Individual Tax
Deadline Extended for Catch-Up Contribution Changes: Here’s What High Earners and Employers Need to Know
The IRS recently announced that it will extend the new provision stemming from SECURE Act 2.0 that requires employees with annual income exceeding $145,000 to divert their 401(k) catch-up contributions into a Roth 401(k) account. This “administrative transition period” extension by two years to 2026 comes on the heels of widespread appeals to Congress to…
Read MoreA New Look at SECURE Act 2.0 Issues
The Setting Every Community Up for Retirement Enhancement Act 2.0 (SECURE Act 2.0) has a new provision that speaks to the nature of auto-enrollment for new 401(k) plans. All eligible hires will be required to enroll at a pretax rate of three percent at the minimum. Furthermore, mandatory enrollment will come with an auto-escalation of…
Read MoreQCDs: Tax-Free Gifts to Charity
If you have an IRA, you are required to take out a certain amount of money each year once you reach age 73, even if you don’t need the funds. This is known as a required minimum distribution and it can increase your taxable income, potentially pushing you into a higher tax bracket. How QCDs…
Read MoreArizona One-Time General Welfare Rebate
The Arizona Department of Revenue (DOR) will be issuing a one-time individual income tax general welfare rebate, entitled the Arizona Families Tax Rebate to Arizona taxpayers who meet the following requirements: filed a full-year resident tax return for tax year 2021 and claimed a dependent tax credit on the tax return that meets one of the following…
Read MoreWhat To Know About Tax Record Keeping in Arizona
The Arizona Department of Revenue (ADOR) reminds taxpayers to keep well-organized records and to toss old documents securely. Maintaining a dedicated folder for tax-related documents is a good place to start. It makes it easier to prepare your tax return and it helps if you are audited or receive a notice. The statute of limitations…
Read MoreWhen Does a Gift Require a Gift Tax Return, and Gift Tax?
With lifetime gift and estate tax exemptions at an all-time high in 2023, not as many taxpayers will be subject to federal gift taxes this year. However, that does not mean you will not have to file a gift tax return. Nontaxable Gifts There are a few scenarios that do not involve paying gift tax,…
Read MoreTax Credits for Energy-Efficient Home Improvements
Under the Inflation Reduction Act of 2022, tax credits are available for making homes more energy efficient, using clean energy sources and retrofitting heating and cooling systems. The energy-efficient home improvement credit has been raised to $1,200 from the $500 lifetime credit for installing new doors, windows, skylights, insulation, and heat pumps. This credit equals…
Read MoreIRS Issues New Clean Vehicle Credit Proposed Regulations
The IRS has issued proposed regulations regarding new clean vehicle credits. The Inflation Reduction Act allows a maximum credit of $7,500 per vehicle, consisting of $3,750 for vehicles that meet certain requirements relating to battery components, and $3,750 for vehicles that meet certain requirements relating to critical minerals. The proposed regulations say that the critical mineral…
Read More9 Money Milestones for Your 50s and Beyond
Every birthday is important in our book, but there are some key milestones to remember when planning for retirement. This age-by-age breakdown offers an overview of tax and financial planning tips for your 50s, 60s, and 70s to help you maximize retirement benefits and navigate deadlines. Age 50 – Taxpayers aged 50 and older are eligible…
Read MoreIRS Clarifies Federal Taxes and State Payments
The IRS has recently announced that “in the interest of sound tax administration and other factors,” taxpayers in many states will not need to report various payments on their 2022 tax returns. Specifically, the IRS has determined it will not challenge the taxability of payments related to general welfare and disaster relief. So what does…
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