The kiddie tax could affect your children until they’re young adults

The so-called “kiddie tax” can cause some of a child’s unearned income to be taxed at the parent’s higher marginal federal income tax rates instead of at the usually much lower rates that a child would otherwise pay. For purposes of this federal income tax provision, a “child” can be up to 23 years old. […]

Tax Season opening day set by IRS

Mark your calendar for Jan. 29! The IRS announced that’s the date the 2024 tax season opens, meaning it’s the first day the tax agency will accept tax returns. It expects more than 128.7 million individual tax returns to be filed by the April 15 tax deadline. The agency recommends taxpayers file electronically with direct […]

Does your business have employees who get tips? You may qualify for a tax credit

If you’re an employer with a business where tipping is routine when providing food and beverages, you may qualify for a federal tax credit involving the Social Security and Medicare (FICA) taxes that you pay on your employees’ tip income. Credit fundamentals The FICA credit applies to tips that your staff members receive from customers […]

IRS funding may be reduced in proposed 2024 spending proposal

Under a recently announced bipartisan fiscal year 2024 spending proposal, a portion of IRS funding initially provided by the Inflation Reduction Act (IRA) may be rescinded sooner than first announced. The IRA provided the IRS $80 billion in new funding. Subsequent legislation has chipped away at that amount. The Fiscal Responsibility Act cut $1.4 billion. […]

6 tips to improve job-costing systems

Companies that work on customer-specific or long-term projects — such as homebuilders, contractors, custom manufacturers and professional practices — generally track job costs to gauge the profitability of each project. In turn, this helps them bid future projects. Unfortunately, the job-costing process tends to be cumbersome, causing some expenses to inadvertently fall through the cracks […]

New E-Filing threshold in effect for 2024

The IRS is reminding businesses required to file information returns of a significant rule change that went into effect on Jan. 1: The threshold for electronically filing most information returns dropped from 250 to 10. Before the new rule, only businesses filing 250 or more information returns were required to do so electronically. Notably, the […]

IRS: Taxpayers may avoid a surprise tax bill by making a quarterly payment by Jan. 16 – CNBC https://bit.ly/47yQlX1

Can employers help employees save for emergencies?

Congress nears deal on expanded child tax credit

Congress nears deal on expanded child tax credit – The Washington Post https://bit.ly/3u1vqhr

IRS’s Energy Credits Online tool allows Clean Vehicle Credit within 72 hours

The IRS’s Energy Credits Online tool allows clean vehicle dealers to register online and receive dealer advance payments for the Clean Vehicle Credit within 72 hours of the sale of a qualified clean vehicle. The tool generates a time-of-sale report. The agency has announced that it’s extending the deadline for qualified dealers to submit their […]