Qualified Charitable Distributions limit increased in 2024

Beginning in 2024, eligible senior taxpayers may donate more from their IRAs with qualified charitable distributions (QCDs). Owners or beneficiaries of IRAs who are 70½ or older can make QCDs directly to IRS-approved charities. In 2024, the annual QCD limit is $105,000 (up from $100,000 in 2023). In 2025 it rises to $108,000. This limit […]

Catch-up Contributions

Employers that offer 401(k) plans and allow catch-up contributions need to prepare for some changes in 2025. The SECURE 2.0 Act allows 401(k) plan participants who will be 60, 61, 62 or 63 in 2025 to make annual catch-up contributions equal to $10,000 or 150% of the regular catch-up limit for the previous year, whichever […]

Giving can also be saving

If you’re one of the millions of people giving to charity this holiday season, your gifts may be tax deductible. To be eligible for a deduction of up to 60% of your adjusted gross income, you must itemize deductions. Also, charities that receive your donations must be tax-exempt. You can check the IRS’s site (https://bit.ly/3ViMOcb […]

1099-K reporting threshold reducing in 2025

IRS Form 1099-K, Payment Card and Third Party Network Transactions, is an information return that reports payments from payment apps or online marketplaces. These entities are also known as third-party settlement organizations (TPSOs) and include PayPal, Venmo and eBay. For 2024, the reporting threshold is $5,000. The IRS recently announced that in 2025, TPSOs must […]

IRS extends R&D Credit claim period

The IRS is extending the research credit’s transition claim period through Jan. 10, 2026. Taxpayers must provide significant documentation when submitting a claim for the research credit. (The credit is also called the research and development, R&D, or research and experimentation credit.) The IRS provides a 45-day transition period to taxpayers who fail to comply […]

Appreciated Stock?

If you own stock that has appreciated over time, selling it could result in capital gains taxes. However, if you’re charitably inclined and itemize deductions on your tax return, there’s a tax-savvy alternative. Consider donating publicly traded stocks that you’ve held for more than a year directly to an IRS-approved charity. That allows you to […]

Deducting the company Christmas party

Planning a holiday party for your employees? Keep tax deductions in mind. Most entertainment expenses currently aren’t deductible and you can generally deduct 50% of the cost of business meals. But under certain conditions, you can deduct 100% of party costs. The event must be for your entire staff and not be “lavish or extravagant.” […]

Senators suggest auditing more tax exempt hospitals

Senators Elizabeth Warren (D-MA) and Chuck Grassley (R-IA) have long expressed concerns about the tax-exempt status of nonprofit hospitals. The lawmakers recently sent a letter to the IRS reiterating earlier allegations that while nonprofit hospitals are required to provide a “community benefit,” some have restricted care and increased costs. To remedy the situation, the lawmakers […]

Get a jump start on tax season

Would you like to get a jumpstart on your 2024 federal tax return? You can create or access an IRS Online Account (https://bit.ly/4fpNBjW ) to review your historical tax records, request a personal identification number and view any new tax information. In addition, start gathering tax records, including relevant receipts and invoices. You’ll want to […]

House passes bill to fight terrorism

The U.S. House of Representatives passed legislation that would give the Treasury Dept. authority to strip the tax-exempt status of nonprofit organizations it claims support terrorism. According to the Congressional Research Service, the Stop Terror-Financing and Tax Penalties on American Hostages Act would create a new category of “terrorist supporting organizations.” Any organization the Treasury […]