IRS Provides Tax Inflation Adjustments for Tax Year 2023

This article was published by the IRS.   The Internal Revenue Service has announced the tax year 2023 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2022-38 provides details about these annual adjustments. New for 2023 The Inflation Reduction Act extended certain energy related tax breaks …

How a Taxpayer’s Filing Status Affects Their Tax Return

This article was published by the IRS.  A taxpayer's filing status tells the IRS about them and their tax situation. This is just one reason taxpayers should familiarize themselves with each option and know their correct filing status. The IRS Interactive Tax Assistant can help them determine their filing status. A taxpayer's filing status typically depends on …

How Small Business Owners Can Deduct Their Home Office from Their Taxes

This article was published by the IRS. The home office deduction allows qualified taxpayers to deduct certain home expenses when they file taxes. To claim the home office deduction on their 2022 tax return, taxpayers generally must exclusively and regularly use part of their home or a separate structure on their property as their primary place of business. Here …

IRS Issues Standard Mileage Rates for 2023; Business Use Increases 3 Cents Per Mile

This article was published by the IRS. The Internal Revenue Service has issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups or …

Taxpayers Should Review the 401(k) and IRA Limit Increases for 2023

This article was published by the IRS.  The amount individuals can contribute to their 401(k) plans in 2023 will increase to $22,500 -- up from $20,500 for 2022. The income ranges for determining eligibility to make deductible contributions to traditional IRAs, contribute to Roth IRAs, and claim the Saver's Credit will also all increase for …

It’s Important for Taxpayers to Know the Difference Between Standard and Itemized Deductions

This article was published by the IRS.  Taxpayers have two options when completing a tax return, take the standard deduction or itemize their deductions. Most taxpayers use the option that gives them the lowest overall tax. Due to all the tax law changes in the recent years, including increases to the standard deduction, people who …

Taxpayers Must Report Gig Economy Earnings When Filing Taxes

This article was published by the IRS. Whether it's a full-time job or just a side hustle, taxpayers must report gig economy earnings on their tax return. Understanding how gig work can affect taxes may sound complicated but, it doesn't have to be. The IRS offers several resources to help gig economy taxpayers properly fulfill …

What Happens After a Disaster that Leads to Taxpayer Relief

This article was published by the IRS.  No matter how devastating a disaster is, before the IRS can authorize any tax relief, FEMA must issue a major disaster declaration and identify areas qualifying for their Individual Assistance program. Here's a list of tax-related things that usually happen after a major disaster strikes: The IRS gives …

Get Ready for Taxes: What’s New and What to Consider When Filing in 2023

This article was published by the IRS. The Internal Revenue Service is encouraging taxpayers to take important actions this month to help them file their 2022 federal tax returns. (This is the second in a series of reminders to help taxpayers get ready for the upcoming tax filing season. A "Get Ready" page outlines steps taxpayers can …

Reminder to IRA Owners Age 70½ or Over: Qualified Charitable Distributions are Great Options for Making Tax-Free Gifts to Charity

This article was published by the IRS.  The Internal Revenue Service is reminding IRA owners age 70½ or over of their option to transfer up to $100,000 to charity tax-free each year. These transfers, known as qualified charitable distributions or QCDs, offer eligible older Americans a great way to easily give to charity before the …