Able-Wagner Tax

05/14/2024

$1 billion in tax refunds from 2020 expire soon

The IRS reminds 1 million people who didn’t file their tax year 2020 returns that they may be eligible for a refund if they file by the May 17 deadline.

12/23/2021

IRS issues standard mileage rates for 2022

58.5 cents per mile driven for business use, up 2.5 cents from the rate for 2021

18 cents per mile driven for medical purposes, up 2 cents from the rate for 2021

14 cents per mile driven in service of charitable organizations; the rate is set by statute and remains unchanged from 2021

12/23/2021

The IRS will issue information letters to Advance Child Tax Credit recipients starting in December and to recipients of the third round of the Economic Impact Payments at the end of January. Keep these letters to help prepare your 2021 federal tax returns in 2022. Using this information when preparing a tax return can reduce errors and delays in processing.

11/04/2021

IRS announces 2022 retirement plan contribution limits:

401(k), 403(b), 457 plans: $20,500 (up from $19,500)

401(k), 403(b), 457 plans for those age 50+: $27,000 (up from $26,000)

IRAs: $6,000 (unchanged)

IRAs for those age 50+: $7,000 (unchanged)

SIMPLE retirement accounts: $14,000 (up from $13,500)

SIMPLE retirement accounts for those age 50+: $17,000 (up from $16,500)

11/04/2021

2021 Charitable Contributions Deduction

Ordinarily, only taxpayers who itemize deductions may deduct charitable contributions on their federal tax returns. However, the CARES Act allows many people who do not itemize to claim a deduction for 2021 monetary donations to IRS-approved charities. Tax deductions lower a person’s tax bill by reducing taxable income.

In general, individuals who do not itemize deductions may deduct up to $300 ($600 for couples) for monetary donations made to qualifying charitable organizations in 2021. Qualifying organizations include many nonprofits dedicated to educational, religious, literary, and disaster and hunger relief activities.

07/13/2021

IRS readies nearly 4 million refunds for unemployment compensation overpayments

The IRS announced today it will issue another round of refunds this week to nearly 4 million taxpayers who overpaid their taxes on unemployment compensation received last year.

The American Rescue Plan Act of 2021, which became law in March, excluded up to $10,200 in 2020 unemployment compensation from taxable income calculations. The exclusion applied to individuals and married couples whose modified adjusted gross income was less than $150,000.

Refunds by direct deposit will begin July 14 and refunds by paper check will begin July 16. The IRS previously issued refunds related to unemployment compensation exclusion in May and June, and it will continue to issue refunds throughout the summer.

12/14/2020

Most taxpayers can deduct up to $300 in charitable contributions without itemizing deductions

Following tax law changes, cash donations of up to $300 made this year by December 31, 2020 are now deductible without having to itemize when people file their taxes in 2021.

This deduction lowers both adjusted gross income and taxable income – translating into tax savings for those making donations to qualifying tax-exempt organizations.

10/12/2020

IRS adds QR technology to balance due notices

WASHINGTON – For the first time, the IRS is adding barcode technology to notices sent to millions of taxpayers.

Starting this month, the CP14 and CP14 IA notices that inform taxpayers that they owe money on unpaid taxes and their payment options are now equipped with QR bar codes to help those taxpayers securely and easily navigate to the IRS.gov website.

08/18/2020

IRS: Unemployment compensation is taxable; Have tax withheld now and avoid a tax-time surprise

WASHINGTON – With millions of Americans receiving taxable unemployment compensation, the IRS today reminded people receiving unemployment compensation that they can have tax withheld from their benefits now to help avoid owing taxes on this income when they file their federal income tax return next year.

By law, unemployment compensation is taxable and must be reported on a 2020 federal income tax return.

Withholding is voluntary. Federal law allows any recipient to choose to have a flat 10% withheld from their benefits to cover part or all of their tax liability.

08/14/2020

IRS pending check payments

If you mailed the IRS a check, it may still be unopened in the backlog of mail the IRS is processing due to COVID-19.

Any payments will be posted as the date IRS received them rather than the date the agency processed them. To avoid penalties and interest, taxpayers should not cancel their checks and should ensure funds continue to be available so the IRS can process them.

Due to high call volumes, the IRS suggests waiting to contact the agency about any unprocessed paper payments still pending.

See www.irs.gov/payments for options to make payments other than by mail.

Pay your taxes, view your account or apply for a payment plan with the IRS.

07/27/2020

Attention teachers: Those school expenses might be tax deductible

School may look a little different this year, but eligible teachers and other educators can still deduct certain unreimbursed expenses on their tax return next year.

Who is considered an eligible educator:
The taxpayer must be a kindergarten through grade 12 teacher, instructor, counselor, principal or aide. They must also work at least 900 hours a school year in a school that provides elementary or secondary education as determined under state law.

Things to know about this deduction:
Educators can deduct up to $250 of trade or business expenses that were not reimbursed. As teachers prepare for the school year, they should remember to keep receipts after making any purchase to support claiming this deduction.

Examples of expenses the educator can deduct include:
• Professional development course fees
• Books
• Supplies
• Computer equipment, including related software and services
• Other equipment and materials used in the classroom