The Supreme Court’s decision in the Wayfair case has prompted several states to enact new remote seller laws. On June 21, 2018, the United States Supreme Court ruled in South Dakota v. Wayfair Inc. that states can require online sellers to collect state sales tax on their sales. This overturns the Court’s 1992 decision in
The Wayfair decision has resulted in new remote and online seller tax rules. Read More »
The IRS has announced the cost-of-living adjustments (COLA) for the items below for the 2023 tax year [Rev Proc 2022-38, IR 2022-182]. Qualified transportation fringe benefits. For 2023, an employee will be able to exclude up to $300 a month for qualified parking expenses, and up to $300 per month or the combined value of transit passes and transportation in a
IRS Announces 2023 Inflation Adjustments for Several Key Tax Figures Read More »
It’s critical to understand how disability benefits are taxed if you have or expect to receive one. The majority of disability pensions, but not all, are taxable. Employer Disability Pensions If you retired early due to disability, you must include any disability pension you receive under an employer-paid plan in your income. Until you reach
Are Disability Pensions and Benefits Taxable? Read More »
How to use an offer in compromise to settle a tax bill with the IRS. There are times when you can clear the tax slate for a huge discount. If you qualify for a “offer” or “OIC,” which is short for “offer in compromise,” the IRS will accept less than what you owe on a
Using an Offer in Compromise to Settle a Tax Bill Read More »
Most of the best tax breaks for individuals can only be used if you itemize your deductions instead of just taking the standard deduction. Since 2018, when the standard deduction was almost doubled, only about 11% of taxpayers today itemize. For 2022, the standard deduction for single people is $12,950 and for married people filing
Top Personal Tax Deductions Read More »
If you use part of your home for business, you might be able to deduct home business expenses. You must meet some requirements per IRS publication 334. You can deduct a percentage of many of the costs of running your home, such as utilities, rent, insurance, depreciation, mortgage interest, real estate taxes and that percentage
Running a business from home can help you lower your income tax bill Read More »
The Internal Revenue Service issued its annual inflation-adjusted amounts Friday for health savings accounts next year as the inflation rate surged to the highest level in decades. In Revenue Procedure 2022-24, the IRS said for calendar year 2023, the annual limitation on deductions for an individual with self-only coverage under a high deductible health plan is
IRS raises HSA limits for 2023 amid soaring inflation Read More »
According to the Pew Research Center, 16% of U.S. adults now say they have invested in, traded or otherwise used cryptocurrencies. “For years people almost thought of this as play money, and haven’t been so diligent about reporting it,” says Kelly Phillips Erb, a tax attorney and publisher of the site Taxgirl.com. “The IRS is
Tax tips for U.S. crypto investors Read More »
Due to tax law changes, individuals and businesses face significant uncertainty. It’s important to manage any changes so that you are best positioned for success throughout the rest of 2022 and beyond. Here are some topics we picked for you: State tax footprint: If you have employees, your company’s state tax footprint is the sum
2022 Tax Topics by KB CPA Services P.A. Read More »
The federal estate and gift tax exemption is set to climb to $12.06 million per individual for deaths occurring in 2022, up from $11.7 million in 2021, according to new Internal Revenue Service inflation-adjusted numbers. The gift tax annual exclusion amount will also rise starting 2022 to $16,000,up from $15,000 The IRS announced the new