Employers and employees, take note: The IRS has released 2025 inflation-adjusted limits for employee health benefits. Workers who defer earnings to health flexible spending arrangements can contribute as much as $3,300 in 2025 (up from $3,200 in 2024). And for plans that allow carryover of unused amounts, the 2025 carryover maximum will be $660 (up […]

The premium tax credit (PTC) helps eligible individuals cover their premiums for health insurance purchased through the Health Insurance Marketplace. It was “enhanced” for the 2021 and 2022 tax years to allow taxpayers with incomes over 400% of the federal poverty line to claim a portion of the credit. The Inflation Reduction Act extended the […]

The IRS has announced inflation adjustments for 2025. The 2025 standard deduction for single taxpayers and married individuals filing separately will be $15,000, an increase of $400 from 2024. For married joint filers, it will be $30,000, an increase of $800 from 2024. For heads of households, the standard deduction will be $22,500, an increase […]

Business owners can generally deduct ordinary and necessary business expenses if they have proof. But one married couple that owned six LLCs claimed they had too much proof to present in court. After they failed to file tax returns for several years, the IRS created substitute returns. In U.S. Tax Court, the taxpayers relied mostly […]

Taxpayers who give the IRS Whistleblower Office (WBO) credible, specific tips about unpaid taxes may qualify for cash awards. Several conditions must be met, including: The IRS must take action based on a tip provided. Also, proceeds must be derived by the WBO based on the action taken. One tipster alleged that a tax-exempt entertainment […]

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It’s common for individual and business taxpayers to lose financial records during a natural disaster. Unfortunately, you usually need such records to document losses for your insurance company and to qualify for federal assistance. But if you visit the IRS’s website (https://bit.ly/4dQ3XA7), you can view or obtain copies of your historical tax returns, wage and […]

Due to wildfire destruction, the IRS recently announced tax relief for certain parts of Arizona and Washington state. And, of course, the agency has issued several tax relief notices in recent days to assist victims of Hurricanes Helene and Milton in seven southeastern states. In general, many 2024 filing and payment deadlines have been postponed […]