IRS releases tax inflation adjustments for tax year 2025

Posted by on Dec 31, 2024 in Advice Notable changes for tax year 2025 The tax year 2025 adjustments described below generally apply to income tax returns to be filed starting tax season 2026. The tax items for tax year 2025 of greatest interest to many taxpayers include the following dollar amounts: Standard deductions. For single taxpayers and married individuals filing separately for tax year 2025, the standard deduction...
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IRS Updates Standard Mileage Rates

Posted by on Dec 23, 2024 in Advice If you use your car for business, charity, medical or moving purposes, you may be able to take a deduction based on the mileage used for that purpose. 2025 mileage rates The standard mileage rates for 2025 are: Self-employed and business: 70 cents/mile  Charities: 14 cents/mile  Medical: 21 cents/mile  Moving (military only): 21 cents/mile  Find out when you can deduct...
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IRS urges many retirees to make required withdrawals from retirement plans by year-end deadline

Posted by on Dec 20, 2024 in Advice The Internal Revenue Service today reminded those aged 73 and older of the deadline to take required minimum distributions from individual retirement arrangements (IRAs) and other retirement plans, and highlighted updates introduced by the SECURE 2.0 Act. Required minimum distributions (RMDs) are amounts that many retirement plan and IRA account owners must withdraw annually. These withdrawals...
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FinCEN BOI Reporting 2024

Posted by on Nov 23, 2024 in Advice This is a new filing for corporations and LLCs that must be filed by January 1, 2025. https://fincen.gov/boi The Corporate Transparency Act (CTA) is intended to provide information to the U. S. Department of the Treasury on the ownership and control of companies in an attempt at transparency to prevent money laundering and other crimes. Reporting Company The CTA requires a reporting company to...
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IRS issues guidance on state tax payments to help taxpayers

Posted by on Feb 13, 2023 in Advice The Internal Revenue Service provided details clarifying the federal tax status involving special payments made by 21 states in 2022. The IRS has determined that in the interest of sound tax administration and other factors, taxpayers in many states will not need to report these payments on their 2022 tax returns. During a review, the IRS determined it will not challenge the taxability of...
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IRS Online Account

Posted by on Jan 22, 2022 in Advice The IRS is encouraging taxpayers to set up and use their online account to: https://www.irs.gov/payments/your-online-account View Your Balance View the amount you owe and a breakdown by tax year View or Create Payment Plans Learn about payment plan options and apply for a new payment planView details of your payment plan if you have one Make and View Payments Make a payment from your bank...
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Am I Required to File a Form 1099 or Other Information Return?

Posted by on Jan 19, 2022 in Advice If you made a payment during the calendar year as a small business or self-employed (individual), you are most likely required to file an information return to the IRS. Receipt of certain payments may also require you to file an information return to the IRS. This page is applicable to specific and limited reporting requirements. For more detailed information, please see General...
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Tax Filing begins January 24

Posted by on Jan 15, 2022 in Advice The nation’s annual tax season begins Monday, Jan. 24 when the IRS begins accepting and processing 2021 tax year returns. The IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically, if they choose direct deposit and there are no issues with their tax return. The filing deadline to submit a 2021 tax return or an extension to file and pay tax owed...
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IRS Issues Standard Mileage Rates for 2022

Posted by on Dec 20, 2021 in Advice The IRS issued the 2022 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning Jan. 1, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be: 58.5 cents per mile driven for business use, up 2.5 cents from 2021,18 cents per mile driven for medical, or...
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Tax Relief for Hurricane Ida Victims in Connecticut

Posted by on Dec 3, 2021 in Advice Victims of Hurricane Ida in parts of Connecticut now have until Jan. 3, 2022, to file various individual and business tax returns and make tax payments. Individuals and households affected by remnants of Hurricane Ida that reside or have a business in Fairfield County, New London County, Mashantucket Pequot Tribal Nation and Mohegan Tribal Nation qualify for tax relief.
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