Retirement Plan contributions updated for 2023

In 2023, individuals will be able to contribute up to $22,500 to their 401(k) plans, the IRS announced. The same is true for 403(b) plans and most 457 plans. This is up from $20,500 in 2022. The increase is part of the cost-of-living adjustments made annually. The catch-up contribution limit for employees age 50 and […]

IRS warns on ERC credits

Employers, beware: The IRS is warning about shady third parties advising businesses to claim the Employee Retention Credit (ERC), even when they don’t qualify. The ERC was introduced in 2020 to help employers who kept employees on the payroll during the COVID-19 lockdown or experienced significant declines in revenues from March 13, 2020, to Dec. […]

Adoption Tax Credit

If you’re considering adopting a child, you should know there may be financial help available in the form of an adoption tax credit. For 2023, the credit for an adoption of a special needs child is $15,950. The maximum credit allowed for other adoptions in 2023 will be the amount of qualified adoption expenses up […]

recreating tax records after a disaster

If important records are destroyed in a disaster or by some other means, you may need to recreate them. The IRS offers tips for reconstructing various records, some of which may be needed for insurance claims or possibly for federal assistance as you recover. To recreate financial statements, use past credit card and bank statements. […]

Time to perform a Withholding Checkup

With the end of the year just several weeks away are you sure you’re having the right amount of tax withheld? The IRS urges taxpayers to check their tax withholding while there’s time left. By making an adjustment now you may avoid a big surprise, such as a balance due when you file your tax […]

Happy Halloween

When black cats prowl and pumpkins shine, when shivery shivers run down your spine, when ghosts and goblins ring the chime, beware and be scared – it’s Halloween time! We wish you a safe, and scary, Halloween. Happy Halloween!

AMT guidance needed

Immediate guidance is needed regarding the financial reporting requirements of the new corporate alternative minimum tax (AMT) provisions mandated by the Inflation Reduction Act. That is what the American Institute of Certified Public Accountants (AICPA) told the IRS and Treasury officials in a letter. “Companies focused on financial statement reporting will face a challenge unless […]

TIGTA sees serious challenges for the IRS in 2023

The Treasury Inspector General for Tax Administration (TIGTA) foresees serious challenges for the IRS in 2023. In a memo to Treasury Secretary Janet Yellen, Inspector General J. Russell George emphasized the effect the Inflation Reduction Act will have on the IRS. The law includes $80 billion in agency funding and numerous tax provisions. “It will […]

2023 Inflation adjustments

Among the 2023 inflation adjustments just issued by the IRS are several that affect many higher-income taxpayers, including changes to the Alternative Minimum Tax (AMT). The AMT exemption amount is increasing to $81,300 for 2023 for unmarried individuals and begins to phase out at $578,150. The AMT exemption for joint filers will be $126,500 and […]

2023 brackets released

The IRS has just released its 2023 inflation adjustments for many tax provisions. The standard deduction will increase: $900 to $13,850 for single taxpayers; $1,800 to $27,700 for married couples filing jointly; and $1,400 to $20,800 for heads of household. The top tax rate for individuals with income greater than $578,125 ($693,750 for married couples […]