House lawmakers have reintroduced proposed legislation to expand the Federal Insurance Contribution Act (FICA) tax tip credit. The bill would expand the credit, currently available to the food service industry, to “employer-based salon and beauty service” establishments. Tips are paid as a gratuity by customers directly to the workers providing the services. Employers are required […]

Absent congressional intervention, the federal government will soon reach its limit on the amount of money it’s authorized to borrow, according to U.S. Treasury Secretary Janet Yellen. The current limit was set on Dec. 16, 2021. If not raised (or suspended) once again, the limit will be met on Thursday, Jan. 19. “Once the limit […]

Does current tax law encourage charitable giving? According to National Taxpayer Advocate (NTA) Erin M. Collins in her annual report to Congress, the answer may be “no.” Donations to qualified charities can generally be deducted on the donor’s tax return. However, the donor must have received a written acknowledgement from the charity before filing a […]

Want your tax refund ASAP? Here are 5 pitfalls that can delay your check. – CBS News https://cbsn.ws/3wiwWcJ 

Taxpayers who are in business to make a profit can usually deduct related expenses on their tax returns. If the IRS doubts a profit motive exists, the activity may be deemed a hobby, limiting the ability to deduct costs. The burden to prove there’s a profit motive is on the taxpayer. In one case, a […]

Newly elected U.S. House Ways and Means Committee Chair Jason Smith (R-MO) has wasted no time in assembling his team. The majority party typically gets 25 seats (compared with 18 for the minority party) on the tax-writing committee, and Smith has added 10 members now that Republicans are in charge. These include lawmakers with tax-writing […]