The Tax Place

10/18/2023

IRS tax income brackets for 2023

The IRS has released tax brackets and new standard deductions for 2023 and, like most things, inflation is having an impact on the numbers.

04/12/2023

Entrepreneurs frequently fall into the trap of purchasing costly equipment solely for the purpose of obtaining a tax write-off. While this strategy may be reasonable if the equipment is genuinely necessary for business operations, it is imprudent to acquire something that is not needed just for the tax deduction, particularly if you are a new entrepreneur with little to no income.

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03/22/2023

Welcome to Tee - Socks

03/22/2023

Tax Tip: Filing separately to guard the future

When you don't want to be liable for your partner's tax bill, choosing the married-filing-separately status offers financial protection: the IRS won't apply your refund to your spouse's balance due. Separate returns make sense to prevent the IRS from seizing a spouse's tax refund when the other has fallen behind on child support payments.

Couples in the process of divorcing may shun joint returns to avoid post-divorce complications with the IRS, while a spouse who questions her partner's tax ethics may feel more comfortable living a separate tax life.

Couples living in community-property states should consider state law when deciding how to file.

02/10/2023

01/29/2023

Tax tip: Say goodbye to pandemic-era tax credits

The last two years included temporary changes to the tax code as a response to the pandemic and the economic havoc it wrought. In the 2022 tax year, many of those tax breaks expired.

01/29/2023

Tax Tip: The amounts of the Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and the Child and Dependent Care Credit return to pre-COVID levels.
EITC CTC 2023 Filing Season
The enhanced CTC was not extended and returns to $2,000 per child dependent for the 2022 tax year, down from $3,600 last year. The other big change to the CTC is that it’s no longer refundable. That means taxpayers won’t receive the full credit if it’s larger than the tax they owe.

The maximum amount that single filers with no children can get from the EITC is $500, down from $1,500 last year when the credit’s income thresholds were temporarily expanded.

Similarly, the Child and Dependent Care credit — which includes out-of-pocket expenses for child care and day camps — is worth up to $2,100 for the 2022 tax year, down from $8,000 for the 2021 tax year.

01/29/2023

Tax Tip: Charitable deductions must be itemized

For taxpayers this year filing their 2022 tax returns, any charitable contributions must be itemized using the Schedule A form to get a deduction. That’s a big change from the last two years when the IRS offered an above-the-line deduction for contributions.

In 2020 the CARES Act allowed single filers and married couples filing jointly to deduct up to $300 in charitable donations without having to itemize their return. Married filing separately taxpayers could deduct up to $150. In 2021, the deduction was expanded, with single filers and those married filing separately getting up to $300 and joint filers deducting up to $600.

01/24/2023

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01/18/2023

Tax Tip:
January 23: The IRS begins 2023 tax season and starts accepting and processing individual 2022 tax returns.

01/18/2023

Tax Tip:
While the IRS will begin accepting returns Jan. 23, the IRS cannot issue a refund that includes the Earned Income Tax Credit or Additional Child Tax Credit before mid-February. Most EITC/ACTC filers will receive an updated status by Feb. 18 on the IRS Where is my Refund site. The IRS expects most EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards by Feb. 28 if taxpayers chose direct deposit and there are no other issues with their tax return.