When 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,…

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Tax 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…

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IRS 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…

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9 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…

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IRS 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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Check Tampering Fraud in Small Businesses/Organizations

How one trusted employee defrauded a charity and how she got away with it for so long. If your small business or organization maintains a paper checkbook, whether you typically use it or not, you could be at risk of check tampering fraud. Even if you believe your business or organization does not make any…

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Key Social Security Changes for New Year

According to the Social Security Administration, approximately 70 million Americans will see an 8.7 percent increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2023. On average, according to the SSA, Social Security benefits will increase by more than $140 per month starting in January. Why the big bump? As the…

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Annual Tax Adjustments for 2023

The Internal Revenue Service has released the tax year 2023 annual inflation adjustments for dozens of tax provisions, including the tax rate schedules and other tax changes. Here are some of the key changes. Standard deduction The standard deduction for married couples filing jointly for tax year 2023 rises to $27,700, which is up $1,800…

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Reduce Your Tax Burden by Donating to Charity with Your IRA

The IRS has shared that persons who are subject to required minimum distributions (RMDs) from their IRAs may be able to turn those distributions into a qualified charitable donation (QCD), thus making the distribution non-taxable. Simplified Employee Pension Plans and Savings Incentive Match Plans for Employees’ IRA accounts do not qualify for this treatment, however. Making…

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