THIS MESSAGE IS INTENDED FOR ALL CLIENTS WHO OWN AN LLC, LP, LLP, OR CORPORATION. Beginning Jan. 1, 2024, entities will have a new reporting requirement under the Corporate Transparency Act. The Beneficial Ownership (BOI) Rule requires certain domestic and foreign companies registered to do business in the U.S. to file reports with FinCEN that […]
Many of the tax benefits generated by the pandemic are resetting back to 2019 levels. Here are a few examples: It’s not all bad news for taxpayers in 2022. Inflation indexed thresholds have increased tax brackets, standard deductions, retirement contributions, and other benefits.
The Causes The COVID effect: The IRS has been in a state of disarray since the COVID pandemic shutdown operations in March 2020. The IRS call center desks are so tightly packed together that when one employee tested positive for COVID, they sent the entire floor home. This caused massive delays on the IRS telephone […]
Announced 12/23/22: IRS to delay implementation of new 1099K rules until 2023. News Release Starting with the 2022 tax year there is a new reporting requirement for third party payment processors, such as Venmo, Paypal, Amazon, Square and Cash App. The reporting threshold has been lowered from $20,000 to $600 this year. More taxpayers therefore […]
The Inflation Reduction Act of 2022 expanded and changed the rules where it comes to the solar energy credit and electric vehicles. Here is a quick breakdown of the credits along with links for further details. Plug-In Electric Drive Vehicle Credit For vehicles that were purchased and delivered on or after August 16, 2022, the […]
As a part of the 2022 PA budget, a brand-new childcare tax credit has become available to Pennsylvanian families. It is modeled after the Federal Child and Dependent Care credit, so if you qualify for the federal program, you will likely qualify for the state credit as well. Key Points: Tax Credit Amounts: All communication […]
SINGLE Tax Rate 2021 2022 10% $1 – 9,950 $1 – 10,275 12% 9,951 – 40,525 10,276 – 41,775 22% 40,526 – 86,375 41,776 – 89,075 24% 86,376 – 164,925 89,076 – 170,050 32% 164,926 – 209,425 170,051 – 215,950 35% 209,426 – 523,600 215,951 – 539,900 37% Over 523,600 Over 539,900 MARRIED JOINT Tax […]
Tax Facts – 2 Year Comparison Here’s a quick review of some of the tax changes you’ll see from 2021 to 2022 as a result of inflation adjustments and new tax laws. Provision 2021 2022 +/- Business equipment Sec. 179 expensing deduction $1,050,000 $1,080,000 +$30,000 Total purchase limit for full Sec. 179 expensing deduction $2,620,000 […]
Standard Deduction: Single: $12,950 Joint returns & surviving spouses: $25,900 Married filing separately: $12,950 Head of household: $19,400 The standard deduction increases by $1,400 for a married taxpayer aged 65 or older or blind ($2,800 if both 65 and blind); by $1,750 for a single taxpayer aged 65 or older or blind ($3,400 if both […]
Businesses that are slowly emerging from the COVID-19 pandemic should now keep their eye on another looming obstacle: IRS audits. In late 2020, the IRS announced that it will increase tax audits of small businesses by 50 percent in 2021. Here are several mistakes to avoid if you do get audited by Uncle Sam. Mistake: Missing […]