal government through the end of its 2023 fiscal year ending September 30, 2023. Tax-wise the cha...

The latest IRS Statistics of Income Bulletin (Publication 1304 (Rev. 11-2022) (irs.gov)) show that 164.4 million individual income tax returns were filed for 2020, or 4.2% more than in the previous ta...

An individual who takes a distribution from a traditional IRA has 60 days to roll it over to another IRA or qualified retirement plan. If the rollover is not completed in time, the distribution is ful...

Relatives may receive Medicaid payments for the care of a disabled child in the caregiver’s home. Previously, the IRS said such payments are treated for income tax purposes as “difficulty of care ...

Taxpayers with adjusted gross income of $73,000 or less can use Free File to prepare and file their 2021 federal income tax return. Usually, Free File remains open until the extended due date…Octobe...

The IRS announced in late August 2022 that it is providing relief from failure-to-file penalties for tax years 2019 and 2020 for returns (Form 1040 or 1040-SR) filed by September 30, 2022 (Notice 2022...

The SECURE Act introduced a new 10-year rule for inherited retirement accounts where the employee or IRA owner died after 2019. Proposed regulations on required minimum distributions (RMDs) for inheri...

Seniors and others receiving Social Security benefits and Medicare health coverage have something to celebrate in the coming year. The approximately 65 million Social Security beneficiaries will recei...

Each year, the IRS is required to adjust various amounts used to figure contributions, benefits, deductions, and credits related to qualified retirement plans and IRAs due to cost-of-living increases....

The IRS adjusts more than five dozen items annually for inflation. Due to significant inflation over the past year, the tax brackets and many items have been increased—sometimes dramatically—for 2...

The Inflation Reduction Act of 2022 changed the rules for electric vehicles. Most of the changes apply starting in 2023. However, at least a new requirement became effective on August 16, 2022, the da...

The IRS interest rates on overpayments and underpayments for the fourth quarter of 2022 are one percentage point higher than in the third quarter (Rev. Rul. 2022-15). This is the third interest rate i...

A massive new tax law costing $739 billion was enacted to promote green energy, aid Medicare recipients, and increase funding for the IRS (P.L. 117-169). It was signed into law on August 16, 2022. To ...

Plug-in electric powered vehicles manufactured by Toyota reached the 200,000 manufacturing cap in June of this year. As a result, the maximum $7,500 credit for the purchase of a Toyota plug-in electri...