How All 50 States Tax Retirees
Alabama taxes A new law effective last year makes the first $6,000 or distributions from retirement plans (like IRAs and 401(k)s tax-exempt for retirees 65 and older in Alabama. Income Tax on Taxable Income: Low of 2% (on up to $500 for single filers and $1,000 for joint filers) and a high…
5 tax moves to make this August
This month is a good time to make some tax moves that could save you some (or more) dollars and/or keep you out of tax trouble. Here are five to consider. 1. File your 2022 return by Aug. 15.OK, this applies only to a few, relatively speaking, taxpayers. But Tax…
TAX PENALTY-AFTER EXTENSION
Interest Interest accrues on your unpaid balance and compounds daily from April 18 (which was the tax deadline for most people) until you pay the balance in full. Interest rates on underpayments of tax are set each quarter. For non-corporate taxpayers, the rate is equal to the federal short-term rate plus three…
Some state refund recipients should amend their federal tax returns
Residents in 21 states got some good news from the Internal Revenue Service earlier this year. In 2022, they received general welfare, disaster, or stimulus payments from their state officials. These generally were referred to as refunds. Basic state tax refunds, in some instances, are taxable at the federal level.…
Family business tax considerations
Some of the world's largest companies are family owned. Yes, we're looking at you, Walmart. But the real backbone of every community is its locally owned and operated businesses. Although they are much smaller, these owners face many of the same challenges as do corporate behemoths that are run by…
IRS has changed the mileage rules
To meet the strict substantiation requirements for deducting vehicle expenses underIRC section 274(d), a taxpayer must have adequate records or sufficient corroboratingevidence that establishes:1) The amount of the expense,2) The time and place of the expense or use of the listed property,3) The business purpose of the expense or use,…
Tax tips for first-time filers
The Internal Revenue Service receives tax returns from millions of Americans each year. They're all first-time filers. Whether you are a first-time or experienced taxpayer, dealing with the IRS can be intimidating. For newbies, the task also can be overwhelming. But it doesn't have to be. These eight steps can…
Reasons to file a tax return even if you don’t have to
In 2019, the Internal Revenue Service received nearly 156 million tax returns. Then came the COVID-19 pandemic. In 2022, the number of 1040s filed hit 169.7 million. 2021 saw 169.1 million returns sent to the IRS, and 2022 saw 164.3 returns sent. During 2020-2022, the IRS most likely increased advance…
How to handle a tax audit
Don't panic! The keys to success are being well prepared, establishing credibility right away, and keeping your wits about you. The IRS wanting to examine your return is quite a shock, no matter why you were chosen. You could not escape the anxiety that comes with an audit notice, even…
What Are Your Chances of Being Audited?
IRS audits are more likely to occur if you have these red flags on your return. If you are preparing to file your tax return, you may wonder if the IRS will audit it. Most people can breathe easily because the vast majority of individual returns escape the audit machine.…
