Are you feeling generous at year end? Taxpayers can transfer substantial amounts free of gift taxes to their children or other recipients each year through the proper use of the annual exclusion. The exclusion amount is adjusted for inflation
If you’re interested in investing in tax-free municipal bonds, you may wonder if they’re really free of taxes. While the investment generally provides tax-free interest on the federal (and possibly state) level, there may be tax consequences. Here’s how
You’ve probably heard of the “nanny tax.” But even if you don’t employ a nanny, it may apply to you. Hiring a house cleaner, gardener or other household employee (who isn’t an independent contractor) may make you liable for
National Taxpayer Advocate issues midyear report to Congress; expresses concern about continued refund delays and poor taxpayer service. National Taxpayer Advocate Erin M. Collins today released her statutorily mandated midyear report to Congress. The report expresses concern about continuing delays
Cost-of-living adjustments affecting limitations have been announced by the IRS for tax year 2023. 2023 2022 401(K) AND 403(B) CONTRIBUTION LIMIT $22,500 $20,500 401(K) AND 403(B) CATCH UP CONTRIBUTION LIMIT (OVER AGE 50) $7,500 $6,500 DEFINED CONTRIBUTION LIMIT (415)
Now that fall is officially here, it’s a good time to start taking steps that may lower your tax bill for this year and next. One of the first planning steps is to ascertain whether you’ll take the standard
As a result of the current estate tax exemption amount ($12.06 million in 2022), many estates no longer need to be concerned with federal estate tax. Before 2011, a much smaller amount resulted in estate plans attempting to avoid
High-income taxpayers face two special taxes — a 3.8% net investment income tax (NIIT) and a 0.9% additional Medicare tax on wage and self-employment income. Here’s an overview of the taxes and what they may mean for you. 3.8%
The Internal Revenue Service announced that victims of Hurricane Ian in Florida now have until February 15, 2023, to file various individual and business tax returns and make tax payments. This means individuals who had a valid extension to
In its latest report, the National Association of Realtors (NAR) announced that July 2022 existing home sales were down but prices were up nationwide, compared with last year. “The ongoing sales decline reflects the impact of the mortgage rate
If you’re a business owner working from home or an entrepreneur with a home-based side gig, you may qualify for valuable home office deductions. But not everyone who works from home gets the tax break. Employees who work remotely
When a married couple files a joint tax return, each spouse is “jointly and severally” liable for the full amount of tax on the couple’s combined income. Therefore, the IRS can come after either spouse to collect the entire
Somerset CPAs and Advisors is now part of CBIZ and MHM. Together, CBIZ and MHM are one of the Top Ten accounting providers in the country. Please click here for more information.
