The IRS reminds us through Tax Tip 2024-55 of Hobby Loss deductibility restrictions, please keep these in mind when preparing your US income taxes!! Hobbies and businesses are treated differently when it comes to filing taxes. The biggest difference between the two is that businesses operate to make a profit while hobbies are for pleasure […]
In IRS Tax Tip 2024-41 the IRS reminds taxpayers of the different types of business structures they can choose when setting up a new business, the type of tax year and the business EIN number. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new […]
In IRS Tax Tip 2024-38 the IRS reminds taxpayers when they should file an Amended US tax return- math errors, missing income or other types of mistakes or errors. When a taxpayer realizes that their federal tax return has a math error, missing income or other mistake, they should file an amended tax return. A […]
The IRS reminds taxpayers that they can log into https://www.irs.gov/payments and pay their income tax they owe using a US bank accounts, the IRS EFTPS system, or debit or credit card and access their IRS account online. Taxpayers have a variety of options to consider when paying federal taxes. Electronic payment options are the best way
Under the SECURE 2.0 Change for Higher-Income Participants, starting in 2024, participants in 401(k), 403(b) and 457(b) plans whose prior-year wage income exceeds $145,000 (adjusted annually for inflation) can only make catch-up contributions to a company-sponsored designated Roth account. However in Notice 2023-62, the IRS addresses these concerns by granting relief in the form of […]
A comprehensive discussion so you can evaluate whether a Health Savings Account is beneficial to You With the escalating cost of health care, many people are looking for a more cost-effective way to pay for it. For eligible individuals, a Health Savings Account (HSA) offers a tax-favorable way to set aside funds (or have an […]
This year, many Americans have been victimized by wildfires, severe storms, flooding, tornadoes and other disasters. No matter where you live, unexpected disasters may cause damage to your home or personal property. Before the Tax Cuts and Jobs Act (TCJA), eligible casualty loss victims could claim a deduction on their tax returns. But currently, there […]
In IRS FS 2024-11 the IRS discusses the differences between the Itemized Deduction and the Standard Deduction and the important details! A deduction reduces the amount of a taxpayer’s income that’s subject to tax, generally reducing the amount of tax the individual may have to pay. Most taxpayers now qualify for the standard deduction, but […]
The IRS explains In Tax Tip 2024-26 to parents of adopted children in 2023 they may qualify for the adoption credit. That the credit can be applied to international, domestic, private and public foster care adoptions. Taxpayers who adopted or started the adoption process in 2023 may qualify for the adoption credit. This credit can […]
The IRS reminds taxpayers in Tax Tip 2024-21 IR-2024-18 that they must check the box indicating whether they received digital asset as a reward, award or payment for property or services or disposed of any digital asset held as a capital asset through an exchange, sale or transfer. Taxpayers filing 2023 tax returns must check […]
