IRS officials have warned taxpayers to avoid promoters of fraudulent tax schemes involving donations of ownership interests in closely held businesses, sometimes marketed as “Charitable LLCs.” These promotions often target higher-income filers and are considered abusive transactions by the IRS. While taxpayers can properly deduct donations of closely held business interests, unscrupulous promoters sometimes lureRead more about Beware of Fraudulent “Charitable LLC” Schemes[…]

Low- and moderate-income taxpayers can save for retirement now and possibly earn a tax credit in 2025 and future years thanks to the Retirement Savings Contributions Credit, also known as the Saver’s Credit. This credit can help offset a portion of the first $2,000 ($4,000 if married filing jointly) you voluntarily contribute to Individual RetirementRead more about Save for Retirement Now, Get a Tax Credit Later[…]

The IRS has announced a change to the requirements that third-party settlement organizations (TPSOs), also known as payment apps and online marketplaces, have regarding reporting transactions during calendar years 2024 and 2025 on Form 1099-K. Under the issued guidance, TPSOs will be required to report transactions when the amount of total payments for those transactionsRead more about Form 1099-K Threshold Set to $5,000 for 2024[…]

The end of the year is fast approaching, and with it come a few deadlines that you should consider. If you are age 70½ or older and have an individual retirement arrangement (IRA), one thing you should think about is whether you want to make a qualified charitable distribution (QCD) for 2024. Qualified IRA ownersRead more about 2024 Qualified Charitable Distribution Reminder[…]

The Internal Revenue Service recently announced updates to several amounts that are updated annually for inflation. 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, include the following dollar amounts: Standard deductions.Read more about Inflation Adjustments for 2025[…]

The Internal Revenue Service recently announced that the annual contribution limit for employees who participate in 401(k), 403(b), governmental 457 plans, and the federal government’s Thrift Savings Plan is increased to $23,500 in 2025, up from $23,000 in 2024. The limit on annual contributions to an IRA remains $7,000. The IRA catch‑up contribution limit forRead more about 401(k) and IRA Limit Increases in 2025[…]

The IRS has opened a second round of the Employee Retention Credit Voluntary Disclosure Program (or “ERC VDP”) for businesses who may have improperly claimed the ERC in the past. The ERC VDP is open now and runs through Nov. 22, 2024. This ERC VDP helps businesses repay credits they received after filing ERC claimsRead more about More ERC Forgiveness[…]

Crowdfunding is a method of raising money through websites by soliciting contributions from a large number of people. The contributions may be solicited to fund businesses, for charitable donations, or for gifts. Sometimes, the money raised through crowdfunding is solicited by crowdfunding organizers on behalf of other people or businesses. In other cases, people establishRead more about Tax Treatment of Crowdfunding[…]

If you’d like to avoid surprises next year at tax time, consider doing an end-of-summer tax update and make any tax withholding or payment updates that are necessary. While most people get a refund after filing their taxes, many also find they unexpectedly owe taxes. This is often due to a life or job changeRead more about Your End-of-Summer Tax Checkup[…]

With the new school year upon us, teachers should remember that they may be eligible to deduct up to $300 for classroom expenses in 2024. This deduction allows educators to offset the cost of supplies, materials and other classroom essentials, providing some financial relief for those who spend their own money to improve their students’Read more about Educator Expense Deduction[…]