The IRS on June 9, 2022, announced a mid-year increase in the 2022 standard mileage rates used to calculate the deductible expenses of operating vehicles for business, charitable, medical, or moving purposes. The 2022 standard mileage rates are explained in IRS Announcement 2022-13 and additional details can be found here. Effective July 1, 2022, the standard mileage rates for the [...]
HSAs provide many benefits to individuals who want to save money on taxes and healthcare costs. You can fund your HSA with pre-tax dollars and watch your investments grow tax-free. Then, you can use this tax-free money to pay for qualified medical expenses. This triple tax advantage makes it easier to save money on healthcare costs. With an HSA, you [...]
On Monday, January 24, The IRS began receiving 2021 tax returns. The IRS has suggestions to file accurately to increase the speed of your refund [IR-2022-18, 1-24-22]. The IRS anticipates processing 160 million individual tax returns before April 18th , 2022. The top questions posed to the IRS for 2021 tax filing include topics related to: The Child Tax Credit (CTC) [...]
Tax proposals passed the Pennsylvania State House on January 25, 2022, to conform to the federal Internal Revenue Code by matching state law to federal law. All the bills now go to the Senate for consideration. The bills approved by the House would allow for the following: Owners to account for the percentage depletion of mines, oil and gas wells, [...]
The IRS on Dec. 17 announced the 2022 standard mileage rates optional rates used to calculate the deductible expenses of operating vehicles for business, charitable, medical, or moving purposes. The 2022 standard mileage rates are explained in IRS Notice 2022-3. Effective Jan. 1, 2022, the standard mileage rates for the use of an automobile, vans, pickups, and panel trucks are [...]
The IRS recently published 4 tips in gathering your tax records to prepare for filing 2021 taxes. 2021 taxes will be complicated by stimulus payments and child tax credit payments. These 4 steps to filing an accurate return are: Being organized Confirming personal information Updating IRS account information Verifying withholdings are crucial to filing an accurate return. To read the [...]
On November 15, 2021, the President signed the Infrastructure Investment and Jobs Act (IIA). There are very few tax provisions in the infrastructure legislation; however, most of the tax changes may be coming into effect in the fiscal year 2022 budget reconciliation bill that remains under review by Congress. Those would include extensions of recent changes to the following: • Child [...]
Build Back Better Act (BBB) is expected to be signed into law before Thanksgiving! On October 28, 2021, the House Rules Committee released a revised bill summarizing the Democrats’ compromise on their budget reconciliation package proposal for The Build Back Better Act. Unfortunately, after weeks of discussions regarding tax rate increases for individuals, corporations, capital gains, and the billionaire [...]
Did you know that October is National Cyber Security Awareness Month? This month has been designated to bring awareness to the cyber threats that we all face. When we think of October, we often think of cooler temperatures, leaves changing, football, pumpkin spiced lattes, and Halloween – or "spooky season." We're all familiar with the tradition of trick-or-treating. Children dress [...]
Why would a pass-through entity voluntarily elect to be taxed at the entity level? Mainly because of the individual SALT $10,000 limitation. State pass-through entity taxes are now viewed as a workaround to the $10,000 limitation by imposing an income tax directly on the pass-through entity, which is a "trade or business." The pass-through entity is not limited to the [...]
