Who Elects Married Filing Separately & Why?
Should you elect married filing separately on your tax returns? The truth is only about 2% of married couples do so. For a select few, however, the election can be quite beneficial. Most married couples can and should file jointly. The IRS itself states that “in almost all instances, if you file separate returns, you […]
Responding to an IRS Letter
The IRS just made it easier to respond to a handful of tax notices online, which presents an excellent opportunity to review what a letter from the IRS could mean and how you should respond to each. Hint: You should always give your CPA a heads-up before responding. The IRS still relies heavily on U.S. […]
Awaiting a Tax Refund in 2023?
If you got used to receiving a tax refund in recent years, don’t hold your breath for the same this tax season. While the IRS is better staffed and equipped this year for prompt refunds, pandemic benefits that sweetened the deal have now expired. CBS News reports that the average tax refund in 2022 (for […]
Worker Misclassification Changes Are Resurfacing
The federal government is again working on final changes to its independent contractor guidelines. Getting this sticky area wrong can hold dire consequences with potential litigation, fines, fees, and, of course, back taxes. Employee classification can be a fast-changing, confusing area of business and tax law—especially if you hire workers across state lines. The rule […]
Investment Losses and Tax-Loss Harvesting
You win some, you lose some—that’s the nature of investing. But when it comes to paying taxes, you might be able to turn an investment loss into a tax win through tax-loss harvesting. It’s certainly a volatile time for investing. U.S. stocks and bonds were down in the same year at the same time, which […]
New Domestic Filing Exception (DFE) for Partnerships & S Corps
New instructions for schedules K-2 and K-3 are out. The big change is a Domestic Filing Exception (DFE) that, in theory, makes it easier to file if all partners/owners qualify. The DFE is designed to reduce the complexity and time associated with preparing and filing Form 1065 for partnerships and Form 1120-S for S Corps. […]
Form 1099-K Changes on Hold…For Now
Businesses and individuals who use digital platforms like Venmo, Paypal, and eBay were bracing for tax headaches as the tax reporting threshold was about to drop with the New Year’s ball to $600. That plan changed at the last moment. For months, the IRS had been warning early filers to wait for “key documents” that […]
Have You Checked for Unclaimed Property Lately?
The Texas Comptroller’s office approved and paid out a record $309 million in unclaimed property during the past fiscal year. It might be worth checking out for yourself. Since 1963, Texas has had a system in place requiring institutions, businesses, and governmental entities to report to the state any personal property that has been unclaimed […]
What a Year: 2023 Inflation-Adjusted Tax Breaks
Inflation adjustments are bigger than usual in 2023: coming in at about 7% for more than 60 federal tax provisions, including personal tax deductions, capital gains thresholds, and estate taxes. As part of the changes, income tax brackets are being bumped up, producing the most savings for the highest-income taxpayers. Single filers will need to […]
The Latest in Tax-Saving Charitable Giving
If you’re feeling the urge to give more to charity this year, you’re not alone. In addition to it being the season for giving, Americans are considering increased donations this year due to recession fears. According to a study from Fidelity Charitable, nearly 75% of those surveyed said they worry about other community members, and […]