IRS issues guidance on state tax payments to help taxpayers

Posted by JCB 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 JCB 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 JCB 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 JCB 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 JCB 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 JCB 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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Special Tax Deduction Helps Most People Give Up to $600 to Charity, Even if They Don’t Itemize

Posted by JCB on Nov 26, 2021 in Advice A special tax provision may allow taxpayers to deduct up to $600 in donations to qualifying charities on their 2021 federal income tax return. Ordinarily, people who choose to take the standard deduction cannot claim a deduction for their charitable contributions. But a temporary law change now permits them to claim a limited deduction on their 2021 federal income tax returns for cash...
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401(k) Contribution Limit Increases to $20,500, Up $1,000

Posted by JCB on Nov 19, 2021 in Advice The contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is increased to $20,500, up from $19,500 for 2021 and 2020. For additional highlights about contribution changes for 2022, visit IRS.gov.
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Deadline approaches for taxpayers who requested extensions to file 2020 tax returns

Posted by JCB on Sep 22, 2021 in Advice Reminder to those who requested extensions to file their 2020 tax returns for the upcoming Oct. 15 due date. People who asked for an extension should file on or before the extension deadline to avoid the penalty for filing late.
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Attorney General Tong, DRS Commissioner Boughton Warn Consumers of Fraudulent Letters About Unpaid Tax Debt

Posted by JCB on Aug 12, 2021 in Advice (Hartford, CT) — Attorney General William Tong and Department of Revenue Services Commissioner Mark D. Boughton today are warning Connecticut consumers of a scam in which they receive a threatening letter about unpaid federal tax debts. The fraudulent letter claims to be from a “Tax Processing Unit” in a Connecticut county and threatens legal action for unpaid taxes and provides a number to call...
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