Individual tax planning highlights Taxpayers should consider whether they can minimize their tax bills by shifting income or deductions between 2021 and 2022. Ideally, income should be received in the year with the lower marginal tax rate, and deductible expenses should be paid in the year with the higher marginal tax rate. If the marginal…
Year-end tax planning for businesses is especially difficult for 2021 because the Build Back Better Act has the potential to impact broad areas of taxation. Congress continues to negotiate a compromise. Unfortunately, it is difficult to know what is likely to emerge as the final version. In addition, although the effective date for most of…
For tax years beginning on or after January 1, 2021, eligible partnerships and S corporations may annually elect to pay the “pass-through entity tax” (PTET). This is an optional election. The benefit of doing so is that NYS income taxes normally limited to the state and local tax deduction of $10,000 on Schedule A can,…
In recent days the Treasury Department has issued some much-anticipated guidance on certain issues surrounding this potentially valuable credit. Some general highlights: Wages paid to majority owners and their relatives, as defined, are not considered qualified wages for purposes of obtaining the credit. In general, wages paid to unrelated, minority owners, will be eligible for…
What is an Economic Impact Notice? After a taxpayer has been issued an Economic Impact Payment, the IRS is required to mail an Economic Impact Notice to the recipient at their last known address. This notice provides information about the amount of the Economic Impact Payment, how it was made, and how to report any…
HSA Limits Increase for 2022 Contributions to a Health Savings Account (HSA) are used to pay current or future medical expenses of the account owner, his or her spouse, and any qualified dependent and are adjusted annually for inflation. For 2022, the annual inflation-adjusted contribution limit for a Health Savings Account (HSA) increases to $$3,650…
How to Check the Status of Your Tax Refund Taxpayers can start checking their tax refund status within 24 hours after receiving an e-filed return. The easiest and most convenient way to do this is by using the Where’s My Refund? Tool on the IRS website. The tool also provides a personalized refund date after…
Selling a small to medium-sized business is a complex venture, and many business owners are not aware of the tax consequences. If you’re thinking about selling your business the first step is to consult a competent tax professional. You will need to make sure your financials in order, obtain an accurate business valuation to determine…
With college semesters just ending and high school seniors graduating and planning for the future, this is an ideal time to consider 529 Plans. Many parents are looking for ways to save for their child’s education, and a 529 Plan is an excellent way to do so. Even better is that thanks to the passage…
President Biden has signed the America Rescue Plan Act of 2021 (ARPA) into law. The bill is a $1.9 trillion COVID-19 relief package aimed at stabilizing the economy, providing needed relief to individuals and small businesses, and improving and accelerating the administration of coronavirus vaccines and testing. Many details are yet to come, but here…